Search core corp presentation_may 2013

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Search core corp presentation_may 2013

  1. 1. Confidenal  and  Proprietary    Page  1  Corporate  and  Transacon  Overview  May  2013  Securies  offered  through  Merriman  Capital,  Inc.  member  FINRA  &  SIPC  
  2. 2. Confidenal  and  Proprietary    Page  2  Safe  Harbor  Certain  statements  in  this  document  cons0tute  “forward-­‐looking  statements”  within  the  meaning  of  Sec0on  27A   of   the   Securi0es   Act   of   1933,   as   amended,   and   Sec0on   21E   of   the   Securi0es   Exchange   Act   of   1934,   as  amended.    All  statements  that  address  expecta0ons  or  projec0ons  about  the  future,  including  statements  about  technology  and  other  product  development,  market  posi0on,  expected  expenditures  and  financial  results,  are  forward-­‐looking  statements.    This   document   contains   forward-­‐looking   statements   within   the   meaning   of   the   Private   Securi0es   Li0ga0on  Reform   Act   of   1995.     Some   of   the   forward-­‐looking   statements   may   be   iden0fied   by   words   like   “expects,”  “an0cipates,”  “plans,”  “intends,”  “projects,”  “indicates,”  and  similar  expressions.    Any  statements  contained  herein   that   are   not   statements   of   historical   fact   may   be   deemed   to   be   forward-­‐looking   statements.     These  statements   are   not   guarantees   of   future   performance   and   involve   a   number   of   risks,   uncertain0es   and  assump0ons.    Accordingly,  actual  results  or  performance  of  SearchCore,  Inc.  may  differ  significantly,  posi0vely  or  nega0vely,  from  forward-­‐looking  statements  made  herein.    Unan0cipated  events  and  other  factors  are  likely  to  occur.    Those  factors  include,  but  are  not  limited  to,  risks  that  our  products  and  services  may  not  receive  the  level  of  market  acceptance  an0cipated;  an0cipated  funding  may  prove  to  be  unavailable;  intense  compe00on  in   our   market   may   result   in   lower   than   an0cipated   revenues   or   higher   than   an0cipated   costs,   and   general  economic  condi0ons,  such  as  the  rate  of  employment,  infla0on,  interest  rates  and  the  condi0on  of  the  capital  markets  may  change  in  a  way  that  is  not  favorable  to  us.    This  list  of  factors  is  not  exclusive.    We  undertake  no  obliga0on  to  update  any  forward-­‐looking  statements.    
  3. 3. Confidenal  and  Proprietary    Page  3  “Each  day,  millions  of  consumers  increasingly  u0lize  the  internet  to  research  products  and  services.    Our  passion  is  connec0ng  those  consumers  with  the  right  brands.”    -­‐  Jim  Pakulis,  SearchCore  President  and  CEO  
  4. 4. Confidenal  and  Proprietary    Page  4  Introducon  }  SearchCore  is  a  technology-­‐based  internet  markeAng  and  services  organizaAon  (MSO)  that  connects  consumers  with  brands,  products  and  services.      }  SearchCore  operates  high  value  domains  in  fragmented  verAcals  to  build  engaging  “finder”  sites  that  aggregate  traffic  for  a  given  topic/industry,  matching  the  consumer  traffic  with  locally  relevant  businesses  and  adverAsers  }  Current  internet  properAes  either  owned  or  under  management  agreement:  •  TaOoo.com*  •  ManufacturedHomes.com  •  ModularHomes.com  •  SporAfy.com  •  Karate.com  •  Rodeo.com    }  Raising  up  to  $1.5  million  in  growth  capital  to  develop  addional  vercals    and  add  technical  and  human  infrastructure    *  Provide  all  markeAng,  adverAsing,  promoAon  and  administraAon  to  the  site.    SearchCore  receives  approximately  $.70  of  every  gross  dollar  and,  subject  to  reaching  thresholds,  will  receive  up  to  50%  ownership  equity  in  the  URL.  
