This document summarizes a presentation about the social media monitoring platform Verifeed. It discusses how Verifeed uses algorithms to analyze social media conversations at scale and provide summarized insights to enterprises. This allows companies to engage customers, identify influencers, and make better business decisions. The presentation outlines Verifeed's business model, target markets, product roadmap, and projected financials, indicating it expects to generate $92 million in annual revenue by 2017. It concludes with the founder providing tips for entrepreneurs, emphasizing the importance of proving demand for products and focusing on revenue generation over fundraising.
7. …and its growing faster than Moore’s Law.
Think about it.
Brands
THE AMOUNT OF DATA CREATED ON
TWITTER & FACEBOOK TODAY IS
MORE THAN THE DATA BEING
CREATED ON THE REST OF THE WEB.
8.
9. make better business decisions
engage with contextual content
identify and reward
customers, sources, ambassadors
Our mission at Verifeed
To make sense of
the world’s social
conversations so
enterprises can:
10. Why Verifeed is massively scalable
Brands Publishers Financial
$100 Bn
US News Publishing &
Broadcasting
$1Bn+
Social software spend
(Growing as fast as the
data itself)
Gartner, 2013
$1.3 Trillion
US Financial Services
$10 Bn Financial Ad
spend 2012
$432 Bn
US Consumer Goods
$118 Bn Content
marketing spend, 2013
11. How Verifeed makes money
B2B Platform
Licensing
Enterprises pay recurring
monthly fees on annual
contracts with pricing tiers
based on:
―Data usage
―Social sources
―Service level
12. Eliot BergsonTim Berglund
Peter Harrison Renee Lewis
Duncan WorkMatt ProhaskaDavid Lawrence
Why we’re the right team to execute
Paul Herzog
Chief Architect
Melinda Wittstock
Founder & CEO
‘Hands on’ advisors
BD/Sales ‘Growth Hacker’
Data Scientists, Product Manager
Identified
13. Use Cases & Metrics
Publishing:
March Madness
Challenge: Boost
traffic, time on site
Action: Publish
relevant Tweets
from/about the
players and coaches
on NBC TV affiliate
Result: Time spent
up from 10 to 26
seconds, Twitter
referrals up 129%
Brands:
Dog Food
Challenge: Find US
customers/influencers
Action: Filter Tweets
about UK luxury brand
& competitor products,
consumer attitudes
Result: Ambassadors
identified; ‘intel’
guiding US launch
marketing strategy
Financial:
Compliance
Challenge: Assure
Tweets are compliant
with FINRA
Action: Source and
parse market-moving
news for reliability &
exclude Tweets with
investment advice to
eliminate liability.
Result: Verifeed
technology delivered
98% FINRA
compliance
14. Verifeed: Brands
Lily’s Kitchen Goal:
Identify influencers and ‘early adopters’ in U.S. market (focus NYC,
CT, NJ) ahead of 2014 launch
Obtain critical ‘intelligence’ to guide marketing efforts
Convert into paying customers
Verifeed Platform:
Identify and qualify targeted ‘WOM’ influencers & customers
Capture key insights into pet owners’ motivations, desires,
behaviors to guide launch marketing strategy in the US Q1/14
Enable direct interaction with targeted users & custom publishing to
engage, reward and convert into customers
16. Verifeed: Recruitment
MTM Careers Goal:
Connect the right people to the right jobs via Twitter
Improve service to both job-seekers and employers to increase
revenue
Verifeed Platform:
Identify all relevant job ads on Twitter
Identify all people Tweeting about specific jobs/sectors
Match specific job ads to relevant job seekers by industry and job
title
Capture key insights into job seekers and employer in the clean
tech and ethical investing industries
Enable direct interaction with targeted users & custom publishing to
engage, reward and convert into customers
17.
