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Seed Capital Proposal
Phase 1 – May, 2013
28% of Brazilian Users uses Lan-Houses to get connected
Cybercafes & Lan-Houses
The “Lan-House” plays a very
important role in Brazilian
market.
They´re used by low income
users, called “new-to-the-net”,
aspiring social inclusion,
becoming digital & willing to
acquire products and services.
This is a very interesting target
for several advertisers.
We expect to monetize this
during next 2-3 years at least.
* TIC CGI.br 2011 Research
Home Lan-House
In the last year our free management software reached 5.6% of
the market, growing 182% YoY
* Internal numbers + total market estimates from TIC CGI.br 2011 Research
182%
Network base
growth - 2012
Dispite the canibalization in the broadband access, Lan-Media already covers
5.6% of all brazilian Lan-Houses*.
Our Value Proposition & Strategy
In the Online Advertising Industry
DESKTOP & BROWSING ADVERTISING
Distribute MyCyber
Management Software for Lan-Houses
The management software incorporates
advertising technology into every station.
Each reach 500 users and generates
25.000 impressions per month.
DESKTOP & BROWSING ADVERTISING
Monetize Target Audience
The software captures anonymous info
about websites & domains browsed,
including user behavior in the station.
Profile
A B C D E
Behavior
Lan-House Profile,
GEO-IP, Sex, Age
Application Program in use
Navigation Domain, Website, Channel,
content type
DESKTOP & BROWSING
ADVERTISING
1
REDIRECT
The first browsing landing page
(opening of each session)
Our core value:
Emerging users, low income, new-2-net, good targeting & coverage with
great advertising flexibility
2
DISPLAY
SKY Banner
impressions served
every 45-90 seconds
(during all session)
Business Plan
Traction & Milestones
Traction Plan & Milestones
1. Establish Company (ID, Legal, Management Board)
2. Setup Sales Systems (CRM & Forecasting)
3. Team Hiring, Legal Registration & Train
4. Market Mapping & Go-to-Market Planning
5. Sales Traction & Generate Pipeline (demand)
6. First Sale & First Campaign Setup
7. Recurring Sales in Key Accounts
Financial Plan – Costs & Risks
Current Pipeline Evolution
Q2 Pipeline evolution
8 weeks of sales activity:
-BRL 421k total pipeline
-BRL 125k weighted pipeline
About 60% of market
covered
Great feedbacks from the
market
Working Team
Board Solutions Advertising Legal & Finance
Finance AnalystAdOps MgrSales Mgr
Account Executive
Head of
Advertising
Head of
Legal & Finance
Head of
Solutions
Support Analyst
Valuation Proposal
Become a seed investor in our business
Current Shareholders
5% Legal
Investor
28,5%
Advertising
Investor
66,5%
Product
Engineering
Investor
Current Shareholders
Contracts & Legal specialist
Provides legal consultancy
Experienced in SAS, M&A
and general contracts
Advertising Sales Operations
Professional
Provides advertising & sales
consultancy
Experienced in Online Advertising
Industry & Biz Development
Lan House Management
Software Developer
Provides product development
and support
Experienced in Program Develpment
& Software Engineering
6 years
Professional
experience
14 years
Professional
experience
10 years
Professional
experience
Valuation & Seed Investor Proposition
5% Legal
Investor
28,5%
Advertising
Investor
66,5%
Product
Engineering
Investor
Current Shareholders
Total Investment:
BRL 100.000
Proposed Investment
5% Legal
Investor
22,5%
Advertising
Investor
52,5%
Product
Engineering
Investor
20%
Seed Capital
Funding
New Social Capital:
BRL 125.000
Business Plan (money usage):
BRL 25.000 - working capital
(3 months investments)
NPV Valuation (2 years earnings):
BRL 700.000 - Considering:
- 50% goals attained
- BRL 800k avg incomes/yr
Capital Leverage:
460% - Expected – 700k earnings
12% - Worst case – 140k earnings
(break-even line)
Risk:
Money loss
(no earnings in next 3 months)
Investor Upsides
- Possibility to use unsold media & unsold redirects to launch own products
- Possibility of business development upon lan-house distribution channel*
* considering no conflict of interests or canibalization with LanMedia core business
- Possibility to trigger investment against goals
The Investors we’re looking for
- Someone that could generate upside for the business
- Synergic Business/Operations with our Market
- Proven experience in Online Advertising Media
Thank you!
lanmedia@lanmedia.com.br
11 3912-3772
LANMEDIA INTERNET LTDA.
CNPJ: 17.829.137/0001-56
AV. BRIGADEIRO FARIA LIMA, 1.461 – 6º ANDAR
CEP 01452-002 – SÃO PAULO - SP

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LanMedia - Seed Capital phase 1 - public

  • 1.
