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    Polygen CompTool Presentation Polygen CompTool Presentation Presentation Transcript

    • 1
    • Mission Statement POLYGEN will be the market leader in Big Data for the Green Products Industry by providing quantifiable information to support Green Procurement and Corporate Social Responsibility Initiatives 2
    • Initial Sustainability Efforts Initial Sustainability efforts placed emphasis on Recycling Initiatives and Operational Efficiency Programs which delivered measurable results 3
    • Growth of Sustainability Reporting Companies, organizations, and the individual consumer are improving their environmental footprint and reporting their efforts Corporate Social Responsibility Reporting Statistics 2/3 of Fortune 500 Companies 2000 Companies in North America 4
    • Growth of Green Products & Services Small Business Green Products and Services Statistics (Green America, Association for Enterprise Opportunity, Ecoventures International, “The Big Green Opportunity for Small Business in the U.S.”, 2013) Indirect Increase in revenue based on Green Behavior 75% saw an increase in sales (20082011) 75% plan to expand their portfolio of offerings 79% strongly agree they offer a competitive advantage Companies [we surveyed] reported that they can charge an average 19 percent premium for sustainable products and services.” “ (Accenture, “Long-Term Growth, Short-Term Differentiation and Profits from Sustainable Products and Services,” 2012) 5
    • The Informed Consumer The availability of information is driven by Consumer Demand and Technology McDonalds: 14,000 locations across the US will voluntarily post calorie information on restaurant and drive-thru menus Jan Fields, president of McDonald's USA: "We believe it will help educate customers. I do think people feel better knowing this information." Zillow: An Online database of more than 110 million U.S. homes including: homes for sale, homes for rent, and homes not currently on the market Goal: Empower consumers with information and tools to make smart decisions Kayak: A travel meta search engine Goal: Enable the consumer to compare hundreds of travel sites at once in one comprehensive, fast, and intuitive display With full information the consumer can see through marketing schemes and purchase the highest quality offering at the most reasonable price 6
    • Greenwashing There are over 400 Green Labels and 3rd party rating systems How do you clear through all the noise? 7
    • Consumer Confusion Purchasers are still misinformed about green products and make 3 general assumptions: Price • Green products cost more Performance • There is a lose in performance Impact • The environmental impact is negligible 8
    • Consumer Trend A majority of consumers would purchase more green products if they: • Had a better understanding of what makes products Green • Could see the social & environmental benefits of the products right away • Believed the health and environmental claims Industry Feedback:  “Our Sales Team is asked daily about the environmental impact of green products”  “Looking for a Turnkey Solution” RE:THINKING CONSUMPTION Consumers and the Future of Sustainability ©2012 All rights reserved BBMG, GlobeScan, SustainAbility 9
    • CompTool Offering A platform which provides the user with:  Side by Side Product Comparison  Quantitative Information from an environmental and cost perspective  Analytics around market trends within verticals  Self reporting capabilities Providing this information allows the user to make informed business decisions 10
    • Revenue Model: PaaS No company aggregates data to provide the quantitative environmental impact Sales Tool MRO & Big Box Retail • Subscription Fees with upgrades: • Sustainability Reporting ⁻ Self Reporting • Data/Analytics ⁻ ⁻ ⁻ Impact by Product Group Estimated Price of Impact Market Trends • Affiliate Programs Procurement Tool Corporations & Government Entities 11
