A walkthrough of Authorly's business and future

2. Authorly has built an app library that helps children ages
2 - 7 learn to read by using our fully interactive books

4. Two Birds, Two Stones
Interactivity
Discoverability

5. ● Online tool
● Free to use
● or $20/page
● Published to all
3 app stores
● 20% rev split
● Subscription library
● Currently testing
alpha build
● 50 apps now
● $10/mo
● 70% rev split

6. ● 1100+ authors
enrolled
● 91 apps
produced
● Partnerships
with publishers
● Production
team growing
● Oversubscribed
beta by 70%
● Developing with
educators and
specialists
● Word of mouth
is key
● Alpha testers
showing
stickiness

7. ● Young market, young competitors
● No clear leader
● Limited interactivity and
distribution
We can outscale and outperform
because of the time spent developing
the Authorly tool

8. Team Authorly:
Adam Kaslikowski
CEO
Serial startup executive
Experience garnered at
reddit, AOL, and PBS Kids
10 years in management
Incubator Investor
Curious Minds
Investment and
incubation provided in
2013
$320K invested
Chris Whitman
Founder / CTO
Experienced developer
Fluent in Ruby, Rails,
Java, CSS, and Git
12 years in technology
Brad Seraphin
CMO
Dedicated marketer
Authority in SEO, SEM,
PPC, outreach, and PR
10 years in marketing
Waseem Ahmad
Software Engineer
Established developer
Mastery of Rails, AJAX,
Git, and JavaScript
9 years in technology
David Hoover
Business Development
Determined hustler
Skill in sales, outreach and
project management
6 years in entrepreneurship
Irina Dumitrascu
Web Developer
Seasoned engineer
Savvy in Ruby, CSS
JavaScript, and Agile
15 years in technology
Board of Advisors:
Adam Hertz - SVP Technology Comcast
Christopher Vandaele - MP at Vandaele
Capital

9. 2014 2015 2016 2017 2018
Registered Users 14,858 141,036 351,190 634,563 1,473,826
Monthly Subscribers 9,963 49,506 98,479 194,982 428,960
Yearly Subscribers 198 846 1,414 2,543 5,987
Yr Subscriber Ratio 2% 2% 1% 1% 1%
Revenue
Subscriptions 161,818 3,250,718 10,086,476 24,097,969 53,745,692
Total Revenue 161,818 3,250,718 10,086,476 24,097,969 53,745,692
Cost of Revenues 53,171 1,768,132 4,657,081 10,632,358 24,091,187
Gross Profit 108,647 1,482,586 5,429,395 13,465,611 29,654,505
Gross Margin 67% 46% 54% 56% 55%
Technology 219,817 412,000 14% 1,050,500 13% 2,450,000 13% 5,500,000 13%
Sales & Marketing 118,681 339,000 12% 1,200,000 15% 2,700,000 15% 6,500,000 16%
General & Administrative 170,932 354,000 12% 1,025,000 13% 2,500,000 14% 5,700,000 14%
Total Operating Costs 509,430 1,105,000 3,275,500 7,650,000 17,700,000
EBITDA (400,782) 377,586 2,153,895 5,815,611 11,954,505

10. ➔ Will achieve monthly breakeven in Q4 of this year
➔ Seed round will be deployed rapidly scaling production employees,
aggressively marketing to influencers, and building more features
➔ Comixilogy acquisition by Amazon last month shows M&A appetite

11. Appendix

12. Enrolled 1100+ authors
Created 91 book apps
Debuted BookFair alpha
Oversubscribed our beta by 70%
Published first 50 book apps
Released Authorly
Partnered with 3 publishers
Release BookFair beta
Release BookFair
Enroll 6000 Subscribers
Achieve breakeven

13. ➔ Breakeven achieved at just 6k
monthly subscribers
➔ $105M/yr at 1.25M monthly
subscribers
➔ $8.4M/yr at 100k monthly
subscribers

14. 2012
Authorly Founded
2013
$320K Seed Investment from
Curious Minds
Feb 2014
App creator launched to
public
March 2014
1010 authors
March 2014
91 Apps Produced
and ready to publish
2nd-Half 2014
Subscription
storefront
launches
Late 2014
Advanced event-based
animations
Late 2014
Scale-up
production
Milestones:

15. Children’s Picture eBooks:
● 2.6 million children’s ebooks sold in 2012, compared to 1 million sold in 2011.
● 44% of parents allow their children to use a tablet.
● 68% of parents have purchased or plan to purchase apps for their children.
● Parents with iPads spend an average of $100/yr (27.2 apps) on children’s
apps.
2013
$235M
2011
$56M
2012
$142M
Sources: Nielsen, Digital Book World, Association of American Publishers, Publishers Association, The Joan Ganz Cooney Center

16. Momentum:
Month Authors Enrolled
July 7
August 12
September 35
October 43
November 219
December 470
January 564
February 734
March 1010+
Average Monthly Growth Rate: 110%

17. The BookFair Marketplace:
Our subscription storefront will allow parents to browse
through our extensive library of content and discover the
perfect immersive children’s storybook app.
Subscription Service Revenue
● Authorly Share = 70%
● Creator Share = 30%

18. Partnerships
Signed:
Our Launch
Titles:

19. Competitors:
(Comparison of in App Features)

20. How Authorly Creates Apps:
Author
creates
account
Author
finishes app
Authorly compiles and
sends to all 3 app stores
App live on app
stores
3-7 days 7-10 days3-24hrs
The entire Authorly process takes an average of 2 weeks from the author signing
up to having an interactive app live in all 3 major app stores.

21. Rollout Plan:
Now
May
July
MVP
Alpha
Beta
Late 2014 Live
● Mechanical Turk
● Street Intercepts
● Polling Families
● Street Intercepts
● Friends&Family
● Polling Families
● Quiet launch
● Blogger Previews
● Celebrity Previews
● Loud launch
● Tech press
● Mommy press
● Publisher partnerships

22. Data-Driven Product Development:
Research Mocks User Feedback Live Product
We are here with
the subscription
app

23. Seed Round:
With 1M in seed financing, we
achieve:
● 2 years of runway to grow
and scale
● Marketplace launch and tool
improvements
● User acquisition and growth
● Expected first year revenue
of $120K-$160K
● Team to scale for publishing
● Preparation for Series A
raise or acquisition

24. Exit Targets:
Purchase
Scholastic
Random House
Hachette Book Group
HarperCollins
Macmillan Publishers
Simon and Schuster
Nickelodeon
Disney
Partnership
Scribd
Oyster
MadeFire
Inkling
Fuhu