Pitch deck 5.95
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Pitch deck 5.95

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  • I’m Kristy Schultz; I graduated from HBS in 2007. My co-founder Cory is graduating from London Business school this year. We’ve started threeDegrees
  • CO: Likewise, the funding that’s occurring in the startup market is imbalanced.53% of funding is currently invested in businesses founded in the San Francisco area. 11% is invested in Boston, and 7% in New York. When you look at the types of businesses receiving this funding, 66% is invested in tech startups, Saas businesses, and biopharmaceuticals. If you’re not starting a business in one of these regions or industries, good luck.
  • CO: Likewise, the funding that’s occurring in the startup market is imbalanced.53% of funding is currently invested in businesses founded in the San Francisco area. 11% is invested in Boston, and 7% in New York. When you look at the types of businesses receiving this funding, 66% is invested in tech startups, Saas businesses, and biopharmaceuticals. If you’re not starting a business in one of these regions or industries, good luck.
  • CO: Likewise, the funding that’s occurring in the startup market is imbalanced.53% of funding is currently invested in businesses founded in the San Francisco area. 11% is invested in Boston, and 7% in New York. When you look at the types of businesses receiving this funding, 66% is invested in tech startups, Saas businesses, and biopharmaceuticals. If you’re not starting a business in one of these regions or industries, good luck.
  • CO: Likewise, the funding that’s occurring in the startup market is imbalanced.53% of funding is currently invested in businesses founded in the San Francisco area. 11% is invested in Boston, and 7% in New York. When you look at the types of businesses receiving this funding, 66% is invested in tech startups, Saas businesses, and biopharmaceuticals. If you’re not starting a business in one of these regions or industries, good luck.
  • CO: Likewise, the funding that’s occurring in the startup market is imbalanced.53% of funding is currently invested in businesses founded in the San Francisco area. 11% is invested in Boston, and 7% in New York. When you look at the types of businesses receiving this funding, 66% is invested in tech startups, Saas businesses, and biopharmaceuticals. If you’re not starting a business in one of these regions or industries, good luck.
  • CO: Likewise, the funding that’s occurring in the startup market is imbalanced.53% of funding is currently invested in businesses founded in the San Francisco area. 11% is invested in Boston, and 7% in New York. When you look at the types of businesses receiving this funding, 66% is invested in tech startups, Saas businesses, and biopharmaceuticals. If you’re not starting a business in one of these regions or industries, good luck.
  • CO: Likewise, the funding that’s occurring in the startup market is imbalanced.53% of funding is currently invested in businesses founded in the San Francisco area. 11% is invested in Boston, and 7% in New York. When you look at the types of businesses receiving this funding, 66% is invested in tech startups, Saas businesses, and biopharmaceuticals. If you’re not starting a business in one of these regions or industries, good luck.
  • CO: Likewise, the funding that’s occurring in the startup market is imbalanced.53% of funding is currently invested in businesses founded in the San Francisco area. 11% is invested in Boston, and 7% in New York. When you look at the types of businesses receiving this funding, 66% is invested in tech startups, Saas businesses, and biopharmaceuticals. If you’re not starting a business in one of these regions or industries, good luck.
  • CO: Likewise, the funding that’s occurring in the startup market is imbalanced.53% of funding is currently invested in businesses founded in the San Francisco area. 11% is invested in Boston, and 7% in New York. When you look at the types of businesses receiving this funding, 66% is invested in tech startups, Saas businesses, and biopharmaceuticals. If you’re not starting a business in one of these regions or industries, good luck.
  • I’m Kristy Schultz; I graduated from HBS in 2007. My co-founder Cory is graduating from London Business school this year. We’ve started threeDegrees