    • CompTool Market Strategy • Marketing Channels:  Direct Sales  Online Marketing Campaign  Third Party Affiliates CompTool Final Offering • Additional Focus:  Value Add within Strategic Partners Offering Strategic Partners Offering 12
    • CompTool Status Database / Verticals Channels • Through a Strategic Partnership with • 45,000 products within:     Lighting Material Handling Cleaning Supplies Paint 13
    • CompTool Screen Shot: Grainger 14
    • CompTool Screen Shot: Grainger 15
    • Product Analysis: Grainger 6,021 Total Products 1,049 Green Products 16
    • Analytics: Lighting Category Complete Lighting Product Bar Chart 2,593 Lighting Products 907 Green Lighting Products 17
    • Analytics: Linear Fluorescent 515 Linear Fluorescent Products Non Green vs. Green Product Price Comparison (Sample Size of 30 Products) Non Green vs. Green Product Environmental Comparison 18
    • Product Comparison: Linear Fluorescent T12 T8 Manufacturer GE GE Product Part # F40XL/SP41/ECO F28T8XLSPX30ECO Price Per Unit $8.66 $12.25 Green Environmental Attribute Useful Life Price Comparison over Useful Life Watts Product Contributes To Reducing Energy Consumption 24,000 Hours 42,000 Hours $17.32 $12.25 40 28 19
    • POLYGEN P3: Environmental Comparison Environmental Impact: T12 vs. T8  Please note: Comparisons calculations use a baseline average useful life of 24,000 hours  Alternate Product has a 66% longer useful life  Units of Measure o CO2 Emissions - LBS o Electricity - kWh o Oil – Barrels (BBL) Overall Environmental Impact  30% reduction in CO2 Emissions, Energy Usage, and Barrels of Oil 20
    • POLYGEN P3: Everyday Comparison Environmental Impact: T12 vs. T8  Please note: Comparisons use a baseline average useful life of 24,000 hours for calculations  Units of Measure o Miles Driven o Trees needed to Sequester CO2 o Homes Powered Overall Environmental Impact  30% reduction in Miles Driven, Trees Required to Sequester CO2, and Homes Powered 21
    • Beta Development • Project Scope- 6 Months  Platform Design • Dashboard/User Functionality • Analytics • Reporting  Implementation  Testing  Maintenance • Additional Scope  Increase Database • Additional Verticals • Additional Channels 22
    • Funding Requirements Seed Round - CompTool Development/Customer Acquisition • Use of Funds  Beta Development- $200,000  Marketing - $72,000  Operating- $54,000 • Total - $326,000  • Sales See appendix for breakdown Operating Development Key Personal with Focus on:  Why will Customer Pay for Product  Creation of Product Customer will pay for 23
    • 24 Month Milestones POLYGEN CompTool Beta Platform… 6 Months Sales Contract #1 Signed 3 Months Procurement Contract… 3 Months CompTool Launch 1 Month Product Roll Out $ 6 Months Customer Acquistion On Going Product Development On Going 0 3 Revenue generated Series A Funding- $1.5MM 6 9 12 15 18 21 24 Ramp Up-Additional Developers, Sales Staff, Marketing, Operating 24
    • Exit Strategy Two Potential Exit Strategies: • Acquisition by Strategic Partner, Customer or Technology Company  Corporations may see POLYGEN as a value add to current offering  MRO, Large & Mid Cap Tech Firm, Procurement Software Company • Initial Public Offering  POLYGEN will explore this option once the company generates revenue to justify offering 25
    • Contact Information Jason Hancock Matt Stawiarski (224) 717 – 4686 (847) 757 – 6210 jhancock@polygeninc.com mstawiarski@polygeninc.com Website: www.polygeninc.com 26
    • Appendix 1. 2. 3. 4. 5. 6. 7. 8. 9. Market Statistics (p. 28) Competitive Landscape (p. 29-32) CompTool: Additional Benefits (p. 33) Risks (p. 34-35) Seed Funding Burn Scenarios (p. 36) Why are we raising money? (p. 37-38) Subscription Model (p. 39-40) Revenue Projections (p. 41-44) CAC Projections (p. 45-46) 27
