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MAKING SENSE of
SOCIAL DATA
         endorphin
WHY NOW?
An enormous amount of digital data
about our lives is being produced daily,   Endorphin was created to make sense
and with the smartphone and tablet         of this data and improve the way we
boom, it will grow exponentially in the    live.
next 5 to 10 years.




                                                                                 2
SOLUTION
    Social scoring platform
                 	
  	
  


for digital footprints evaluation
                Open API for developers


     Big data




         ENDORPHIN API
                                          Cloud-based

                                                        3
USAGES
        B2B                                 B2C
                         	
  	
  


Smart social customer               Mobile app for smart social
segmentation service for e-         search among its 1st and 2nd
commerce                            degree connections.




                                                                   4
DATA
                          	
  	
  
◉ Collecting personal digital ◉ Appling knowledge available through
   footprint data from:              scientific researches in sociology,
                                     economy, behavioral and cognitive
                                     psychology.




   Looking forward futuristic
   data trackers, e.g Nike+
   Fuelband, Jawbone up




                                                                          5
SCORING ALGORITHMS

Endorphin uses scorecards to evaluate the
weight of each variable in the scoring
formulas, e.g. education, career dynamics,
travel history, activities etc. from trusted data
sources on top universities, restaurants,
companies, attractions, etc. 
 	
  




B2B

           7
PAIN POINTS


◉ No customer’s data
◉ Low conversion to buying customers
◉ High CAC
◉ Low LTV
STATISTICS
                                             	
  	
  




• The U.S. e-commerce market is big ($200B+), getting
  bigger (9% CAGR through 2015), and still early (only 9% of
  total retail)
• Data will grow over 800% in the next 5 years and 80% of
  these data will be unstructured




                                                               9
E-COMMERCE GET:

◉ Influential customers and provide them with perks in
  return for like/share on Facebook
◉ Welthiest customers and offer them loyalty programs
◉ Adjustable evaluation algorythms for store’s marketing
  goals achivement.
◉   BestBuy.com needs to increase
                                                                                   USE CASE
                                        	
  	
  
           conversion to buying customers and
           decrease customer acquisition cost                                      for
       ✔   For example, if a customer is influential, he/she is
           offered 5% discount on a desired product in return for
           like/share of this product on Facebook.

           John sees call-to-action «Link your Facebook or Twitter and get a discount
           depending on your Influence right now»
           John signs up with Facebook and/or Twitter to bestbuy.com
           John likes/shares the headphones via Facebook
           John gets a promo code to apply in a ckeckout which gives him a 5% discount
John       on the headphones
           John buys the headphones with a 5% discount



                                                    for
                                                                                              11
USE CASE
       ◉   Amazon.com needs to increase
           Lifetime Value                                                               for
       ✔   For example, if customer has the income bigger than
           120,000$ per year, he/she can get a premium account
           immediately.

           John chooses a product – the case for iPhone
           John goes to check out page
           John sees call-to-action «Link your Linkedin and try to get a free premium
           account right now»
           John signs in with Linkedin
John       John gets a free premium account
           John uses his previledges and get 5% discount



                          PREMIUM               for
BUSINESS-MODEL
      Pay-per-API call
 First 1000 API calls are free
 Over 1000 API calls – $0,1 per each


             Metrics:
      Conversion rate: 25%
      LTV: $18K
      Acquisition cost: $1K



                                       13
U.S. MARKET
             	
  	
  




         $248B*


* In condition of 149,8M online-buyers in 2012
                                                 14
METRICS & EXPECTED
×
       DELIVERABLES
  ∞             %     ≈
    1. Monthly growth of API calls = 50%
    2. Avarage amount of API calls per user per month = 5,000
∀   3. Monthly growth of users = 40%
    4. User/Paying User per month = 25%
    5. Rate of Return within new users = 70%
                                                    ÷

                                             ∀                  ∑
#        %                  ⨍
 	
  




B2C

           16
USER GET:
   Ability to perform search among 1st & 2nd degree connections by criteria
   Sort search by ratings (success, influence, likemindness, strength of connections)
   Comprehensive summary on anyone on the web
   Strength of connection towards person of interest.



