Presentation on the "Urban Agenda" (App for Smartphone) and Execution Analysis Project By "Stark" Team members: http://venture-lab.org/venture/teams/15603 Alfonso Tienda Paula Salvador Pedro Olivares Sánchez Rubén Salvador Victor Benkovsky

1. URBAN AGENDA
ENJOY YOUR CITY

2. STARK TEAM
Alfonso Tienda Braulio
Computer Science
Engineer
Rubén Salvador Edo
Telecommunications
& Electronic Engineer
Victor Benkovsky
Pedro Olivares Sánchez
Architect
Computer Science Urban Planner
Engineer
Paula Salvador Edo
Architect
Urban Planner

3. THE CONCEPT
Our concept is based on the idea that, on the
one hand any business needs advertising, be
seen and attract customers. On the other hand,
customers need quick information about events
occurring in the city: the current era requires
platforms that allow users to make quick
decisions at every moment and in any place.
If all this is focused on the entertainment industry,
we get "Urban Agenda App", the mobile
application that allows you to enjoy the city to
the fullest. Taking performance to the
environment, is to take performance to life.

4. INTRODUCTION - PROBLEM /SOLUTION
• INTRODUCTION PROBLEM
PROBLEM/SOLUTION
PRODUCT A lack of a smart and useful
INITIAL BUSINESS MODEL platform of information about the
events in the city
• MARKETING
• SALES
• PARTNERSHIPS +
• DISTRIBUTION
• COSTS Business needs advertising
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING
SOLUTION
URBAN AGENDA APP

5. INTRODUCTION - PRODUCT
• INTRODUCTION
PROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING

6. INTRODUCTION - PRODUCT
• INTRODUCTION
PROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING

7. INTRODUCTION - PRODUCT
• INTRODUCTION
PROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING

8. INTRODUCTION - PRODUCT
• INTRODUCTION
PROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING

9. INTRODUCTION - PRODUCT
• INTRODUCTION
PROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING

10. INTRODUCTION - PRODUCT
• INTRODUCTION What's special about Urban Agenda?
PROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL We focused on functionality demanded by our
potential customers and not available in other
• MARKETING solutions
• SALES
• PARTNERSHIPS We have designed a modern and comfortable
• DISTRIBUTION interface
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING

11. INTRODUCTION – INITIAL CANVAS MODEL
• INTRODUCTION
PROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING

12. MARKETING
• INTRODUCTION MARKETING EXPERIMENTS
PROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
According to our potential customer survey, 86%
of them find their cultural information speaking
• MARKETING with friends and using social networks, so we
• SALES create a Facebook page and a Twitter
• PARTNERSHIPS account.
• DISTRIBUTION
• COSTS They obtained dozens of followers in less than 12
• REVENUE MODEL hours (7 "Like it" and 83 followers).
• RISKS
• FUNDING We consider them potential customers, with no
• COST & 5 YEAR acquisition cost.
FORECASTING

13. MARKETING
• INTRODUCTION MARKETING EXPERIMENTS
PROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL From our partner survey, we know that most of
them (35 %) are pubs with pop/rock concerts.
• MARKETING So in our web we advertised two musical events
• SALES in pubs (see http://stark.coolpage.biz/index.html)
• PARTNERSHIPS
• DISTRIBUTION After the concert, we asked the audience if they
• COSTS knew about the concert from our web page.
• REVENUE MODEL
• RISKS 20% did, and we brought this information back to
• FUNDING the pubs. One of them will consider paying for
• COST & 5 YEAR highlighting his events.
FORECASTING

14. SALES
• INTRODUCTION Urban Agenda is a service that operates as an
PROBLEM-SOLUTION intermediary. This is why sales operate between
PRODUCT
INITIAL BUSINESS MODEL
two sides:
• MARKETING SALES TO PARTNERS
• SALES
• PARTNERSHIPS 1) We sell the service through different rates,
• DISTRIBUTION depending on the visibility that the Partner
• COSTS wants to have within Urban Agenda App.
• REVENUE MODEL 2) By Ticket Service, Urban Agenda retains a
• RISKS percentage.
• FUNDING
• COST & 5 YEAR SALES TO CUSTOMERS
FORECASTING
We sell the “premium version”, which includes
service Augmented Reality capability. The
application is available for free with “freemium
version”.

