Business Overview
Introduction <ul><li>Displayware sells “filling station” kiosks for iPods and iPhones that allow consumers to instantly do...
Introduction (cont) <ul><li>We have just launched a pilot program with the US Navy. </li></ul><ul><li>These high-profile l...
Market Opportunity <ul><li>Over 800,000 potential locations in the US </li></ul><ul><li>Brick and Mortar Retail </li></ul>...
Favorable Trends <ul><li>Massive shift to digital distribution of entertainment (65% growth in 2006 and accelerating). </l...
Business Model <ul><li>4 revenue sources.  Hosted software service with one-time and recurring fees, hardware and professi...
Technology <ul><li>Software-as-a-service model </li></ul><ul><ul><li>DMMS provides branding, content management, analytics...
Our Challenges <ul><li>Not enough market awareness of our products and services. </li></ul><ul><li>Current sales budget an...
Best Case/Worst Case <ul><li>Best Case: </li></ul><ul><ul><li>Close two major retailers plus active reseller channel – pro...
Displayware At A Glance <ul><li>Founded May 2004, WA LLC, 4 active members, 1 at MS, self-funded. </li></ul><ul><li>40 loc...
Management Team <ul><li>Joel McConaughy – President and CTO </li></ul><ul><ul><li>Port of Seattle:  Interim CIO, 2005 IT b...
Management Team <ul><li>Steve Michaels– CFO </li></ul><ul><ul><li>We met socially but always crossing paths in the media b...
Partners <ul><li>Jack Ross– Operations </li></ul><ul><ul><li>Embedded hardware and software background.  Founded and sold ...
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Business Plan Preso 2007 10 10

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Business Plan Preso 2007 10 10