◉ Processing and analyzing digital footprint data of your social connections gives useful
   insights to making more educated decisions in new personal and professional
   relationship.
HOW DOES IT WORK?


     USE CASE 
 John’s looking for VC in SV
1. John launches
the app


                   19
2. John applies
location filter


                  20
3. John sets
industry to
Venture Capital

                  21
4. John discovers
Rating by Success


                    22
5. John explores
summary on Dave
McClure

                   23
5. John explores
summary on Dave
McClure

                   23
5. John explores
summary on Dave
McClure

                   23
5. John explores
summary on Dave
McClure

                   23
6. Johns looks for
 the strongest link
 between him and
 Dave
                      24
APP	
  MARKET	
  	
  



          $2,76B*

* In condition of > 23M active users of LinkedIn with
500+ connections are our Target Audience as people that
care the most about their professional network.           25
B2C BUSINESS MODEL

               Freemium
   Makes money on extra exploring tools and
   complex ratings.

                 Metrics:
   Conversion rate views/users: 70%
   Conversion rate for paying user: 10%
   LTV: $350
   CAC: $3.4
COMPETITORS
                                                                   Scoring
          Ambit                                         	
  	
  
                    Wahooly
                    $0,75M                                                 Kred
                                                       Klout            (PeopleBrowsr)


                                                       $40M
                                                                                         Appinions
                             Traackr                                                       $3M
                              $2,5M        PeerIndex
                                             $3M

                                                                                                          M6D
                                                                                                          $25M
Service

                                                     Radian6                                                               Platform
                                                    (Acquired
                                                  by SalesForce)
              MyWeb
              Career


                                                                                                     DataSift
                                       SproutSocial
                                                                                                      $30M
                                          $11M

                  CrowdBooster
                   (YC-baked)                                                                                    Whit.li




                                                                   Analytics                                                          27
UNLIKE COMPETITORS
                      	
  	
  
ENDORPHIN:
◉ Evaluates Success, Likemindness, Wealth, Strength of
  Connection
◉ Evaluates Social Graph
◉ Provides Open API with Scoring
◉ Adjustment for developers, businesses, etc.




                                                         28
FOUNDERS
                          Artem Zavyalov                                  Victor Strelbitskyy
                          Co-founder, CEO.
                                                                          Co-founder and COO.
                          Role in a team: product
                                                                          Role in a team: team’s management,
                          management and development,
                                                                          operational issues, presentations.
                          vision, strategy, concept. Sees
                                                                          Pays attention to details.
                          the overall picture.




                 TEAM                                                 ADVISORS
             Vasyl Kryvonos                                 Roman Sidorenko
             CTO, Certified PM, experienced                  Customer and Product Development,
             tech-team lead                                 Concept Advisor


                   and
                                                            Michael Kozloff
4 Highly Experienced engineers in Tech Team and             Business Development Advisor
2 UX pros in UX Team

                                                                                                               29
KEY IP
                  	
  	
  




◉ Proprietary data warehouse platform, including
  ETL tools and algorithms
◉ Proprietary scorecards and decision-making
  platform




                                                   30
ENDORPHIN’S HISTORY
  October 2011 – Endorphin launched as the Platform for seeking new
  acquaintances (weakly scalable business model)
  January 2012 – Pivot to Social Scoring Platform
  April 2012 – Customer Development and Reality Check at Blackbox Connect
  Accelerator in Silicon Valley (lean startup, customer development, pitching,
  networking)
  May - August 2012 – Prototyping (Design, UX, Technical prototype)
  September 2012 – Reality Check in Startup Alley at TC Disrupt San Francisco
  October 2012 – Raised $250K Seed funding from the Untitled VC
  December 2012 – Finalist at Techcrunch Moscow Startup BattleField
  March 2013 - Awarded with $60K grant from Microsoft (BizSpark+)
  April 2013 – MVP launch: mobile apps for iOS and Android
NOW

◉ Intervied over 400 people personally to prove the interest for such a service
    with 8 out of 10 people willing to use it

◉ Over 300 signups for app beta-testing at TechCrunch Disrupt SF
◉ 15 000 lines of code written
◉ Platform’s beta-API
◉ Demonstration of platform’s API in iOS and Android Mobile app
ROADMAP
MVP – Launching mobile app to demonstrate platform’s API.