15. SALES – TO PARTNERS
PARTNERS SURVEY: PAYMENT FOR UA SERVICES
• INTRODUCTION No
PROBLEM-SOLUTION
PRODUCT
28%
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL Yes, if it
• RISKS brings
• FUNDING more
customers
72%
Advertising is a potential income channel. Our lo-fi
prototype got good acceptance from our
partners.

16. SALES – TO CUSTOMERS
CUSTOMERS SURVEY: PAYMENT APP
• INTRODUCTION Yes
PROBLEM-SOLUTION
PRODUCT 27%
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING No
• COST & 5 YEAR 73%
FORECASTING
“Freemium” model can be applied by adding
extra value.

17. PARTNERSHIPS
• INTRODUCTION • The network of partners and content suppliers
PROBLEM-SOLUTION
PRODUCT
play a critical role in our business model.
INITIAL BUSINESS MODEL
• These strategic alliances composed of museums,
• MARKETING art galleries, cafes, clubs, cinemas will provide
• SALES Urban Agenda with valuable contents and events
• PARTNERSHIPS for our customers.
• DISTRIBUTION
• COSTS • Face to face interviews with many customers
• REVENUE MODEL were scheduled.
• RISKS
• FUNDING • Very positive feedback and worthy inputs were
• COST & 5 YEAR provided by our customers
FORECASTING

18. DISTRIBUTION
• INTRODUCTION • Urban Agenda will be downloaded at the
PROBLEM-SOLUTION
PRODUCT most popular online app stores:
INITIAL BUSINESS MODEL
Google Play
• MARKETING
Apple's App Store
• SALES
• PARTNERSHIPS
• DISTRIBUTION • QR codes for quick access to the download
• COSTS webpage will be available at strategic
• REVENUE MODEL locations as tourist info offices, train stations,
• RISKS cinemas, theaters. cafes, etc.
• FUNDING
• COST & 5 YEAR • The app will also be reached from our
FORECASTING partners webpages and facebook profiles
(pubs, theaters, concert halls, museums, etc).

19. COSTS
COST STRUCTURE
Year 1 Year 2 Year 3 Year 4 Year 5
Salaries and employee
benefits €160.000 171.200 183.184 196.007 209.727
• INTRODUCTION
PROBLEM-SOLUTION Occupancy fees 25.000 26.250 28.875 33.206 39.848
PRODUCT
INITIAL BUSINESS MODEL Equipment 25.000 26.250 28.875 33.206 39.848
Data processing 32.000 33.600 36.960 42.504 51.005
• MARKETING
App development 78.000 145.000 270.000 270.000 350.000
• SALES
• PARTNERSHIPS Sales Team 45.000 47.250 51.975 119.543 143.451
• DISTRIBUTION Consulting Firm 30.000 34.500 39.675 45.626 52.470
• COSTS Marketing 35.000 103.950 308.732 916.933 2.723.290
• REVENUE MODEL
Specialized AR Firm 55.000 57.750 63.525 73.054 87.665
• RISKS
• FUNDING Other 5.000 5.250 5.775 6.641 7.970
• COST & 5 YEAR
FORECASTING Personnel costs and the cost of implementation is
estimated by correlating data from companies in the
same target market. The incremental cost of
marketing is due to the expansion of the project.
Other costs included in „Risks‟ sections

20. REVENUE MODEL
• INTRODUCTION FREE
PROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL CONSUMERS
PREMIUM $
• MARKETING VERSION
• SALES
• PARTNERSHIPS
• DISTRIBUTION PROFITS
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
ADVERTISING %$
FORECASTING
PARTNERS
TICKETS SALE %$

21. RISKS
• INTRODUCTION
PROBLEM-SOLUTION Technology
PRODUCT Team Risks
INITIAL BUSINESS MODEL Risks
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS Capital
Market Risks
• FUNDING Risks
• COST & 5 YEAR
FORECASTING

22. RISKS
• INTRODUCTION Id Risk Probability Impact Class
PROBLEM-SOLUTION
PRODUCT
The team has no previous
INITIAL BUSINESS MODEL experience in the entertainment
1 industry 10 8 Team
• MARKETING 2 Debt crisis in Europe 8 7 Capital
• SALES
• PARTNERSHIPS 3 Economic Crisis in Europe 8 3 Market
• DISTRIBUTION Lack of knowledge about the
4 laws in other countries 8 6 Team
• COSTS
Changes and progress in
• REVENUE MODEL augmented reality
5 6 6 Technology
• RISKS Emergence of new unsupported
• FUNDING 6 platforms 4 6 Technology
• COST & 5 YEAR
FORECASTING 7 Delays in capital contribution 3 7 Capital
8 Changing trends in ticket sales 2 6 Market
Expected App acceptance lower
9 than initial estimation 6 10 Market
Partners not ready to automate
10 their ticket sales 8 7 Market