  1. 1. Business Overview
  2. 2. Introduction <ul><li>Displayware sells “filling station” kiosks for iPods and iPhones that allow consumers to instantly download music, movies and audio books. </li></ul><ul><li>Retailers use our system to directly market to the over 100 million iPod owners while they are in the store. </li></ul><ul><li>We are the only known company to have this technology in deployment. </li></ul><ul><li>Our Digital Media Dock™ is available in 21 airport locations including SFO, LAX and JFK. </li></ul>InMotion Entertainment San Francisco International Airport
  3. 3. Introduction (cont) <ul><li>We have just launched a pilot program with the US Navy. </li></ul><ul><li>These high-profile locations are generating more sales and partnership opportunities than we can chase. </li></ul><ul><li>Retailers, device manufacturers and content providers are feeling the pressure from Apple and are looking for ways to compete. </li></ul><ul><li>We are looking to raise $500,000 to accelerate our efforts to meet this market demand and capitalize on our first-to-market position. </li></ul>InMotion Entertainment Pittsburgh International Airport
  4. 4. Market Opportunity <ul><li>Over 800,000 potential locations in the US </li></ul><ul><li>Brick and Mortar Retail </li></ul><ul><ul><li>Media & Entertainment: $34B/yr, 35,000 locations. </li></ul></ul><ul><ul><li>Big Box Retailers: 10,000 locations. </li></ul></ul><ul><ul><li>Grocery: 130,000 locations </li></ul></ul><ul><ul><li>Gas/Convenience: 120,000 locations </li></ul></ul><ul><ul><li>Specialty Retail: 300,000 locations. </li></ul></ul><ul><li>Niche Markets </li></ul><ul><ul><li>Spas/Gyms: 17,000 </li></ul></ul><ul><ul><li>Airports/Rail Stations: 1,000 </li></ul></ul><ul><ul><li>Medical Offices: 200,000 </li></ul></ul><ul><ul><li>Car Rental: 7,000 </li></ul></ul><ul><ul><li>Auto Dealerships: 20,000 </li></ul></ul><ul><ul><li>Venues: 75,000 </li></ul></ul>
  5. 5. Favorable Trends <ul><li>Massive shift to digital distribution of entertainment (65% growth in 2006 and accelerating). </li></ul><ul><li>Rapid growth in portable media devices and media-ready cell phones (37MM/150MM in 2006). </li></ul><ul><li>Growth in unrestricted content (EMI, Universal, Orchard released MP3 catalogs). </li></ul><ul><li>Apple’s domination of digital music and video driving competitors to look for new distribution channels (e.g. Best Buy, Archos, Audible.com interest). </li></ul>
  6. 6. Business Model <ul><li>4 revenue sources. Hosted software service with one-time and recurring fees, hardware and professional services. </li></ul><ul><li>Example: InMotion Entertainment (per store) </li></ul><ul><ul><li>License fees: 24% </li></ul></ul><ul><ul><li>Recurring fees (3 yrs): 36% </li></ul></ul><ul><ul><li>Prof Svc: 22% </li></ul></ul><ul><ul><li>Hardware: 18% </li></ul></ul>
  7. 7. Technology <ul><li>Software-as-a-service model </li></ul><ul><ul><li>DMMS provides branding, content management, analytics, network monitoring. </li></ul></ul><ul><ul><ul><li>DataAdapt Cartridges to package integration with external data sources (e.g. Muze, real-time inventory) </li></ul></ul></ul><ul><ul><li>Dock: digital downloads </li></ul></ul><ul><ul><ul><li>MobileAdapt Cartridges to package support for specific manufacturers and devices (e.g. iPod, PlaysForSure). </li></ul></ul></ul><ul><ul><li>Wicket: ticketing module </li></ul></ul><ul><li>Acquisition of vPod. </li></ul><ul><ul><li>4 years, 166k downloads, robust alternative to iTunes </li></ul></ul><ul><ul><li>Foundation for iPod MobileAdapt Cartridge </li></ul></ul><ul><ul><li>Developer joined as partner and Dir of Technology in Seattle. </li></ul></ul>
  8. 8. Our Challenges <ul><li>Not enough market awareness of our products and services. </li></ul><ul><li>Current sales budget and activities = zero. </li></ul><ul><li>Growing pipeline of potentially lucrative direct sales, indirect sales and supply chain partnerships. Not enough time and working capital to chase them. </li></ul><ul><ul><li>Direct: Blockbuster </li></ul></ul><ul><ul><li>Indirect: IBM Anyplace kiosk </li></ul></ul><ul><ul><li>Prospects: Avis, Hot Topic, Hallmark, Zoom Systems. </li></ul></ul><ul><li>Supply chain opportunities: </li></ul><ul><ul><li>Download store: MediaNet Digital, Audible.com </li></ul></ul><ul><ul><li>More mobile hardware vendors: Motorola, Nokia, Sandisk, Creative, Zune </li></ul></ul>
  9. 9. Best Case/Worst Case <ul><li>Best Case: </li></ul><ul><ul><li>Close two major retailers plus active reseller channel – provides a 15000 device deployment over 2 years. $22.5MM one-time revenue, $4.5MM annual recurring revenue. </li></ul></ul><ul><li>Worst Case: </li></ul><ul><ul><li>Profitable with minimal staff. </li></ul></ul>
  10. 10. Displayware At A Glance <ul><li>Founded May 2004, WA LLC, 4 active members, 1 at MS, self-funded. </li></ul><ul><li>40 locations, 120 devices, 2007 revenue $367,000, 6 customers on multiyear contracts. </li></ul><ul><li>Timeline </li></ul><ul><ul><li>2004: Initial customer launch, 3-store Silver Platters </li></ul></ul><ul><ul><li>2005: Product diversification, 13-store Ritmo Latino in 6 states, Wicket ticketing system at Boeing Tour. </li></ul></ul><ul><ul><li>2006: Expand sales channels, InMotion pilot, DBI and WashingtonRes reseller agreements. </li></ul></ul><ul><ul><li>2007: Launch digital download service, Dock installed in 21 airport locations. US Navy pilot. </li></ul></ul>
  11. 11. Management Team <ul><li>Joel McConaughy – President and CTO </li></ul><ul><ul><li>Port of Seattle: Interim CIO, 2005 IT budget process ($7MM/yr). </li></ul></ul><ul><ul><li>Loudeye: P&L responsibility ($2.5MM revenue), largest music archive, Amazon, Apple, Yahoo customers. </li></ul></ul><ul><ul><li>Intertainer: SVP & CTO, Microsoft-Comcast-USWest funded ($120MM). World’s first direct to consumer VOD network with licensed content. </li></ul></ul><ul><ul><li>Early retail experience: Arthur Anderson, labor scheduling software for Thrifty, Kmart, InfoGenesis, POS for hospitality, Pizza Hut , MGM Grand </li></ul></ul><ul><ul><li>MA Economics USC ‘84 </li></ul></ul>
  12. 12. Management Team <ul><li>Steve Michaels– CFO </li></ul><ul><ul><li>We met socially but always crossing paths in the media business Intertainer -Four Media-POP method studios POP/Cinram DVD </li></ul></ul><ul><ul><li>Accounting background: Virgin 525 Hollywood financial-CEO, V Vision, V Records,V Games, V Sound and Vision/ managing growth for development stage companies 4MC-POP, method, Brickyard VFX </li></ul></ul><ul><ul><li>Experience in business development-method software, Dub Center, consult start ups-sound design-Outpost-Confidence head, editorial-Nomad, graphic design-2 Headed monster </li></ul></ul><ul><ul><li>Managing costs is key to success in retail as retailer reward low cost operators. </li></ul></ul><ul><ul><li>I’m in LA, close to Studios, labels, agencies, content relationships in Hollywood, Producers Guild, Studios, Trailer Companies </li></ul></ul>
  13. 13. Partners <ul><li>Jack Ross– Operations </li></ul><ul><ul><li>Embedded hardware and software background. Founded and sold embedded hardware mfg co. </li></ul></ul><ul><ul><li>Cost reduction engineering for PreviewPad hardware and software. </li></ul></ul><ul><ul><li>Operations </li></ul></ul><ul><li>Jason von Nieda </li></ul><ul><ul><li>Director of Technology, August 2007 </li></ul></ul><ul><ul><li>Developer of vPod (166,000 downloads) </li></ul></ul><ul><li>Kjersten Hayter </li></ul><ul><ul><li>Director Microsoft, Windows Media Player </li></ul></ul><ul><ul><li>Early contributor and active liason role within MS </li></ul></ul>

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