Copyright (C) 2009 by Znak, Inc. 1“Information wants to be free, and it wants to be expensive.” the WWW as a marketplace;not a billboard or soc net; Fair to everyone; Based on the naturaldynamics of free market Solves the old dilemma:Disruptive Monetization & Payment Pathways forCreative Content, Virtual Goods and ServicesMake the WWW free Fair
Copyright (C) 2009 by Znak, Inc.BillboardSocial NetMarketplaceThe WWW Evolves2
Copyright (C) 2009 by Znak, Inc.Paid Content Ecosystem3http://imgur.com/qjjlkGmThree provensolutions in one
Copyright (C) 2009 by Znak, Inc.Three Major Stakeholderspremium content curation andmonetization platformfrictionless access to paid content,also for “free”direct-to-user advertising opportunity& a data collection toolMarketers &AdvertisersContent ProvidersWeb Users4
Copyright (C) 2009 by Znak, Inc.Links and widgets, embeddableas payment gateways.Customizable shapes/colors.Easy, copy-and-paste insertion ofJS codes or API.Two mouse clicks to access and payfor selected content.Real time payment authorization & fund transfer;SSL-encrypted; CPI-compliant.5Content Providers, Large & Small
Copyright (C) 2009 by Znak, Inc.User Choice6Purchase subscription;(micro)pay on demand,make a donation, orEarn Free Access throughopt-in advertising
Copyright (C) 2009 by Znak, Inc.Award-winning “Earn Free Access”7No registration needed!No PINs! No User IDs –quick, safe and privateHigh (19.6%) conversion rate(vs. 1-2% conversion bypaywalls)Ability to bypass in-apppayment fees charged byApple, Google, etc.Up to 30%
Copyright (C) 2009 by Znak, Inc.A Win-Win-AND-Win Solution8 Open – platform agnostic; Flexible – multiple paymentmethods; Universal – any type/format ofpremium content or service; Simple to implement (SaaS) anduse; frictionless for the Web user; Efficient and viable – up to 20%conversion; 94% return.Marketers &AdvertisersSolves the Brand Dilemma – makes the WWW a marketplace,fair and beneficial to everyone
Copyright (C) 2009 by Znak, Inc. 9 /Market Potential and TrendsMarket SizeUSD 2 700 000 000 00040 times bigger than Apple‟s annual revenue;90 times Google1,350 times bigger than FacebookSource: ZenithOptimedia ; est . for2015
Copyright (C) 2009 by Znak, Inc. 101/5 of online content is paid now– 139% increaseBy 2016, 90% of online contentwill be paid.Simon-Kucher & PartnersOnline Revenue GrowthInternetOfflinePublishing
Copyright (C) 2009 by Znak, Inc.From Public Beta to BEP11Aug.2011201120122012320 content providers, 55,,000 users,in the first 3 monthsPilot projects with5 large publishersDeveloped in 2007-08 with200,000 users,1.4M EUR volumeFive additionalpublishers,LoIQ1 2013-20,00040,00060,00080,000100,000120,000140,000160,0002010 2011 2012361 8,095110,24080,968109,230159,470Revenue from Commision Exspenses/ Cost of GoodsBetaAsk meaboutresults!