23. RISKS
Evaluation
9
10
• INTRODUCTION
PROBLEM-SOLUTION 1
PRODUCT
INITIAL BUSINESS MODEL 7 2
10
8 6 5
• MARKETING
4
• SALES 5
• PARTNERSHIPS
• DISTRIBUTION 3
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING 0
• COST & 5 YEAR 0 5 10
FORECASTING
We will take actions to the risks of the upper right
quadrant. They are the most important.

24. RISKS
Actions
RISK ACTION ACTION
TYPE
• INTRODUCTION
PROBLEM-SOLUTION
PRODUCT 1. Team has no previous Mitigate Hiring an experienced
INITIAL BUSINESS MODEL
experience in salesperson in the field. Cost
entertainment 45k€/y
• MARKETING
• SALES 2. Debt crisis in Europe Avoid Find funding in VC firms
• PARTNERSHIPS (No bank loans)
• DISTRIBUTION 4. Lack of knowledge in Avoid Engage the services of a
• COSTS laws in other countries consulting company specialized
• REVENUE MODEL in technology startups. Cost
• RISKS 30k€/y
• FUNDING 5. Changes and progress Mitigate Partnership with specialized
• COST & 5 YEAR in augmented reality software firm. Extra cost
FORECASTING 55k€/y
9. Expected App Mitigate Perform short development
acceptance lower than cycles to quickly adapt to the
expected needs and requirements of our
customers.

25. FUNDING
The table shows the funding sources for the project,
indicating the due date and the required amount
of money. The reason for these funding sources and
• INTRODUCTION
PROBLEM-SOLUTION
shareholder dilution are reflected in the cash flow
PRODUCT on the next point.
INITIAL BUSINESS MODEL
• MARKETING TYPE DATE AMOUNT
• SALES
• PARTNERSHIPS Equity Capital /FFF Month 0 60.000 €
• DISTRIBUTION
• COSTS Business Angel Month 6 100.000 €
• REVENUE MODEL
• RISKS Venture Capital – Month 20 350,000 €
• FUNDING Round 1
• COST & 5 YEAR
FORECASTING
Venture Capital – Month 48 2.000.000 €
Round 2
IPO Year 7 ???

26. Profit and Loss Projections COST & 5 YEAR FORECASTING
Year 1 Year 2 Year 3 Year 4 Year 5
Income
In-App advertisement
and positioning 40.000 42.000 46.200 53.130 63.756
• INTRODUCTION Pro App 28.000 49.840 88.715 157.913 281.085
PROBLEM-SOLUTION Tickets revenue 198.000 267.300 697.653 1.820.874 4.752.482
PRODUCT Total Noninterest Income €266.000 €359.140 €832.568 €2.031.917 €5.097.323
INITIAL BUSINESS MODEL
Expense
• MARKETING Salaries and employee
• SALES benefits €160.000 171.200 183.184 196.007 209.727
• PARTNERSHIPS Occupancy fees 25.000 26.250 28.875 33.206 39.848
Equipment 25.000 26.250 28.875 33.206 39.848
• DISTRIBUTION Data processing 32.000 33.600 36.960 42.504 51.005
• COSTS App development 78.000 145.000 270.000 270.000 350.000
• REVENUE MODEL Sales Team 45.000 47.250 51.975 119.543 143.451
• RISKS Consulting Firm 30.000 34.500 39.675 45.626 52.470
• FUNDING Marketing 35.000 103.950 308.732 916.933 2.723.290
• COST & 5 YEAR Specialized AR Firm 55.000 57.750 63.525 73.054 87.665
FORECASTING Other 5.000 5.250 5.775 6.641 7.970
Total Expense €490.000 €651.000 €1.017.576 €1.736.720 €3.705.272
Income before taxes on
income (€224.000) (€291.860) (€185.007) €295.198 €1.392.051
Taxes on income 30% -67.200 -87.558 -55.502 88.559 417.615
Net Income or Loss (€156.800) (€204.302) (€129.505) €206.638 €974.436

