Equity Endeavor, Inc.
Investor Presentation
www.equityendeavor.com
2	
  Strictly Confidential
Meet the Team
Broderick
McClinton
Eric
Sonnier
Matt
Christen
§  Born and raised in Baton Rouge, LA
§  Finance/Political Science Degree
from Tulane University
§  Associate, BlackRock
§  Economic Development, Greater New
Orleans Inc.
§  Harvard Business School, 2014
§  Born and raised in Houston, TX
§  Marketing Degree from The University
of Texas at Austin
§  Strategy & Operations Consultant,
Deloitte
§  Account Executive, MdotM, Inc.
§  Harvard Business School, 2014
§  Born and raised in Houston, TX
§  Computer Science Degree from The
University of Texas at Austin
§  Spent past 8 years programming
various trading strategies into
automated platforms
3	
  Strictly Confidential
Before We Begin	
  
We focus on helping traditional small
businesses that operate within a limited
geographic footprint. We do not
support startups or individual projects.
We are a rewards-based platform, which
means that our business owners
exchange non-financial (e.g., products,
and services) items for contributions.
Small Business Rewards-Based
4	
  Strictly Confidential
Two Major Trends	
  
Two major trends have led to the creation
of the Equity Endeavor platform.
5	
  Strictly Confidential
Trend #1	
  
Upgrade or replace equipment
Renovate or expand storefronts
Enhance quality of service
Create a better consumer experience
Small business owners are having a difficult time finding
capital to:
6	
  Strictly Confidential
In fact, data shows a large need for capital to grow
Source:	
  Pepperdine	
  Private	
  Capital	
  Access	
  Index,	
  4Q2013	
  
25%	
  
45%	
  
65%	
  
2Q	
  2013	
   3Q	
  2013	
   4Q	
  2013	
  
Es-mated	
  %	
  of	
  Business	
  Owners	
  (<$5MM	
  in	
  
revenue)	
  needing	
  loans	
  for	
  growth	
  or	
  expansion	
  
7	
  Strictly Confidential
But capital is hard to find for small businesses*
68.8%
Said equity was
difficult to raise
68.7%
Said debt was
difficult to raise
34.0%
Acquired a
business loan
*	
  Defined	
  as	
  having	
  less	
  than	
  $5	
  million	
  in	
  revenues	
  	
  
Source:	
  Pepperdine	
  Private	
  Capital	
  Access	
  Index,	
  4Q2013	
  
8	
  Strictly Confidential
And this lack of capital isn’t a recent event
Small business financing in the U.S.
has experienced a steady decline due
to a number of factors. Small
businesses:
Don’t have the resources of large
corporations
Are more risky
Are perceived as unprofitable to banks
Have lower potential equity returns
compared to technology startups
0	
  
2	
  
4	
  
6	
  
8	
  
10	
  
12	
  
14	
  
16	
  
18	
  
0	
  
50	
  
100	
  
150	
  
200	
  
250	
  
300	
  
2005	
   2006	
   2007	
   2008	
   2009	
   2010	
   2011	
   2012	
   2012(4)	
  
GDP,	
  Trillions	
  
Small	
  Business	
  Loans,	
  Billions	
  
$50	
  billion	
  or	
  more	
  
$10	
  billion	
  to	
  $49	
  billion	
  
$1	
  billion	
  to	
  $9	
  billion	
  
$500	
  million	
  to	
  $999	
  million	
  
$100	
  million	
  to	
  $499	
  million2	
  
Less	
  than	
  $100	
  million	
  
Gross	
  Domes>c	
  Products	
  (GDP)	
  
Source:	
  SBA:	
  Small	
  Business	
  Lending	
  in	
  U.S.,	
  2012	
  
9	
  Strictly Confidential
Why is this a big deal?
64%
of new private
sector jobs
99%
of U.S. firms
Small Businesses in the U.S. play a very important role in
overall economic activity
American jobs
77
MILLION
10	
  Strictly Confidential
Trend #2	
  
