1. We File It Inc.
Business plan and angel investor deck
2. Contents
• The stagnant tax industry
• WeFile.it: The disruption
• Profitable tax and finance marketplace
• User growth strategy
• Business growth strategy
• Fundraising
• Investor exit strategies
• Corporate structure
• Technology
• Marketing plan
• Risk assessment
• Operating costs, and budget projections
3. The stagnant tax industry
• The first 1040 form was introduced in 1913,
Americans have been filing them ever since.
• The IRS first allowed taxpayers to e-file a tax return in
1986. Americans have been e-filing ever since.
4. The stagnant tax industry
Nearly 150 million individual tax
returns will be filed in the US, a
number that increases each
year!
5. 50 - 60 million by traditional tax giants
like H&R Block and Liberty Tax
6. 40 million taxpayers will use tax software
The majority of which will use TurboTax,
who as Wikipedia notes "only one main
competitor, H&R Block at Home.”
7. The stagnant tax industry
Roughly 72 million returns will be
prepared by "non-employers that
do not have the capacity or market
power to provide services beyond
their own neighborhood."
8. The stagnant tax industry
• Major players in the industry such as H&R Block,
TurboTax, and LibertyTax have profited from "shady"
business practices such as refund anticipation loans
and misleading advertisements.
• They also spend millions blocking efforts to simplify
tax preparation. By hiring expensive lobbyists tax
giants can rake in profits without having to invest in
innovation.
• The tax industry is stagnant, and in need of a
disruption
10. WeFile.it: The disruption
Marketplaces have proven to be business models that
attract investors.
• Airbnb - $1 billion valuation
• Uber - $40 Million in investments
• YourMechanic - $2 million seed investment
11. WeFile.it: The disruption
Huge audience of preparers to target for
marketplace
"As of August 2012, there are more tax preparers (1.2
million) than there are law enforcement officers
(765,000) and firefighters (310,400) combined."
12. WeFile.it: The disruption
• The market is huge
• Every single American is required to file a tax return
(Canadians too!)
• Millions of Americans also make quarterly tax
payments, and need help with tax services such as
owed back taxes and wage garnishments
throughout the year.
13. WeFile.it: The disruption
WeFile.it will:
• Connect taxpayers directly with qualified preparers
who will charge a reasonable fee for the service,
without any corporate overhead
• Provide a marketplace where users are
encouraged to leave reviews so that other users
can select quality and trustworthy preparers to hire
• Offer preparers a platform to manage business,
make money, and earn rewards for moving existing
customers into the system
14. Profitable tax and finance
marketplace
Marketplace revenue opportunities:
• Transaction fee on all payments through marketplace
• $5 fee to preparers for marketplace generated returns
• 25% processing fee web app filed returns
• Tax Preparer Pro Membership ($20/month)
• WeFiling Secure Guarantee ($29)
• We'll Cover It Package, Back Tax Guarantee ($29)
15. Profitable tax and finance
marketplace
Long term revenue streams:
• Government technology contracts (refund
processing, taxpayers owed refunds, etc.)
• WeFile.it local iPad stations (business partnerships,
iPad add opportunities)
16. Growth strategy
Preparer growth:
• Give preparers incentive to convert current business
• No fee for first year of existing business imported into
marketplace
• Secure technology and storage
• Credit card and alternative payment methods
• Turnkey marketing to generate repeat business (email,
direct mail ads, etc.)
