Our presentation at the Intesa Sanpaolo Startup Competition in Milan, where Znak it! was one of the 11 finalists (out of 220 projects from all over Europe)

1. Copyright (C) 2009 by Znak, Inc. 1
“Information wants to be free, and it wants to be expensive.”
 the WWW as a marketplace;
not a billboard or soc net;
 Fair to everyone;
 Based on the natural
dynamics of free market
 Solves the old dilemma:
Disruptive Monetization & Payment Pathways for
Creative Content, Virtual Goods and Services
Make the WWW free Fair

2. Copyright (C) 2009 by Znak, Inc.
Billboard
Social Net
Marketplace
The WWW Evolves
2

3. Copyright (C) 2009 by Znak, Inc.
Paid Content Ecosystem
3
http://imgur.com/qjjlkGm
Three proven
solutions in one

4. Copyright (C) 2009 by Znak, Inc.
Three Major Stakeholders
premium content curation and
monetization platform
frictionless access to paid content,
also for “free”
direct-to-user advertising opportunity
& a data collection toolMarketers &
Advertisers
Content Providers
Web Users
4

5. Copyright (C) 2009 by Znak, Inc.
Links and widgets, embeddable
as payment gateways.
Customizable shapes/colors.
Easy, copy-and-paste insertion of
JS codes or API.
Two mouse clicks to access and pay
for selected content.
Real time payment authorization & fund transfer;
SSL-encrypted; CPI-compliant.
5
Content Providers, Large & Small

6. Copyright (C) 2009 by Znak, Inc.
User Choice
6
Purchase subscription;
(micro)pay on
demand, make a
donation, or
Earn Free Access through
opt-in advertising

7. Copyright (C) 2009 by Znak, Inc.
Award-winning “Earn Free Access”
7
No registration needed!
No PINs! No User IDs –
quick, safe and private
High (19.6%) conversion rate
(vs. 1-2% conversion by
paywalls)
Ability to bypass in-app
payment fees charged by
Apple, Google, etc.
Up to 30%

8. Copyright (C) 2009 by Znak, Inc.
A Win-Win-AND-Win Solution
8
 Open – platform agnostic;
 Flexible – multiple payment
methods;
 Universal – any type/format of
premium content or service;
 Simple to implement (SaaS) and
use; frictionless for the Web user;
 Efficient and viable – up to 20%
conversion; 94% return.
Marketers &
Advertisers
Solves the Brand Dilemma – makes the WWW a
marketplace, fair and beneficial to everyone

9. Copyright (C) 2009 by Znak, Inc. 9 /
Market Potential and Trends
Market Size
USD 2 700 000 000 000
40 times bigger than Apple‟s annual revenue;
90 times Google
1,350 times bigger than Facebook
Source: ZenithOptimedia ; est . for
2015

10. Copyright (C) 2009 by Znak, Inc. 10
1/5 of online content is paid now
– 139% increase
By 2016, 90% of online content
will be paid.
Simon-Kucher & Partners
Online Revenue Growth
Internet
Offline
Publishing

11. Copyright (C) 2009 by Znak, Inc.
From Public Beta to BEP
11
Aug.
2011
2011
2012
2012
320 content providers, 55,,000
users, in the first 3 months
Pilot projects with
5 large publishers
Developed in 2007-08 with
200,000 users,
1.4M EUR volume
Five additional
publishers, Lo
I
Q1 2013
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2010 2011 2012
361 8,095
110,24080,968
109,230
159,470
Revenue from Commision Exspenses/ Cost of Goods
Beta
Ask me
about
results!

12. Copyright (C) 2009 by Znak, Inc. 12
Competition
Google
e-Wallet
PayPal
Press+
Piano
Tiny
Pass
Flattr Znak it!
Off line
On line
Subscription
Micropayments
Donations
Earn Free
Access
Transferable
Credits

13. Copyright (C) 2009 by Znak, Inc.
Business Model Options & Benefits
Paywalls vs. Znak it!
 SaaS -- no setup and system maintenance
costs; up to 94% return; can bypass app fees;
 Also for the “long tail;” truly World Wide;
 Technology- and portal-agnostic;
 Flexible, a la carte, on-demand access;
 Supports different payment methods, incl.
donations and ad-sponsored access;
 User-centric, payment as social engagement,
content sharing & P2P recommendations;
 Private, intrinsically safe; can be used for
anonymous access – without registration;
frictionless.
13
 Expensive, low ROI;
 Require large scale;
convert only about 1% of
users
 Create „silo effect;‟
 Closed, rigid, might
cannibalize other
sources of revenue;
 Media/publisher-centric ,
not engaging ; “exploit”
most loyal users

