The document proposes a concept for a wearable fitness tracking device called SmartFit. It provides an overview of the wearable technology market and competitive landscape. The proposal includes financial projections estimating $23.9 million in revenue and $21.6 million in EBITDA by 2018. It also outlines plans for product design and development, marketing and operations over a 12 month period and requests $350,000 in funding for a 20% equity stake in the company.

1. Wearable Technology –
Smart Fit (Concept)
Richard Chan –
Nicholas Kouyialis -
Jillian Nguyen -
Doohan Yoon -

3. Product

4. Industry: Total Wearable Market

5. Industry: Market Drivers – Fitness
Monitoring

6. Industry: Competitive Landscape

7. Industry: Competitive Landscape
Ease of Use, Comfort (+)
Device-Based Seamless
Ease of Use, Comfort (-)
SmartFit

8. Marketing
 Price
2% royalty fee
Initial Short Term
Contract
 Place
Direct to predominate
sport clothing
companies
 Promotion
Electronic and fitness
conventions

9. Operation/Development
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Idea Capturing/Screening
Finalize Plan/Business Case
Product Design
Development
Testing Integration
User Experience Evaluation
Web Design/Maintenance
Sales & Marketing
Business Plan alignment Check
Manage Budget/Funding
Launch

10. Financials – 5 Year Sales/EBITDA ($000)
(260.0)
828.8
4,176.5
9,489.0
20,421.9
0.0
1,840.5
5,567.8
11,224.4
22,626.7
(5,000.0)
0.0
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
2014 2015 2016 2017 2018
Sales EBITDA

11. Offering/Use of Proceeds
Salaries- R&D
46%
Lab Materials
14%
Lawyer/Patent
Fees
14%
Equipment
14%
Buffer
12%
$350K for 20% Equity Stake

12. Team Background – Real Industry Experience
Head of Tech
Head Scientist/Board Advisor
Head of Finance
Head of Sales/Marketing

13. Questions?

14. Appendix

15. Technology - Design

16. Critical Risks
Risk Type Details Risk Magnitude Risk Probability
Market Risks that customers
won’t buy the
intended product or
service
There may not be
enough early adopters
and customer volumes
to support sales
forecasts
30%
Technology Risk that product and
service can’t be built
as intended
This is a fairly new
type of technology in
the marketplace, there
could be limits to
desired functionality
40%
Executional Complexity of
Operations
Due to complexity
schedule may not
execute as planned
30%
Overall Risk Rating 33%

17. Cap Tables
Round Founders Angel Series A Series B Exit
Date 4/1/2014 5/4/2014 10/1/2015 10/1/2016 10/1/2018
Amount Raised $20,000 $350,000 $1,000,000 $2,000,000 n/a
Price per Share $0.00 $0.14 $0.80 $3.64 $7.00
Valuation: Pre-Money na $1,400,000 $10,000,000 $50,000,000 $100,063,687
Valuation: Post-Money $20,000 $1,750,000 $11,000,000 $52,000,000 $100,063,687
Investment Return 50.0x 8.7x 1.9x
IRR 142.6% 105.9% 38.7%
Dilution to the Angel 9.1% 3.8%
Cum. Angel Dilution 12.6%
SHARES
Common
Founders 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
Option Pool 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Total Common 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
Preferred
Angel investors 2,500,000 2,500,000 2,500,000 2,500,000
Series A investors 1,250,000 1,250,000 1,250,000
Series B investors 550,000 550,000
Total Preferred 2,500,000 3,750,000 4,300,000 4,300,000
Total Shares 10,000,000 12,500,000 13,750,000 14,300,000 14,300,000

18. Multiples
$(millions) Price Shares Debt Cash EV Rev EBITDA EBIT FCF
Under Armour 101.9 105.8 152.9 347.5 10,587.4 2,332.1 318.2 265.1 32.0
Nike 71.3 881.0 1,388.0 3,337.0 60,822.3 25,313.0 3,610.0 3,254.0 2,391.0
Multiples Rev EBITDA EBIT FCF
Under Armour 4.5 33.3 39.9 330.9
Nike 2.4 16.8 18.7 25.4
Average 3.5 25.1 29.3 178.1
Smart Fit 22.6 20.4 20.4 12.8
Multiple Calc 78.5 511.8 596.7 2,288.0
Less Debt
Plus Cash 21.5 21.5 21.5 21.5
Fair Value 100.1 533.4 618.3 2,309.5
2,309.5m
890.3m
Blend of all 4 Multiples
Min Value
100.1m
Max Value

19. IS/DCF
Potential Price
in thousands ($000) 2014 2015 2016 2017 2018 Assumption
Total Revenue -$ 1,841$ 5,568$ 11,224$ 22,627$ 23,984$
% growth rate 202.5% 101.6% 101.6% 6.0%
- COGS -$ -$ -$ -$ -$ -$
% of revenue 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Gross Profit -$ 1,841$ 5,568$ 11,224$ 22,627$ 23,984$
% of revenue #DIV/0! 100.0% 100.0% 100.0% 100.0% 100.0%
- Operating Exp 260$ 1,012$ 1,391$ 1,735$ 2,205$ 2,337$
% of revenue #DIV/0! 55.0% 25.0% 15.5% 9.7% 9.7%
- SG&A (Op Ex) Totals 260$ 1,012$ 1,391$ 1,735$ 2,205$ 2,337$
% of revenue #DIV/0! 55.0% 25.0% 15.5% 9.7% 9.7%
EBITDA (260)$ 829$ 4,177$ 9,489$ 20,422$ 21,647$
% of revenue #DIV/0! 45.0% 75.0% 84.5% 90.3% 90.3%
- D & A (Op Ex) 3$ 13$ 26$ 43$ 66$ 69$
% of revenue #DIV/0! 0.7% 0.5% 0.4% 0.3% 0.3%
EBIT (oper profits) (263)$ 816$ 4,151$ 9,446$ 20,356$ 21,578$
% of revenue #DIV/0! 44.4% 74.6% 84.2% 90.0% 90.0%
- Taxes (92)$ 286$ 1,453$ 3,306$ 7,125$ 7,552$
% of EBIT 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
NOPAT (171)$ 531$ 2,698$ 6,140$ 13,232$ 14,026$
% of revenue #DIV/0! 28.8% 48.5% 54.7% 58.5% 58.5%
47.6m$
Best View Estimates
Industry WACC 30.0%
LTG (est) 6.0%