$2.7 billion raised in 2012
1 million campaigns run in 2012
Forecasted 89% YoY Growth
Crowdfunding has seen tremendous growth and is forecasted
to continue its upward momentum.
$0.0	
  	
  
$1.0	
  	
  
$2.0	
  	
  
$3.0	
  	
  
$4.0	
  	
  
$5.0	
  	
  
$6.0	
  	
  
2009	
   2010	
   2011	
   2012	
   2013F	
  
Funding	
  Volume	
  (in	
  billions)	
  
Source:	
  Massolu>on	
  2012	
  Crowdfunding	
  Industry	
  Report	
  
11	
  Strictly Confidential
But small businesses* are not benefitting
*	
  Defined	
  as	
  having	
  less	
  than	
  $5	
  million	
  in	
  revenues	
  /	
  Non-­‐financial	
  based	
  Campaigns	
  	
  
Source:	
  Pepperdine	
  Private	
  Capital	
  Access	
  Index,	
  4Q2013	
  
Only 17% reported
crowdfunding
efforts
12	
  Strictly Confidential
Why is this the case?
Global, Not Local Lack of Focus No Customization
	
  
§  Crowdfunders	
  for	
  local	
  businesses	
  
are	
  going	
  to	
  come	
  from	
  an	
  area	
  in	
  
close	
  proximity	
  to	
  the	
  business	
  
because	
  those	
  are	
  the	
  people	
  who	
  
are	
  familiar	
  with	
  the	
  business	
  
	
  
	
  
§  Small	
  businesses	
  don’t	
  fit	
  well	
  
into	
  many	
  current	
  plaWorms.	
  
They	
  oYen	
  find	
  themselves	
  on	
  
plaWorms	
  where	
  they’re	
  
compe>ng	
  against	
  tech	
  gadgets,	
  
crea>ve	
  projects,	
  or	
  nonprofits	
  
	
  
§  Local	
  small	
  businesses	
  have	
  different	
  
fundraising	
  needs	
  than	
  tech	
  startups	
  
and	
  crea>ve	
  projects.	
  They	
  need	
  a	
  
plaWorm	
  that	
  rallies	
  a	
  community	
  
behind	
  businesses	
  in	
  their	
  area	
  
	
  
Existing crowdfunding platforms are not ideal for small
business because…
13	
  Strictly Confidential
Here are a few examples
Focuses	
  on	
  individual	
  
crea-ve	
  projects	
  that	
  
largely	
  leave	
  out	
  local	
  
small	
  business	
  
No	
  focus	
  and	
  not	
  
localized,	
  leading	
  to	
  
subop-mal	
  situa-on	
  
for	
  small	
  businesses	
  
Equity	
  crowdfunding	
  is	
  
not	
  a	
  viable	
  op-on	
  for	
  
a	
  majority	
  of	
  small	
  
businesses	
  
14	
  Strictly Confidential
The Solution	
  
Crowdfunding Platform Built for Small Business
15	
  Strictly Confidential
Why is this the solution?	
  
Raise capital for projects that will take business
to the next level
No requirement for principal or interest
payments, or giving up equity
Crowdfunding platform focused on
traditional small business
Bring customers closer to the business,
which is an important data point for lenders
and brokers
Localized platform increases brand awareness
within community & targets those who care most
Value
Proposition
for Business
Owners
1
2
3
4
5
16	
  Strictly Confidential
How is our platform structured?
Homepage
Source of information for
business owners, including
explainer videos,
testimonials, and a blog.
Localized Portals
We have created individual
city portals with the goal
that they look and feel
“local.”
Campaign Pages
This page tells each
business’s story and their
reason for raising funds.
Future features that create more of a community
§  Educational content for small business owners
§  Comments section so that business owners can engage with consumers
§  Map feature that allows the community to find small businesses in their area
§  Relevant articles, news, and events happening in the local area
17	
  Strictly Confidential
Our crowdfunding campaign process
Project Realization Campaign Creation Campaign Review Launch Campaign Raise Funds
§ Recognize need for
addition to product
or service offering
§ Structure creative
rewards for
crowdfunders’
contributions to
campaign
§ Equity Endeavor
conducts review of
application
§ Campaign
featured on
relevant city
portal
§ Crowdfunders
contribute to the
campaign and
receive rewards
Search Choose Pledge Receive Enjoy
§ Search for
campaigns within
city of choice
§ Choose the
business you wish
to pledge to and the
reward of choice
§ Pledge the dollar
amount associated
with the reward
choice
§ Receive the
reward when the
campaign
succeeds. No
funds debited if
campaign fails
§ Enjoy reward and
reap the benefits of
the improvement or
expansion made to
the local business
For	
  Business	
  Owners	
  