Endorphin after round A funding:
Release 2
Smart social customer segmentation service for e-commerce


Release 3
Big Social Data Platform with Open API for businesses and developers
INVESTMENT
                                                   Needs for the next rounds 
                                                   May 2013
                                             $2M
                                                   $2M from a pool of investors as
              Semptember 2012       $0,25M         convertible notes

$0,25M pre-seed investments from
                  The Untitled VC




    Click here

                       angel.co/endorphin
                                                                                     34
endorphin.me
COMING SOON TO                               &


        tema@endorphin.me
         str@endorphin.me



     Copyright © 2013 All rights reserved.

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Endorphin Platform - Social Scoring Platform.

  • 1. MAKING SENSE of SOCIAL DATA endorphin
  • 2. WHY NOW? An enormous amount of digital data about our lives is being produced daily, Endorphin was created to make sense and with the smartphone and tablet of this data and improve the way we boom, it will grow exponentially in the live. next 5 to 10 years. 2
  • 3. SOLUTION Social scoring platform     for digital footprints evaluation Open API for developers Big data ENDORPHIN API Cloud-based 3
  • 4. USAGES B2B B2C     Smart social customer Mobile app for smart social segmentation service for e- search among its 1st and 2nd commerce degree connections. 4
  • 5. DATA     ◉ Collecting personal digital ◉ Appling knowledge available through footprint data from: scientific researches in sociology, economy, behavioral and cognitive psychology. Looking forward futuristic data trackers, e.g Nike+ Fuelband, Jawbone up 5
  • 6. SCORING ALGORITHMS Endorphin uses scorecards to evaluate the weight of each variable in the scoring formulas, e.g. education, career dynamics, travel history, activities etc. from trusted data sources on top universities, restaurants, companies, attractions, etc. 
  • 8. PAIN POINTS ◉ No customer’s data ◉ Low conversion to buying customers ◉ High CAC ◉ Low LTV
  • 9. STATISTICS     • The U.S. e-commerce market is big ($200B+), getting bigger (9% CAGR through 2015), and still early (only 9% of total retail) • Data will grow over 800% in the next 5 years and 80% of these data will be unstructured 9
  • 10. E-COMMERCE GET: ◉ Influential customers and provide them with perks in return for like/share on Facebook ◉ Welthiest customers and offer them loyalty programs ◉ Adjustable evaluation algorythms for store’s marketing goals achivement.
  • 11. BestBuy.com needs to increase USE CASE     conversion to buying customers and decrease customer acquisition cost for ✔ For example, if a customer is influential, he/she is offered 5% discount on a desired product in return for like/share of this product on Facebook. John sees call-to-action «Link your Facebook or Twitter and get a discount depending on your Influence right now» John signs up with Facebook and/or Twitter to bestbuy.com John likes/shares the headphones via Facebook John gets a promo code to apply in a ckeckout which gives him a 5% discount John on the headphones John buys the headphones with a 5% discount for 11
  • 12. USE CASE ◉ Amazon.com needs to increase Lifetime Value for ✔ For example, if customer has the income bigger than 120,000$ per year, he/she can get a premium account immediately. John chooses a product – the case for iPhone John goes to check out page John sees call-to-action «Link your Linkedin and try to get a free premium account right now» John signs in with Linkedin John John gets a free premium account John uses his previledges and get 5% discount PREMIUM for
  • 13. BUSINESS-MODEL Pay-per-API call First 1000 API calls are free Over 1000 API calls – $0,1 per each Metrics: Conversion rate: 25% LTV: $18K Acquisition cost: $1K 13
  • 14. U.S. MARKET     $248B* * In condition of 149,8M online-buyers in 2012 14
  • 15. METRICS & EXPECTED × DELIVERABLES ∞ % ≈ 1. Monthly growth of API calls = 50% 2. Avarage amount of API calls per user per month = 5,000 ∀ 3. Monthly growth of users = 40% 4. User/Paying User per month = 25% 5. Rate of Return within new users = 70% ÷ ∀ ∑ # % ⨍
