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Bw brief investor pitch 8.12

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  • 1. Investor Overview 8.1.13
  • 2. Where artists and fans unite Participating in the success of a creative endeavor is one of the most rewarding social entertainment experiences We Believe
  • 3. Where artists and fans unite And we can deliver it for as little as $.99 With an experienced team who has deep marketing expertise and a track record of success
  • 4. Where artists and fans unite Kickstarter meets AngelList with a twist Elevator Pitch
  • 5. Where artists and fans unite Introducing Bandwaggon The first super social crowdearning marketplace designed to make promoting talent fun and rewarding Fans earn points and ongoing royalties for promoting artists they believe in
  • 6. Where artists and fans unite The Dream Be one of the 1% who are discovered and promoted through traditional channels (record label, movie studio, publisher) The Reality End up one of the 99% who struggle to find a way to get promoted The Breakthrough Give artists a new way to engage fans to promote them with status, rewards, and royalties The Artist’s Dilemma
  • 7. Where artists and fans unite Amanda Palmer’s Story Gets recording contract 25,000 records sold = failure / not viable Dropped from label Launches Kickstarter campaign 25,000 fans donated = $1M+ Greatest Kickstarter success in music category Since artists retain less than 5% of the revenue in the traditional system they need millions of fans to be viable. If artists retain more revenue they can have modest success with a smaller fan base. Rise of the Micro-Celebrity
  • 8. Where artists and fans unite Spot talent Discover great talent and share with friends Get credit Be acknowledged for being a visionary tastemaker Make someone famous Share the experience of creative success Share the dream Earn royalties, gain influence, and enjoy special perks and privileges The Fan’s Aspirations
  • 9. Where artists and fans unite Points are continuously being earned every time a friend, a friend’s friend or a friend’s friend’s friend views, shares or purchases Royalties continue to add up from all purchases that track back to the fan promoter Points and Royalties Add Up While You Sleep
  • 10. Where artists and fans unite purchase content share content grow influence earn royalties The Bandwaggon Economy We call it the Bandwaggon Economy Artists generate revenue from fans Fans generate royalties they can invest in new artists
  • 11. Where artists and fans unite The Innovation Every time a purchase is made revenue is split between an artist and a network of promoters. The artist never receives less than 50% of the purchase price with the remainder being distributed between a network of fan promoters. Artist Earnings Formula Direct Purchase 100% Direct referral 75% 2nd level 62.5% 3rd level 50% And so on 50% Fan Royalty Formula Direct Purchase 0% Direct referral 25% 2nd level 12.5% 3rd level 6.25% And so on 3.125%, (etc) Every fan receives the same percentage of the purchase price depending upon how close they are to the purchaser. Purchase price and earnings opportunity are always the same for every fan.
  • 12. Where artists and fans unite It’s More than Music Music Even big names are seeking independence and justice from the system Film / Video Indy films can now get on Netflix but generating real revenue is out of reach Books Growing trends in self publishing and short stories are creating new types of opportunities Games High quality games can be produced independently but there is no way to distribute them Apps They’re getting easier to produce and harder to get noticed
  • 13. Where artists and fans unite Growing Markets Spending (2010) Online Content.......................................................................... $150 Billion Music and Software Downloads................................................ $50 Billion Number of People Sharing Content on Social Networks..............1.2 Billion + Average Purchase Prices (2010) $10 / Month $22 / Month for high-end downloaders PEW Research 2010 Crowdfunding (estimated 2013)...................................................$6 Billion Social Commerce (estimated 2015).............................................$30 Billion
  • 14. Where artists and fans unite Trends 32 Billion pieces of content are shared on Facebook every week (1.6 trillion a year) 70% of successful campaigners on Kickstarter are media projects (music, film, books) 50% of fans pay more than the asking price on Bandcamp 63% of serious music fans are interested in direct to fan crowdfunding 71% of people more likely to buy based on social media referrals 65% of people purchase downloadable content (33% music, 16% video, 10% e-books)
  • 15. Where artists and fans unite Fastest Growing Crowdfunding Type is Rewards Based