For	
  Community	
  Builders	
  
18	
  Strictly Confidential
Pilot Launch	
  
Since launching our pilot in September, we
have worked with 24 businesses, 10 of which
have already finished their campaigns
19	
  Strictly Confidential
We launched a pilot in Austin and New Orleans and
had great results
Failed	
  
SUCCESS	
  
Close	
  to	
  Launch	
  
SUCCESS	
  
SUCCESS	
  SUCCESS	
  SUCCESS	
  SUCCESS	
  SUCCESS	
  
Failed	
  Failed	
  
Close	
  to	
  Launch	
  Close	
  to	
  Launch	
  Launching	
  Soon	
  Launching	
  Soon	
  
Launching	
  Soon	
  
Close	
  to	
  Launch	
  
On	
  Hold	
  
Close	
  to	
  Launch	
  
Close	
  to	
  Launch	
  Close	
  to	
  Launch	
   Close	
  to	
  Launch	
   Close	
  to	
  Launch	
  
Close	
  to	
  Launch	
  
20	
  Strictly Confidential
Texas	
  
51%	
  LA	
  
35%	
  
Other
13%	
  
Statistics for the 10 small businesses that have
finished their campaigns
$80,457 raised from
483 Crowdfunders
Crowdfunder
Breakdown
70%
Success Rate
21	
  Strictly Confidential
Case Study: RedBird Pilates & Fitness
$10,000 Campaign Goal
Small
Business
Owner
Lee Vallely,
owner of RedBird Pilates & Fitness
Over 20 years experience in the
health and wellness industry
22	
  Strictly Confidential
Case Study: RedBird Pilates & Fitness
$10,000 Campaign Goal
Campaign
Goal
Raise $10,000 in order to:
Move to a larger studio
Purchase new equipment
Launch of a RedBird teacher training program
Launch of RedBird TRX training program
Fund scholarships for women in East Austin
23	
  Strictly Confidential
Case Study: RedBird Pilates & Fitness
$10,000 Campaign Goal
Campaign
Results
$10,725 raised in 30 days
86 campaign contributors
90 rewards purchased
94% of funds came from local contributors
Brokers & leasing agents became more willing to work with RedBird
24	
  Strictly Confidential
=
Market Size
Relevant
Small
Businesses
Average
Crowdfunding
Raise
5.3MM $10,000 7%
Fees Retained
by Equity
Endeavor
$3.7B
Per Year
Market
Criteria:	
  Only	
  includes	
  firms	
  with	
  0-­‐9	
  employees	
  in	
  our	
  designated	
  most	
  appropriate	
  NACIS	
  industries	
  (Retail	
  Trade,	
  
Educa>onal	
  Services,	
  Arts	
  Entertainment	
  and	
  Recrea>on,	
  Accommoda>on	
  and	
  Food	
  Services,	
  and	
  Other	
  Services	
  
except	
  Public	
  Administra>on)	
  
	
  