18. How Verifeed IP is differentiated
Verifeed’s algorithms and
automated processes uniquely
replicate what investigative and
analytical journalists do to:
— Identify patterns
— Put developments in context
— Qualify source reputation and
expertise
19. Uncovers credibility of influencers
Eliminates redundant, off-topic, search results
Allows instant custom publication
Enables real-time engagement/recruitment of users
100% Twitter fire hose, complex filters
Soon automates discovery/contextual search
Competitive Differentiation
Twitter API Limited to 5% fire-hose & single-term searches by
hashtag or handle, no engagement tools, analytics
Social media
management
Twitter search
engines
Influencer
assessment
Broad social data
search/analytics
Social management dashboards, mediocre Twitter
search, no source reputation/accuracy filters
Focused on Twitter brand monitoring only, not content
Focused on user influence (not credibility or expertise);
not intended for search
Complex search filters, analytics, dashboards; no
veracity / reputation emphasis; price point too high
Historic Twitter search
Early warning for market moving news/trends
20. How Verifeed forces global growth
Beach-heads
first US verticals
Up-sell with more
social sources /
data & features
Increase market
penetration
Grow globally
Sports
Brands
Add verticals
Hiring
Publishing
Politics
Financial
21. Timeline to Stage Execution
― Debuted 2013
SXSW
― Grew pipeline to
260+ in 2 weeks
― 62% wanted next
steps post SXSW
Market
Validation
― Prove metrics
― Test use cases
― Find early adopters
― Incorporate
customer feedback
― Average of 9 demo
requests per day
Product
Paying
Partners
― Convert pilots to
charter revenue
― New use cases
― Up-sell new
features
― Automated
contextual
alerts/discovery
― Add social sources
― Mobile SDK
― Enhance
algorithms
Platform
Growth
― Expand sales, biz
dev, product team
― Expand into next
verticals
― Full price point
― Expand reach &
revenue within
each company
― Enhance ‘fact
check’ algorithms
― Ongoing UX/UI
improvements
― Reputation scoring
MARCH 2013 PRESENT – 3Q-4Q 2013 1Q 2014
―-Enhance UX/UI
― Expert scoring
― Automated
@mention recruitment
― Automated pre-filled
search
Pilot
Programs
Product
Product
22. Hire
‘Growth Hacker’/Deal Closer
Engineers/Product Manager
Support Data Scientist(s)
Support
Q4/13-Q1/14 Tech Roadmap
Data /Hosting Costs
Marketing/Sales
Investment Sought
$30K
Monthly Revenue
Jan 14
$5mm
Run Rate Q1/15
$92mm
Annual 2017
Q4/13
Q1/14 Enhance
Reputation scoring, pattern recognition &
other algorithms; UX/design; automated
adaptive discovery
Mobile X-Platform/SDK
Social sources
Expand / Scale
BD, Sales, Engineers
$500K+
Bridge
$3.5mm+
Series A
24. Thank you
Melinda Wittstock | CEO & Founder
202 274 1479
Melinda @ Verifeed.com
Twitter @Veriate
Demo at Verifeed.com
Trusted social
intelligence for
the enterprise
37. Don’t Don’t assume VC
is your path.
OK, there’s one more...
Will you have $200m
revenue in 5 years?
38. Don’t Do it just to get
rich.
OK,and one last thought...
Most entrepreneurs
don’t. (If you want to
live on a beach, do it
now!)
39. Thank you
Melinda Wittstock | CEO & Founder
202 274 1479
Melinda @ Verifeed.com
Twitter @Veriate @NewsiTnews
Demo at Verifeed.com
Editor's Notes
OK we’re going to get everyone energized. Stand up if you are an entrepreneur. Stand up if this is your first business? Second? Third? Stand up if you’ve bootstrapped? Maxed credit cards? Stand up if you’ve raised angel money? Stand up if you’ve raised venture capital? Stand up if you’ve had a ‘successful’ exit – an acquisition or IPO? Stand up if you’ve closed a business down? Stand up if you think entrepreneurship is glamorous!
So who am I, and how can I help? My grandmother was the first to call me disruptive at age 5 when I landed my first $100 in revenue. Got neighbors to pre-pay for my “show”. I’ve done a lot of things in my life but nothing is as exhilarating as the roller-coaster ride of innovation and learning otherwise known as founding a technology business in need of venture capital. So I’m going to talk about that today from the perspective of all the mistakes I’ve made a long the way, with the hope that you don’t have to make them! Verifeed is my third business, and I’ve had my share of hard knocks – see there it is, MBA from the School of Hard Knocks.
In a moment I’m going to do my top 10 don’ts… and explain how we evolved and what I learned, but first I want to put my company in context … with a short ‘elevator pitch’ . And during that pitch, I want you to think like an investor. Assuming you have a lot of money, imagine getting out your checkbook How do you feel?
Seriously, think about what it feels like to write a check for $100,000, $1m, $10m. Flutter in your tummy? Imagine writing a check to yourself for your own business. Is it easy? Hard? Why?Also think about comps in your industry that dictate present value and your likely multiple at exit (how many times your EBITDA at 3-5 years. Can you be a $100m revenue business with 40%+ EBITDA? What are exits in your industry looking like? How do you value what you do? Now think about how much control you want? Where do you want to be in 5 years? In control? Or with 5% of your baby? Do you want 75% of a small pie or 5% of a big pie?
