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  1. 1. THE FIRST FRIENDS & FAMILY FUNDING NETWORK FOR ENTREPRENEURS Presenter: Colin McNab August 13, 2008 [email_address] 770.280.5646 40billion .com
  2. 2. OVERVIEW <ul><li>$40 billion gap in funding for small business startups </li></ul><ul><li> helps small-biz entrepreneurs raise money </li></ul><ul><li>Entrepreneurs leverage social networks to reach friends-and-family investors </li></ul><ul><li>“ Ordinary people” contribute/invest as little as $50 in a new business. </li></ul><ul><li>Scalable platform facilitates one-to-many relationships, so one entrepreneur can easily manage 100’s of micro-investors. </li></ul><ul><li>Patent pending. </li></ul>
  3. 3. THE PROBLEM No scalable approach Hard to manage Friends & Family (peer-to-peer) Not enough funds Bootstrap (self) <ul><li>High interest rates </li></ul><ul><ul><li>20-36% APR </li></ul></ul>Moneylenders <ul><li>Hard to qualify </li></ul><ul><ul><li>Strict requirements preclude startups </li></ul></ul>Banks <ul><li>Scarce, Hard to find </li></ul><ul><ul><li>$25B to ~50,000 companies; $500K avg </li></ul></ul><ul><ul><li>Only 20% funded </li></ul></ul>Angel <ul><li>Scarce, High funding amount </li></ul><ul><ul><li>$30B to ~3500 companies; $8M avg </li></ul></ul>VC Problem Source
  4. 4. <ul><li>No scalable platform for raising business funds through friends and family </li></ul>
  5. 5. facilitates matches between entrepreneurs and friends-and-family investors! OUR SOLUTION
  6. 6. OPPORTUNITY & MARKET <ul><li>Peer-to-peer lending </li></ul><ul><ul><li>Projected to grow 800% in next 3 years </li></ul></ul><ul><ul><li>$5.8B by 2010 </li></ul></ul><ul><ul><li>Driven by credit crunch and online banking adoption </li></ul></ul><ul><li>Small business in US </li></ul><ul><ul><li>650,000+ new startups/yr; 13 million people </li></ul></ul><ul><ul><li>$10,000 avg startup cost </li></ul></ul><ul><li> </li></ul><ul><ul><li>2009: 10,000 funded Raises; $2.5 million revenue </li></ul></ul><ul><ul><li>2012: $30 million revenue </li></ul></ul>
  7. 7. PROCESS <ul><li>ENTREPRENEURS </li></ul><ul><li>Launch private business network </li></ul><ul><li>Invite friends and family to join network </li></ul><ul><li>Broadcast fundraising events to the network </li></ul><ul><li>Search networks for services, partners, customers </li></ul><ul><li>Build reputation within and between networks </li></ul><ul><li>Repeat </li></ul><ul><li>INVESTORS </li></ul><ul><li>Request/accept invitation to join business network </li></ul><ul><li>Invest $50+ as gift or loan </li></ul><ul><li>Invite friends and family to join network </li></ul><ul><li>Get status and spending updates </li></ul><ul><li>Search for other familiar entrepreneurs, investors, industries </li></ul><ul><li>Repeat </li></ul><ul><li>“ everyday people” </li></ul><ul><li>friends, family </li></ul><ul><li>friends of friends/family </li></ul><ul><li>other entrepreneurs </li></ul>
  8. 8. COMPETITIVE LANDSCAPE No No No No No Yes Social Reputation No Yes No No No Yes Training No No No No No Yes Search Engine No Yes No No No Yes Social Network No Yes No No No Yes Advertising None None $25K $25K None $99K Limit 1 2 1 1 1 3 Funding Types No No No No Yes Yes Friends & Family No Yes No No No Yes Business Niche Fundable GoBigNet LendingClub Prosper Virgin Money 40billion
  9. 9. GO-TO-MARKET STRATEGY <ul><li>Team (Execution) </li></ul><ul><ul><li>Core team with 100+ years of experience in financial services, sales, technology, entrepreneurship </li></ul></ul><ul><li>Marketing Plan (Execution) </li></ul><ul><ul><li>Direct marketing </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul><ul><ul><li>Viral, online marketing (LinkedIn, Facebook) </li></ul></ul>
  10. 10. FINANCIAL ROADMAP <ul><li>Revenue sources </li></ul><ul><ul><li>Closing fee </li></ul></ul><ul><ul><li>Loan servicing/transaction fee </li></ul></ul><ul><ul><li>B2B search advertising sales </li></ul></ul><ul><li>Key Milestones </li></ul><ul><ul><li>Cash-flow positive by end of 2009 </li></ul></ul><ul><ul><li>Breakeven in 2010 </li></ul></ul><ul><ul><li>2012 : 5.7M members; $900M in transactions; $30M in revenue </li></ul></ul>
  11. 11. CURRENT STATUS <ul><li>Big idea and vision </li></ul><ul><li>Experienced team </li></ul><ul><li>Plan of execution </li></ul><ul><li>Launched product in “beta” </li></ul><ul><li>Widget app on Facebook </li></ul><ul><li>Intellectual property (patent pending) </li></ul><ul><li>Raised friends-and-family round of funding </li></ul>
  12. 12. NEXT STEPS <ul><li>Raise $500K in loan/debt funding </li></ul><ul><ul><li>Offering : </li></ul></ul><ul><ul><ul><li>50% return when 10,000 Raises have been completed and funded. Equity possible for investments of $100K or more. </li></ul></ul></ul><ul><ul><li>Uses : </li></ul></ul><ul><ul><ul><li>Develop “loans” product with debit card, and enhanced social networking features </li></ul></ul></ul><ul><ul><ul><li>Marketing nationwide </li></ul></ul></ul><ul><ul><ul><li>Hire celebrity endorser </li></ul></ul></ul>
  13. 13. THE FIRST FRIENDS & FAMILY FUNDING NETWORK FOR ENTREPRENEURS Presenter: Colin McNab August 13, 2008 [email_address] 770.280.5646 40billion .com