Graphic.ly aims to become the "Hulu for pop culture" by offering a platform for comic book sales and discovery within the broader pop culture space. It has experienced rapid growth in its first year, with 40,000 active users and $0.50 per content download on average. While competition exists from Comixology and publishers themselves, Graphic.ly sees an opportunity to leverage relationships with 60 publishers, including 3 of the top 6, as well as partnerships with major brands and platforms. It is raising $2.5 million in additional funding to expand its team and development of new features and advertising opportunities on the platform.

1. Phase I - Comic Book Revenue Optimization
Contact Info:
Micah Baldwin
720-248-8499
micah@graphicly.com
@micah
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2. An Immersive Social Experience and Marketplace
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3. Comic Industry - Direct Market
‣ Direct Market: $1B US / $6B Worldwide (Print Sales Only)
‣ Illegal Downloads are Estimated to be Between 5:1 and 10:1
‣ Single Print Distributor, Takes 62% Off the Cover Price
‣ Top 6 Publishers Own Approximately 90% of the Market
‣ Publishers Control Release Dates and Pricing
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4. Currently Launched Platforms
AIR / Windows 7
iPhone / iPad
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5. Developed Solid Distribution Partnerships
Web Apps Mobile
Bizspark One / Slate & Phone Distribution
100MM Downloads of Chrome
16B Pageviews / 250k Comic Friends
2B Pageviews / Entertainment Focus
14M Uniques / 2B Pageviews / Art Focus
Potential OEM deals
35M Uniques / 685M Pageviews
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6. Key Milestones and Metrics
‣ Announced in Jan 2010 at CES, public beta in April 2010
‣ 40,000 active users (80% MoM growth; 23% repeat transactions)
‣ 15,000 content downloads/month (20% paid; 75% MoM growth;
$0.50 per transaction)
‣ Have signed deals with 60 publishers, including 3 of the top 6.
‣ We’ve received about 2,000 books: we have ~750 in the store
‣ Cash flow positive in 9-12 months
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7. Three Year Revenue Projections
$15,000,000
$11,250,000
$7,500,000
$3,750,000
$0
($3,750,000)
Year 1 Year 2 Year 3
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8. Difficulties in the Marketplace / Competition
‣Publishers are afraid to hurt their relationships with Diamond and
the comic book stores
‣ Comixology and the publishers themselves are competitors
‣ High reliance on publishers for content
‣ Comic Collectors want to “own” the books
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9. Multi-Modal Monetization Around Single Focus
Ala
Carte Affiliate
Content Audio
Subs Micro-
Comics transactions
Music Video
Virtual
Goods
Ads
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10. Micro-transactions Doubled Sales
‣ “DVD Extras”
‣ Launched at Comic-Con
‣ Tested on 1-year old book
doubled sales at an
increased price
‣ Extra content is free
‣ Cross promo potential
“Free MP3”
‣ Unique Ad Inventory
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11. Immersive Ad Opportunities
‣ Brand is integrated into
the story
‣ Interactive Ad
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12. Immersive Ad Opportunities
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13. Immersive Ad Opportunities
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14. Non-Linear Overlay Ad Unit
‣ Standard IAB Unit
‣ Non Obtrusive
‣ Contextual/Behavioral
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15. Pre Roll Ad
‣ Standard IAB Unit
‣ Non Obtrusive
‣ Contextual/Behavioral
‣ Cross Promotional
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16. Overlay Ad
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17. “Hulu for Comics”
‣ Hulu delivers 360% more IMPs than Google with 19% of Traffic
‣ Free Select Books, Revenue from Ads, Premium Subscriptions &
Micro-transactions (Similar to Hulu/Netflix)
‣ Share Revenue with Publishers & Creators (Long Tail)
‣ In Discussions with: Taco Bell, Lexus, XBOX and P&G
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18. Pop Culture Market is Truly the “Big” Opportunity
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19. Pop Culture Components
Fashion Sports Music Travel
Movies TV Video Games
Comics
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20. Unique Social Graph
Facebook
Everyone Ive Ever Known
Graphic.ly
Everyone I Entertain Or Am
Entertained By
Foursquare Twitter
Everyone That I Run Into Everyone I Want to Know
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21. Summary
‣ Become the “Hulu for Pop Culture” vs. “iTunes for Comics”
‣ Free Select Books, Revenue from Ads, Premium Subscriptions &
Micro-transactions (Similar to Hulu/Netflix)
‣ In Discussions with Taco Bell, Lexus, XBOX and P&G.
‣ Cash flow positive via comic book sales within 9 - 12 months
‣ Long term Opportunity is media discovery within pop culture
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22. A Super Team
Micah Baldwin - CEO and Co-Founder
Graphic.ly is Micah’s sixth startup, having sold Current Wisdom in 2007. Most recently, Micah helped Lijit
Networks grow from 11M monthly page views to more than 350M in 18 months. A frequent speaker and
recognized industry leader, Micah has appeared on CNN and in leading publications.
Dan Graham - Director of Operations and Finance
Dan Graham runs day-to-day operations, and oversees the finances at Graphic.ly. Dan has an extensive
background in digital music and movie distribution having built, launched and managed several mobile
and web properties for such companies as MTV, Sony Pictures, and Warner Music.
Charley Hine - Director of Product Delivery and Technology
Charley led product for Zed, the leading ringtone provider, giving him a deep understanding of digital
content. Having focused on building consumer focusing software for most of his career, Charley brings a
unique blend of product development and technology experience to Graphic.ly.
David M. Uslan - Director of Publisher and Content Relations
David is a second generation comic book fan. His father, Michael Uslan is the executive producer on all
the Batman movies among others, a comic book writer and professor. David is represented by WME, and
has a long history and deep relationships in the comic book world and the entertainment space.
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23. Fund-Raising
Series A Focus:
‣ Raised $1.2M in a Series A in December 2009, Led by DFJ Mercury.
‣ Additional Investments from: Starz Media, Northstar Capital, Chris
Sacca, David Cohen, Dave McClure, Jake Nickell and Paige Craig
Series A-1 Focus:
‣ Due to investor demand & market opportunities, opened a Series A1
‣ Raising $2.5M in a Series A1, with $1.75M committed
‣ Expanding development team for web and ad tech
‣ Allows for deep dive on ad space and beginning of Phase II
‣ Fund operations for an additional 18 months
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24. Thank You
Micah Baldwin
CEO
Graphic.ly
720-248-8499
micah@graphicly.com
@micah
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