But first, I’m going to give you our VERY short pitch … and you tell me if you think I hit all the things investors want to know:--If information had a ‘gold standard’ what would it be?Think of what makes information valuable to you and your company. It’s got to beuseful. So it needs to be relevant. Accurate. From a trusted source. All in the moment.At Verifeed we mine for ‘information gold’ by filtering social streams in real time … to provide enterprises with actionable and trusted social intelligence. Why are we different from all the other social listening / sentiment platforms out there? We’re unique in replicating with algorithms the shoe-leather investigative and analytical processes of the best journalists to put information in context, qualify source reputation and more… to be first and right.
Think about it. 300 billion gigabytes of social data, three times the grains of sand on earth doubling every two years.
No wonder a lot of businesses and brands feel like this. Most companies have no idea how to harness Social Data in a meaningful way to derive valuable insights in an age of Infobesity. They know they need a clearer signal of what’s actionable but have many don’t know where to start.
Our mission is to make sense of the world’s social conversations to connect the right people to the right information in the right moment – for enterprises that need to be::: First to know – and right – like hedge funds, day traders, journalists.:: Closer to their customers like consumer brands who need to source fresh insights, identify and reward ambassadors, engage people around contextual social content:: Focused on driving traffic, time on site and other metrics to monetize content such as broadcasters and publishers
Verifeed has massive addressable markets in US…and globally. $1bn is now being spent on social software, a spend which has a growth trajectory at pace with exponential growth in social data itself. Our first targets are the massive multimillion dollar marketing budgets of leading brands – consumer goods, airlines and financial institutions among them. Social intelligence will claim growing slices of those budgets as mobile and social changes advertising into ‘word of mouth’ social marketing, reciprocal connection and contextual content creation. Already the content marketing spend in 2013 is $118 bn.
How do we make money? Recurring revenue from a yearly platform license for proprietary software and algorithms that parse the data … and the real time intelligence and reporting that results. The annual deals range from $60K to $210K. We scale budget by budget within companies, and penetrate verticals one by one.
Our team has deep domain expertise across our target markets and core technology – and we how to innovate and drive revenue and results. Founder & CEO Melinda Wittstock’s grandmother was first to call her disruptive at age 5 when she earned my first $100 door-to-door demanding pre-payment. She’s a serial media-tech entrepreneur, proven executive and award-winning journalist - creating content and driving revenue/ratings/traffic (Times, FT, CNBC, ABC, NPR, CNC, BBC),and building businesses.Verifeed is her third company. Verifeed has a top notch tech team led by Chief Data Architect Paul Herzog (Nuance, JP Morgan Chase, MacSpeech, NBA, Cendant) and data scientist Ronald Zhangand access to top Ruby on Rails, iOS and other developers. A second data scientist, product manager and BD / Sales ‘growth hacker’ and closer are identified and ready to join immediately.Hands-on advisors Duncan Work (fmr Chief Scientist, LinkedIn), David Lawrence, (enterprise data architect Harvard, Gartner, ProFlowers, State St Bank and others), Peter Harrison (fmr CEO Global Logic),Matt Prohaska who has sold or managed teams selling $2.5bn in digital advertising and platform licensing deals from CNET in 1995 through AOL and the New York Times,Renee Lewis (software entrepreneur with multiple exits), Tim Berglund (data architect & chief trainer at Gitbub formerly of Mapquest and Intellidata who built Verifeed’s first algorithms).
We’ve done pilots and tested use cases for sports, veterans, weather, broadcaster’s second screens, PR crisis management and brand content marketing:Increasing traffic for a local NBC station around basketballFiltered tweets for compliance with Finra regulations for a financial services companyHelping a brand find potential customers (first Iams, now Lily’s Kitchen), a self-help group increase its mailing list, and a hiring platform identify the best and most relevant jobs on Twitter.We’re now negotiating a huge re-seller deal with Airguide to supply the world’s airlines, airports and others in the vertical with real time social intelligence reporting to guide marketing, passenger services and competitive research. One platform, many use cases.
And for the UK brand Lily’s Kitchen. We’re identifying influencers and customers ahead of their US launch next year.
These are some of the ‘influencers’ we identified with an early search using our platform: These folks were picked for a combination of # followers, # lists, #starred tweets, # RTs, and frequency of their postings.
One of our first customers is a recruitment platform – that uses our technology to connect the right people searching for jobs on Twitter to the right companies Tweeting about available positions.
Here’s what our platform looks like on More than Money Careers.