Source:	
  United	
  States	
  Census	
  Bureau,	
  2011	
  Survey	
  
25	
  Strictly Confidential
This is our timeline
Solidify CVP and establish MVP
§  Define MVP
§  Begin pilot study in Austin and NOLA
§  Enroll 4 SMBs per city
§  Begin awareness campaign
Grow presence and adapt offering
§  Complete pilot
§  Adapt service offering to incorporate pilot
findings/feedback
§  Enroll ~10 additional businesses per city
§  Expand brand awareness through partnerships,
social media, digital marketing, organic efforts
Expansion
§  Expand presence within Austin and NOLA
§  Enhance user experience and add features to
the platform (i.e., talent exchange, user profiles)
§  Firm up customer acquisition strategy
§  Expand to additional cities
June - Aug 2013 Sept – Mar 2014 Apr 2014 +
26	
  Strictly Confidential
Current Sales Funnel: Monthly leads have grown 3x
since January
acquisition
channels
8
Social Media Advertising
E-mails Outreach
Partnerships
Business Owner Referrals
Press
Content Downloads
Street Teams
Free Consultations
Acquisition Channel 
16	
  	
  
	
  Customers	
  
66	
  	
  
Ac>ve	
  Leads	
  
134	
  	
  
Inbound	
  Inquiries	
  
27	
  Strictly Confidential
Establishing a presence	
  
Buy Local / Support Local organizations
Local government & chambers of commerce
Local media
Small Business Vendors (Consultants,
Accountants, Lenders, PR, etc)
The community of business owners
Forming
relationships
with
1
2
3
4
5
28	
  Strictly Confidential
Our fee structure
All business owners pay a front end fee that is 1% of target raise
In addition to the 1% fee, business owners that raise target amount
pay us 6% of the actual raise amount
In addition to the above two fees, business owners that hit target
pay our 3rd party payment processor an extra ~3.25%
Business owners that do not hit target amount do not pay any
additional fees outside of the first fee (1% of target)
29	
  Strictly Confidential
Economics of a project
Revenue
Per Project
Acquisition
Cost
400 180* 220
Gross Profit
55%
Gross Margin %
We assumed a 50% success rate for this calculation
§  Front-end fee: $10,000 average raise x 1% fee = $100
§  Additional fee (if successful): $10,000 average raise x 6% fee x 50%
Success Rate = $300
§  Total Average Revenue Per Project = $400
§  Customer Acquisition Cost of $180 is an estimate based off the small
amount of data we have
We are not currently charging a fee, though we have discussed the fee
structure with all customers, and have undoubtedly seen a willingness to pay
30	
  Strictly Confidential
Equity Endeavor Financial Projections
Revenue
Front End Fees
Commission Fees
Total Revenue
Operating Expenses
Personnel
Marketing
Rent
Administrative
Total Operating Expenses
Income Before Taxes
Net Income Margin
July-Dec 2014 2015 2016 2017 2018
30,000$$$$$$$$$$$$$$$$$$$ 240,000$$$$$$$$$$$$$$$$$ 960,000$$$$$$$$$$$ 2,400,000$$$$$$$$$ 4,800,000$$$$$$$$$
90,000$$$$$$$$$$$$$$$$$$$ 720,000$$$$$$$$$$$$$$$$$ 2,880,000$$$$$$$$ 7,200,000$$$$$$$$$ 14,400,000$$$$$$$$
120,000 960,000 3,840,000 9,600,000 19,200,000
147,500$$$$$$$$$$$$$$$$$ 630,000$$$$$$$$$$$$$$$$$ 1,585,000$$$$$$$$ 2,580,000$$$$$$$$$ 4,050,000$$$$$$$$$
73,500$$$$$$$$$$$$$$$$$$$ 427,800$$$$$$$$$$$$$$$$$ 1,477,680$$$$$$$$ 3,305,280$$$$$$$$$ 5,980,704$$$$$$$$$
12,000$$$$$$$$$$$$$$$$$$$ 24,000$$$$$$$$$$$$$$$$$$$ 52,364$$$$$$$$$$$$ 93,818$$$$$$$$$$$$$$ 154,909$$$$$$$$$$$$
7,375$$$$$$$$$$$$$$$$$$$$$ 31,500$$$$$$$$$$$$$$$$$$$ 79,250$$$$$$$$$$$$ 129,000$$$$$$$$$$$$ 202,500$$$$$$$$$$$$
240,375$$$$$$$$$$$$$$$$$ 1,113,300$$$$$$$$$$$$$$ 3,194,294$$$$$$$$ 6,108,098$$$$$$$$$ 10,388,113$$$$$$$$
-$$$$$$$$$$$$$$$$$$$$$$$$
(120,375) (153,300) 645,706 3,491,902 8,811,887
17% 36% 46%
Number of Local Portals
Number of Crowdfunding Campaigns
Percentage of Market
5 10 20 40 80
300$$$$$$$$$$$$$$$$$$$$$$$$ 2,400$$$$$$$$$$$$$$$$$$$$$ 9,600$$$$$$$$$$$$$$ 24,000$$$$$$$$$$$$$$ 48,000$$$$$$$$$$$$$$
0.01% 0.05% 0.18% 0.45% 0.91%
31	
  Strictly Confidential
Amount of Capital Seeking to Raise: $500,000
Use of Funds
Hiring Critical Personnel: Front-end Developer and Campaign
Creation Specialist. Salesperson in 2015
Contracts: Website Designer, Freelance Work
Marketing: Social Media/Digital/Print Advertising, Content Creation,
Seminars for Businesses, Referral Payments, and Street Teams
Operations: Rent, Travel, Accountant and Legal Fees

