For EECS 441 W2017

1. Company Presentation
Richard Wu
richwu

2. “The goal when we started was to build a
fundamentally better community for
enthusiasts …”
- Steve El-Hage, Massdrop Cofounder and CEO

5. Communities

6. Drops

8. History
2012 2013 2014 2015 2016 2017
Massdrop Site
Launched
(6/2012)
$1.4M Seed
(9/2013)
$6.5M Series A
(9/2014)
$40M Series B
(8/2015)

9. Financials
• Revenue: ???
• Likely not profitable
– Business development
– Fulfillment costs
• $60M in Funding
• 400% Sales Growth YOY (2015)
• 1M+ Users

10. Secret Sauce: Exclusives

11. Competition
• Enthusiast efforts
• Online Retailers
Massdrop Enthusiasts
Niche Custom
Products
Yes Yes
Business
Reputation
Yes No
Post-purchase
Support
Yes Shifty

12. Prediction
• Success!
– Focus on exclusives
• Threats:
– E-commerce sites are easy
– Enthusiast communities
– Not a community

13. References
• https://en.wikipedia.org/wiki/Massdrop
• https://pando.com/2014/09/24/from-quilters-to-gearheads-massdrop-raises-6-
5m-to-turn-online-enthusiasts-into-big-spenders/
• https://www.forbes.com/sites/ryanmac/2015/08/13/massdrop-40-million-group-
buy-bongs-amazon-executive/
• https://www.forbes.com/sites/alexkonrad/2014/06/11/massdrop-zany-plan-to-
crowdsource-discounts/#
• https://techcrunch.com/2015/08/13/massdrop-series-b/
• https://www.crunchbase.com/organization/massdrop/