How are we different? Information is only valuable if you can trust it, and our algorithmic processes beat sentiment (which cannot discern intent let alone accuracy). Ours is a systems-oriented approach that replicates what investigative and analytical journalists do to discover game-changing, market moving and predictive stories : a mix of pattern recognition, source qualification and cumulative knowledge, separating commonalities from outliers, and cross-referencing or weighting outliers with source reputation, expertise, proximity (first hand or second hand account) and discerning agendas (who gains, who loses) by ‘gaming’ out a story. Verifeed’s algorithms and algorithmic roadmap leverage these processes. Here are just four ways in which we execute:Weighted expertise. Cross reference LinkedIn API with data mined from Twitter/Facebook and other social profiles to establish expertise relative to a user’s post – and assign a weight accordingly.Strength in numbers. Multiple sources in agreement strengthens the probability of accuracy. Our systems will detect ‘outliers’. For instance a one-off report like the hacked AP tweet would have been flagged as questionable, irrespective of the source: if a bomb had gone off in the White House there would have been a deafening number of tweets. First hand vs. second hand. Eyewitness reports are more likely to be true. We already dig into each tweet to see if it has a link or not, and dig into the meta data of the link to establish whether it is a first hand or second hand account. Geolocation will also be used to establish proximity to an event.Authenticity. Cross reference Tweet timeline and bio to see if person really is where they say they are, and how much expertise they have built in a topic area, including how much of a following they have.
So what’s our competitive advantage? to the sentiment and ‘social listening’ platforms out there like Radian6, Mass Relevance, and Crimson Hexagon for brands that want to know what people think about their products. There are alsotools like Hootsuiteto help companies ‘push out’ and manage their outbound messaging on social networks. Consumer-focused tools like Klout help identify ‘influencers’ to help companies amplify those messages and others like Storify to help editors curate social feeds manually for use in stories. Others like Datasift provide complex search filters and infographics for companies to search for contextual relevance, while Topsy focuses on indexing historic tweets for analysis and Dataminr provides early warning of market moving news/trends for financial services companies.Here’s how Verifeed’s Twitter search tool is CURRENTLY differentiated:Reduces redundant, off-topic, search resultsEliminates spam, viruses, porn, unauthenticated users, irrelevancies and repetitionAllows instant custom publication via widgets (soon SDK) Enables real-time engagement/recruitment of usersVerifeed soon adds a mobile SDK, additional social sources (Facebook, Instagram, Tumblr and others) and automates discovery around preferences and contextual content.And here’s what NONE of these other vendors selling into our target markets do that Verifeed is progressing quickly to achieve:Establish veracity (probabilities of accuracy) of posts in real timeEstablish credibility (reputation scoring) of sources cross-referenced/weighted with expertiseReal time discovery and customized publishing (web & mobile) of relevant, accurate conversations
Verifeed scales deal by deal, vertical by vertical, upsell by upsell, worldwide. This is a $100mm+ revenue company in 5 years. Social software / data currently has a multiple of 6x-7x Ebitda at the 5 year point.
Verifeedsoft-launched the early Twitter platform in March. Within two weeks we’d built a pipeline of more than 260+ top companies. We spent the summer with early demos and pilots (and qualification of early adopter leads), incorporating customer feedback into our platform (enhancing user experience and analytics). We now convert pilots into paying customers with at least 10 paying customers by the year-end with monthly revenues targeted for $30K monthly by January.
We want to speed our success! Verifeed seeks funding right now support sales, marketing, data/hosting costs and platform enhancement engineers as we close early revenue. Current burn is $30K per month. We can sustain at current pace for 4 months with $150K – and can progress faster to grow revenue with $500K or more right now. For example, $500K would allow us to hire a sales ‘growth hacker’ to help negotiate/close deals, a Product Manager, and several more data engineer and part time design/presentation layer freelancers – to result in $30K MRR by January 2014, upon which we can sustain if it takes us longer to close a Series A than January 2014 target date. Our objective is to significantly increase valuation between now and Series A.
Why Verifeed? It’s scalable, high margin, and game changing.One platform, multiple large addressable markets, a great team and global reach. It’s win-win-win for partners, Verifeed and the right investors at the right time. Thank you.
So, each of my don’ts, I’m embarrassed to say, is something I did (and learned not to do ever again!)
No matter how great your idea is, long gone are the days when VCs – even angels – back an idea. Unless they are your family and BFFs. (By the way, that’s how it needs to start, and convincing your friends and family to invest is part of “traction”. It shows you can raise money, be persuasive, sell.
Ah, the chicken and the egg.
They want to know about your competition, your defensible secret sauce, that you can scale. That you have the right team, expertise.