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Heroic Investor Overview
 

Heroic Investor Overview

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Heroic is certified for the MN Angel Tax credit which offers a 25% Tax Credit to qualified individuals on their investment in Heroic, Inc. Contact @JustinPBarrett, Justin@BeHeroic.com

Heroic is certified for the MN Angel Tax credit which offers a 25% Tax Credit to qualified individuals on their investment in Heroic, Inc. Contact @JustinPBarrett, Justin@BeHeroic.com

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    Heroic Investor Overview Heroic Investor Overview Presentation Transcript

    • NOVEMBER 2012THE EASIEST WAY TO FIND A TRUSTED HANDYMAN HOUSE CLEANER GARDENER HEROIC INVESTMENT OVERVIEW / 2012WINNER RUNNER-UP, TECH
    • FINDING HOME IMPROVEMENT PROVIDERS IS FRUSTRATING Mary Jeff The Homeowner The Handyman •  Runs a chaotic household •  Handyman for eight years •  Needs a handyman, but •  Needs more work and current doesn’t know where to look marketing isn’t workingHEROIC INVESTMENT OVERVIEW / 2012 2
    • HOMEOWNERS PREFER REFERRALS FROM FRIENDS & NEIGHBORS “A bunch of my neighbors use the same person to mow their lawns, so we just used them.” - MaryYET SERVICE PROVIDERS ARE SPENDING AD DOLLARS ELSEWHERE “What makes it hard for people to book my services? Establishing trust without the benefit of a mutual contact.” - JeffHEROIC INVESTMENT OVERVIEW / 2012 3
    • THE FUTURE IS SOCIAL RELEVANCY PAST   PRESENT   FUTURE   “I don’t trust the phonebook; “Online search is “I could be a great resource for there are no referrals to overwhelming and does not my neighbors and they don’t cross-check against the do a good job at showing even know it!” business’ claims, which is for me people who work in my me is huge!” neighborhood.” - Diane, homeowner - Courtney, homeowner - Meg, HomeownerHEROIC INVESTMENT OVERVIEW / 2012 4
    • HEROIC PROVIDES AN INSTANT VIRTUAL REFERRAL Now Mary can instantly view recommendations from her friends and neighbors Mary tells Heroic what she needs Mary is matched with a Hero based on Mary books Jeff after reviewing his and when she needs it done ratings, location and virtual referrals profile. Jeff meets all of Mary’s qualifications – a perfect match!HEROIC INVESTMENT OVERVIEW / 2012 5
    • HEROIC HELPS PROVIDERS GET MORE BUSINESS In 20 minutes Jeff creates a polished profile that helps homeowners discover his services Jeff would like more business – Jeff Jeff completes a six-step application that Jeff’s profile is complete; he’s now clicks on the “Become a Hero” link ends with a payment option ready to receive leads! 6
    • FREE FOR USERS - HEROES PAY MONTHLY FEES Instant virtual referrals – see who your friends and neighbors recommend User FREE My Heroes page Find Heroes Contact Heroes Mary Full Hero profile page HERO $29.99/MONTH Email and text alerts for jobs Portfolio section for photos Appear in User dashboard and feed Jeff Full Hero profile page Enterprise $99.99/MONTH Email and text alerts for jobs Portfolio section for photos Appear in User dashboard and feedHandyman, Inc.HEROIC INVESTMENT OVERVIEW / 2012 7
    • MANY MORE INDEPENDENT WORKERS ARE ON THE WAY “By 2020, an estimated 50% of the US workforce will be made of independent or freelance workers. A stunning 400% increase in less than a decade.” - The Wall Street Journal REPRESENTING A MAJOR OPPORTUNITYHEROIC INVESTMENT OVERVIEW / 2012 8
    • HEROIC GENERATES HEALTHY MARGINS ON EACH SUBSCRIPTION ONE-YEAR SUBSCRIPTION ECONOMICS, INDIVIDUAL GROSS MARGIN OF 50% FOR INDIVIDUALS GROSS MARGIN OF 85% FOR SMALL BUSINESSHEROIC INVESTMENT OVERVIEW / 2012 9
    • HEROIC DRIVES CUSTOMER LEADS TO HEROES FINDING MARY ONE MARY, MANY LEADS SEM and SEO Referral Program Promotions Open Graph PartnershipsHEROIC INVESTMENT OVERVIEW / 2012 10