  • 16. Where artists and fans unite Revenue Streams Primary - transaction fees of 10% Secondary - sponsorships, promotions and any float on funds held Growth Assumptions An inherently viral platform that grows exponentially with modest assumptions Average purchase per user of $4/month Average outreach per user - 100 friends every 30 days Conversion rates vary on next slide for low, mid, high scenarios
  • 17. Where artists and fans unite Financial Projections Low Year 2013 2014 2015 2016 Conversion Rate 0.4% 0.4% 0.4% 0.25% Number of Users 0 28,347 1,607,113 23,386,568 Gross Revenue $0 $31,328 $1,381,420 $21,779,455 Net ($209,600) ($1,676,690) ($2,013,849) $13,119,355 Mid Year 2013 2014 2015 2016 Conversion Rate 0.5% 0.5% 0.5% 0.25% Number of Users 0 64,874 8,417,140 122,485,512 Gross Revenue $0 $57,936 $5,846,587 $114,068,371 Net ($209,600) ($1,653,003) $1.906,515 $97,480,355 High Year 2013 2014 2015 2016 Conversion Rate 0.6% 0.6% 0.6% 0.25% Number of Users 0 140,739 39,614,557 576,467,670 Gross Revenue $0 $105,179 $23,026,394 $536,853,113 Net ($209,600) ($1,611,830) $16,590,529 $483,946,525 Lower conversion in 2016 (.25%) in all 3 scenarios to account for churn
  • 18. Where artists and fans unite Marketing Strategy Partner with music and film festivals across the US Top artists on Bandwaggon can earn performance or inclusion opportunities Bandwaggon can be integrated into performances Recruit brand name influencers Incentivize influencers to use the platform (trendsetters, musicians, filmmakers, comedians, etc) Public relations story about artists being able to succeed Tap into the cause of “fairness” to musicians Direct outreach to top YouTube and SoundCloud Artists Incentivizing them to try Bandwaggon Recruit DJs and electronica musicians Extremely popular and new mixes are made frequently Competitions where fans can win trips to festivals, tickets, passes etc.
  • 19. Where artists and fans unite Patents are Pending A system for tracking the sharing of content and distributing ongoing revenue. Has applications in social commerce and online multi-level marketing. A system for tracking the sharing of content and measuring all views, shares and purchases and formulating those into a score. The score provides a unique measurement of popularity that tracks the influence of a fan and the engagement level of a piece of content.
  • 20. Where artists and fans unite Pioneers in peer-to-peer cause marketing Last venture, Involve Inc. acquired in 2005 IPO 9 months later Experienced Team
  • 21. Where artists and fans unite Core Team Dean Hollander, CEO / Co-founder Former CEO / Co-founder Involve Inc., Strategic marketing for Wikipedia, BP Alternative Energy, Electronic Arts, Warner Bros, DC Comics. Tufts University, American Film Institute Jon Dartley - COO / Co-founder Former COO / Co-founder Involve Inc. Former deputy counsel Blackbaud, largest software provider to NPOs. Columbia University PHD, Rutgers University Law Degree Josh Unger - Inventor / Co-founder Director of User Experience, Wireless Generation. UI Architect / Product Designer projects include American Express, AOL, Comcast, Martha Stewart Living, Web MD. Vassar College Jonathan Cranin - Acting Creative Director Former Chief Creative Officer McCann, Created MasterCard’s Priceless Campaign, ETrade Talking Baby, Branding campaigns for Microsoft, IBM Kuty Shalev - Acting CTO Founder / President Clevertech. MBA Columbia University
  • 22. Where artists and fans unite Supporting Team Len Lodish - Lead Angel / Advisor Vice Dean / Professor Wharton, Diapers.com (acquired by Amazon) Milo.com (acquired by Ebay) Rick Bank - Angel / Acting Head of Recruitment Managing Director, Solebury Search Chris Nagy - Consultant / Acting VP Marketing Former VP Marketing Sony, Trend Marketing Nick Rockwell - Advisor Former CTO MTV, SVP Digital Conde Naste
  • 23. Where artists and fans unite Creating Value / Exit Possibilities We are monetizing social media and content in a new way through a royalty formula, competition, and a highly social shared experience between artists and fans. Once we have established traction the business will grow rapidly through viral word of mouth and an engaging shared social experience. The technology and media property will be of value to all social media and content platforms including Facebook, Google, Amazon, Twitter, Ebay and Yahoo.
  • 24. Where artists and fans unite We’ve pre-populated an account with content so you can get a good sense of what it’s like. Feel free to purchase and share - it’s on the house. bandwaggon.com Log in: demo@bandwaggon.com PW - demo Take it for a spin...
  • 25. Where artists and fans unite Thanks for checking out Bandwaggon Please get in touch if you’d like to learn more Dean Hollander CEO/Co-Founder dean@bandwaggon.com 415-259-8160