Pitch deck 5.95 Pitch deck 5.95 Presentation Transcript

  • online angel investing within trusted professional networks Kristy Schultz | Cory Oliver 2013 1
  • Team Kristy Schultz | BD & Marketing • 11 years marketing experience, including 6 years advising distressed businesses • Harvard Business School MBA • HBS Alumni Angels NY Deal Committee, HBS Club of NYC, HBS FIELD 3 Alumni Advisor Cory Oliver | Ops & Finance • 6 years consulting in high-urgency situations: turnaround, private equity, M&A, startups • London Business School MBA • BS in mechanical engineering © threeDegrees 2013 CONFIDENTIAL 2
  • Startup funding is inefficient Investors Startups 8.7M households qualify to invest Fewer than 300k are active angels 18% 53% Venture capital dollars invested by geography, 2012 “Dormant Angels” • 96%+ of qualified individuals do not invest in startups, though many would like to • 70% of investment concentrated in entrepreneurship hub cities • More than 60% invested in three industries: software, IT services, and biotech • Fundraising takes 3-9 months of valuable time Sources: (1) Securities Exchange Commission, (2) Center for Venture Research, University of New Hampshire (3) “VC Investments Q1 13- MoneyTreeNational Data,” National Venture Capital Association, nvca.org. 10 June 2013 © threeDegrees 2013 CONFIDENTIAL 3
  • Investors and startups need a better option Investors want… • More efficient due diligence process • Access to high-quality, trusted startups • Lower minimum investments (currently $25-100k) Startups want… • Access to investors anywhere in the US • Fundraising made easier, shorter, and less expensive • Supportive investors with value-add connections Source: 2012 threeDegrees survey of HBS alumni who qualify but do not invest in startups. Largest barriers to investment cited were 1) lack of time to vet deals, 2) lack of dealflow and 3) aversion to investing $25K per company © threeDegrees 2013 CONFIDENTIAL 4
  • threeDegrees is the solution threeDegrees is an online angel investing platform that uses the power of elite professional networks to connect startups and investors Powerful Networks • Only open to startups affiliated with trusted professional networks, starting with the elite MBA communities • Allows individuals to invest in and alongside people they know • Limited to accredited investors Exclusively Online • Deals from any geography or industry • Real-time communication and document management reduces time and cost for both sides Collaborative & Transparent • Collaborative diligence leverages the collective experience of many investors • Public Q&A and accreditation certification increase transparency and trust • More investors means decreased investment minimums: as low as $1k © threeDegrees 2013 CONFIDENTIAL 5
  • Online convenience, offline exclusivity We combine the transparency and convenience of online investing with the exclusivity, privacy, and trust of angel clubs Offline Private Networks Online Local Angel Clubs Accelerators Public Networks Competitions Pitching Events © threeDegrees 2013 Crowdfunding Platforms CONFIDENTIAL 6
  • Angel investing: $23B annually and growing Dormant Angels—8 million individuals who qualify to invest but choose not to— could add an additional $43-$87 billion following recent regulatory changes* POTENTIAL FOR EXPANSION CURRENT MARKET $23B Annual capital invested * Title II of the JOBS Act by active angel allows issuers of securities to investors advertise publicly to previously inactive investors **Assumes average of $5-10k invested annually per qualified household; estimate based on threeDegrees survey data ***Total capital raised under Rule 506 in 2012 by operating Total funds raised through private companies. If pooled investment companies are placements*** included, the total increases to approximately $800B Sources: (1) Center for Venture Research, University of New Hampshire. (2) SEC. (3) 2012 threeDegrees survey of HBS alumni who qualify as accredited but do not invest in startups. $43-$87B Investing capacity of “dormant angels”** $170B © threeDegrees 2013 CONFIDENTIAL 7
  • Two methods of monetization We have increasing options to monetize the business as we scale Immediately 1 Monetize the Transaction Later Transaction services (Monthly membership fee for premium services, such as investor accreditation verification) Cut of capital / Carried interest (transaction fee paid in cash, or percentage of proceeds in liquidity event) Additional services (expansion to secondary investments, new asset classes) 2 Monetize the Network Business services (referral fees for connecting funded startups with service providers) Talent (listing and placement fees for connecting funded startups with talent) © threeDegrees 2013 CONFIDENTIAL 8
  • Launch We launched our beta test on November 5th and are seeing excellent results Six participating 364 investors startups founded by top-tier MBAs personally invited by startups $45k in new funding commitments made in first 6 days • Recruited startups from Harvard, Kellogg, NYU, and Columbia, including TechStars 2013 alum • Startups invited 364 investors, an average of 60 investors each • 73 new investors registered; total investor base now 130 including pre-launch registrations • Recorded $45k in new capital commitments in first six days through threeDegrees (on top of $510k aggregate previous commitments) • Campaign currently underway to educate and further engage investors, with 60-120 days remaining in fundraising round for each beta startup © threeDegrees 2013 CONFIDENTIAL 9
  • Launch Most importantly, our acquisition funnel demonstrates the power of personal and professional networks Investor acquisition yields far exceed benchmarks 364 personal invitations emailed for beta launch 63% 23% 20% Open Rate Click Rate Signup Rate 73 new investor registrations + Strong WOM/referral potential for startup acquisition 6 startups participating in beta send invitations to their networks + 150% 9 unsolicited registrations by qualified MBAfounded startups *All rates calculated as % of total invitations sent © threeDegrees 2013 CONFIDENTIAL 10
  • Milestones & rollout plan Q1 2013 Developed business plan & alpha site Q2 2013 HBS New Venture Competition regional finalist Q3 2014 Founders full-time on threeDegrees; beta site completed Q4 2013 Invitation-only beta test launched on Nov 5 Q1 2014 Redesign platform for scalability and expand monetization mechanisms, soft launch across top 15 business schools Q3 2014+ Full launch; expand to other elite networks; hire tech & legal leads © threeDegrees 2013 CONFIDENTIAL 11
  • Kristy Schultz kristy@threedegrees.com (c) 917.476.1908 © threeDegrees 2013 Cory Oliver cory@threedegrees.com (c) 713.969.8024 CONFIDENTIAL 12