    • Market Statistics • Lifestyle of Health and Sustainability consumer has grown to over $300 billion in buying power • Green Building market (2013) $96 - $130 Billion • Per Transparency Market Research, Global Green Packaging market was $109 billion in (2011) and expected to grow at a CAGR of 7.6% from 2013 to 2018 • Per The Freedonia Group, World demand for green packaging - including recycled-content, reusable and degradable packaging - is projected to rise 5.7% per year to US$212 billion in 2015 • Per Markets and Markets, Global Green Solvents and Bio Solvents market (2012) was $4.0 billion and is estimated to reach $6.5 billion by 2018, growing at a CAGR of 8.5% from 2013 to 2018 • In a joint study with McKinsey & Co. on the (Sustainability software) market, SAP predicted the market for SAP’s solutions would be worth as much as a total of 7.5 billion euros between 2009 and 2014. • Wikibon forecast the Big Data market will grow at an astounding CAGR of 58% between now and 2017, hitting the $50 billion within five years. 28
    • Competitive Landscape • Current participants:   Green Certification and Labeling Organizations Green Rating Systems Green Labels Rating Systems 29
    • EPEAT Label Description: • EPEAT is an online rating tool helping institutional purchasers select and compare computer desktops, laptops and monitors based on product criteria. • EPEAT was developed in response to growing demand by institutional purchasers for an easy-to-use evaluation tool enabling them to compare electronic products based on environmental performance, in addition to cost and performance considerations. • Over 3,000 registered products Criteria: Ratings: 4.1 Reduction/elimination of environmentally sensitive materials 4.2 Materials selection 4.3 Design for end of life 4.4 Product longevity/life cycle extension 4.5 Energy conservation 4.6 End of life management 4.7 Corporate performance 4.8 Packaging http://www.epeat.net/ 30
    • Green Seal Label Description: • Third-party organization offering life cycle-based sustainability certifications for products, services and companies that meet Green Seal standards • Green Seal has 31 issued standards that cover over 375 product and service categories Products: • Household • Construction Materials • Paint • Paper • Food Packaging • Cleaning Products • Personal Care http://www.greenseal.org 31
    • GoodGuide • GoodGuide rates products based on the health, environmental, and social performance of products and companies to help consumers make purchasing decisions Rating System: • GoodGuide's summary rating combines product and company level information to characterize a product's health, environmental and social impacts. • The best products rate 8 or above; the worst rate 4 or below • Health, Environment and Society individually rated as ‘Sub Scores’ Product Categories: • Personal Care • Food • Household • Babies and Kids • Pet Food • Apparel • Cars http://www.goodguide.com/ 32
    • CompTool: Additional Benefits Sales: • • • • New revenue stream with reporting capability Increase price competitiveness Indirect increase in sales through improved green behavior Utilization of the CompTool’s procurement function to report on purchasing Procurement: • Indirect increase in revenue based on green behavior • Potential savings around price comparison • Savings around self reporting environmental impact 33
    • Risk Factors Tool & Technology Can POLYGEN develop the tool with the necessary functionality for customer use & satisfaction? POLYGEN has developed the foundation of the CompTool with the initial integration of Grainger lighting and material handling products in the CompTool platform. Similar integration is expected around additional sales channels and product verticals currently being aggregated. Does the CompTool deliver accurate information on price and environmental impact? The key data points such as price, material content, and weight are aggregated by Market Track and filtered through our CompTool’s formulas and backend analytics to provide the environmental impact and market trends. Our analytics for the environmental impact are derived from industry leaders in Life Cycle analysis, international manufacturing trade associates, and government research agencies. Market Will customers pay for the CompTool? Our market research indicates a gap within the green products market, specific to the environmental impact of green labeled products. Potential users of the CompTool have indicated their demand for a turnkey solution to address this issue. The growth in the Big Data industry illustrates the markets willingness to pay for similar information. 34