Equity Endeavor - Pitch Deck

  • 1.
    Equity Endeavor, Inc. InvestorPresentation www.equityendeavor.com
  • 2.
    2  Strictly Confidential Meetthe Team Broderick McClinton Eric Sonnier Matt Christen §  Born and raised in Baton Rouge, LA §  Finance/Political Science Degree from Tulane University §  Associate, BlackRock §  Economic Development, Greater New Orleans Inc. §  Harvard Business School, 2014 §  Born and raised in Houston, TX §  Marketing Degree from The University of Texas at Austin §  Strategy & Operations Consultant, Deloitte §  Account Executive, MdotM, Inc. §  Harvard Business School, 2014 §  Born and raised in Houston, TX §  Computer Science Degree from The University of Texas at Austin §  Spent past 8 years programming various trading strategies into automated platforms
  • 3.
    3  Strictly Confidential BeforeWe Begin   We focus on helping traditional small businesses that operate within a limited geographic footprint. We do not support startups or individual projects. We are a rewards-based platform, which means that our business owners exchange non-financial (e.g., products, and services) items for contributions. Small Business Rewards-Based
  • 4.
    4  Strictly Confidential TwoMajor Trends   Two major trends have led to the creation of the Equity Endeavor platform.
  • 5.
    5  Strictly Confidential Trend#1   Upgrade or replace equipment Renovate or expand storefronts Enhance quality of service Create a better consumer experience Small business owners are having a difficult time finding capital to:
  • 6.
    6  Strictly Confidential Infact, data shows a large need for capital to grow Source:  Pepperdine  Private  Capital  Access  Index,  4Q2013   25%   45%   65%   2Q  2013   3Q  2013   4Q  2013   Es-mated  %  of  Business  Owners  (<$5MM  in   revenue)  needing  loans  for  growth  or  expansion  
  • 7.
    7  Strictly Confidential Butcapital is hard to find for small businesses* 68.8% Said equity was difficult to raise 68.7% Said debt was difficult to raise 34.0% Acquired a business loan *  Defined  as  having  less  than  $5  million  in  revenues     Source:  Pepperdine  Private  Capital  Access  Index,  4Q2013  
  • 8.
    8  Strictly Confidential Andthis lack of capital isn’t a recent event Small business financing in the U.S. has experienced a steady decline due to a number of factors. Small businesses: Don’t have the resources of large corporations Are more risky Are perceived as unprofitable to banks Have lower potential equity returns compared to technology startups 0   2   4   6   8   10   12   14   16   18   0   50   100   150   200   250   300   2005   2006   2007   2008   2009   2010   2011   2012   2012(4)   GDP,  Trillions   Small  Business  Loans,  Billions   $50  billion  or  more   $10  billion  to  $49  billion   $1  billion  to  $9  billion   $500  million  to  $999  million   $100  million  to  $499  million2   Less  than  $100  million   Gross  Domes>c  Products  (GDP)   Source:  SBA:  Small  Business  Lending  in  U.S.,  2012  
  • 9.
    9  Strictly Confidential Whyis this a big deal? 64% of new private sector jobs 99% of U.S. firms Small Businesses in the U.S. play a very important role in overall economic activity American jobs 77 MILLION
  • 10.
