Change the world YOUR Way - Story of a Start-up

STORY OF A STARTUP
FOUNDER & CEO @MATTKEPPLE
TWITTER: @MAKERBLE #TECHCITY
CHANGE THE
WORLD
YOUR
WAY

@MAKERBLE #CROYDON #TECHCITY @MATTKEPPLE
• Where the idea came from
• The Idea
• Making It
CHANGE THE WORLD YOUR WAY

Idea 2003. Launched 2004.
Ran until 2007.

Won Channel4 IDEASFACTORY Award for PR & Marketing
Reached final of the Whitbread Young Achiever of the Year
Award
Awarded with Fellowship of the prestigious British society, the RSA
2005

The Idea

There’s a desire to change the world within each of us

Charity staff and charity donors are both motivated to address
the issues they care about

But what donors don’t see is the day to day progress that staff
get to experience

And if this progress was visible, people would be inspired to give
more and the number of people giving would rise
9.5million latent donors, £665million/year available in extra donations
Source: New Philanthropy Capital Money For Good report, UK Giving Green Paper

As a team we’ve seen this happen before
£25 average donation, 22-35 year olds, 40 projects, £80,000, member-
get-member marketing, repeat attendees, charities earned loyalty
www.YTFN.ORG
2008 - 2013
Matt Kepple, Annabel Dickson (Makerble) and friends co-founded the Youth Funding Network, www.ytfn.org - 2008-2013

There’s a growing appetite for transparency among donors
“I don’t donate money to charity because
I’m not confident that my donation won’t
be wasted.
That’s why I volunteer my time instead
because that way I see the direct impact of
what I put in”
HSBC Investment Manager, aged 30-35, male
Source: Makerble interviews

But often our day-to-day lives get in the way

Telling the story of change, not selling the story of change
Makerble has a library of charitable projects described in the
Help (need) | Make (method, budget) | Change (impact) format

Users (Makers) select the causes they care about
Makerble tailors a personalised stream of projects
matching the user’s interests for their monthly donation to fund.

Change is reported on the Maker’s Change Timeline
Personalised monthly email newsletter | Mobile app notifications
Makers have a Change Score which equates to their total impact across all the projects they’ve ever made possible

Automatically published to the Maker’s social network
2.85 new Makers recruited per original Maker
50% Makers activate FB connect x 190 Facebook Friends x 3% signup rate
has provided nursery places
to 3 orphans in Romania. You can help
Ahmed make even more change!

Giving Makers the option to subscribe to individual charities,
meaning they will always have a project from that charity in
their Makerble Stream

Makerble is a revolutionary tool putting people in control of their positive global impact
like never before. Our marketing reflects the breadth of interest in Makerble and we have
staff assigned to these areas.
PR EMPLOYEES
EVERYWHERE
SUB
CULTURES
SOCIAL
MEDIA
BRANDED
VOUCHERS
National media
targets
Resolving the
frustration in
charity giving
Seeking
celebrity
Makers
Individual departments
within companies can
impact their choice of
causes with a Makerble
Bundle that is linked to
the company’s Makerble
Page
Exploring partnership
with intermediary
organisation to reach
the Top 100 graduate
employers
Big market: Only 2% of
University Student
Reps: engaging
students directly and
giving societies to
their own Bundles
Entertainment
venues: clubs, bars,
restaurants
Hobbyists: e.g.
members of
Meetup.com groups
can impact their
choice of causes with
Seeded campaign
video
Earned Media:
Makers’ Change
Stories published to
their social networks
Owned Media:
charities can engage
existing supporters,
e.g. using Makerble
Charity Facebook
App, email
newsletter, etc.
Brands distribute
match-funding
vouchers to their
customers to support
their own choice of
projects or projects
highlighted by the
brand.