• Milestone prizes (5 day trip to Hawaii for first preparer to
reach 500 returns)
• Job board advertisements, family mentality
17. Growth strategy
WeFilee recruitment:
• Major tech/nationwide PR
• Extension campaign (early beta user base)
• Outreach to users likely to be owed a tax refund
• Local in store promotions
• Grassroots flyers/iPad app tables in target cities
• Get your taxes done for free referral incentive
18. Growth strategy
Business growth:
• Nationwide extension campaign (April 2013)
• Late filing / platform demo / Series A (September
2013)
• Select beta online wefiling - 5 million returns
(January 2014)
• Local business wefileit stations in SF, Sacramento,
Los Angeles (January 2014)
19. Growth strategy
Business growth:
• Nationwide online wefiling, Wefileit stations in 25 cities -
25 million returns (January 2015)
• Back tax and business tax payments solutions - 10,000
transactions / month (July 2015)
• US and Canada online wefiling, Wefileit stations
nationwide via major retail partnership - 50 million returns
(January 2016)
• US and Canada online wefiling, yearly financial services -
80 million returns, 1 million transactions annually (January
2017)
20. Fundraising
Early stage / seed funding (April 2013)
• Valuation: $2 million
• Before valuation, 650,000 shares
• After valuation, 1,000,000 shares
• Selling 35% stake (350,000 shares, $2 / share, $700,000 round)
Series A funding (November 2014)
• Valuation: $30 million
• Before valuation, 1,000,000 shares
• After valuation, 1,500,000 shares
• Selling 33% stake (500,000 shares, $20 / share, $10 million round)
22. Investor exit strategies
IPO (April 2015):
• Right off second successful tax season, massive growth in
return prepared, retail partnership
• Annual revenue of $250 million, $800 million valuation
Secondary option:
• Acquisition from retail or financial industry giant (Target,
WellsFargo, eBay, etc.)
• Leverage retail presence, technology, massive user base
for attractive valuation
• $1 billion valuation
23. Corporate structure
Current team:
Mathew Guiver
Founder, spokesperson, and marketing director
(60% ownership of initial stock)
Nicole Thayer
Graphic design, user experience (10%)
Adrienne Sederquist
Operations, social marketing (5%)
24. Corporate structure
Currently recruiting:
• PR, guerilla marketing (5%)
• Engineering, programming lead (5%)
• Engineering, programming support (2.5%)
• Mobile app developer (2.5%)
• Tax preparation expert (2.5%)
• Legal (2.5%)
• Advisor (2.5%)
• Other (2.5%)
25. Technology
Goal:
• Revolutionize the tax prep industry by developing new
technology and products to make taxes fundamentally
easier.
Technology driven products:
• Automatic extension mobile and web app, secure
storage and transmission of data.
• Mobile app and web marketplace of tax preparers with
peer view and scoring.
• Tax preparation web app for professionals allowing them
to file returns from any computer or mobile device.
26. Marketing plan
Goal:
• Position WeFile.it as a trusted, yet modern and forward
thinking alternative to traditional tax preparation
options.
• Bring awareness to the corruption, greed, and lack of
innovation in the tax preparation, and tax debt
resolution industries.
As a social cause focused company, we will consider
ourselves successful by bringing attention to the problem in
this industry that is clearly in need of disruption!
27. Marketing plan
WeFile.it is committed to innovation in the tax and financial services
industry to simplify and reduce the cost of tax preparation.
In launching the nation’s first tax preparation marketplace, we will
enable tax preparers to work directly with Americans.
When Americans use TurboTax or go to an H&R Block to file your tax
returns, a portion of the money they spend will go directly to
lobbyists fighting to ensure these outdated business models can
continue to reap excessive profits.
When you WeFile your return, the majority of the money you spend
will go directly to the experience professional preparing your return.
A portion of it will also fund innovation in the tax industry, and as a
group WeFilers will seek simplification in the tax industry.
28. Marketing plan
Startup conferences and investor pitches:
• TechCrunch, TED, TechStars, etc.
• TechCrunch Startup Battlefield (May 2013, submissions Jan 2013)
Announcement early April
• Reveal site, concept, disruption
• "Next year, the way you do your taxes will be disrupted”
• Sign up now and start saving!
• Free online tax planning kit
Social contest
• Be part of the disruption of a corrupt industry, refer a friend to the
WeFile.it tax prep marketplace
• 2014 - Goodbye to the W2
29. Risk assessment
Technology risks:
• Mobile app approval by Apple
• Secure transfer and storage of information
Business risks:
• Liability insurance coverage
• Quality of tax professionals
30. Risk assessment
Marketing risks:
• Reception of socially driven marketing
• Awareness of new alternative to traditional tax filing
options
Other risks:
• Seasonality of the tax business