    • THIS IS A TEAM WITH MARKETING AND TECHNOLOGY EXPERTISETHIS IS A TEAM WITH MARKETING AND TECHNOLOGY EXPERTISE ETHAN OTTERLEI DAN LINSTROTH CO-FOUNDER & CTO CO-FOUNDER & CMO - Founder Book a Lesson and Velolet - Freelance marketing expert - Development expertise in Ruby, - 50+ team management at PHP, JavaScript and MySQL Edward Jones - University of Minnesota, B.S. - Purdue University, B.A. REED ROBINSON JUSTIN BARRETT CO-FOUNDER & CPO CO-FOUNDER & CEO •  - Founder Usuits •  - Founder Holy Cow, Dirty Work •  - Consumer research marketing •  - 9+ years expertise B2B/B2C expertise, Iconoculture marketing •  - University of Minnesota, •  - University of Minnesota, Carlson School Carlson SchoolSTARTUP EXPERIENCE FORTUNE 500 EXPERIENCE SuitsHEROIC INVESTMENT OVERVIEW / 2012 12
    • HEROIC BECOMES THE FIRST ONLINE REFERRAL ENGINE TOP COMPETITIONHEROIC INVESTMENT OVERVIEW / 2012 13
    • HEROIC IS ON A PATH FOR RAPID GROWTH $60M $44.2M $40M Revenue $28.9M Operating Expenses $20M $12.6M $7M $1M $20k $1.1M $970k .2 3 35 95 .8 42 620 2230 .9 62 941 2812 1 3 13 33 20 970 12,618 44,271 (110) (1,115) (7,042) (28,912) (96) (223) 5,460 14,981 SEEDHEROIC INVESTMENT OVERVIEW / 2012 SERIES A SERIES B 14
    • USES OF CASH AND MILESTONES Unit economics $250k $450k $240k $60k Minneapolis/St Paul market formula $100k 50,000+ leads thru 2013 $1.1M 5,000 active Heroes thru 2013HEROIC INVESTMENT OVERVIEW / 2012 15
    • NOW, BUYING HOME SERVICES IS EASY GIVES MARY AND JEFF WHAT THEY WANT Free referrals from More work at an the people she trusts affordable price …and it’s a connection worth $31 billionHEROIC INVESTMENT OVERVIEW / 2012 16
    • APPENDIXHEROIC INVESTMENT OVERVIEW / 2012 17
    • HEROIC IN THE PRESS                HEROIC INVESTMENT OVERVIEW / 2012 18
    • FINANCING HEROIC GROWTH Raising an additional $630-930k Seed convertible offering •  Investors include Gene Munster, Rob Weber, Ryan Weber, Paul Linstroth, and John Otterlei •  Discount rate of 25% to Series A •  Targeted closing in next 3-4 weeks Use of proceeds / Product Roadmap / Goals •  $200k-$300k: hire 2-3 FT engineers, 1 PT Designer, 1 PT Marketing/ Customer Support •  $350-$500k: marketing campaigns and lead acquisition •  Get to 5k active Heroes; 50,000+ connections thru 2013 •  Minneapolis/St Paul market formulaHEROIC INVESTMENT OVERVIEW / 2012 19
    • ALPHA RELEASED, BETA IS IN PROGRESS Alpha Beta Product Discovery Sharing Market Minneapolis/St Paul Adding Denver/Chicago Revenue Per Lead Subscription Financing Seed Series A Metrics 3,000 Hero Applicants, 2,000 Leads 5,000 Active Heroes/50,000+ LeadsHEROIC INVESTMENT OVERVIEW / 2012 20
    • ADDITIONAL REVENUE STREAMS ADDITIONAL REVENUE OPPORTUNITY: $45B+ EMAIL AD SPACE MOBILE AD SPACEHEROIC INVESTMENT OVERVIEW / 2012 21
    • HEROIC MARKET GROWTH SEED SERIES A SERIES B Hero applications: 2,754 Heroes active: 5,000+ Users: 1,500+ Users: 50,000+ Heroic lead requests: 1,850 Heroic lead requests: 75,000 Sales email signups: 5,000+ Sales email signups: 50,000+ Landing page conversion: 39% Landing page conversion: 40%HEROIC INVESTMENT OVERVIEW / 2012 22
    • CASE STUDY A good company… •  1.5M subscribers, 40K reviews per month •  Revenue last fiscal year was $90M •  Total venture funding $135M •  Valuation at IPO $805M But… “The company made $38 million so far this year. Its selling costs - the cost of a call center full of sales persons pitching merchants for new business - was $22 million in the same period. (Those costs are rising, too, but at least Angies spends less than it makes to acquire new merchants). All that suggests Angies might be better off if it abandoned its unprofitable membership side and made its site free, and then simply sold ads to plumbers.” 11/11, Jim Edwards on Businessinsider.comHEROIC INVESTMENT OVERVIEW / 2012 23
    • LISTENING TO CUSTOMERSHEROIC INVESTMENT OVERVIEW / 2012 24