Team
Back Office: Finance, Legal, Technology, Design Front Office: New Business, Customer Experience
CEO: Ma Kepple
- Team management
- Investment raising
- Serial innovator in
behaviour change for
social good
- Marke ng, insight,
grass root fundraising,
social enterprise
background
Commercial Director:
Ahmed Al-aagam
- Revenue, pricing,
contracts, budge ng
- Charity trustee,
public service
consultancy CEO
- Management
experience in fashion
label, music, fes vals,
youth arts
Head of Social Progress:
Annabel Dickson
- Recrui ng & on-boarding
change-making orgs
- PR and policy-shaping in
impact & funding debates
- Co-founded YTFN
- Solo world tour evalua ng
chari es
- Built 10:10’s fundraising
department
Head of Corporate
Services: Kate Gault
- New business
- Client management
- Adver sing background:
Account Director handling
Walkers, Financial Times,
The Stroke Associa on.
- Client-side: Marke ng
Manager at ITV for Drama
Lead Developer:
Sebas en Bourdu
- Managing developers
- Site architecture
- Founded lee r.com,
comemo.org
Lead Designer: Theo
Louca
- Branding, look &
feel, wireframes, user
journeys, designs
- CEO of Rawww
Head of Product –
Consumer Services: Kate
Campbell
- UX & Innova on
- Customer acquisi on
- Code campaign
- Super User engagement
- Psychology, ac ng,
student fundraising
events, teaching
background
Growth Hacker: Liam
Reynolds
- Site Op misa on
- A/B tes ng
- Former Data Planning
Partner at Engine
Group servicing T-
Mobile and other
clients
0.2FTFT 0.4FT 0.4FT
0.4FTCONSULTANT CONSULTANT CONSULTANT

Highsocial giving
High Evidence of Impact
Low Evidence of Impact
Impact reports
Progress newsfeed
Majority of chari es’
fundraising appeals
Dona on ac vity in
social newsfeeds
Member get Member
fundraising via email
Specific projects
Profiles of other
donors are shown
Low social giving

Breakeven: 40,000 subscribers at £10/month
[0.5% market share of 9.5million people market]
Monthly Burn: £20k
[£9k Biz Dev, £6k Tech, £5k Ops]
Amount Requested:
Round 1: £25k for 12% equity beta launch Oct-Dec 2013
Round 2: £250k for 14% equity for 9 month runway Q1-Q3 2014
P&L- Expanded
Year 1 Year 2 Year 3 Year 4 Year 5
Sept 2013 - Aug 2014 Sept 2014 - Aug 2015 Sept 2015 - Aug 2016 Sept 2016 - Aug 2017 Sept 2017 - Aug 2018
Income £63,119 £6,493,006 £32,563,271 £36,693,109 £41,346,714
Expenditure £252,471 £536,559 £627,379 £710,851 £747,819
Business Development £108,400 £243,000 £418,000 £442,000 £450,000
Technology £76,794 £43,369 £83,369 £103,369 £103,369
Operations £65,374 £117,538 £123,218 £162,690 £191,658
Financing £1,903 £132,651 £2,791 £2,791 £2,791
EBIT -£189,352 £5,956,447 £31,935,892 £35,982,258 £40,598,895
P&L -£189,352 £5,956,447 £31,935,892 £28,785,807 £32,479,116

Convio tech company servicing charities primarily in USA enabling
them to use the internet. NASDAQ IPO in 2010. Trade sale 2012.
Acquirer Blackbaud supplier of software to nonprofits. On NASDAQ.

Pre Q4 2013
Seed Round:
3months runway
Pre Q1 2014
Scale-up Round:
9months runway
(Equity dilution)
Pre Q1 2015
Series A Round:
12 months
international
team
(equity dilution)
2018
IPO, Trade Sale,
Shares sale.
Company
Valuation:
£300million
Friends Group £25k
12% stake
(6% stake) (3% stake) Return:
£9million.
360x yield
Angel Investors
and £100k
match-funding
£250k
14% stake
(7% stake) Return:
£21million.
84x yield.
VC £2.5million
30% stake
Return:
£90million.
36x yield.
Founders 88% stake (80% stake) (60% stake)
We forecast Year 5 global EBITDA of £50million:
a 0.1% market share of $60billion global fundraising services market
6x EBITDA multiple: Equity Valuation of £300million
Convio sold to Blackbaud in 2012 for $385million

