Ernit is tackling financial literacy through a unique approach of aligning a user's needs and goals with the platform's offerings. No other competitor is able to accomplish this to the same degree. The document evaluates Ernit's competitive advantage and recommends introducing the product to elementary schools to unlock growth, as the company may also be subject to future acquisition activity given consolidation in related spaces.

1. 1
Ernit
Light Market Research and Competitive Analysis
All amounts in $USD unless otherwise stated.
All data sources are from free resources only.

2. Summary
Conclusion
Ernit is tackling a global problem and does so effectively. It is the only company in the space that addresses the
issues through aligning a user’s needs and fulfillment with what the platform offers. No other competitor in the
space is able to remotely accomplish this at such a high degree and Ernit has a clear competitive advantage
because of this. The company could unlock a growth catalyst through introducing the product to elementary
schools and could be subject to M&A activity in the future.
2
A lack of financial literacy is still a major global concern and current solutions are relatively ineffective:
Ernit is at the cornerstone of the smart toy and mobile payments industry which are both projected to grow
at unprecedented rates. The market opportunity for Ernit, however, is the demand for better financial literacy
platforms which still remains as a major concern in countries such as the United States. Current solutions are
not user focused - that is, they do not cater towards a users’ needs and fulfillment. This leads to individuals
not being able to retain financial literacy concepts.
Ernit is the only platform that addresses financial literacy and takes a user-centric approach:
Ernit takes a user-centric approach through three mechanics: children being able to set their own goals,
direct themselves to those goals, and being able to see their progression towards those goals. No other
competitor in this space is remotely close to Ernit’s offering and Ernit has a clear competitive advantage.
The company should also consider other verticals the product can enter and potential exit opportunities:
In terms of vertical integration, Ernit has the potential to be integrated into elementary schools where
students collaborate on creating financial decisions through a goodwill reward system - increasing their
ability to collaborate and heighten their financial literacy. As well, Ernit is in a space where merger and
acquisition activities are prevalent.

3. Agenda
Section Slide Number
A lack of financial literacy remains a global problem to this day
And typical solutions have yet to provide an effective answer
4 - 8
A niche space with few competitors
Ernit shows itself as the obvious choice for financial literacy
10 - 15
Other considerations
The company can expand to schools and be subject to M&A
17 - 18
3

4. 4
Ernit is at the intersection of two very different industries
Sources: IDATE, Goldman Sachs
Ernit is a company that relies on two growing industries: smart toys, and mobile payments
Global Smart Toys Market Growth & Global Mobile Payments Market Growth
Growth(Multiple)
3
5
8
10
12
14
2013 2014 2015 2016 2017 2018 2019 2020
Global Smart Toy Market Growth Global Mobile Payments Market Growth
Mobile Payments - $52.9B Market
Smart Toys - $1.3B Market
Projected
$721.4B Market
Projected
$8.9B Market

5. 5
And is attempting to address financial literacy for young children
Sources: Junior Achievement, KPMG, T. RowePrice
What do we know about teenagers and
money?
of teens in the US do not have a:
40%
Savings Account Checking Account Credit Card
of teens do not have
money management
classes offered at their
schools.59%
And parents aren’t having money
conversations with their children.
Most parents have some reluctance to
discuss financial matters with their kids
71%
are in some
way reluctant
29%
are not
reluctant

6. 6
So how is a lack of financial literacy currently being combated?
Sources: DECA, The Guardian - “How to teach…financial literacy”, PFEG UK, Practical Money Skills Canada, Independent Analysis
Leadership Programs and
Competitions
1
Changes in Formal Education
2
Electronic Gamification
3
Organizations such as DECA
(Distributive Education Clubs of
America) organize nationwide
financial literacy leadership programs
including events such as case studies
and role-play situations for high
school students to promote the
importance of financial literacy in
everyday situations.
In September 2014, England’s
Department of Education revealed a
national plan to include financial
education into an overhauled math
and citizenship curriculum in all of
England’s secondary schools. An
example of a new requirement for
students include being able to
understand the “importance and
practice of budgeting and managing
risk”.
With the rise of the app economy,
governments and independent
developers have begun to realize the
demand for educational gaming apps.
One example of this being applied for
financial literacy is a Canadian
federally developed app: Peter Pig’s
Money Counter which allows children
to play games and understand how to
count and sort different coins, and put
money aside for savings.