  • 16.     B2C 16
  • 17. USER GET: Ability to perform search among 1st & 2nd degree connections by criteria Sort search by ratings (success, influence, likemindness, strength of connections) Comprehensive summary on anyone on the web Strength of connection towards person of interest. ◉ Processing and analyzing digital footprint data of your social connections gives useful insights to making more educated decisions in new personal and professional relationship.
  • 18. HOW DOES IT WORK? USE CASE  John’s looking for VC in SV
  • 21. 3. John sets industry to Venture Capital 21
  • 22. 4. John discovers Rating by Success 22
  • 23. 5. John explores summary on Dave McClure 23
  • 24. 5. John explores summary on Dave McClure 23
  • 25. 5. John explores summary on Dave McClure 23
  • 26. 5. John explores summary on Dave McClure 23
  • 27. 6. Johns looks for the strongest link between him and Dave 24
  • 28. APP  MARKET     $2,76B* * In condition of > 23M active users of LinkedIn with 500+ connections are our Target Audience as people that care the most about their professional network. 25
  • 29. B2C BUSINESS MODEL Freemium Makes money on extra exploring tools and complex ratings. Metrics: Conversion rate views/users: 70% Conversion rate for paying user: 10% LTV: $350 CAC: $3.4
  • 30. COMPETITORS Scoring Ambit     Wahooly $0,75M Kred Klout (PeopleBrowsr) $40M Appinions Traackr $3M $2,5M PeerIndex $3M M6D $25M Service Radian6 Platform (Acquired by SalesForce) MyWeb Career DataSift SproutSocial $30M $11M CrowdBooster (YC-baked) Whit.li Analytics 27
  • 31. UNLIKE COMPETITORS     ENDORPHIN: ◉ Evaluates Success, Likemindness, Wealth, Strength of Connection ◉ Evaluates Social Graph ◉ Provides Open API with Scoring ◉ Adjustment for developers, businesses, etc. 28
  • 32. FOUNDERS Artem Zavyalov Victor Strelbitskyy Co-founder, CEO. Co-founder and COO. Role in a team: product Role in a team: team’s management, management and development, operational issues, presentations. vision, strategy, concept. Sees Pays attention to details. the overall picture. TEAM ADVISORS Vasyl Kryvonos Roman Sidorenko CTO, Certified PM, experienced Customer and Product Development, tech-team lead Concept Advisor and Michael Kozloff 4 Highly Experienced engineers in Tech Team and Business Development Advisor 2 UX pros in UX Team 29
  • 33. KEY IP     ◉ Proprietary data warehouse platform, including ETL tools and algorithms ◉ Proprietary scorecards and decision-making platform 30
  • 34. ENDORPHIN’S HISTORY October 2011 – Endorphin launched as the Platform for seeking new acquaintances (weakly scalable business model) January 2012 – Pivot to Social Scoring Platform April 2012 – Customer Development and Reality Check at Blackbox Connect Accelerator in Silicon Valley (lean startup, customer development, pitching, networking) May - August 2012 – Prototyping (Design, UX, Technical prototype) September 2012 – Reality Check in Startup Alley at TC Disrupt San Francisco October 2012 – Raised $250K Seed funding from the Untitled VC December 2012 – Finalist at Techcrunch Moscow Startup BattleField March 2013 - Awarded with $60K grant from Microsoft (BizSpark+) April 2013 – MVP launch: mobile apps for iOS and Android
  • 35. NOW ◉ Intervied over 400 people personally to prove the interest for such a service with 8 out of 10 people willing to use it ◉ Over 300 signups for app beta-testing at TechCrunch Disrupt SF ◉ 15 000 lines of code written ◉ Platform’s beta-API ◉ Demonstration of platform’s API in iOS and Android Mobile app
  • 36. ROADMAP MVP – Launching mobile app to demonstrate platform’s API. Endorphin after round A funding: Release 2 Smart social customer segmentation service for e-commerce Release 3 Big Social Data Platform with Open API for businesses and developers
  • 37. INVESTMENT Needs for the next rounds  May 2013 $2M $2M from a pool of investors as Semptember 2012 $0,25M convertible notes $0,25M pre-seed investments from The Untitled VC Click here angel.co/endorphin 34
  • 38. endorphin.me COMING SOON TO & tema@endorphin.me str@endorphin.me Copyright © 2013 All rights reserved.