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SkyStick

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This project allows buyers to save them time and money, and small firms overcome imperfect competition. We are looking for investment.

This project allows buyers to save them time and money, and small firms overcome imperfect competition. We are looking for investment.

Published in: Services, Business, Technology

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  • 1. Your money & time SkyStick© 2014 Artyom Nikashin / Nikolay Markov
  • 2. Sky Stick© 2014 BUYERS Have MONEY Customer Problem 1 Looking for goods and services Yandex, Google etc. Online Shops Big Retail stores Do you know that you can save up to 50% only on the correct choice of seller? High opportunity costs (waste of Money) Wasting Time
  • 3. Local vendor (seller) Have Goods and Services Customer Problem 2 Looking for buyers Yandex.Direct, Adwords etc. Billboard Advertising Press Advertising Large market players BUYERS Have MONEY ?
  • 4. Team Artem Nikashin - Chief Executive Officer Economist, Mirax Group (Federation tower) Development Manager, Portal Group Nikolay Markov - Chief technology officer Software Engineer, Mirantis Software Engineer, Mail.Ru Group Advisors Mikhail Sychev – Key Advisor Chief technology officer, Apartama Software Engineer, YouTube Evgeniy Kirpichov – Key Advisor Senior Software Engineer, Mirantis Senior Software Engineer on BigData, Google The team has the background, proven track record and vision to succeed
  • 5. BUYERS VENDORS How we solve it? SkyStick We connect buyers with vendors Large players of the market Write what you want to buy or order Enter the dates, type of delivery Stick your sticker! Sign in SkyStick Select the category of you goods and services Look at stickers and start to invoice Compare and order! Sell!
  • 6. Market Size Russia CIS USA Latin America Europe Asian States 1,68 Million Prospective SkyStick’s Users 48% of target demographic 3,5 Million Sole Traders Over 15000 stores 100 Million Prospective SkyStick’s Lots Goods and Services VENDORS $7,2 RPU per month $ 0,25 income from item per month $445 Million Total Addressable Market Opportunity
  • 7. Competitors Key competitor: None Potential Entrants SkyStick Comp. Advantages • New service model • Compelling AI-based auto- sorting • Easy and intuitive user interface SkyStick’s Defensibility • High services switching cost • The cream off • Integration partnerships (future) Develop simple, easy-to-use service to cater mainstream Pikaba.com – died - the society was not ready - expensive paid accounts - non-flexible sorting system - incomplete coverage
  • 8. Competitive Response Yandex SkyStick Attempts to copy SkyStick’s service and business model Leverages brand name and market reach Extensive experience Enforce patent protection of proprietary technology Satisfied users have little incentive to switch Highly experienced advisors and brainstorming Delays Yandex market entry User base save No advantage Result DEFENSIBILITY
  • 9. Value to User (Buyer) SkyStick Bulletin boards (Avito etc.) Markets (Yandex market etc.) «Natural» store (not online Shop) Easetouse Friendly UI, semantic system of sorting, attaching the lists and files No system reviews; profitable goods in a conspicuous place System reviews; convenient filters; no direct contact with a seller Limited range of goods; direct contact with a seller Potential savings Full prices are easily compared Prices comparison only on call; a big waste of time looking Prices are not always valid; small range in some segments Comparison is expensive (time&money) Target segment Local markets of goods and services Sales second hand goods; easiest C2C interaction Federal scale, online shopping; shallow penetration in the regions Retail trade of certain goods SkyStick offers the most compelling and easy way to find goods
  • 10. Value to User (Vendor) SkyStick Bulletin boards (Avito etc.) Markets (Yandex market etc.) «Natural» store (not online Shop) Easetouse Friendly UI, direct contact with the buyers Constant updating of ads is needed; unsuitable for sale of new goods It is difficult to add information and maintaining its relevance More habitual for men, high competition Costs Low cost, target requests Free ads are not effective; high cost of advertising Highest price invoicing and advertising products High fixed costs Benefits Saving money on advertising; closer to perfect competition Free posting of ads Additional sales channel mainly for Internet shops The usual way of trading SkyStick is the indispensable tool for business
  • 11. By Year End 2014E 2015E 2016E 2017E 2018E Paid accounts (thousands) 50 250 750 1125 1631,3 Number of goods (millions) 3 15 45 67,5 97,88 Growth Rate 1000% 400% 200% 50% 45% Annual Revenue 13,32 66,60 199,80 299,70 434,57 EBITDA ($ M) 0,67 4,00 17,98 32,97 47,80 EBITDA Margin 5% 6% 9% 11% 11% EBIT ($ M) 0,40 2,66 11,99 20,98 30,42 EBIT Margin 3% 4% 6% 7% 7% Financial model and Projections $0,40 $3,20 $19,18 $44,76 $67,13 $11,99 $20,98 $30,42 $6,39 $8,95 $9,40 2014E 2015E 2016E 2017E 2018E EBIT Best (millions) Base (millions) Worst (millions) SkyStick will make for a lucrative investment even conservative projections Assumptions Investment: $7,5m Stake: 15% Hurdle rate:15% IRR of 72% Sale or IPO at 2,5x 2018 Revenue
  • 12. By Year End 2014E 2015E 2016E 2017E 2018E Paid accounts (thousands) 50 250 750 1125 1631,3 Number of goods (millions) 3 15 45 67,5 97,88 Growth Rate 1000% 400% 200% 50% 45% Annual Revenue 13,32 66,60 199,80 299,70 434,57 EBITDA ($ M) 0,67 4,00 17,98 32,97 47,80 EBITDA Margin 5% 6% 9% 11% 11% EBIT ($ M) 0,40 2,66 11,99 20,98 30,42 EBIT Margin 3% 4% 6% 7% 7% Growth Assumptions 2014E 2015E 2016E 2017E 2018E Best Case 1000% 500% 300% 100% 50% Base Case 1000% 400% 200% 50% 45% Worst Case 1000% 300% 100% 20% 5% EBIT 2014E 2015E 2016E 2017E 2018E Best (millions) $0,40 $3,20 $19,18 $44,76 $67,13 Base (millions) $0,40 $2,66 $11,99 $20,98 $30,42 Worst (millions) $0,40 $2,13 $6,39 $8,95 $9,40 NPV&IRR Calculation 2014E 2015E 2016E 2017E 2018E SALE $ M -$7,50 $0,06 $0,40 $1,80 $3,15 $4,56 $162,96 NPV @15% $59,62 IRR 72% represents 15% stake Financial model
  • 13. Product Status: active development Preliminary development tools: PostgreSQL
  • 14. User Acquisition Prototyping Launch Growth Maturity #Internet advertising #Buzz marketing #PR tactics #SEO #Events #Viral videos #Blogosphere We satisfy the requirements of our customers through enhanced new model
  • 15. How the proceeds will be used Salary 22% Marketing 43% Office maintenance 8% Office equipment 4% Consultancy 6% Servers 17% Capital Salary Marketing Office maintenance Office equipment Consultancy Servers
  • 16. Company Vision Geographical development: -Russia and CIS countries; -USA and Canada -Latin America -Europe -Asian States Application development for mobile devices: -iOS (iPhone, iPad) -Google Android -Window phone -others BIG DATA: -Data Mining -Machine Learning -adaptive & intelligent search the easiest way of shopping the simplest way of sales one-of-a-kind
  • 17. Contacts: nikashinai@gmail.com facebook.com/Nikashin