7. 7
But something is wrong with the current way financial literacy is addressed…
Sources: TIME - “Why Financial Literacy Fails”
“We need to show them [Americans] how to change their behaviour. We
need to appeal to their self-interest. We need to help them find intrinsic
motivation to save. That is, each of us needs to dig deep inside to find
what it is that’s important to us, what it is that brings us joy…
To truly be successful, financial education has to address the behavioural
side of money because that is absolutely the biggest piece of the puzzle”.
- J.D. Roth, Author of Your Money: The Missing Manual

8. 8
Financial literacy not being tailored to our needs and fulfillment lead to mental dismissal
Sources: The Billford - “The Problem With Financial Literacy Is That It Doesn’t Work”, Independent Analysis
In a 2013 Harvard Business School working paper, economists concluded that “State mandates requiring
high school students to take personal finance courses have no effect on savings or investment behaviour.”
Another study, from 2009, tested the financial literacy of recent high school graduates who had taken a
highly regarded personal finance class. They did no better than graduates who had not taken the class.
Current Financial
Literacy Models
Required Financial
Literacy Models
Long-Term
Financial Literacy
Unincentivized education (no alignment of needs or
fulfillment)
Alignment of an individual’s needs and overall life
fulfillment

9. Agenda
Section Slide Number
A lack of financial literacy remains a global problem to this day
And typical solutions have yet to provide an effective answer
4 - 8
A niche space with few competitors
Ernit shows itself as the obvious choice for financial literacy
10 - 15
Other considerations
The company can expand to schools and be subject to M&A
17 - 18
9

10. Long-Term
Financial Literacy
10
Ernit realizes the importance of the alignment behind needs and fulfillment
Sources: Company Website, Independent Analysis
Goal Setting
Through being able to set goals for their savings, children
incentivize themselves to save more to reach their needs
such as a new toy or video game. This alignment of a
personal need and forward looking fulfillment endorses a
child’s financial literacy capabilities.
Goal Direction
When children receive new funds, they decide towards
which goal they will allocate these new funds to. Children
develop financial literacy by understanding the concept of
prioritizing on certain needs and holding back potential
fulfillment until more savings are realized.
Goal Progression
Children are constantly able to see their progression
towards different goals. This simple mechanic will
emphasize children about how patience is a major factor
when pursuing financial decisions and how their needs
and personal fulfillment cannot be fuelled instantly.
Through these
three mechanics,
Ernit unconsciously
makes children
understand the
importance of
financial literacy in
an appealing, user-
oriented way.

11. 11
Not many other players compete in this IoT focused niche space
Sources: Company Websites, Crunchbase
Competition Table
Core Features
Goal Setting by
the Child
Parent
Management
Interface
Accepts
Cryptocurrency
Parent Company Funding-to-Date
- Smart piggy bank focused on
children setting financial goals and
deciding how to pursue them
- Accepts currency through family
network through multiple currencies
N/A
$290K from 3
Rounds
(Angel Stage)
- Smart piggy bank focused on
assigning rewards controlled by
parents based on tasks completed
(ie. chores)
- Funds held on “Wiggy card” which
serves as a prepaid debit card
Spiral Toys
Public
(OTCBB: STOY);
previously raised
$865K
- Smart piggy bank with a companion
app that tracks coin balance; can set
and track financial goals - not
targeted towards same customer
base as Ernit
Quirky
$175M
(Post Series D
Stage)
- Online and mobile platform that
allows a parent and child to manage
their allowance and chores
completed
N/A N/A
Porkfolio

12. Core Focus on Financial Literacy Other Focuses
12
And only one other competitor has a true focus on financial literacy
Sources: Company Websites, Crunchbase
Porkfolio
Ability to track
savings and witness
goal progression
Both of these platforms are task based
(parents set a task for a child to
complete). In return, a child receives a
reward (that the parent sets). This
doesn’t necessarily endorse financial
literacy concepts such as savings and
more focuses on completing tasks
because a parent incentivized a child to
do so rather than a child incentivizing
themselves.

