Vencorps Presentation


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Vencorps Presentation

  1. 1. Be an agent of CHANGE . The ultimate WIN-WIN: Generate hundreds of millions of dollars for charity… while creating a profitable and valuable company.
  2. 2. <ul><li>Our patent pending technology creates a free service to merchants that increases loyalty and generates customer goodwill by placing a virtual “spare change jar” at the point of checkout.   </li></ul><ul><li>Customers are asked during checkout if they would like to round-up their purchase price and donate the “spare change” to one of several listed charities </li></ul><ul><li>Shoppers are encouraged to make a larger donation </li></ul><ul><li>This is a free service to merchants. Charities pay CRU a fee of 10-14% of donations </li></ul>What is Change Round-Up?
  3. 3. Example: Crafts For Me
  4. 4. How does it work? The Change Round-Up service has been designed to be easily integrated into merchants’ purchase process. Change Round-Up DOES NOT charge customer credit cards or collect donations directly from customers. 1 Customer chooses to add donation 2 Donation is added to the purchase and collected by the merchant’s standard methods 3 The merchant’s system notifies our database of the donation via our secure API 4 Change Round-Up bills retailers, distributes donations, and provides real-time reporting to merchants, charities, government
  5. 5. How Change Round-Up makes money <ul><li>Change Round-Up is a for-profit company, with a social mission </li></ul><ul><li>Service Fee: 10% of donations </li></ul><ul><li>Retailers receive 4% of donations to cover costs incurred from processing payments. (credit card fees) </li></ul>
  6. 6. Results to Date <ul><li>Round-Up Rate: Over 23% of customers donate - Sites that target women buyers are experiencing much higher rates, some as high as 65-70% </li></ul><ul><li>Average Donation: $1.20 </li></ul><ul><li>While each donation is small, in aggregate they become very powerful… </li></ul><ul><li>For example: </li></ul><ul><ul><li>$2.5B in revenue on 17 million transactions </li></ul></ul><ul><ul><li>Applying current metrics, this represents $4,765,306 in annual donation potential </li></ul></ul><ul><ul><li>Annual CRU fee of $476,531 </li></ul></ul>Did you know? Launched two and a half years ago, Bank of America's Keep the Change savings program has helped its customers save more than one billion dollars.
  7. 7. Why are merchants interested? <ul><li>Merchants are looking for ways to create loyalty, </li></ul><ul><li>further engage their customers and increase sales </li></ul><ul><li>Consumers reward companies that support charities </li></ul><ul><ul><li>“ Cause marketing” is a powerful marketing tool that business and nonprofit organizations are increasingly leveraging </li></ul></ul><ul><ul><li>89% of Americans would switch to a brand because it is associated with a good cause ” (Cone Millennial Cause Study 2006) </li></ul></ul><ul><li>People buy from companies they trust </li></ul><ul><ul><li>8 in 10 Americans say that corporate support of causes wins their trust in that company (Cone) </li></ul></ul>
  8. 8. <ul><li>The Solution: Change Round-Up is free, visible and innovative </li></ul><ul><li>Reminds customers of company’s philanthropy at each transaction </li></ul><ul><li>Merchants can partner with customers in support of a cause </li></ul><ul><li>Builds customer relationships / loyalty and creates great PR </li></ul>Why are merchants interested? (continued) Problem: Supporting charities is costly and often goes unnoticed
  9. 9. <ul><li>Improves the customer experience: Customers feel good about the purchase </li></ul><ul><li>Happy customers = more repeat purchases and fewer returns </li></ul><ul><li>Great PR opportunities available via partnerships with charities </li></ul>Additional Benefits to Merchants
  10. 10. Target Markets/Channels: <ul><li>Change Round-Up will apply the round-up donation concept to numerous transaction channels. </li></ul><ul><li>So how big is the market? </li></ul><ul><li>Addressable Market Snapshot: </li></ul>(2008 estimates, US Only)
  11. 11. Go To Market Plan 1 . Direct, personal selling directly to top merchants The top 500 online merchants account for 61% of all retail web sales 2 . Partnerships with e-commerce providers and web development companies Change Round-Up has developed relationships as well as ‘plug and play’ software to enable the service to be easily added to tens of thousands of online stores. 3 . Partnerships with key charities Change Round-Up will leverage charities’ existing relationships with corporate sponsors.
  12. 12. Financial Projections - withheld for confidentiality purposes Management Team – see ‘Detailed Bios’ area in VenCorps
  13. 13. Funding <ul><li>Seeking immediate angel investment of $300K to further prove the model and capitalize on several upcoming opportunities. </li></ul><ul><li>Additional funding requirement of $2M to fully scale the model (2Q or 3Q 2009) </li></ul><ul><li>Use of Funds: </li></ul><ul><li>Sales and Marketing – Management is seeking outside investment primarily to build a highly effective sales and marketing organization to scale this service to the rest of the online retailing and billing channels as well as enter additional channels. </li></ul><ul><li>  </li></ul><ul><li>IT / Web Development – Change Round-Up’s system is operational, however as additional markets are addressed, investments in technology need to be made to accommodate new transaction mediums. Additionally, investment is required to further automate the billing and distribution process to maximize efficiencies. </li></ul><ul><li>  </li></ul><ul><li>Support staff – Support staff will be added to address internal, merchant, charity and donor needs. </li></ul>
  14. 14. For more information, please visit: Or contact: Jane Goewey jgoewey (at) Be an agent of CHANGE .