14. Copyright (C) 2009 by Znak, Inc.
Major Clients and Partners
14 /
Existing Clients Partners Prospects
with LoI

15. Copyright (C) 2009 by Znak, Inc. 15
2008
2009
2010
2011
Web 2.0 Expo in San Francisco – first public show
German Publishers’ Assoc. Award
Developed in 2007-08 withDeveloped in 2007-08
in collaboration with
Ideo of Palo Alto, CA
EU Grant for Innovation
167,000 EUR
EPCA Florin Award
Public Beta
Launched
Aug. 2011
Barriers to Entry
IP – patent pending
CPI–SSD compliance
Industry standards
Learning curve
Scale
Sunk costs

16. Copyright (C) 2009 by Znak, Inc.
Znak it! Finances in EUR
16 /
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2009 2010 2011 2012 2013
Seed & Angel Capital
Revenue from Commision
Operational Exspenses
Estimated
900,000 EUR Invested
Does not include the new round.

17. Copyright (C) 2009 by Znak, Inc.
Financial Projections
17
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2010 2011 2012 2013
Revenue from Commision 361 8,095 110,240 746,000
Exspenses/ Cost of Goods 80,968 109,230 159,470 185,000
With 1,500,000 EUR of additional capital:
FY 2014 Projected Revenue – 3,035,000 EUR; EBITDA – 660,000 EUR
FY 2015 Projected Revenue -- 10,275,000 EUR; EBITDA – 3,075,000 EUR

18. Copyright (C) 2009 by Znak, Inc.
Needs and Opportunities
18
1,500,000 EUR -- Series A, equity, convertable
Mobile
apps
Sales &
marketing
Administra
tion, new
hires
Working
capital
New Capital Allocation
ROI – open to IPO with additional rounds, M&A or licensing
Excellent perspective: average multiple of 4.9 x revenue, as reported by Berkery
Noyes, (based on 60 M&A deals in 2012)

19. Copyright (C) 2009 by Znak, Inc. 19
With Znak it! information can be “free,” easy to access and share;
AND, it can be “expensive,” high-quality and profitable.
 Enormous opportunity ;
huge marketplace;
 Fair and beneficial to
everyone;
 Customer is King
 Business model driven by
the real market dynamics
Disruptive Monetization & Payment Pathways for
Premium Content
Let’s Make the WWW free Fair!

20. Appendix
Pilot Study Results
Znak, Inc .
Sunnyvale CA, USA
Warsaw, Poland
20

21. Copyright (C) 2009 by Znak, Inc. 21
User Characteristics, by Gender & Age
58.9%
41.1% Males
Females
13.8%
16.5%
23.1%
22.4%
24.2%
18 to 24
25 to34
35 to 44
45 to 54
55+
Based on a sample of 43 299 Unique Users – Pilot Project Results
The sample represents gender and age distribution typical for
online sites with high-quality news/magazine content, with a
majority of users being male and older.

22. Copyright (C) 2009 by Znak, Inc. 22
Males
Females 18 - 24
25 - 34
35 - 44
45 - 54
55+
58.9%
41.1%
13.8% 16.5% 23.1%
22.4%
24.2%
65.3%
34.7%
20.6%
29.0%
21.0%
16.5%
12.9%
Unique Users Unique Buyers
Number of Unique Buyers – 1 281
Younger users more likely to convert into
Buyers, using Znak it!
Znak it! vs. paywalls – sustainable, viable system
User Characteristics, by Gender & Age
50% under 34 yrs old

23. Copyright (C) 2009 by Znak, Inc.
Conversion Rates by Gender and Age
23
Total
Males
Females 18 - 24
25 - 34
35 - 44
45 - 54
55+
3.0%
3.3%
2.5%
4.4% 5.2%
2.7%
2.2%
1.6%
8.7%
10.3%
6.4%
14.5%
15.6%
8.2%
6.3%
3.3%
Conversion Rate (Buyers/Uniques) Conversion Rate (Buys/Uniques)
Conversion rates 9 to over
15 times higher than those
generated by metered
paywalls (1 - 2%)

24. Copyright (C) 2009 by Znak, Inc.
Znak it! Market Niche
Znak it! Payment Niche
24
6.00%
3.90%
21.67%
8.85%
102.90%
52.90%
27.90%
17.90%
5.40%
0%
20%
40%
60%
80%
100%
120%
$0.3 $0.6 $0.9 $1.2 $1.5 $1.8 $2.5 $5.0 $20.0
PercentageCommission
Znak it! standard commission as
compared to PayPal charges
Transaction value
PayPal
Regular
Znak it!
PayPal
Micropayments