    10  Strictly Confidential Trend#2   $2.7 billion raised in 2012 1 million campaigns run in 2012 Forecasted 89% YoY Growth Crowdfunding has seen tremendous growth and is forecasted to continue its upward momentum. $0.0     $1.0     $2.0     $3.0     $4.0     $5.0     $6.0     2009   2010   2011   2012   2013F   Funding  Volume  (in  billions)   Source:  Massolu>on  2012  Crowdfunding  Industry  Report  
  • 11.
    11  Strictly Confidential Butsmall businesses* are not benefitting *  Defined  as  having  less  than  $5  million  in  revenues  /  Non-­‐financial  based  Campaigns     Source:  Pepperdine  Private  Capital  Access  Index,  4Q2013   Only 17% reported crowdfunding efforts
  • 12.
    12  Strictly Confidential Whyis this the case? Global, Not Local Lack of Focus No Customization   §  Crowdfunders  for  local  businesses   are  going  to  come  from  an  area  in   close  proximity  to  the  business   because  those  are  the  people  who   are  familiar  with  the  business       §  Small  businesses  don’t  fit  well   into  many  current  plaWorms.   They  oYen  find  themselves  on   plaWorms  where  they’re   compe>ng  against  tech  gadgets,   crea>ve  projects,  or  nonprofits     §  Local  small  businesses  have  different   fundraising  needs  than  tech  startups   and  crea>ve  projects.  They  need  a   plaWorm  that  rallies  a  community   behind  businesses  in  their  area     Existing crowdfunding platforms are not ideal for small business because…
  • 13.
    13  Strictly Confidential Hereare a few examples Focuses  on  individual   crea-ve  projects  that   largely  leave  out  local   small  business   No  focus  and  not   localized,  leading  to   subop-mal  situa-on   for  small  businesses   Equity  crowdfunding  is   not  a  viable  op-on  for   a  majority  of  small   businesses  
  • 14.
    14  Strictly Confidential TheSolution   Crowdfunding Platform Built for Small Business
  • 15.
    15  Strictly Confidential Whyis this the solution?   Raise capital for projects that will take business to the next level No requirement for principal or interest payments, or giving up equity Crowdfunding platform focused on traditional small business Bring customers closer to the business, which is an important data point for lenders and brokers Localized platform increases brand awareness within community & targets those who care most Value Proposition for Business Owners 1 2 3 4 5
  • 16.
    16  Strictly Confidential Howis our platform structured? Homepage Source of information for business owners, including explainer videos, testimonials, and a blog. Localized Portals We have created individual city portals with the goal that they look and feel “local.” Campaign Pages This page tells each business’s story and their reason for raising funds. Future features that create more of a community §  Educational content for small business owners §  Comments section so that business owners can engage with consumers §  Map feature that allows the community to find small businesses in their area §  Relevant articles, news, and events happening in the local area
  • 17.
    17  Strictly Confidential Ourcrowdfunding campaign process Project Realization Campaign Creation Campaign Review Launch Campaign Raise Funds § Recognize need for addition to product or service offering § Structure creative rewards for crowdfunders’ contributions to campaign § Equity Endeavor conducts review of application § Campaign featured on relevant city portal § Crowdfunders contribute to the campaign and receive rewards Search Choose Pledge Receive Enjoy § Search for campaigns within city of choice § Choose the business you wish to pledge to and the reward of choice § Pledge the dollar amount associated with the reward choice § Receive the reward when the campaign succeeds. No funds debited if campaign fails § Enjoy reward and reap the benefits of the improvement or expansion made to the local business For  Business  Owners   For  Community  Builders  