  • 2. Seed Capital Proposal Phase 1 – May, 2013
  • 3. 28% of Brazilian Users uses Lan-Houses to get connected Cybercafes & Lan-Houses The “Lan-House” plays a very important role in Brazilian market. They´re used by low income users, called “new-to-the-net”, aspiring social inclusion, becoming digital & willing to acquire products and services. This is a very interesting target for several advertisers. We expect to monetize this during next 2-3 years at least. * TIC CGI.br 2011 Research Home Lan-House
  • 4. In the last year our free management software reached 5.6% of the market, growing 182% YoY * Internal numbers + total market estimates from TIC CGI.br 2011 Research 182% Network base growth - 2012 Dispite the canibalization in the broadband access, Lan-Media already covers 5.6% of all brazilian Lan-Houses*.
  • 5. Our Value Proposition & Strategy In the Online Advertising Industry
  • 6. DESKTOP & BROWSING ADVERTISING Distribute MyCyber Management Software for Lan-Houses The management software incorporates advertising technology into every station. Each reach 500 users and generates 25.000 impressions per month.
  • 7. DESKTOP & BROWSING ADVERTISING Monetize Target Audience The software captures anonymous info about websites & domains browsed, including user behavior in the station. Profile A B C D E Behavior Lan-House Profile, GEO-IP, Sex, Age Application Program in use Navigation Domain, Website, Channel, content type
  • 8. DESKTOP & BROWSING ADVERTISING 1 REDIRECT The first browsing landing page (opening of each session) Our core value: Emerging users, low income, new-2-net, good targeting & coverage with great advertising flexibility 2 DISPLAY SKY Banner impressions served every 45-90 seconds (during all session)
  • 10. Traction Plan & Milestones 1. Establish Company (ID, Legal, Management Board) 2. Setup Sales Systems (CRM & Forecasting) 3. Team Hiring, Legal Registration & Train 4. Market Mapping & Go-to-Market Planning 5. Sales Traction & Generate Pipeline (demand) 6. First Sale & First Campaign Setup 7. Recurring Sales in Key Accounts
  • 11. Financial Plan – Costs & Risks
  • 12. Current Pipeline Evolution Q2 Pipeline evolution 8 weeks of sales activity: -BRL 421k total pipeline -BRL 125k weighted pipeline About 60% of market covered Great feedbacks from the market
  • 13. Working Team Board Solutions Advertising Legal & Finance Finance AnalystAdOps MgrSales Mgr Account Executive Head of Advertising Head of Legal & Finance Head of Solutions Support Analyst
  • 14. Valuation Proposal Become a seed investor in our business
  • 15. Current Shareholders 5% Legal Investor 28,5% Advertising Investor 66,5% Product Engineering Investor Current Shareholders Contracts & Legal specialist Provides legal consultancy Experienced in SAS, M&A and general contracts Advertising Sales Operations Professional Provides advertising & sales consultancy Experienced in Online Advertising Industry & Biz Development Lan House Management Software Developer Provides product development and support Experienced in Program Develpment & Software Engineering 6 years Professional experience 14 years Professional experience 10 years Professional experience
  • 16. Valuation & Seed Investor Proposition 5% Legal Investor 28,5% Advertising Investor 66,5% Product Engineering Investor Current Shareholders Total Investment: BRL 100.000 Proposed Investment 5% Legal Investor 22,5% Advertising Investor 52,5% Product Engineering Investor 20% Seed Capital Funding New Social Capital: BRL 125.000 Business Plan (money usage): BRL 25.000 - working capital (3 months investments) NPV Valuation (2 years earnings): BRL 700.000 - Considering: - 50% goals attained - BRL 800k avg incomes/yr Capital Leverage: 460% - Expected – 700k earnings 12% - Worst case – 140k earnings (break-even line) Risk: Money loss (no earnings in next 3 months)
  • 17. Investor Upsides - Possibility to use unsold media & unsold redirects to launch own products - Possibility of business development upon lan-house distribution channel* * considering no conflict of interests or canibalization with LanMedia core business - Possibility to trigger investment against goals The Investors we’re looking for - Someone that could generate upside for the business - Synergic Business/Operations with our Market - Proven experience in Online Advertising Media
  • 18. Thank you! lanmedia@lanmedia.com.br 11 3912-3772 LANMEDIA INTERNET LTDA. CNPJ: 17.829.137/0001-56 AV. BRIGADEIRO FARIA LIMA, 1.461 – 6º ANDAR CEP 01452-002 – SÃO PAULO - SP