Commuto Presentation


Published on

Presentation for investors

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Confidential
  • Commuto Presentation

    1. 1. Confidential Stephen Arbib Founder/President
    2. 2. <ul><li>Problem </li></ul><ul><li>Student life is expensive. From textbooks to clothing to many other needs, students are struggling to pay for all their expenses. How can they minimize their expenses while making their schooling experience more social and enjoyable? </li></ul><ul><li>Solution </li></ul><ul><li>com·mu·to (ko-myū ' -to) </li></ul><ul><li>1. Latin for Barter or Trade </li></ul><ul><li> is an online service that allows users to trade and swap their stuff with other members of their community for free. Whether they are at their school, college, work place, or any other community for that matter, offers the unique service of facilitating in-person trading between community members without ever having to wait for shipping or incur any costs.  </li></ul><ul><li>Members can create a profile, post all the items they are looking to trade or swap, as well as search for any items they are interested in and will automatically match their profile with potential trade candidates in their communities. is the most powerful, user-friendly, online trading tool out there, designed specifically to help users trade the stuff they no longer want or need while personally interacting with and meeting new people in their communities. </li></ul><ul><li>Users can also create your own communities and invite all their friends to join.  Trading movies, games, textbooks or any other items they may have has never been easier.  Once they agreed on trades with others members, they arrange a time and spot to meet in their communities where the exchange will take place, be it on their lunch break or in between classes…it’s up to them. </li></ul>Confidential
    3. 3. Milestones to Date: <ul><li>Commuto is developed and running with over 4000 registered users. </li></ul><ul><li>Commuto has been covered as an up-and-coming company in the Financial Times, Mashable, Daily Candy, Cnet, LifeHacker and many other publications. </li></ul><ul><li>Commuto’s Facebook application was recently launched and is gaining popularity quickly. It is the most robust and functional barter application on Facebook. </li></ul><ul><li>A school campaign is being launch across 100 colleges/universities in the US & Canada starting the week of September 15 th . </li></ul><ul><li>Behavioural-targeted advertising engine is being developed. </li></ul><ul><li>MySpace widget </li></ul><ul><li>Partnerships being discussed with a few companies </li></ul><ul><li>Other functions being developed to create a more social experience unlike anything currently provided on other commerce sites. </li></ul>Confidential Future Milestones: Picture of Facebook Application
    4. 4. Commuto’s Competition Confidential <ul><li>The most successful businesses online fall into 4 categories: </li></ul><ul><li>Social Networks </li></ul><ul><li>Commerce & Auctions </li></ul><ul><li>Adult Sites </li></ul><ul><li>Online Gambling </li></ul><ul><li>Commuto is a hybrid of social networks and commerce sites such as Facebook, Ebay and Craiglist, and has coined it’s own term – Social Bartering. </li></ul>
    5. 5. Social Networking – Not Just for Kids <ul><li>The largest user group is older (35-54 yrs) than most realize </li></ul>Confidential Total Internet Unique Visitors (000) 178,839 70,478 27,965 1,667 4,083 2,914 Total Audience 100.0 100.0 100.0 100.0 100.0 100.0 Persons 12-17 10.1 6.6 15.2 6.8 27.2 11.1 Persons 18-24 12.0 18.0 26.9 11.2 9.7 16.1 Persons 25-34 16.0 19.4 11.5 21.2 13.6 21.1 Persons 35-54 38.9 42.3 34.4 44.8 34.8 37.9 Persons 55+ 14.8 10.0 6.6 10.7 7.1 8.2
    6. 6. Making Money Online <ul><li>There are multiple ways for to generate income: </li></ul><ul><li>Advertising </li></ul><ul><li>Charge for transactions </li></ul><ul><li>Sell of Company </li></ul><ul><li>Advertising </li></ul><ul><li>Online advertising is the quickest, most efficient means of generating income There are many ways to sell advertising, including Google AdSense, Affiliations, and in-house advertising </li></ul><ul><li>Initially, the most cost effective solution would be Google’s AdSense </li></ul><ul><li>Later on, in house advertising will become the most cost effective solution. Companies can advertise directly to their market, be it a location, workplace, service or product. </li></ul>Confidential
    7. 7. Social Networks to Reach 12% of Online Advertising Confidential Source: “User-Generated Content: Will Web 2.0 Pay It’s Way?”
    8. 8. Selling <ul><li>Value of Online Social Network sites are at an all time high </li></ul><ul><li>Value of EBITDA multiples is one of the highest out of any industry </li></ul><ul><li>45xEBITDA multiple supports standard online valuations </li></ul><ul><li>AQNT and DoubleClick multiples 41x and 45x, respectively </li></ul><ul><li>Value per user is $35-40 </li></ul>Confidential
    9. 9. Potential Issues <ul><li>Regulation of Security </li></ul><ul><li>- Scammers use easily accessible information to mislead members into providing private information </li></ul><ul><li>- Distribution of links and attachments that contain harmful content </li></ul><ul><li>- People using as a tool to set up theft of potential users </li></ul><ul><li>Valuable Tools for Employers/Universities </li></ul><ul><li>- Employers are using social networks to evaluate potential employees </li></ul><ul><li>- Universities, such as the U.K’s Oxford, use social networking sites to track behavior of students </li></ul><ul><li>- Raise question of privacy and confidentially </li></ul><ul><li>- Universities may not embrace the idea of students trading text books for free </li></ul><ul><li>Banning Social Networking in the Workplace </li></ul><ul><li>- Businesses are blocking social networking sites because they feel they disrupt employee productivity </li></ul><ul><li>- Sites create problems with spam and viruses </li></ul><ul><li>Sexual Predators </li></ul><ul><li>- Registered sex offered use memberships on social networking sites to befriend younger users </li></ul><ul><li>- July 2007 – MySpace released and deleted profiles of 29,000 members who are registered sex offenders </li></ul>Confidential
    10. 10. <ul><li>Why will Succeed? </li></ul><ul><li>Original idea </li></ul><ul><li>Combines the best of two online industries to make a unique industry </li></ul><ul><li>Free for users </li></ul><ul><li>Large market opportunity </li></ul><ul><li>Provides a service that all users can appreciate </li></ul><ul><li>The timing is right </li></ul><ul><li>Why will Fail? </li></ul><ul><li>Marketing is done incorrectly </li></ul><ul><li>Focus group is wrong </li></ul><ul><li>Time to market is too late </li></ul><ul><li>Other competitors will copy the idea </li></ul><ul><li>Site is not user friendly or functional enough </li></ul>Confidential
    11. 11. Conclusion <ul><li>Social Networking is growing and here to stay </li></ul><ul><li>Social Networking can be monetized </li></ul><ul><li>Large Market Opportunity </li></ul><ul><li>All new market created </li></ul><ul><li>Mobile – could present next leg of growth </li></ul><ul><li>Value of online companies is higher than ever </li></ul>Confidential