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ArtistWorks Video Exchange Learning

  1. Patricia Butler, CEO, Cofounder 68 Coombs Street, Napa CA 94559 Office: 707-255-1840 Cell: 707-225-7227 Where MastersCometoTeach
  2. PROBLEMS with online and traditional learning 1:1 teaching not scalable No feedback or evaluation Privileged few get access to subject-matter-experts Unstructured learning .•. abandoned hopes Fragmented industry
  3. •Multi-style learning with Video Exchange® •Ongoing learning conversations •Democratizes access •Centralized destination •Scales 1:1 teaching – experts in online music instruction
  4. We have an industry-unique, unfair advantage: Video Exchange Learning
  5. • Online skill instruction taught by subject masters • Industry-unique, protected technology • Executed a scalable teaching method & proven our concept with music • Next: execute deeper penetration & higher margins NEW Certification Program (Sept 2018) •$250, 12-week program •Guided pathway to mastery •Inspires 60M music makers Most comprehensive music education destination
  6. Total e-Learning Market Self-paced Vocational Corporate Music- Hobbyists Music- Academic $190bn $25bn $30bn $1bn $1.5bn 60M “Music Makers” world-wide seek instruction 7M US high school players 13M US adult players
  7. Business Model •Adult hobbyist & serious amateur, 20-65 yrs old •Seek expert instruction, guidance & validation Auto-renew subscription Certification Program: 1,3 & 12 month 12-week courses, 3 levels $39, $99, $279 $250 Average 55% gross profit Average 80% gross profit NEW
  8. Go To Market/Distribution •Bigger digital marketing budgets are key •Organic search/Search Engine Optimization (SEO) •Conversion Rate optimization •Extensive Digital Marketing •Content &Program distribution (public & cyber schools) •Customer Retention: Certification Program, Collaboration Features, Curating Tools Life Time Value: $310 CPA: $58
  9. COMPETITIVE Advantages & Analysis:  Proprietary&protected“VideoExchange”technology  Proven Business & Financial Models  Ageless Music Content: 5700 hours  Certificate of Achievement Program (Accredited) Video Exchange® NO NO NO NO YES! Certificate/ Accred College NO NO NO YES! Curated teachers Yes NO NO NO YES! Social platform NO NO NO Yes YES!
  10. Our Executive Team David Butler, Chairman & Cofounder AOL VP of Strategy Technology, pioneering technologist (‘88- ’99) of original AOL platform. Inventor of core ArtistWorks technology of “Video Exchange”, original patent holder. (guitar) Patricia Butler, CEO & Cofounder Former President ArtistWorks, Former AVP Merrill Lynch Private Wealth. Creator of ArtistWorks business and financial model, led the patent process and academic accreditation with WASC. (flute, piano) Marc Verissimo, Business Strategy Former Interim CFO, Chief Strategy Officer, Chief Risk Officer at Silicon Valley Bank, Avid Bank board member, Lighter Capital board member Advisors: Montage Capital Tom Armstrong (Ion) We are open to actively involved investors & their expertise
  11. 0 1.5 3 4.5 6 7.5 9 10.5 12 13.5 2017 2018 2019 2020 2021 Revenue EBITDA 56 courses & programs millions 35 courses & programs 43 courses & programs 50 courses & programs REV $3.4M $5.5M $8.0M $10.8M $14M GM 52% 54% 60% 62% 63% EBITDA $276K $1.3M $2.6M $4.2M $6.0M FINANCIALS 62 courses & programs
  12. FUNDINGHistory •Founders bootstrapped $5M Seed Round: $1.6M+ (Preferred Equity Units, $100K/unit) •First Closing $400K complete •$7.0M pre-money UOF: Mobile, marketing/sales, tech scale, wages, content production, certificate program buildout, roster build out Extension of the model: (2019) Multi-vertical subjects taught on Video Exchange marketplace online with subject matter experts teaching many topics.

Editor's Notes

  1. The online teaching and evaluation market is broken. The video sites most often accessed are one-sided conversations, so players get stuck when they need help the most.
  2. The solution is, for both music and any visually taught subject that is learned online. First, we’ve been in the online music instruction since 2009. We’re experts. We’ve succeeded where others have failed. Now it’s a matter of full execution. We’ve not only survived, but thrived by learning from missteps and allowing our students and renowned teachers refine our concept and offering. Second, we’ve proven the model, the willingness to pay for this style of learning (so we’ve monetized it) and we enjoy a strong position and reputation in a field awash in confusion and decentralization of resources. •Teachers and players regularly engage in Video Exchanges (virtual master classes) to keep their learning on course and with meaningful, valuable guidance specific to their needs. The learning conversations continue so the players progress continues on the right path. They get help when they need it the most. •Affordable access to today’s musical masters and their life’s teaching at ArtistWorks - Teach the World Music •The lessons, study materials, social features and tools for every kind of learner, from adults to high schoolers are all in one central destination that establishes high quality standards for all. •Teachers’ time is leveraged because Video Exchanges are visible to everyone in the course who can apply the instruction to their own playing, but also because we’ve optimized the content for online learning. Short lesson videos mean short submissions which = easy and short but meaningful responses.
  3. This is our unfair advantage: Video Exchange Learning. This demonstration is for music instruction. Click image to play video in PowerPoint SLIDE SHOW MODE…..
  4. 20M in the US, 13M of them adults/our target audience for B2C 14.5M students without lessons (B2E) 7M of them in high school without lessons $190bn elearning market is relevant as ArtistWorks evolves and extends its patented technology and learning concept to non-music verticals in 2019
  5. Certification Course (Accreditation Program pre-cursor) Difference in gross profit is the revenue share with the artists.
  6. Our already robust digital marketing program will catalyze demand for the new Certificate Program, an add-on course of study.
  7. Dual purpose structured program: high schools student can earn course credit and hobbyists get a certificate of achievement or completion. Rigorous, meaningful course of study so their skills and knowledge are challenged, whether or not they are in school. *Our area of providing high quality, personal instruction that reaches many learners within a proprietary platform is a model that helps protect us from big competitors.
  8. As CEO, Patricia has built the business and financial models, led the patent process as well as the academic accreditation completion and directs all corporate development and growth acceleration for the company and its proprietary technology and teaching concept. David is a pioneering technologist with keen vision for the user experience. His technology work at AOL included building the important platform groundwork that made AOL a household name that led to a historical exit. He’s the creator and original patent holder of Video Exchange Learning that was born out of his drive to learn jazz guitar. Marc Verissimo brings his formidable career at SVB in risk and financial management to our strategic team. His insights inform and influence the short and long term trajectory of the company Our ADVISORS, who are helping us to accelerate our growth include Montage Capital, our lender, which is a team of former SVB execs.
  9. Over time, as the certificate and accredited programs gain momentum and becomes a larger portion of our revenues, you can see gross profit margins and EBITDA increasing. By 2021 the certificate and accredited program represents about 30% of revenues at a higher gross profit margin (78-80%)
  10. Unlike many other entrepreneurs, we bootstrapped ArtistWorks with $5M, so we funded it well. We are “all in” and not going to fold. Failure is not an option for us. Defendable technology took money and time and risk, so we built the foundation for others to gain from: teachers, students and investors.