Mutual Interest
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Mutual Interest

on

  • 529 views

 

Statistics

Views

Total Views
529
Views on SlideShare
529
Embed Views
0

Actions

Likes
1
Downloads
4
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Mutual Interest Presentation Transcript

  • 1. Dave HiblerTyler Galganski Mike Peterson Jordan Ward Feb. 4, 2013 !1
  • 2. Company Overview• Mutual Interest is an online dating platform that allows users to approach individuals of interest within their own network without the fear of rejection. The MI platform works by the user anonymously indicating interest in someone they know (a coworker, classmate and/or longtime friend) with identities being unlocked only when that interest is returned. Our goal is to unlock hidden attraction and let the users take it from there as to what the attraction means and what next steps to take.• Available for iPhone, Android, and Internet Browsers• Founded in Tampa, FL in October 2012 !2
  • 3. Management TeamTyler Galganski Dave Hibler Co-Founder of Forever Lazy Co-Founder of Forever Lazy Recognized by BusinessWeek Recognized by BusinessWeek as Finalist For Americas Best as Finalist For Americas Best Young Entreprenuers in 2010 Young Entreprenuers in 2010 Graduated UW-Madison in Graduated UW-Madison in2007 with majors in Economics 2007 with majors in Economicsand Legal Studies and a minor and Sociology and a minor in in Business Business Mike Peterson Jordan Ward Current MBA candidate at Lead Developer at Mutual the Michigans Ross School Interest of Business Currently a Senior Software Worked at SC Johnson as a Engineer at Artisan Partners in Financial Analyst between Milwaukee Wisconsin 2007-2012 Graduated UW-Whitewater in Graduated UW-Madison in 2006 with major in 2007 with majors in Finance Management Computer and Risk Management Systems Owner of Web Solutions LLC !3
  • 4. The Problem• The fear of rejection in asking out someone in your network. • Embarrassment or damaged relationships from expressing unreciprocated interest. - Touchy Situations: Close friends, Colleagues, Classmates, a friends ex, etc.• Many missed connections due to mutual approach anxiety. Theres no way I wish I knew if he shed be liked me! interested... Missed Opportunity• Misrepresentation and deception (catfishing) on traditional dating sites is becoming more of a publicized issue. • Ie.) Manti Teo, MTVs Catfish• Large financial and time commitment to find matches • Lengthy profile setup, compatibility testing and profile browsing. !4
  • 5. Competitive Advantage• One of the few online platforms that facilitates the natural way people connect - within ones network• Unlike existing platforms, parties do not need to be registered to be contacted • Promotes viral growth• Misrepresentation and deception are non-issues because users are only interacting with people they already know. • Catfishing, sexual predators, etc.• No need to waste time setting up or browsing endless profiles. • User already knows who they are looking for • Quality of users is a non issue. Interaction occurs with people you know • No need for profiles set up or information gathering to assess compatibility !5
  • 6. Value PropositionCombine the popularity of online dating with thenatural way people connect in offline, real-worldsituations - through their social network• Make Online Dating Safer • No risk of deception and/or "catfishing"• Eliminate the Fear of Rejection Associated with Dating • Less missed opportunities • Avoid embarrassment and awkwardness• Take Advantage of Opportunities that Exist Within Ones Own Network • Friends, co-workers, classmates, etc. • Potential to unlock interest amongst "in the closet" homosexuals. !6
  • 7. Market Size• 100M+ dating website users (Zoosk, Eharmony, Match, POF)• 96M+ single adults in the US• $1.6B in online dating revenue (2012 est.)• 2.8%(e) YoY online dating industry growth to 2016. -IBISWorld • Fueled by high profit margin, low barrier to entry, and falling social stigma of online dating• 14,427 online dating and matchmaking enterprises in the U.S. in 2011. -IBISWorld • Very few sites focus on in-network dating / matchmaking !7
  • 8. Target Customer• The younger, more casual daters, ages 18-34 • Alternative to more serious dating websites that measure success by marriages • Larger networks than their older dating counterparts • Fear of rejection and insecurities more prevalent in this group• "More 20-somethings are on online dating sites than ever, and their numbers are growing...people under 30 represent about 1/5 of customers in the entire $2.1 billion U.S. Industry" - Online Dating Insider David Evans, Feb 2012. • Avg. Match & Eharmony user is 48 • Younger singles represent untapped revenue source !8
  • 9. Indirect CompetitionMain Industry Competitors - 250M+ worldwide users• Match and eHarmony - Average users age is 48. Generally interested in a more serious relationship leading to marriage. - Boast two of the highest monthly subscription fees relative to other competitors. - Highest brand recognition and been around the longest. - Both match based off of compatibility tests. - Combined membership of 35M as of 6/2012.• POF -Basic usage is free. - 32M members with 15M messages sent per day. (pof.com/about) - Money is made through ad space and premium memberships.• Zoosk and Badoo - Focus on the younger dater, as they are both heavily integrated with Facebook. - Zoosk has 60% members under 30. 90% under 40. - Incentivize interaction through gamification techniques. - Badoo has a Casual Encounters section that is similar to Tinder. - Badoo is known as more of a hookup website with a heavy International presence. - According to CEO Bart Swanson, 80% of their members use the hookup feature. !9
