Investor Presentation – Plan of Operations Final: November 11, 2011Do Not Copy or Send Without Author’s Consent
Offline Failures Lead To Online OpportunitiesProblem 1:Young professionals (YPs) struggle to expand their social and professional networks offline. Most social networking platforms fail to provide their users with offline, real-life relationships formed by group activities. Event based websites (like online dating) facilitate limited service offerings by focusing on one type of interaction, subsequently narrowing their prospective audience.Problem 2:Companies’ ROI for online marketing remains abysmally low. Traditional survey efforts to obtain preference-based market data do not effectively incentivize users to give correct information. Companies struggle to understand YPs’ frequently changing spending habits and needs. Local businesses lack budgetary resources and struggle to market to YPs.
The Solution:The Problems SolutionsProblem 1: Create a platform in which YPs are properly incentivized to give accurate, thorough information YPs struggle to expand about themselves. both their social and professional networks Use this data to plan customized events and invite offline. like-minded individuals, which further motivates YPs to share more personal information. Provide companies access to aggregated user data Problem 2: (without listing sensitive info like email addresses). Companies’ ROI for online marketing Since users indicate likes (e.g. beer over wine), remains abysmally low. companies can plan targeted social events and networking nights to reach key demographics.
Get To KnowA groundbreaking social networking and data collecting organization that… 1 Solicits members to voluntarily list preferences and information about themselves. 2 Analyzes user data to understand trends and habits. 3 Markets to and partners with companies to share user data. 4 Facilitates sponsored events, organizes activities, and customizes user experience. The Results: Members receive a social Creates a pipeline of YPs experience catered to to companies. their needs.
How Gathers Its User InformationUsers must complete a 10 question survey to become members and gain access to events.From the survey, we can make probable assumptions about our members. We continue to ask our members questions about their preferences after membership begins.
Benefits of to YPs’ Social LivesOnce users have completed the questionnaire, customized services begin. A Member Tells Us The ResultRelationship Members:Status Exclusive invite to a 60s themed event at a high-end wine bar.Favorite Drink Meet MadMen enthusiasts. Receive extraordinary drink specials and free appetizers.SocialGoal Local Businesses (Wine Bar): Targeted ads to and data on key demographic (oenophiles). Direct exposure to important consumers and foot traffic into the establishment.
Benefits to Organizations: Jazz at Lincoln Center (JALC)JALC sought to increase membership among 22-35 year olds in NYC and partneredwith on Saturday, October 29, 2011. JALC ReceivedAnalyzed its aggregated user data and 30 Tickets Sold to YPs in NYC.reached out to members: 22 First Time Attendees. In relationships Favorite drink: wine 13 New Membership Registrations. Enjoy private concerts Countless WOM opportunities.Offered tickets at 25% discount on JALCtickets.Reserved a pre-performance area fornetworking and socializing amongmembers.
The Competitive LandscapePresently, there are event specific companies that use a singular criteria to arrangeoffline interactions. There are also online market data companies that reward users withmonetary compensation and coupons for filling out surveys. Credit card companies andother aggregators also monitor spending habits and sell this info to large companies. Event Based Market Data
The Competitive Landscape: DifferentiationYet, no company effectively bridges together event planning and market research tooffer compelling services to both consumers and corporate partners. Users are incentivized to submit Companies receive valuable market truthful, thorough information to data and pay a premium for the info. improve their event experiences. becomes like to create a customized event platform. Users receive greater customization for submitting more information about preferences and realize the benefits of the exchange.
Go to Market Strategy will use several channels to raise awareness and engage new users, including:Existing Social Use existing social network avenues to increase awareness. FacebookNetworks TwitterSpecialized Target specialized organizations to engage new users. Teach for AmericaOrganizations Young Democrats or Young Republicans Use sponsorships and partnerships to provide consumersSponsorships with enticing deals to events.Word of Effectively utilize WOM through invite specials and promotions.MouthSmall Establish relationships with and create marketing campaignsBusinesses designed to increase awareness for local small businesses.
Projections: Market Sizing and #s of Users Expected Members Comparable Growth RatesMarket Sizes (22-40): 3,500 users in six NYC: 2,622,437 months DC: 23,178 125 meals per month Boston: 256,896 after one year 2010 U.S. Census DataYear-One Goals: More than 20M paying NYC: 7,500-10,000Year- Market users presently City OneSubscriber DC: ,178 Target Penetration Boston: 256,896NYC 3,250 0.12% 900K members inDC 500 2.16% NYC ages 22-40Boston 1,500 .58%Why these targets numbers? Targeting YP populations through 115K total users in WOM and deal based incentives. in one year. Completing survey is fast and requires no costs from consumer.
Projections: Revenues from Market Data / Online Ads Projected Total Revenue (US $) Industry Evidence/Trends$900,000$800,000 $800,000 Customer preference data generates$700,000$600,000 25% margin of purchase price on sales.$500,000$400,000 $412,500 Online Data Industry expected market$300,000 cap of $1.7B by 2015.$200,000 $187,500$100,000 $0 Targeted online advertising generates 2012YE 2013YE 2014YE higher ROI for companies, creating aKey Revenue Drivers: greater service premium. Market Data Reports to Local Businesses Engaged consumer generates $30 Targeted Online Advertising Ticket Sales to Events revenue annually. Proforma on Appendix How Much Your Shopping Habits are Worth - $Billions Projected Total Operating Expenses Source: AITE Group, July 2011 800,000 2 700,000 680,000 600,000 1.5 500,000 400,000 391,875 1 300,000 200,000 183,750 0.5 100,000 0 0 2012YE 2013YE 2014YE 2010 2011 2012 2013 2014 2015
Our Successes to Date Launched on September 6, 2011 Thrown over 15 events with 300 attendees Membership of 400+ Partnerships with: NYU Stern School of Business Columbia Business School Columbia Law School Fordham Law School Swedish Chamber of Commerce
Call to ActionInvestment of $150-200k – with seat on company’s board (optional) to support: Web Development Office Facility and Event Space Capital Expenditures for Promotional Events Targeted Marketing and AdvertisingTimeline Expectations 2012 Jan. 23 June 11 Website v2 Launches Nov. 15 Expansion into D.C. to with interactive Series B Raise target large intern capabilities. population. Apr. 2 Aug. 13 Data Analysis Aggregation/ Expansion into Boston to Find Strategic Local Business Sponsors. target large professional student population. Weekly social and professional networking events throughout the year.
Appendix: Projected Revenues and Costs ($US) 2012 2013 2014 Net Revenue: Users 6,250 12,500 20,000 Ticket Sales to Events $20 $20 $20 Online Advertising $3 $3 $3 User Data $7 $10 $17 Total Revenue $187,500 $412,500 $800,000 Operating Expenses: Website Development $56,250 $123,750 $240,000 Sales & Marketing $18,750 $41,250 $80,000 Subscriber Acquistion $37,500 $82,500 $160,000 Office Space $18,750 $41,250 $80,000 Events $52,500 $103,125 $120,000 Total Operating Expenses $183,750 $391,875 $680,000 Operating Income/(Loss) $3,750 $20,625 $120,000Assumptions:On average, each user attends 2 to 3 events per year.Will use promoters, and partnerships with local businesses to throw events in other cities initially.Subscriber Acquisition Costs = discounted tickets to events, compensation for promotersOffice Space used to host small events.