  5. 5. Confidenal  and  Proprietary    Page  5  Proven  Team  }  Experienced  management  team  with  proven  success  in  idenAfying,  developing  and  moneAzing  finder  sites  }  Jim  Pakulis,  Founder  and  CEO  •  Led  execuAon  of  highly  successful  alternaAve  medicine  finders  site,  WeedMaps  •  Three  decades  of  experience  with  entrepreneurial  companies  in  high  growth  sectors  }  Brad  Nelms,  Chief  Strategy  Officer  •  Developed  all  markeAng  and  product  strategy  along  with  implementaAon  for  WeedMaps  •  Previous  execuAve  experience  in  pre-­‐fab  housing  industry  }  Munjit  Johal,  Chief  Financial  Officer  •  28  years  experience  in  banking,  accounAng,  finance,  management  •  Prior  CFO  roles  at  Secured  Diversified  Investment,  and  Davi  Skin  
  6. 6. Confidenal  and  Proprietary    Page  6  Company  Highlights  }  Plaeorm  creates  engaging  and  value-­‐add  experience  for  users,  while  providing  marketers  (small  business  owners)  the  ability  to  reach  their  niche  target  markets  effecAvely  }  Team  previously  grew  and  sold  a  finder  site  in  the  medical  cannabis  space  for  $12M  •  Monthly  sales  grew  from  $200k  to  $1.5M  in  24  months  •  Total  page  visits  went  from  500k  to  4M  and  page  views  from  2M  to  16M  per  month  •  Owned  80%  of  the  online  alternaAve  medicine  market    }  Aggressively  building  poreolio  of  diversified  verAcal  finder  sites  with  same  technology,  process  and  management  team  }  Technology  plaeorm  is  opAmized  to  work  on  web,  mobile  web  and  tablet  format  browsers  –  solving  the  moneAzaAon  issue  of  mobile  screens  }  In-­‐house  sales  staff,  to  culAvate  and  grow  direct  relaAonships  with    business  owners  (customers)  providing  a  significant  barrier  to  entry    
  7. 7. Confidenal  and  Proprietary    Page  7  Industry  }  Online  markeAng  is  a  $43B  industry  today,  expected  to  grow  to  over  $77B  by  2016  comprising  35%  of  all  ad  spending  •  Paid  search  (Google  ad  words)  accounts  for  $14.7B  in  2011    •  Display  ads  (Banner  ads)  account  for  $11B  in  2011    }  In  final  figures  for  2012,  online  ad  spending  is  expected  to  overtake  print  ad  spending  for  the  first  Ame    }  Finder  sites  have  emerged  as  a  measurable  soluAon  for  smaller  and  local  adverAsers  to  gain  top  posiAoning  within  their  categories  •  Saves  Ame,  enabling  business  owners  to  focus  on  their  core  business  –  not  keeping  up  with  Google  search  algorithm  changes    
  8. 8. Confidenal  and  Proprietary    Page  8  What  Are  Vercal  Finder  Sites?  Large  group  of  consumers,  looking  for  informaAon  on  manufactured  housing.  Fragmented  search  results.    Showing  home  builders,  modular  homes,  real  estate  brokers….not  relevant  and  overwhelming  to  consumers.      However,  a  finder  site  shows  up  #1  in  search  that  aggregates  the  informaAon  they  need.      All  the  right  informaAon:    }  Map  of  local  dealers  }  Floor  plans    }  Pictures  of  homes  }  Reviews  }  Financing  opAons  }  Social  sharing  tools    Business  get  access  to  the  exact  right  customer.      They  don’t  need  to  worry  about  SEM/SEO  and  managing  their  digital  markeAng  or  search  results  ranking  to  be  found.  
  9. 9. Confidenal  and  Proprietary    Page  9  The  SearchCore  Engine  }  Proven  model  in  evaluaAng,  opAmizing,  operaAng  and  moneAzing  verAcal  finder  sites  }  Methodology  developed  based  on  successful  prior  property  recently  sold  Iden%fy(New(Markets(Adapt(the(Pla6orm(Collect(Performance(Data(Sell(Proposi%on(to(Customers(Op%mize(CrossAsell/Upsell(Learn(and(Apply(•  DataAled(sales(process(•  Based(on(actual(site(data,(sell(value(to(industry(clients(•  OnAgoing(refinement(of(pla6orm((content,(SEO,(SEM,(other(analy%cs)(•  Op%mize(based(on(traffic(&(trends(for(clients(•  Drive(traffic(•  Collect(data(•  New(client(offerings(based(on(analy%cs(•  Refine(industry(target(model(•  Do(it(again(•  Using(core(pla6orm,(build(site(for(newly(entered(industry(•  Fragmented,(disjointed(market(•  Market(size(>$250M(•  We(can(become(#1(or(#2(•  We(can(gross(>$200k/mo(
