Larsen Toy Lab has created a Social Product Development Platform to make it easier for anyone to launch their new idea for a children's product (can be a toy, game, activity, book, app, apparel, etc).

1. Social Product Development Platform
For Kids Products

2. Makers Artists Designers
Inventors +
Entrepreneurs
Writers Engineers Developers
There has never been a better time to
LAUNCH your creative idea

3. • Raised $16k through Kickstarter to
launch line of children’s toys
• Building Blocks + books, games, puzzles
• 87 % successful
campaigns raise < $20k*
• Enough for distribution,
marketing, production?
• 75% of projects miss their
ship deadline**
But… How Do You Scale After Successful Launch?
*https://www.kickstarter.com/help/stats
** Dynamics of Crowdfunding, UPENN
Struggle to get Distribution, Marketing, cost effective Production, develop next iteration of Products

4. Our new platform makes inventing products for kids
more accessible and rewarding for users.
Technical term: Social Product Development Platform

5. How Does it Work? Quirky for kids
Submit
(community)
• Anyone can submit
an idea
• Idea is validated by
voting
Refine
(community)
• Parents and teachers
encouraged contribute
ideas to development
stages
Launch
(LTL)
• Manufacturing
• Distribution
• Marketing
Benefit
(all)
• World has a new
product that was
developed mainly
by teachers and
parents
• 10% of gross sales
given back to
community4%
Gross Revenue
6%
Gross Revenue
Influence

6. Who Else is Doing This? Only one.
Us Quirky.com
Community of anyone
Community of subject
matter experts
No focus
Out of touch with
consumer trends
Impact Tags
Targeted focus:
Kid related
Raised $65M of VC funding in 2012

7. Confidential - Larsen Toy Lab 7
Alex Larsen: Design Engineer at Humanscale Inc; BS Engineering at Miami OH;
MBA at Pepperdine University
Courtney Larsen Keller: Product Manager at Phillips; Sales Rep at Red Thread;
BA Interior Design at Miami OH
Rod Larsen: President of Viscusi Group (executive search firm); 30 years
managing sales teams in office contract furniture industry
Dana Larsen: 20 years as K-5 Art Teacher; currently teaches high school
photography
Mike Keller: Attorney
Will Haughey: Co-Founder, Chief Blockhead at Tegu; Analyst at
Goldman Sachs
Rachelle Meyer: International Illustrator Coordinator for the
Society of Children's Book Writers and Illustrators
Michael Cheshire: Co-Founder, Jungo Toys
Minnie Miller: NYU Stern MBA; Buyer at Barnes and Noble
(children’s dept)
Denise Roeder: Kindergarten Teacher, Columbia Grammar +
Prep
Team
Advisors

8. Business Model
8
Finished Idea
Validated and
influenced by
community
We own all
Intellectual Property
Final Design &
Manufacturing
Outsource: print
graphics, 3D
models, packaging,
metal + plastic parts
In-House: art, book
layout, wood parts
Marketing
PPC advertising
including retargeting
campaigns
Content creation,
giveaways, contests,
email campaigns
Sales
10% of gross sales
paid as ‘Influence’
to community
Direct: website,
Amazon, specialty
retailers, flash sales
Retail: tradeshows,
walk-ins, rep groups
take 5-15%

9. Why Children’s Products?
• Passionate + social “mom-preneurs” to
support community
• Teachers and parents always looking for
easy ways to supplement income
• Industry lacks innovation
• $22B Toy Industry is a large, fragmented market
• 40% made by independent toy makers
• 35% sold through specialty retailers
Toy Industry Snapshot:

10. History and Milestones
Kickstarter campaign, raised $16k
1,500+ social media following
Launch 3-in-1 game pack Block Party
Leif and Emma concept
Beta website launch
1st Product under new name launched
Website optimization
1st Tradeshow
10 Live projects
Toy Manufacturer Social Product Development

11. $600
$400
$200
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
6 12 18 24 30 36
CashFlow(000’s)
36 Month Cash Flow
SALES
History:
475 total block
sets sold
2012: $8,200
2013: $10,060
Growth: 23%
01/13: $159
01/14: $543
Growth: 242%
Channels:
LTL.com: $7k
Kickstarter (toys):
$6k
Abesmarket.com:
$2.5k
Amazon: $1.75k
Other online
retailers: $1k
11
3 YR. PROJECTIONS
Development, small
order of inventory
Production equipment,
begin digital marketing
Rent, larger inventory
order, hire part-time
help for production
NY Toy Fair
Revenue: $220k
Hire Marketing Director
Expand space to 2,000
sq ft
Larger inventory orders,
twice a year
Revenue: $950k
Year 1
Year 2
Hire 3 new people +
interns
Revenue: $2.7M
Year 3
Finance