  • 18.
    18  Strictly Confidential PilotLaunch   Since launching our pilot in September, we have worked with 24 businesses, 10 of which have already finished their campaigns
  • 19.
    19  Strictly Confidential Welaunched a pilot in Austin and New Orleans and had great results Failed   SUCCESS   Close  to  Launch   SUCCESS   SUCCESS  SUCCESS  SUCCESS  SUCCESS  SUCCESS   Failed  Failed   Close  to  Launch  Close  to  Launch  Launching  Soon  Launching  Soon   Launching  Soon   Close  to  Launch   On  Hold   Close  to  Launch   Close  to  Launch  Close  to  Launch   Close  to  Launch   Close  to  Launch   Close  to  Launch  
  • 20.
    20  Strictly Confidential Texas   51%  LA   35%   Other 13%   Statistics for the 10 small businesses that have finished their campaigns $80,457 raised from 483 Crowdfunders Crowdfunder Breakdown 70% Success Rate
  • 21.
    21  Strictly Confidential CaseStudy: RedBird Pilates & Fitness $10,000 Campaign Goal Small Business Owner Lee Vallely, owner of RedBird Pilates & Fitness Over 20 years experience in the health and wellness industry
  • 22.
    22  Strictly Confidential CaseStudy: RedBird Pilates & Fitness $10,000 Campaign Goal Campaign Goal Raise $10,000 in order to: Move to a larger studio Purchase new equipment Launch of a RedBird teacher training program Launch of RedBird TRX training program Fund scholarships for women in East Austin
  • 23.
    23  Strictly Confidential CaseStudy: RedBird Pilates & Fitness $10,000 Campaign Goal Campaign Results $10,725 raised in 30 days 86 campaign contributors 90 rewards purchased 94% of funds came from local contributors Brokers & leasing agents became more willing to work with RedBird
  • 24.
    24  Strictly Confidential = MarketSize Relevant Small Businesses Average Crowdfunding Raise 5.3MM $10,000 7% Fees Retained by Equity Endeavor $3.7B Per Year Market Criteria:  Only  includes  firms  with  0-­‐9  employees  in  our  designated  most  appropriate  NACIS  industries  (Retail  Trade,   Educa>onal  Services,  Arts  Entertainment  and  Recrea>on,  Accommoda>on  and  Food  Services,  and  Other  Services   except  Public  Administra>on)     Source:  United  States  Census  Bureau,  2011  Survey  
  • 25.
    25  Strictly Confidential Thisis our timeline Solidify CVP and establish MVP §  Define MVP §  Begin pilot study in Austin and NOLA §  Enroll 4 SMBs per city §  Begin awareness campaign Grow presence and adapt offering §  Complete pilot §  Adapt service offering to incorporate pilot findings/feedback §  Enroll ~10 additional businesses per city §  Expand brand awareness through partnerships, social media, digital marketing, organic efforts Expansion §  Expand presence within Austin and NOLA §  Enhance user experience and add features to the platform (i.e., talent exchange, user profiles) §  Firm up customer acquisition strategy §  Expand to additional cities June - Aug 2013 Sept – Mar 2014 Apr 2014 +
  • 26.