  10. 10. Confidenal  and  Proprietary    Page  10  Differenal  Advantages  }  Relaonships    •  SearchCore  culAvates  relaAonships  with  figures,  and  execuAves  who  control  and  influence  their  respecAve  industries        }  Management,  speed,  flexibility    •  SearchCore  has  built  a  high  quality  management  team;  having  experience  in  technology,  and  related  industries  of  the  verAcals  it  builds  }  First/early  mover  advantage  •  SearchCore  idenAfies  verAcals  where  it  will  be  one  of  the  first  sites  to  achieve  a  high  degree  of  brand  awareness  through  a  combinaAon  of  integrated  adverAsing,  content/product  offerings,  public  relaAons,  and  strategic  relaAonships  }  First  mover  in  technology    •  SearchCore  uAlizes  cuqng  edge  technology  to  present  its  programming  and  provide  a  high  level  of  personalized  service  to  its  customers,  opAmized  across  screens  }  Maximize  operang  efficiencies    •  SearchCore  uAlizes  its  investment  in  technology  to  realize  cost  savings  and  efficiencies  in  markeAng,  infrastructure,  and  management  resources  }  High  switching  costs    •  Consumers  are  able  to  customize  their  experience,  as  such,  once  users  become    comfortable  using  its  sites,  it  is  likely  that  they  will  conAnue  using  its  services  
  11. 11. Confidenal  and  Proprietary    Page  11  Revenue  Model    }  “Freemium”  to  start  •  SearchCore  allows  its  business  customers  to  try  the  service  before  subscribing,  proving  the  value  on  a  no-­‐cost  basis    }  Subscripon-­‐based  •  As  benefits  are  realized  from  the  plaeorm,  businesses  sign-­‐up  on  a  monthly  recurring  cycle        }  Add-­‐on  opons  •  As  Ame  goes  on,  SearchCore  offers  opportuniAes  for  preferred  placement  or  incremental  traffic  which  are  add-­‐on  services/opAons  for  clients  }  Adjacent  monezaon  opportunies  •  Depending  on  the  verAcal,  SearchCore  looks  for  addiAonal  ways  to  moneAze  the  audience    •  For  example,  offering  inventory  financing  opAons  for  manufacturedhomes.com  clients  }  In-­‐house  sales  and  account  management  •  SearchCore  prides  itself  on  providing  superior  client  service  for  each  small    business  owner  through  an  in-­‐house  sales  staff  
  12. 12. Confidenal  and  Proprietary    Page  12  Vercal:  Tacoos  OPPORTUNITY  }  21%,  or  45  million,  of  Americans  have  taOoos  }  $2.3  billion/year  is  spent  on  taOoos,  6th  fastest  growing  industry  in  USA.  }  16.6  million  monthly  searches  are  conducted  in  America  for  info  on  tacoos  }  There  are  20,000-­‐30,000  taOoo  shops  in  the  U.S.  }  The  average  cost  per  hour  for  a  new  taOoo  can  range  from  $150  to  $350,  especially  in  metropolitan  locaAons,  such  as  New  York  City.    }  20%,  or  nine  million,  of  those  with  taOoos  will  consider  taOoo  removal.  This  group  can  expect  to  spend  an  average  of  $800  to  $1,200  for  the  process  over  the  course  of  six  months.      MONETIZATION  }  Featured  lisAngs  and  profiles  for  taOoo  shops  and  arAsts    }  Video  tours  of  shops  }  ArAst  profiles  }  AdverAsing  slots  for  companies  targeAng  this  demographic  FEATURES  }  Ease  of  navigaAon  }  A  photo  gallery  of  taOoo  designs  generated  by  users  and  arAsts  }  Social  media  integraAon  }  Engaging  blogs  and  frequent  newsleOers  }  A  community  of  users    providing  comments,  reviews,  and  feedback  
  13. 13. Confidenal  and  Proprietary    Page  13  Vercal:  Manufactured  Homes  OPPORTUNITY  }  1.2  million  monthly  searches  for  manufactured  homes  in  America.  }  There  is  a  great  need  for  quality,  affordable  housing.  }  Today’s  manufactured  homes  deliver  outstanding  quality  and  performance  at  prices  ranging  from  10  to  35  percent  less  per  square  foot  than  convenAonal  site-­‐built  homes.      }  Manufactured  homes  now  include  many  new  features  such  as  mulAple  stories,  vaulted  ceilings,  modern  design  and  brand  name  appliances.    MONETIZATION  }  Featured  lisAngs  for  retailers  }  Featured  lisAngs  for  manufacturers  }  AdverAsing  slots  for  vendors  and  lenders  FEATURES  }  The  largest,  most  comprehensive  collecAon  of  manufactured  home  floor  plans    }  Custom  price  quotes  }  Retailer  and  builder  directory  and  profiles  }  Searchable  lisAng  of  previously  owned  homes  }  Retailer  price  comparison  tool  }  Local  site  contractor  finder  }  Model  home  gallery  locator  
