Hey guys, my name’s Karim and I’m the president and cofounder of SocialTagg. I’ve been making mobile apps since 2004 and I’m really excited to tell you about SocialTagg!In short, SocialTagg is redefining how people check into and network at events.TODO: Talk about visionTalk about product immediately after this slide.
The problem is that events are a pain in the butt. To start with, just getting in to large events can be hassle. You have to wait in line, get a badge, make it through security, you know the drill.For the event organizers, this presents a logistical nightmare as they need to staff up and put processes in place in order to handle all these people.
For the event attendee, once inside, making meaningful connections at the event is also difficult. How do you know where to start? Who to talk to you first? Who is even at the darn event? If you do have a successful networking session, then you’ll probablyend up with a stack of business cards, like this? Then what do you do? Most people will spend a lot of time entering those new contacts into their phone or some other contact management system.So traditional event networking is inferior for a number of reasons:You could waste time trying to find a meaningful connection at an event.It’s time consuming and error prone to transfer business card information to some other system.You could lose a business card and miss out on the opportunity of a lifetime. And printing business cards is a waste of money and hurts the environmentTODO: Bring big-data into picture (make it more prominent). We have tools to give event organizer more data.
Enter SocialTagg.Our product is a mobile app that serves as an event check-in and networking tool.For the event attendee, we provide a hassle free business card replacement solution. We assign each one of our users their very own unique QR code and instead of exchanging business cards, you simply scan someone’s QR code to get their contact information.This means no more business cards. SocialTagg is the quickest and easiest way to save your new contacts to your phone AND to the cloud in real time. This means that your contacts’ information is always kept up to date, even if they move or change their phone number. You can use the time you would have spent entering in business cards to do something more productive … like follow up with the contacts you just made!Not only is it a timesaver, but you will also save money AND you’ll save the environment since you don’t have to print out business cards anymore!For the event organizer, we provide a quick and easy way to check-in attendees to their events. They simply scan the attendee’s QR code to check them in to the event. Once the attendee is checked into the event, they can immediately see everyone else who has checked in to the event and begin networking. But for the event organizer, not only do they get an easy way to check in their attendees, they also have a real-time dashboard of who has checked in to their event, giving them quantitative and qualitative information about their attendee base.TODO:Make clear what offering is:More efficient check-inBetter networkingEvent analytics
The market for the event industry is huge. Let’s just focus on the American market.Last year, 1.8 billion corporate and business trade shows and similar events generated $263 billion in spending, and $151 billion was event planning and production related. The organizations that attend trade events budgeted an average of $1.27 million in 2011, [which was approximately 18.7% of total organizational spend].TODO: This is maybe not relevantWe can see that there’s a great opportunity in the events market.
[LIVE DEMO]SocialTagg is designed with an attractive and simple-to-use interface, as you can see here. After logging into the app, the user creates a profile. Here you should include any information you’d like to share with others. How much information you share is completely up to you.Upon saving the profile, the user receives a personalized QR badge in their email, which can be printed out for events or shared via smartphone. Upon scanning another user’s QR badge, you see that user’s profile and the new user is added to your SocialTagg contacts list (or ConTaggs, as we like to call them). You also have the ability to add the new contact to your device address book.The app works almost the same way for the event organizers. The attendee simply shows the event organizer his or her badge, and the event organizer scans it from within the SocialTagg app in order to check that attendee in to the event.
SocialTagg is special because we’re not just a one and off app provider. We’re building an entire platform and a profitable business for the long-term.Let me tell you a little bit about the direction that we want to take this company.We launched beta versions of our mobile apps a couple months ago, but we’re already hard at work building the event check-in platform that I’ve previously mentioned.Midterm, we’re building something quite innovative, which we’re calling TaggRank. In short, this is community driven talent curation. And I’d be glad to explain more about it later.Long term we’re building what we call passive connections. Passive connections take the “work” out of networking. SocialTagg handles making connections for you based on who you were near at an event.
In addition, we have historical validation in the previous and current success of many of our competitors.For example, CardMunch, in the upper right, is one comparable firm who made a successful exit. They do business card scanning and were acquired by LinkedIn for $2.4MM in 2011.RegOnline, in the center, was acquired in 2007 by Active Network. RegOnline does event registration and was acquired for an unknown, yet significant sum.Connected, also in the center, is a contact management startup that was also acquired by LinkedIn in 2011 for an undisclosed amount. Hot Potato, in the upper left, is a check-in service that was acquired by Facebook in 2010 for $10MM.Some of the others on here that I’ll cover briefly include CardFlick at top center (they do virtual business cards), Here on Biz in the lower left (they do location aware business networking), Bump in the bottom center (they do near field information sharing), and Bizzabo in the lower right who has an all in one event platform and recently nailed funding of a couple million.So it’s a crowded space, but that’s because it’s a big market, and there’s a ton of opportunity.TODO: Add DoccasterTODO: Add more details on competitors (revenue, features, etc…), Maybe a table that details comparison.