    26  Strictly Confidential CurrentSales Funnel: Monthly leads have grown 3x since January acquisition channels 8 Social Media Advertising E-mails Outreach Partnerships Business Owner Referrals Press Content Downloads Street Teams Free Consultations Acquisition Channel  16      Customers   66     Ac>ve  Leads   134     Inbound  Inquiries  
  • 27.
    27  Strictly Confidential Establishinga presence   Buy Local / Support Local organizations Local government & chambers of commerce Local media Small Business Vendors (Consultants, Accountants, Lenders, PR, etc) The community of business owners Forming relationships with 1 2 3 4 5
  • 28.
    28  Strictly Confidential Ourfee structure All business owners pay a front end fee that is 1% of target raise In addition to the 1% fee, business owners that raise target amount pay us 6% of the actual raise amount In addition to the above two fees, business owners that hit target pay our 3rd party payment processor an extra ~3.25% Business owners that do not hit target amount do not pay any additional fees outside of the first fee (1% of target)
  • 29.
    29  Strictly Confidential Economicsof a project Revenue Per Project Acquisition Cost 400 180* 220 Gross Profit 55% Gross Margin % We assumed a 50% success rate for this calculation §  Front-end fee: $10,000 average raise x 1% fee = $100 §  Additional fee (if successful): $10,000 average raise x 6% fee x 50% Success Rate = $300 §  Total Average Revenue Per Project = $400 §  Customer Acquisition Cost of $180 is an estimate based off the small amount of data we have We are not currently charging a fee, though we have discussed the fee structure with all customers, and have undoubtedly seen a willingness to pay
  • 30.
    30  Strictly Confidential EquityEndeavor Financial Projections Revenue Front End Fees Commission Fees Total Revenue Operating Expenses Personnel Marketing Rent Administrative Total Operating Expenses Income Before Taxes Net Income Margin July-Dec 2014 2015 2016 2017 2018 30,000$$$$$$$$$$$$$$$$$$$ 240,000$$$$$$$$$$$$$$$$$ 960,000$$$$$$$$$$$ 2,400,000$$$$$$$$$ 4,800,000$$$$$$$$$ 90,000$$$$$$$$$$$$$$$$$$$ 720,000$$$$$$$$$$$$$$$$$ 2,880,000$$$$$$$$ 7,200,000$$$$$$$$$ 14,400,000$$$$$$$$ 120,000 960,000 3,840,000 9,600,000 19,200,000 147,500$$$$$$$$$$$$$$$$$ 630,000$$$$$$$$$$$$$$$$$ 1,585,000$$$$$$$$ 2,580,000$$$$$$$$$ 4,050,000$$$$$$$$$ 73,500$$$$$$$$$$$$$$$$$$$ 427,800$$$$$$$$$$$$$$$$$ 1,477,680$$$$$$$$ 3,305,280$$$$$$$$$ 5,980,704$$$$$$$$$ 12,000$$$$$$$$$$$$$$$$$$$ 24,000$$$$$$$$$$$$$$$$$$$ 52,364$$$$$$$$$$$$ 93,818$$$$$$$$$$$$$$ 154,909$$$$$$$$$$$$ 7,375$$$$$$$$$$$$$$$$$$$$$ 31,500$$$$$$$$$$$$$$$$$$$ 79,250$$$$$$$$$$$$ 129,000$$$$$$$$$$$$ 202,500$$$$$$$$$$$$ 240,375$$$$$$$$$$$$$$$$$ 1,113,300$$$$$$$$$$$$$$ 3,194,294$$$$$$$$ 6,108,098$$$$$$$$$ 10,388,113$$$$$$$$ -$$$$$$$$$$$$$$$$$$$$$$$$ (120,375) (153,300) 645,706 3,491,902 8,811,887 17% 36% 46% Number of Local Portals Number of Crowdfunding Campaigns Percentage of Market 5 10 20 40 80 300$$$$$$$$$$$$$$$$$$$$$$$$ 2,400$$$$$$$$$$$$$$$$$$$$$ 9,600$$$$$$$$$$$$$$ 24,000$$$$$$$$$$$$$$ 48,000$$$$$$$$$$$$$$ 0.01% 0.05% 0.18% 0.45% 0.91%
  • 31.
    31  Strictly Confidential Amountof Capital Seeking to Raise: $500,000 Use of Funds Hiring Critical Personnel: Front-end Developer and Campaign Creation Specialist. Salesperson in 2015 Contracts: Website Designer, Freelance Work Marketing: Social Media/Digital/Print Advertising, Content Creation, Seminars for Businesses, Referral Payments, and Street Teams Operations: Rent, Travel, Accountant and Legal Fees