  14. 14. Confidenal  and  Proprietary    Page  14  Vercal:  Recreaonal  Sports  OPPORTUNITY  }  Approx.  50  million  people  in  the  US  play  recreaAonal  sports  once  a  month  }  Over  $20  billion  is  spent  annually  in  the  US  in  adverAsing  sports  or  sports  related  products  }  There  is  a  significant  need  for  individuals  to  locate  and  read  reviews  of  faciliAes,  other  players  and  organize  schedules  }  Instantaneous  informaAon  is  vital  for  individuals  with  limited  Ame  to  organize  and/or  find  events  in  their  geo-­‐targeted  area  MONETIZATION  }  Ad  supported  ‘basic’  or  ‘lite’  app  versions  }  Advanced  pro  version  with  higher  pricing    }  Payment  processing  commissions    }  Tournament  organizaAon  commissions  }  Fees  for  collecAng  registraAon  or  league  dues    FEATURES  }  A  searchable  database  to  find  great  places  to  play    }  Easy  game  scheduling    }  The  ability  to  find  and  join  local  games,  leagues,  and  programs    }  Experience  level  matching    }  Social  media  IntegraAon    }  The  largest  U.S.  database    of  people  playing  recreaAon  sports/pick-­‐up  games  
  15. 15. Confidenal  and  Proprietary    Page  15  Addional  Vercals  Modularhomes.com  }  Similar  to  manufactured  homes,  modular  homes  are  factory  built,  but  the  components  are  joined  at  the  building  site  and  are  regulated  in  the  same  way  as  site-­‐built  homes.  The  market  for  home  and  commercial  sales  exceeded  $2.7  billion  in  2011,  and  it  is  expected  that  2012  will  exceed  this  mark  as  sales  numbers  are  final.    Currently,  there  are  approximately  150  modular  home  manufacturing  faciliAes  in  the  U.S.  alone.  www.ModularHomes.com  will  serve  as  the  de  facto  online  desAnaAon  for  all  consAtuents  in  this  growing  and  regionally  diverse  industry.  The  Modular  Home  site  will  feature  tools  for  both  consumers  and  retailers  from  custom  price  quotes  and  a  local  site  contractor  finder  to  retailer  and  builder  directories  and  profiles,  including  featured  lisAngs  and  adverAsing  opportuniAes  for  retailers  and  builders.    Karate.com  }  This  finder  site  is  anAcipated  to  become  the  number  one  consolidated  site  for  all  types  of  marAal  arts.  It  will  build  a  community  of  marAal  arts  enthusiasts  and  industry  professionals  who  can  share  interests  and  make  friends,  locate  studios  and  training  faciliAes,  find  equipment  and  tournaments,  and  post  items  for  sale  or  inquiries.    SearchCore  has  already  compiled  a  database  of  over  60,000  stores  and  faciliAes  in  the  US,  and  the  finder  site  will  launch  in  third  quarter  of  2013.    Rodeo.com  }  With  Rodeo.com,  SearchCore  is  posiAoned  to  capitalize  on  the  $3  billion  global  adverAsing,  markeAng,  and  product  spend  in  the  rodeo  industry  by  becoming  the  online  hub  for  related  informaAon,  products,  and  services.  SearchCore  is  in  the  planning  and  discovery  phase  of  transforming  Rodeo.com  into  a  social  plaeorm  for  rodeo  enthusiasts.      
  16. 16. Confidenal  and  Proprietary    Page  16  Corporate  }  Nevada  corporaAon  formed  in  2003  }  Headquarters  in  Lake  Forest,  California  }  OTCQX  listed:  SRER  }  38.0m  shares  outstanding  (200m  authorized)  }  9.1m  in  float  }  No  material  debt  }  Recent  price:  $0.23  per  share  (May  1,  2013)  }  Market  cap:  $8.7  million  (May  1,  2013)  }  DAD:  Merriman  Capital,  Inc.  }  Legal:  The  Lebrecht  Group,  APLC  }  Audit:  Tarvaran  Askelson  &  Company  
  17. 17. Confidenal  and  Proprietary    Page  17  Transacon  }  $1.5m  in  growth  financing  •  $250k  for  premium  domain  acquisiAon  •  $300k  for  addiAonal  human  and  technical  resources  •  $300k  for  research  and  development  •  $150k  for  sales  and  markeAng  •  $500k  working  capital  and  transacAon  costs  }  Senior  converAble  promissory  notes  and  warrants  •  Note  converts  at  $0.20  per  share  at  opAon  of  holder  •  3  year  term  •  5  year  warrants  at  $0.40  (50%  coverage)  }  $50,000  minimum  unit  ($50,000  note  and  warrants  to  purchase  125,000  shares)  }  Expected  closing  Q2  2013  }  Placement  agent:  Core  Equity  Group  (through  Merriman  Capital,  Inc.    member  FINRA  &  SIPC)  
  18. 18. Confidenal  and  Proprietary    Page  18  Summary  }  Proven  business  model:    Sold  previous  finder  site  for  $12M  }  Technology,  process  and  people  are  established  and  scaling  successful  business  model  across  mulAple  industry  verAcals    }  Diverse  business  model,  with  mulAple  recurring  revenue  streams  }  Seasoned  management  team,  proven  through  delivery  

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