13. 13Sources: Company Websites, Crunchbase, Amazon, CNET
Core Features
Smart piggy bank that tracks coin balance in
piggy bank through a mobile app. Can also set
and continuously track financial goals through
the mobile app. Only works with USD.
Country of Origin: United States
Company Funding to Date: $175M (Post
Series D Stage)
Competition Profile: Porkfolio
Porkfolio
Recent News
- None

14. 14
Competition Profile: Wiggy
Sources: Company Websites, Crunchbase, Indiegogo
Core Features
Smart piggy bank with a user flow based on
parents assigning tasks, Wiggy conveying the
message through a speaker, and a child
completing the task in exchange for a reward
assigned by the parent. The funds are available
through a “Wiggy card”, a digital wallet and
prepaid debit card that can be used at major
retailers.
Country of Origin: United States
Company Funding to Date: Public,
previously raised $865K
Recent News
- Launched Indiegogo campaign in April, 2016
and only raised ~$8K out of $20K; Spiral Toys
has recently announced that the product is still
in beta-testing mode and will release for the
2016 holiday season

15. 15
Competition Profile: First Kid Bank
Sources: Company Websites
Core Features
Online and mobile accessible website that allows
a child to see the tasks (chores) they need to
complete and the rewards they can redeem if
done. Parents set the tasks and the rewards. No
payment platform available (such as a wallet) and
reward redemption is done beyond the platform
(i.e. actual exchange of cash).
Country of Origin: United States
Company Funding to Date: N/A
Recent News
- No social media activity since late 2014 - most
likely a “zombie” platform

16. Agenda
Section Slide Number
A lack of financial literacy remains a global problem to this day
And typical solutions have yet to provide an effective answer
4 - 8
A niche space with few competitors
Ernit shows itself as the obvious choice for financial literacy
10 - 15
Other considerations
The company can expand to schools and be subject to M&A
17 - 18
16

17. 17
Ernit could unlock value through orienting its product towards academic institutions
Sources: Independent Analysis
Financial literacy goes beyond thinking of the best financial decisions for yourself, but also encompasses
making the best financial decisions for a group (such as immediate family). Most financial literacy learning
platforms miss emphasizing this concept but Ernit can showcase this through introducing its product into
an entirely new vertical - elementary schools.
Potential User Flow for Ernit's Elementary School Integration
Teacher/Class Instructor distributes
“goodwill” points to different
students (similar to the way
students receive stars/candy for
academic performance and good
behaviour).
Students as a collective, equal-
voting group, can make decisions on
how to spend goodwill points,
whether to save or spend now, etc.
(ex. use points for an extended
recess at the end of the week, or
save points to redeem a pizza party
in the next week).
Through analyzing Ernit and the
class’s goal progression, students
will constantly communicate with
each other and democratically
decide on the best rewards to
redeem that serves the best
interests of the greater group.

18. 18
One should also consider the M&A activity in the toy industry - specifically for smart toys
Sources: Capstone Juvenile Products Report - Q1 2016 and Q3 2016, DailyCamera, Inc
Vtech acquires LeapFrog - February, 2016
Leapfrog creates technology-based learning products and related proprietary
content. The company was acquired at an enterprise value of $73.3M at a multiple
of 0.2x EV/LTM Revenue.
Google acquires Launchpad Toys - February, 2015
Launchpad Toys develops and builds digital toys for children through augmented
reality.
Mattel acquires Fuhu - December, 2015
Fuhu offers nabi, an Android based learning tablet that provides an ecosystem to
immerse kids in engaging experiences. The company was acquired for $21.5M.
Cartwheel Kids acquires Smart Toy - October, 2014
Cartwheel Toys creates Ubooly - an interactive and educational plush toy that
integrates with smart phones.

19. 19
Appendices

20. 20
About me
Aniket Patel
Fourth Year Accounting & Financial Management Student (Class of 2018)
About Me
- Multi-faceted individual with
experiences in strategy, finance
and design who is looking to help
build tomorrow’s big companies.
- Combined 12 months experience
in venture capital and asset
management as well as numerous
extra-curricular experiences such
as startup consulting
engagements and hackathon
participation.
Previous Work Experience
Venture Capital Analyst
(Sept. - Dec. 2016)
Private Markets Analyst
(Sept. - Dec. 2015)
Fixed Income Analyst
(Jan. - Apr. 2015)
Contact
https://ca.linkedin.com/
in/aniketp1
@Aniket_P1
me@aniketpatel.ca