Copyright (C) 2009 by Znak, Inc. 12CompetitionGooglee-WalletPayPalPress+PianoTinyPassFlattr Znak it!Off lineOn lineSubscriptionMicropaymentsDonationsEarn FreeAccessTransferableCredits
Copyright (C) 2009 by Znak, Inc.Business Model Options & BenefitsPaywalls vs. Znak it! SaaS -- no setup and system maintenancecosts; up to 94% return; can bypass app fees; Also for the “long tail;” truly World Wide; Technology- and portal-agnostic; Flexible, a la carte, on-demand access; Supports different payment methods, incl.donations and ad-sponsored access; User-centric, payment as social engagement,content sharing & P2P recommendations; Private, intrinsically safe; can be used foranonymous access – without registration;frictionless.13 Expensive, low ROI; Require large scale;convert only about 1% ofusers Create „silo effect;‟ Closed, rigid, mightcannibalize othersources of revenue; Media/publisher-centric ,not engaging ; “exploit”most loyal users
Copyright (C) 2009 by Znak, Inc.Major Clients and Partners14 /Existing Clients Partners Prospectswith LoI
Copyright (C) 2009 by Znak, Inc. 152008200920102011Web 2.0 Expo in San Francisco – first public showGerman Publishers’ Assoc. AwardDeveloped in 2007-08 withDeveloped in 2007-08in collaboration withIdeo of Palo Alto, CAEU Grant for Innovation167,000 EUREPCA Florin AwardPublic BetaLaunchedAug. 2011Barriers to EntryIP – patent pendingCPI–SSD complianceIndustry standardsLearning curveScaleSunk costs
Copyright (C) 2009 by Znak, Inc.Znak it! Finances in EUR16 /-100,000200,000300,000400,000500,000600,000700,000800,000900,0001,000,0002009 2010 2011 2012 2013Seed & Angel CapitalRevenue from CommisionOperational ExspensesEstimated900,000 EUR InvestedDoes not include the new round.
Copyright (C) 2009 by Znak, Inc.Needs and Opportunities181,500,000 EUR -- Series A, equity, convertableMobileappsSales &marketingAdministration, newhiresWorkingcapitalNew Capital AllocationROI – open to IPO with additional rounds, M&A or licensingExcellent perspective: average multiple of 4.9 x revenue, as reported by BerkeryNoyes, (based on 60 M&A deals in 2012)
Copyright (C) 2009 by Znak, Inc. 19With Znak it! information can be “free,” easy to access and share;AND, it can be “expensive,” high-quality and profitable. Enormous opportunity ;huge marketplace; Fair and beneficial toeveryone; Customer is King Business model driven bythe real market dynamicsDisruptive Monetization & Payment Pathways forPremium ContentLet’s Make the WWW free Fair!
AppendixPilot Study ResultsZnak, Inc .Sunnyvale CA, USAWarsaw, Poland20
Copyright (C) 2009 by Znak, Inc. 21User Characteristics, by Gender & Age58.9%41.1% MalesFemales13.8%16.5%23.1%22.4%24.2%18 to 2425 to3435 to 4445 to 5455+Based on a sample of 43 299 Unique Users – Pilot Project ResultsThe sample represents gender and age distribution typical foronline sites with high-quality news/magazine content, with amajority of users being male and older.
Copyright (C) 2009 by Znak, Inc. 22MalesFemales 18 - 2425 - 3435 - 4445 - 5455+58.9%41.1%13.8% 16.5% 23.1%22.4%24.2%65.3%34.7%20.6%29.0%21.0%16.5%12.9%Unique Users Unique BuyersNumber of Unique Buyers – 1 281Younger users more likely to convert intoBuyers, using Znak it!Znak it! vs. paywalls – sustainable, viable systemUser Characteristics, by Gender & Age50% under 34 yrs old
Copyright (C) 2009 by Znak, Inc.Conversion Rates by Gender and Age23TotalMalesFemales 18 - 2425 - 3435 - 4445 - 5455+3.0%3.3%2.5%4.4% 5.2%2.7%2.2%1.6%8.7%10.3%6.4%14.5%15.6%8.2%6.3%3.3%Conversion Rate (Buyers/Uniques) Conversion Rate (Buys/Uniques)Conversion rates 9 to over15 times higher than thosegenerated by meteredpaywalls (1 - 2%)
Copyright (C) 2009 by Znak, Inc.Znak it! Market NicheZnak it! Payment Niche246.00%3.90%21.67%8.85%102.90%52.90%27.90%17.90%5.40%0%20%40%60%80%100%120%$0.3 $0.6 $0.9 $1.2 $1.5 $1.8 $2.5 $5.0 $20.0PercentageCommissionZnak it! standard commission ascompared to PayPal chargesTransaction valuePayPalRegularZnak it!PayPalMicropayments