What makes our company unique?First and foremost, we have an integrated software solution for the event industry. We are all about facilitating a better event experience for the attendee AND the organizer. You can thinks of us a cross between EventBrite and Bump. We are laser focused on this goal while our competitors are not. And we’re passionate about taking the event industry to the next level. Secondly, we have an excellent technical team capable of creating truly innovative and breakthrough software. Together we have over 40 years of experience in creating high-traffic consumer web and mobile technologies. We’ve built products for a number of popular firms such as Tinder, AT&T, Fandango, Electronic Arts, Muve Music, and Beachbody.Finally, unlike many of our competitors, like Bump, who require both parties to have their app in order to share information, with our QR code technology, we only require one party to have our app. There’s a low barrier to entry to get started with our product and high virality.
We’ll have three revenue streams in the foreseeable future:Our first revenue stream will be charging event organizers to user our platform. You see, our platform is a value-add for event organizers. It’s an additional service they can offer to their attendees that makes the experience at their event more enriching. In addition, event organizers will pay for the rich analytics we can provide them about their events.Our 2nd revenue stream will be selling a premium version of our app on a subscription basis. This would be for power users such as sales people who travel a lot and meet a lot of people.Finally, we aim to monetize event check-ins. To do this, we’re building an entire ticketing system, but in addition to collecting revenue upon registration like all of our competitors, we’ll also have the ability to collect at check-in. This will enable event organizers to easily create two different price points for their event.TODO: Consider adding SWOT
Our three channels of marketing include: event marketing, business development, and social media.Event marketing is our grassroots campaign. We attend events, demo SocialTagg at the beginning of the event, and attendees have the chance to try out the app and use it at future events. This option is low-cost, as event organizers will always appreciate company sponsorships that are beneficial to their attendees.Business development is our way of connecting with event organizers to build relationships that will be a win-win solution for both event organizer and attendee. By allowing attendees at medium to large events to use our app, organizers will have a much more interactive experience, and attendees will be able to keep in better touch with new contacts.Finally, we use social media platforms such as Facebook, Twitter, and LinkedIn to promote our products and grow our network of event organizers.
We are ready to scale.Technically, we have built our platform on top of some of the most scalable and fault resistant software on the market. Our chief server architect has been responsible for Fandango’s back-end for years and truly understands what it takes to build a world-class server infrastructure.To bring event organizers on board, we will offer use of our platform for free for the near-term until we get a critical mass. We’ll attend events around the country and integrate our platform into their systems.In addition, we’ll partner with existing event platforms such as Eventbrite and Meetup and get them using our APIs.And lastly, our product has viral hooks built into it so it should help to sell itself.TODO: Where else can we talk about APIs?
Here are what are our financial projections look like for the next 4 years.As you can see, the primary revenue driver is the number of events. Our pricing model divides the event market up into 5 sizes: free, small, medium, large, and extra large. The size of the event determines how much revenue we get from the event our revenue will come in the form of the fee to use our check-in platform and ticketing or check-in fees. The other revenue stream we have listed here is premium app revenue.We expect to reach profitability by 2015 and will experience massive revenue growth from there.To follow one example through here, if you take medium events, you can see in 2013 we expect to host 2 medium events on our platform. At $200 per event, that comes out to $400 in revenue. We don’t expect to have our ticketing platform built this year so there would be no revenue there under check-in fees. However, you go out to 2014, you can see we expect to earn $4000 in revenue from hosting medium events. That would be 20 events. We also expect to earn nearly $12,000 in check-in fees from attendees.
A little bit about our team. On the development side, I’m building our Android app and Jeffrey Mock, our VP of Engineering, is building our iOS app. We are also fortunate to have John Baumbach, Fandango’s director of systems development, handling our back-end. Together, we have over 40 years of development experience, mostly in mobile and high-traffic consumer web. We have all worked together at some point at Fandango or other companies.We also have Jade Shyu, our VP of marketing, who also does our design work. Jade and I made our initial connection at an AT&T Hackathon back in 2012.In addition, Tim Feng, who handles quality assurance across all of our products and systems.This is our core team, but we are also looking to bring on an additional developer and a business development person. Traditionally, we’ve brought on new people with equity incentive only, but we’d like to use our new investment to make some key hires.
We are currently filling our board of advisors. We are looking to build it to 4.Currently, we’ve retained Douglas Allan, the Managing Director and founder of STACKED wines to help us with marketing and strategy.We’re going after a number of other candidates at this time as well.
