Half Off Depot 2012 Venture Atlanta Presentation
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Half Off Depot 2012 Venture Atlanta Presentation



Presentation at the 2012 Venture Atlanta conference.

Presentation at the 2012 Venture Atlanta conference.



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  • \nMy name is Lance Weatherby. \n\nI am the Chief Operating Officer of Half Off Depot.\n\nThis afternoon I would like to share our story with you.\n
  • Half Off Depot was founded in 2009.\n\nIt is a spin out of the Sunday Paper.\n\nThe Sunday Paper was an alternative newsweekly that was doing quite well until the newspaper downturn.\n\nLocal merchants no longer wanted to buy ads in the paper.\n\nThe founders of the Sunday Paper went to these customers and asked if they would be willing to barter gift certificates in exchange for advertising.\n\nThey said yes, the business took off and Half Off Depot was born.\n\nIn 2010 the company took in $2 million from Brian Conley who became the CEO.\n\nLast year we raised $7 million led by Noro Moseley Partners.\n\nWe used these funds to expand our business throughout the Southeast, for some acquisitions, and product development.\n
  • So where in the heck did Brian get that $2 million that he put into Half Off Depot.\n\nBrian is a successful serial entrepreneur.\n\nHe sold his previous company, the MetroPulse paper, to E.W. Scripps for a tidy sum.\n\nMyself I have a good deal of successful startup experience.\n\nI was a member of the CipherTrust executive team when we raised $42 million.\n\nCipherTrust was eventually sold to Secure Computing for $300 million.\n\nAnd I joined MindSpring when the company was in its infancy, We took the company public and so many secondary offerings that I lost count.\n\nBrian and I have the proven ability to build company value and that is what we are doing at Half Off Depot.\n
  • So here’t the point.\n\nDespite all the bad things that you read about Groupon the deal market is not dead.\n\nIt is a very large and fast growing market.\n\nThe online deal market is growing at a 20% rate.\n\nAccording to BIA/Kelsey the market is expected to grow from $1.8 billion last year to $4.8 billion in 2014.\n\nAnd Half Off Depot is riding the wave of this market growth. \n\nWe are cash flow positive and growing rapidly.\n\nSo let’s get a little more specific on our growth.\n
  • In 2009 Half Off Depot did about $400,000 in sales.\n\nIn 2010 this number jumped to $6.6 million.\n\nLast year, as we rapidly expanded our footprint sales increased to around $13 million.\n\nThis year we are on track to reach $18 million.\n\nAnd with a capital infusion we are confident that we can accelerate our growth to $30 million in 2013 and nearly $50 million in 2014.\n\n
  • Those are some big numbers.\n\nAnd the reason why the numbers are big is because there is a big problem.\n\nThe same phoneme that killed the Sunday Paper is happening everywhere.\n\nThe traditional local advertising outlets that local merchants used to use are dying or dead.\n\nThey know they need to be online, they just don’t know how to get there.\n\nThat is where Half Off Depot comes in.\n
  • While we may look like a daily deal company on the surface Half Off Depot is much more than that. \n\nWe are a marketing technology company that has built a proprietary platform.\n\nWe call this platform an Automated Internet Marketing engine, or AIM for short. \n\nAIM provides merchants with an easy to use, cost effective, and risk-free method to market to consumers online.\n\nThe patent pending platform is specifically designed to engage, convert, and retain customers for merchants by targeting them with compelling offers.\n\nWe market these offers on befhalf of our merchant parthers via online advertising, the Half Off Depot publishing network that includes partners such as eBay, Google, and Whaleshark, organic search, social media and email.\n\nThis holistic approach enables us to drive more new consumers into the merchants retail store.\n\nOnce the merchants obtains a new customer we enable them to remarket to these customers on a regular basis.\n\nAnd of course we take in data from merchant sales to monitor how we are doing, and combine it with our member data to create an intelligent system.\n\nWe don’t really get into the technical details with merchants.\n\nBut they love it. \n\n\n
  • Our business model is pretty straight forward.\n\nWe sell AIM to merchants via direct sales.\n\nHalf Off Depot generates revenue when consumers purchase offers in our online store.\n\nWe are seeing fantastic member and visitor growth with virtually no marketing expense, though the expense that we do incur is via highly efficient methods that we can scale.\n\nAnd when Groupon mishandled its IPO process we saw an opportunity and have been buying other companies in the space to acquire technology, members, and revenue. \n\n\n
  • We are going to be seeking a Series B round in the Spring of 2013.\n\nWe intend to use this money to\n\nExpand our operating footprint\n\nIncrease the size of our member base\n\nContinue to play the role of consolidator in the space\n\nAnd to enhance our AIM platform.\n
  • Half Off Depot operates in a fast growing multi-billion dollar market.\n\nWe have a unique approach and proprietary solution that both consumers and merchants love.\n\nWe are fast growing and profitable.\n\nAnd we believe that Half Off Depot is well positioned to capture future market growth.\n\nWe look forward to having more in depth conversations with many of you about the Half Off Depot opportunity.\n
  • \n

Half Off Depot 2012 Venture Atlanta Presentation Half Off Depot 2012 Venture Atlanta Presentation Presentation Transcript

  • OUR STORY Founded in 2009 Spin out of The Sunday Paper $2 million angel round in 2010 $7 million Series A in 2011 led by Noro-Moseley Partners
  • Brian Conley - CEO Serial media entrepreneur sold previous company to E.W. Scripps Lance Weatherby - COO CipherTrust, EarthLink, MindSpring Proven ability to build company valueLEADERSHIP
  • THE POINTDeals are not dead20% CAGR$4.8 billion market in 2014Cash flow positiveGrowing rapidly
  • SALES $50 $40 $30 $20 $10 $0 2009 2010 2011 2012 2013 2014 (in millions)
  • PROBLEMTraditional local advertising avenuesare dyingMerchants know they need to beonlineThey don’t know how
  • SOLUTION WWW Ads Publishing Network Organic Search Non-Paid Social Email Automated Internet Marketing Engine Member Data DealScore Merchant Merchant Merchant
  • TO MARKETDirect sales to merchantsRevenue generated when consumers purchaseoffersMember/visitor growth with virtually no marketingexpenseMarket consolidator
  • THE ASKSeeking Series B in Spring 2013 Expand footprint Increase member base Continue to consolidate Product development
  • Fast growing multi-billion dollar opportunity Unique approach and proprietary solution Growing and profitable Well positioned to capture future market growthSUMMARY
  • lance@halfoffdepot.com