Making It

Piloting
• Learn cheaply
• Gives you success
• Gives you a story
• Chain of events

Piloting
• Top 100 Global Young Social Entrepreneurs - Kuala Lumpur
• The RSA
• Social Enterprise Ambassador appointed by The Cabinet Office

Funding
DON’T LET PERFECTION BECOME THE ENEMY OF THE GOOD
• UnLtd £5k grant

Funding
IF YOU’RE ABLE TO START A START-UP, YOU’RE PROBABLY ALREADY
BRINGING A NEW DIMENSION TO YOUR INDUSTRY
• Consulting to grow your savings
• Rejection is standard
• Feedback from honest friends
• £100,000 Match Funding
• £10k Start-up Loan

UX
HOW DO YOU WANT PEOPLE TO FEEL WHEN THEY INTERACT WITH YOUR
BRAND?

User’s Change Timeline
• Profile pic
• New Change updates
• Total Change score
• Project progress indicators
• Medals earned and Medals approaching
Friend’s
Change
update
Change
update of a
charity they
follow
One of my
Change
Updates
Friend’s
Change
update
Friend’s
Change
update
Change
Update from
a project
manager
they follow
Friend’s
Change
update
Friend’s
Change
update
User’s
CHANGE™7
Content Carousel scrolling through each
update on the Timeline
Promoted
Content
e.g. Join
Gucci’s
Bundle!
System No fica ons bar – e.g. download mobile app
Invite Friends

15 iterations later

Market Research
• Turn authors of research reports and books into Advisors
• Do your own Interviews
• Write your own Surveys e.g. Google Survey 1000 people £100

Team
• Harness your networks
• Always get involved in the things you love
• Work for free to build your networks and grow your experience

(We already knew each other)
Because I’d founded Gradulicious, I was invited to
join the Connectors. There I met Rajeeb Dey,
attended his Enternships.com launch party, met
Chris Busch, was invited to join Sandbox, emailed
Sandbox for developer recommendations, found
Sebastien! He is working on a significantly
discounted fee.
Summer 2012 I began commenting on blogs and
articles online related to charity fundraising to
share my perspective on where Makerble would
be taking the industry. Liam read about me on the
Guardian. He was a senior partner at a marketing
agency and called me because he was setting up
his own consultancy TrueUp.co.uk and wanted to
do some pro bono work. He invented Makerble’s
Lifestyle Checkout.
In 2005 I worked in advertising. In 2006 my ad
agency recommended I work with a tech agency.
That tech agency recommended I work with a
design agency. That agency is Rawww founded by
Theo who has given Makerble £10k of design
work on credit until we raise investment.
I received an award for Wahblo from UnLtd. They
sent me a random email about a girl – Annabel –
who wanted to organise pop-up crowd-funding
events for undiscovered charities. I got in touch
and co-founded YTFN.org with her. She’s now
handling all Makerble’s charity relationships.
In first year of uni I played the role of Tyrone in
FAME The Musical. Some friends hadn’t got in so I
organised Musical Theatre Workshops for more
students to participate. Through that I met Kate
Campbell who ran the largest fundraising events
for the charity society. She now handles
Makerble’s marketing.
I met Kate Gault on a pre-advertising course for
graduates. We were both placed at DLKW and
then when I left we both worked together in our
spare time to build a prototype website for an
idea we had called Graduate Flatmates. Kate then
worked went up the ranks in advertising and now
handles Makerble’s relationships with brands.
I received a grant from an organisation called
UnLtd for Wahblo. They labelled me one of their
top 21 young social entrepreneurs and put me on
a 1-week course I reluctantly attended. There I
met Ahmed and we then co-founded the
Commission for Youth Social Enterprise. Ahmed is
now Makerble’s Commercial Director.

Culture
• Create a canvas not a painting
• Don’t believe the hype
• If a solution doesn’t exist, make one. It is ‘makerble’
NEXT VIDEO:
Matt talks to ideas consultant Mathias
Vestergaard about innovation culture:
http://youtu.be/YYNBztGuty4

Thank You Croydon Tech City. See you on Makerble!
http://makerble.launchrock.com

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