So far we’ve been bootstrapping SocialTagg.And in order to realize the full potential of SocialTagg, we’re raising a seed round of $500k.This will cover the cost of growing our team, launching marketing campaigns, and building and selling our check-in and ticketing platforms.
That’s it, we’ll take any questions now if you have them.
That’s it, here’s our contact info, feel free to reach out, and we’ll take any questions now if you have them.Any questions?
There are competitors, but the market is still wide open.We already have a competitor that just launched this summer. Israel-basedBizzabo is providing an event platform, but our competitive advantage is the ability to connect to potential users in the U.S. one-on-one at the event. That is, we are able to provide a grassroots experience for new users and ask for feedback that we can immediately implement.EventBrite is a potential competitor for the all-in-one event platform. While EventBrite focuses on all types of events, our web platform will focus on the specific niche of events that allow people to connect one-on-one, whether for business or leisure. EventBrite has a check-in feature, but it doesn’t allow attendees to connect one-on-one or explore who is currently at the event.CardMunch is a business card scanning app that takes a picture of the business card and scrapes the fields off. Unfortunately for CardMunch, they rely on business cards so once we make business cards obsolete, CardMunch dies.Bump is a contact information exchanging app that requires both parties to have the app, whereas a user of SocialTagg can email or text their information to a potential user.
As our initial revenue source, we charge event organizers per event, based on the number of people at the event. At the end of 2013, we project a total revenue of $3.35 million.Our secondary source of revenue will be charging event participant at the door, upon check-in to the event. We will take a slice of the event attendance fees in the same way EventBrite does.
Year 2013 2014 2015 2016 2017 2018
# of Free Events 50 400 2,400 7,200 10,800 14,040
# of Small Events 5 45 315 945 1,418 1,843
Small Event Organizing Revenue $49.95 $449.55 $3,146.85 $9,440.55 $14,160.83 $18,409.07
Small Event Check-In Fees $- $2,745.23 $19,216.58 $57,649.73 $86,474.59 $112,416.96
#of Medium Events 2 18 126 378 567 737
Medium Event Organizing Revenue $99.98 $899.82 $6,298.74 $18,896.22 $28,344.33 $36,847.63
Medium Event Check-In Fees $- $10,683.09 $74,781.63 $224,344.89 $336,517.34 $437,472.54
# of Large Events 1 9 63 189 284 369
Large Event Organizing Revenue $99.99 $899.91 $6,299.37 $18,898.11 $28,347.17 $36,851.31
Large Event Check-In Fees $- $40,223.30 $281,563.07 $844,689.20 $1,267,033.79 $1,647,143.93
# of Extra Large Events - 1 9 36 72 94
Extra Large Event Organizing Revenue $- $299.99 $2,699.91 $10,799.64 $21,599.28 $28,079.06
Extra Large Event Check-In Fees $- $34,825.00 $313,425.00 $1,253,700.00 $2,507,400.00 $3,259,620.00
# Attendees 6,104 58,662 410,436 1,276,317 2,004,494 2,605,842
# Premium Mobile Apps Sold 122 1173 8209 25526 40090 52117
Total # Events 58 473 2913 8748 13140 17082
Total Organizing Revenue $249.92 $2,549.27 $18,444.87 $58,034.52 $92,451.60 $120,187.08
Total Check-In Fee Revenue $- $88,476.61 $688,986.27 $2,380,383.81 $4,197,425.72 $5,456,653.43
Premium App Revenue $120.86 $1,161.51 $8,126.63 $25,271.08 $39,688.97 $51,595.66
Total Revenue $370.78 $92,187.39 $715,557.77 $2,463,689.41 $4,329,566.29 $5,628,436.17
Karim Varela – President
• Director of Engineering, Tinder
• BA Computer Science, UCSB + MBA, University of Florida
John Baumbach – Chief Server Architect
• Director of Systems Development, Fandango
• BS Computer Science, California State University, Northridge
Jeffrey Mock – VP Engineering / iOS Developer
• Lead iOS Architect, Fandango
• BS Computer Science, Loyola Marymount University, Magna Cum Laude
Jade Shyu – VP Marketing / Designer
• Internet Marketer, Design Shuffle
• MA, International Studies: Business, Concordia University
The Team Cont.
Tim Feng – Director of Quality Assurance
• BS Civil Engineering, Cal Poly Pomona (Expected graduation 6/14)
Board of Advisors
Managing Director, STACKED Wines
MBA, UC Irvine
Marketing & Strategy
Recruiting others …
For the next year.
Grow Sales & Engineering Teams
Launch Marketing Campaigns
Build Event Platform
Ease of Use
Revenue Source #1
We charge event organizers fees based on
the number of expected attendees.
1 – 50
51 – 499
500 – 4,999