    • Risk Factors Competition Will Good Guide or other market participants present quantitative information? Good Guide’s current methodology and business model revolve around providing the consumer with a rating on each product within their database. POLYGEN’s methodology revolves around providing the user with quantitative information to a) come to their own conclusion by comparing products side by side taking environmental impact and price into consideration b) provide measurable impact reports to include within their CSR Reports. Team Can the POLYGEN team deliver a commercial product and effectively take that product to market? POLYGEN has successfully built the foundation of the CompTool and partnered with industry leaders to support our efforts. Funding Will POLYGEN be able to obtain the funds needed for further development and launch? POLYGEN believes by developing it’s MVP (basic platform, robust database with industry leading supply channels, and high volume products within the green products category) and mitigating as much risk as possible we will be able to obtain funding at the right valuation to successfully launch the CompTool and provide the necessary ROI for its seed round participants. 35
    • Seed Funding: Burn Scenarios Assumptions: • • • • Total Seed Funding: $326,000 Monthly Operating: $3,000 Monthly Marketing Burn: $4,000 Development: 3 Payments 9 Months 18 Months *Tool Development $99,000 $200,000 Operating $27,000 $54,000 Marketing $36,000 $72,000 Total Operating $162,000 $326,000 Dry Powder $164,000 Total $326,000 Expenses *Subject to adjustments dependent on Phase 1 Design (Month 1-3) $326,000 36
    • Why are we raising money? 1. Why are you raising money? POLYGEN identified a void of quantitative information around the environmental impact of green products . Research and market feedback validated the need for a solution leading to the initial development of the CompTool 2. What would you use the money for? Beta Development of the CompTool Platform and initial customer acquisition…getting in the door, generating product awareness. Key Personnel acquisitions specifically… Developer/Development Team /CTO 3. What are your goals as founders? How will raising money impact these goals? Our primary goal is developing a product that we can take to market. With a team that shares our goals and business ethics. Raising capital allows us to accomplish these goal. 37
    • Why are we raising money? 4. What milestone will the funding get you to? Will this milestone lead to either (a) breakeven or (b) another round of financing where the value of your company higher than the previous round. Key Milestones: Identify Product Development Team, Development of Product, Customer Acquisition, Revenue Generation. Leads to Series A round (est. $1.5MM) to launch the product, expand personnel and marketing efforts 5. How are other companies in the industry capitalized and what implications if any does this have for you? Following the roadmap of MVP development, traction and ramp up. Food Genius : $3.6MM over the course of 2 years 6. What is the macro-economic climate? Is the economy growing/shrinking and what will it be doing in six months? US Equity indices are at all-time highs. At the micro level within the green products and services market research points to growth within the industry. Additional government mandates may positively influence this sector. 38
    • Subscription Model: Sales Tool Sales Tool Features Level - 1 Compare Product (Enviro) Compare Prices Level - 2 Compare Product (Enviro) Compare Prices Reporting Level - 3 Compare Product (Enviro) Compare Prices Reporting Data Analytics # of Users 1 to 10 # of Users 1 to 10 # of Users 1 to 10 Per Year Per Month Price $150,000 $12,500 Price $170,000 $14,167 Price $220,000 $18,333 Average User Fee *Additional Users $15,000 $11,250 $17,000 $12,750 $22,000 $16,500 *Additional User Fee discounted @ 25% 39
