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Rfa angel list 23jun13


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Rfa angel list 23jun13

  1. 1. Complete energy-saving solutions for your home.The Home Retrofit IT System™for home performance contractorsAngelList Investor PresentationJune 24, 2013
  2. 2. Proprietary & Confidential 1 Build America’s leading network of home performancecontractors – by aggregating select contractors aslicensees, all on a single, integrated IT platform to scaleup home efficiency retrofits. Revenue Model: License fees, with a fixed monthly feeand a fee per home retrofit, plus fees for leadgeneration.What’s the investment opportunity?
  3. 3. Proprietary & Confidential 2What does a home performance contractor do?Insulate atticsInsulate basements& crawlspacesUpgrade HVAC systemsSeal or replace ductworkSeal interior air leaks
  4. 4. Proprietary & Confidential 3Contractors need a SaaS platform for home retrofits1. Streamline retrofit management2. Improve effectiveness: Get to retrofit3. Generate leadsEnergy audit Home retrofit Test out Post-retrofitanalysis
  5. 5. Proprietary & Confidential 4The Home Retrofit IT System™The HomeRetrofit ITSystem™The first fully-integrated IT platform for home retrofits:1.CustomerRelationshipManagementSystem2.Home EnergyAssessmentSystem3.HomeRetrofitManagementSystem4.RetrofitFinancialAdmin System
  6. 6. Proprietary & Confidential 5Competing IT Systems: Wide open opportunityNo integrated IT systems available for complete home retrofit processSome home performance contractors using generic software fordifferent components of home retrofit process:• CRM platforms, e.g.• Home energy assessment software, with focus on building modeling,e.g. Conservation Services Group’s Energy Measure HOME, HancockSoftware’s iHeat, or PSD Consulting’s TREAT• Field service management software, e.g. Dell’s packetTrap• Financial accounting software, e.g. Intuit’s QuickBooksSeveral companies building national/regional contractor networks forhome retrofits may develop their own IT platforms
  7. 7. Proprietary & Confidential 6Developed elements for IT SystemOver 200 energy audits and 80+ retrofits in Atlanta
  8. 8. Proprietary & Confidential 7It works! 40% savings on heating & cooling
  9. 9. Proprietary & Confidential 8So, how do we scale?
  10. 10. Proprietary & ConfidentialSix leading home performance contractors signed upLicense fees starting at $120 per month and $40 per retrofit9Demonstrated demandEnergy Construction LLC (Albany, NY)Retrofits in 2012: 40HomeRx (Seattle, WA)Retrofits in 2012: 70Insulation Man (Binghamton, NY)Retrofits in 2012: 33Neil Kelly Home Performance (Portland, OR)Retrofits in 2012: 400Sellair (Allentown, PA)Retrofits in 2012: 50TerraLogos (Baltimore, MD)Retrofits in 2012: 112
  11. 11. Proprietary & Confidential 10Build America’s leading home retrofit network67 million single-family, owner-occupied homes384 metropolitan areas (pop. 55,000+) Est. $150 billion retrofit market, with $1.1 billion for IT systems
  12. 12. Proprietary & Confidential 11Identify core markets in each state – e.g. New JerseyPassaic countyBergen countyEssex countyMiddlesex/Union countiesMorris countySomerset countyHunterdon countyMercer/MonmouthcountiesMonmouth county(Sandy Hook)Monmouth (Jersey shore)/Ocean countiesOcean county (Barnegat)Atlantic county (Hammonton)Atlantic county (Jersey shore)CumberlandcountyGloucestercountyCamden/BurlingtonW. DeptfordcountiesNew Jersey Clean EnergyProgram:• 155 participating homeperformance contractors• Of which 44 contractorsare potential licensees in16 core marketsHome performancecontractor
  13. 13. Proprietary & Confidential 12Lead generation with RFA’s Home Efficiency App™
  14. 14. Proprietary & Confidential 13How do we execute?Key Management & ExpertiseKey Personnel to hire• Geoff Berlin, Founder & CEO• Maxim Ivanov, IT Lead [Ciklum]• Dr. Matthew Realff, Lead onHome Efficiency App™ [GeorgiaTech]Board members• Ron Harris, Chair• Rick Degolia, DirectorGeoff Berlin, CEO• IT Director• Business DevelopmentDirector• Marketing Manager forLead Generation
  15. 15. Proprietary & Confidential 14Financing requirements to go to marketRaising $500,000 through issuance of Series A Preferred Stockto:• Develop and deploy v1.0 of the Home Retrofit IT System™• Scale to 20 to 25 home performance contractorsFollow by $800,000 to complete IT development and scale
  16. 16. Proprietary & Confidential$(20)$-$20$40$60$80$100$120$1402013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023$ millions Pro Forma Financial Results15How much money do we make?5-Year Pro Forma Results (2018)• Contractor licensees: 390• Home retrofits: 245,000• Revenue: $41 million• Operating Cash Flow: $24 millionRevenueOperatingCash Flow+ Upside: Home Improvement IT System™ for specializedhome improvement subcontractors
  17. 17. Proprietary & Confidential 16How do we exit?Build value through IT systems and national network of homeperformance contractors.Potential strategic acquirers include:• Home improvement retailers (e.g. Lowe’s, Sears, The Home Depot)• HVAC manufacturers (e.g. Carrier, Goodman, Lennox, Trane)• Renewable energy system installers (e.g. SolarCity, Sungevity)• Home performance contractors establishing a national presence(e.g. Masco Corporation)• IT companies with a focus on residential energy efficiency(e.g. OPower)• IT companies in the home improvement sector(e.g. Dell/Quest Software)
  18. 18. Proprietary & Confidential 17 A proven, successful approach Demonstrated demand A high impact investmentThe Bottom Line