  • 10. Direct Competition• Similar Apps to Mutual Interest - "Unlock Interest" • Tinder -"Finds out who likes you nearby, and connects you with them if youre also interested. Its all anonymous until someone you like, likes you back" - Tinder landing page -Launched Oct 2012. Currently 35 million profiles rated, 1 million matches. -High adoption in the college market. Provides little value for other demographics. -Connects strangers with strangers. Risks with dating strangers still exposed. • Hinge -Mobile app that shows you your most eligible friends of friends on Facebook and connects you if there is mutual interest. -Potential matches limited by friends that use the app. Yet to launch, raised $750,000. -Asks questions to utilize a personality algorithm to suggest friends of friends • Bang With Friends -App that allows you to anonymously find friends who are down for the night. -Launched Feb 2013 by 3 anonymous college students. 30,000 downloads and 10,000 matches reported in the first week. -Users not completely anonymous - Facebook friends can see who uses the App • Would Love 2 - Finds hidden interest amongst Facebook friends. Launched in the UK in Nov 2012. - Users must log in via Facebook and can only communicate with other members. -Minimal press and statistics released as of yet. !10
  • 11. Service• Sending and Receiving Vybes • Easy and fun way to express and discover interest • Promotes conversation when matches are unlocked• Attach and Request Hints to Vybe • A clue to who is interested • Promotes unlocking and engagement • Hints in the form of Emojis• Send a gift (through Amazon) !11
  • 12. Service Contd • All operations accessible from Dashboard • Mutual Interest Tab -View Unlocked Matches, Message, Send Gifts • Vybes Sent Tab -Expire Vybe and Request Hints • Vybes Received Tab -Clear Vybe and Request Hint • Add / Invite Contacts -Manually add email and phone contacts • Select a Contact to Vybe • Notification Center -Inbound Vybe and Mutual Interest Indicators !12
  • 13. Mobile Screens Landing Page Menu Contacts• How it Works Pop-Up • Imported from Phone• Why Mutual Interest • Can manually add Pop-Up contacts via email or !13 mobile number
  • 14. Mobile Screens • Mutual Interest Tab -View Unlocked Matches -Messaging Allowed -Send Gifts • Vybes Sent Tab - Expire Vybes - Add a Hint - Send a Gift • Vybes Received Tab - Request a Hint Send Vybe Manage Vybes - Remove Vybe• Outline of 4 step process !14
  • 15. Sales and Marketing• 20% of customers acquired through Paid Marketing Channels • Adwords PPC, Banner Ads, Facebook PPC, Press Releases, Paid App Reviews • Paid User Acquisition Cost $10, Per User Acquisition Cost $2, Per User Value $7.56, Profit Margin Paid User -32.28%, Profit Margin Total User 73.54%• 80% of customers acquired indirectly from Paid Marketing (FREE) • Word of Mouth, Direct Invites from Members, News and Press • Incentivize Users to Invite Friends with Free Credits• Rollout and beta test at the University of Michigan (Ross students)• Option to make usage free until desired rate of growth achieved !15
  • 16. Customer Acquisition Pricing Credit 6 10 15 20 30 50Bundles Cost $3.25 $4.50 $6.00 $7.50 $10.75 $15.00Cost per $0.54 $0.45 $0.40 $0.38 $0.36 $0.30 Credit !16
  • 17. Financials Yr1 Credit Bundles Free 6 10 15 20 30 50 # Of Transactions per• Buying patterns 1 50% 10% 13% 15% 6% 4% 2% of avg. user 2 75% 5% 6.5% 7.5% 3% 2% 1% Avg. User 3 80% 4% 5.2% 6% 2.4% 1.6% 0.8%• Assume 4 85% 3% 3.9% 4.5% 1.8% 1.2% 0.6% 250,000 users 5 90% 2% 2.6% 3% 1.2% 0.8% 0.4% 6 95% 1% 1.3% 1.5% 0.6% 0.4% 0.2%• Per user credit % Distribution value $7.48 Free 6 10 15 20 30 50 # Of Transactions per• $1,868,750 1 $0 $81.25 $146.3 $225 $112.5 $107.5 $75 2 $0 $40.63 $73.13 $112.5 $56.25 $53.75 $37.5 from credit Avg. User 3 $0 $32.5 $58.5 $90 $45 $43 $30 sales 4 $0 $24.38 $43.88 $67.5 $33.75 $32.25 $22.5• Free = Inactive 5 $0 $16.25 $29.25 $45 $22.5 $21.5 $15 Users + Non- 6 $0 $8.125 $14.63 $22.5 $11.25 $10.75 $7.5 Paying Users Total $0 $203.1 $365.6 $562.5 $281.3 $268.8 $187.5 Revenue in Thousands !17
  • 18. IncomeStatement Year 2013 2014 2015 2016 2017User Growth Users 250 1,250 2,500 4,000 6,000• 400% Yr 1, 100% Yr 2, 60% Yr 3, 50% Y4 Revenue $1,890 $9,448 $18,688 $29,900 $44,850• $500,000 marketing spend in Yr 1 Expenses $654 $4,125 $8,083 $11,570 $16,223• Scale Marketing and User Growth at 1:1 Ratio Net Income After Tax $803 $3,460 $7,028 $12,131 $18,932• $1M for employees in 2014 and $2M for employees in 2015, 2016, Operating Margin 42.5% 36.62% 37.19% 40.13% 41.75% 2017• Total NPV Valuation = Numbers in Thousands $180,830,192 !18
  • 19. Date Action Plan and MilestonesEarly April 13 Submit Mobile App for Review and Publishing Launch Beta Prototype of MI Platform at U of Michigan for Testing and Mid April 13 Feedback.End of April 13 MI has Received $500,000 of Seed Round Financing Mid May 13 Launch Full Scale Marketing Initiatives !19