    • Subscription Model: Procurement Tool Procurement Tool Features Level - 1 Compare Product (Enviro) Compare Prices Level - 2 Compare Product (Enviro) Compare Prices Reporting Level - 3 Compare Product (Enviro) Compare Prices Reporting Data Analytics # of Users 1 to 10 # of Users 1 to 10 # of Users 1 to 10 Per Year Per Month Price $15,000 $1,250 Price $17,000 $1,417 Price $22,000 $1,833 Average User Fee *Additional Users $1,500 $1,125 $1,700 $1,275 $2,200 $1,650 *Additional User Fee discounted @ 25% 40
    • Revenue Projections: Sales Tool Year1 Rate Addition Fee Fee Retention 40% *$ 170,000 Churn 2 $ 300,000 10% Total Clients Total Revenue Year 4 Year 5 **$ 220,000 User Revenue Users Revenue Users Revenue 4 $600,000 6 $900,000 3 $450,000 $150,000 3 $450,000 6 $900,000 1 $ 150,000 50% $ 150,000 Upgrade 1 Revenue Users Revenue Year 3 1 $ 150,000 Users Year 2 $170,000 2 $390,000 5 $1,000,000 0 1 $ 150,000 % Revenue Growth (Year to Year) *$170,000 represents Level 2 Subscription Fee **$220,000 represents Level 3 Subscription Fee -1 6 2 -1 11 14 $ 300,000 $920,000 $1,740,000 $2,350,000 200% 307% 189% 135% 41
    • Revenue Projections: Procurement Tool Year 1 Rate Addition Fee $ 15,000 Retention 50% $ 40% *$ Churn 10% Total Clients Year 3 Users Revenue Users Revenue Users Revenue 15,000 Upgrade Fee Year 2 1 $ 15,000 10 $ 150,000 Year 4 Users Year 5 Revenue Users 50 $750,000 450 5 $75,000 30 $450,000 255 $3,825,000 4 17,000 **$ 22,000 $6,750,000 330 Revenue $78,000 24 $468,000 204 $3,978,000 -1 1 Total % Revenue Growth (Year to Year) *$17,000 represents Level 2 Subscription Fee **$20,000 represents Level 3 Subscription Fee $ 15,000 -51 59 10 -6 504 $4,950,000 789 $ 150,000 $903,000 $7,668,000 $12,753,000 1000% 602% 849% 166% 42
    • Revenue Projections: Affiliate Fees Year 1 Year 2 Year 3 Year 4 Year 5 1 10 59 504 789 $25,000 $25,000 $250,000 $1,475,000 $12,600,000 $19,725,000 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% $750 $7,500 $44,250 $378,000 $591,750 Users Average Procurement $ Affiliate % POLYGEN REV 43
    • Revenue Projections: Consolidated Year 1 $150,000 $ 300,000 $920,000 $1,740,000 $2,350,000 200% 307% 189% 135% $150,000 $903,000 $7,668,000 $12,753,000 1000% 602% 849% 166% $7,500 $44,250 $378,000 $591,750 1000% 590% 854% 157% $457,500 $1,867,250 $9,786,000 $15,694,750 277% Sales Tool Total Revenue Year 2 408% 524% 160% % Growth (Year to Year) Procurement Tool Total Revenue $15,000 % Growth (Year to Year) Affiliate Fee Revenue $750 % Growth (Year to Year) Total Revenue $165,750 % Growth (Year to Year) Year 3 Year 4 Year 5 5 Year Revenue Projections $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Yearly Revenue Projections 1 2 3 4 5 44
    • CAC: Sales Tool Revenue Assumptions: Cost Assumptions: Sales MMR Subscription Term (Month) LTV Max CAC (1/3) Ideal CAC (1/5) $12,500 24 $300,000 $100,000 $60,000 Salary (Sales) Marketing Overhead Commission Commission in $ $50,000 $15,000 $5,000 7.5% $22,500 CAC Assumptions: Cost Direct Sales Audience Conversion Rate Conversion CAC LTV Rate $87,501 20 5% 1 $87,501 $300,000 29% 45
    • CAC: Procurement Tool Revenue Assumptions: Google AdWords Assumptions: Procurement (MMR) $1,250 Subscription Term (Month) 24 LTV $30,000 Max CAC (1/3) $10,000 Ideal CAC (1/5) $6,000 SEM CPC Budget/Day Budget/Month Budget/Year Clicks/Day Clicks/Month (30 Days) Clicks/Year $6 $133 $3,990 $47,880 22 660 7,920 CAC Assumptions: Direct SEM Green Biz Webinar Cost $57,500 $47,880 Audience 200 7,920 Conversion Rate 5% 0.3% Conversion 10 20 CAC $5,750 $2,418 LTV $30,000 $30,000 Rate 19% 8% $30,000 500 1% 5 $6,000 $30,000 20% *$135,380 Direct Cost Includes: Salary, Commission & associated overhead *35 *Cost & Conversion are summed in total **CAC, LTV, and Rate are averaged in total **$3,890 **$30,000 **13% 46