27. COST & 5 YEAR
FORECASTING
Profit and Loss Projections
- Revenues are based on the market
• INTRODUCTION
PROBLEM-SOLUTION
share that we believe we can achieve in
PRODUCT each period.
INITIAL BUSINESS MODEL
€1,200,000
• MARKETING
• SALES €1,000,000
• PARTNERSHIPS
€800,000
• DISTRIBUTION
• COSTS €600,000
• REVENUE MODEL
• RISKS €400,000
• FUNDING
• COST & 5 YEAR €200,000
FORECASTING
€0
1 2 3 4 5
(€200,000)
(€400,000)

28. COST & 5 YEAR
FORECASTING
• INTRODUCTION Cash Flow Projections
PROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES Year 1 Year 2 Year 3 Year 4 Year 5 Total
• PARTNERSHIPS
• DISTRIBUTION Net income (€156.800) (€204.302) (€129.505) €206.638 €974.436 €690.467
• COSTS
• REVENUE MODEL Cash from
external funding €100.000 €350.000 €2.000.000
• RISKS
• FUNDING Total Operating
Activities (€56.800) €145.698 (€129.505) €206.638 €2.974.436 €3.140.467
• COST & 5 YEAR
FORECASTING
Begginning Cash
Balance €60.000 €3.200 €148.898 €19.393 €226.031
Ending Cash
Balance €3.200 €148.898 €19.393 €226.031 €3.200.467

29. COST & 5 YEAR
Cash Flow Projections FORECASTING
- Second VC funding is to get worldwide
market on year six, to achieve the IPO in
• INTRODUCTION year 7-10.
PROBLEM-SOLUTION
PRODUCT €3,500,000
INITIAL BUSINESS MODEL
MARKETING
€3,000,000
•
• SALES
• PARTNERSHIPS €2,500,000
• DISTRIBUTION
• COSTS €2,000,000
• REVENUE MODEL
• RISKS €1,500,000
• FUNDING
• COST & 5 YEAR €1,000,000
FORECASTING
€500,000
€0
1 2 3 4 5

30. COST & 5 YEAR
FORECASTING
Funding Projections by year
• INTRODUCTION
PROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
5
• MARKETING
• SALES
4
• PARTNERSHIPS
• DISTRIBUTION
• COSTS 3
• REVENUE MODEL
• RISKS 2
• FUNDING
• COST & 5 YEAR
FORECASTING 1
€0 €500,000 €1,000,000 €1,500,000 €2,000,000

31. COST & 5 YEAR
Shareholder Dilution FORECASTING
Share Value
Initial Year 1 Year 2 Year 3 Year 4 Year 5 year 5
• INTRODUCTION €
PROBLEM-SOLUTION Partner #1 20% 16,67% 15% 15% 15% 13,9% 2.174.063,81
PRODUCT €
INITIAL BUSINESS MODEL Partner #2 20% 16,67% 15% 15% 15% 13,9% 2.174.063,81
€
Partner #3 20% 16,67% 15% 15% 15% 13,9% 2.174.063,81
• MARKETING €
• SALES Partner #4 20% 16,67% 15% 15% 15% 13,9% 2.174.063,81
• PARTNERSHIPS Partner #5 20% 16,67% 15% 15% 15%
€
13,9% 2.174.063,81
• DISTRIBUTION €
• COSTS Business Angel 0% 16,67% 15% 15% 15% 13,9% 2.174.063,81
€
• REVENUE MODEL VC - 1st round 0% 0% 10% 10% 10% 9,3% 1.449.375,87
• RISKS €
VC - 2nd round 0% 0% 7,5% 1.175.169,63
• FUNDING Company value (PER $ $
• COST & 5 YEAR based) $ - $ -$ - 3.322.745 15.668.928
FORECASTING
Shareholder dilution
- 1st round dilution is based in Risk
Interest 65% and PE Ratio 16,08
- 2nd round is estimated.

32. COST & 5 YEAR
FORECASTING
Shareholder Dilution
20%
• INTRODUCTION
PROBLEM-SOLUTION 18%
PRODUCT
INITIAL BUSINESS MODEL
16%
• MARKETING 14%
• SALES 12% Initial
• PARTNERSHIPS Year 1
• DISTRIBUTION 10% Year 2
• COSTS 8%
Year 3
REVENUE MODEL
Year 4
• Year 5
RISKS
6%
•
• FUNDING 4%
• COST & 5 YEAR 2%
FORECASTING
0%
Partner #1 Partner #2 Partner #3 Partner #4 Partner #5 Business VC - 1st VC - 2nd
Angel round round

33. THANKS FOR
WATCHING

34. www.stark.coolpage.biz