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A mobile website that lets you transact with any business
via text messaging
[email protected]@[email protected]
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Who we are
David Spiro BBA ‘12: Biz StrategyChad Stark BBA ‘11: Marketing and SalesCalvin Gee CSE ‘12: Web Dev. and Design
Cheng Chen CSE ‘12: Backend Dev. and iOS
Together we were in Techarb, published business plans, brought several apps to market, generated $500k with a previous company, sold software to a medical center, and
raised $15k from UMICH
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People run their social lives through
text conversations – but when trying to transact with a business, we have to pick up the
phone and call
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Nielsen surveyed 60k mobile users aged 13-24...
“Average 13-24 year old sends 3,000
text messages per month”
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Nielsen surveyed 60k mobile users aged 13-24...
“Voice activity within this demographic decreased 14
percent last year”
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We charge businesses a % of sales
We sell search and conversation data
We serve targeted ads to our users
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Current industry
Current Industry
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Industry with us
Industry w/ Thru.im
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$Behavioral Data + $Transactions=
• Google Launched 12 years ago:• 20% (Google’s annual Data Rev from 365B searches = $28.0B)
= Data Rev driven by #Searches for businesses• 5% (Searches for businesses) = #Transaction w/ businesses• $10 avg. order with 5% referral commission
= Thru.im max potential value 12 years after launch,
growing at an s curve rate=
20%*($28.0B)+ 5%*(365B*20%)*($10)*(5%)=
$7.4B per year in year 12Thru.im
Total Market Value
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Google’s margin is 30% on data mining activities
BE = ($10employee/hour)/(.8transactions*$10order*5
%commission) = 25 transactions/hour
We will exit in 8 years for $860M based on an IRR of 103%
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Margin, Break Even, and Exit
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Target 18 – 24 year olds Private beta in Ann Arbor
Raise money and scale
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Market Entry Strategy
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Knowledge of the spaceSuccess selling to young generations
Existing chat software Contact center automation software
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Proprietary Elements
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Next Steps
Dec-11 Feb-12 Apr-12 May-12 Jul-12 Aug-12
Raise funding for nation beta
Complete
Prototype and
proof of conceptPrivate beta test in Ann Arbor
National Launch
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MBC next round!$1M for scale
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Ask
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Appendix – Additional Slides18. Value to End Users19. Value to Businesses20. Value to BT
Companies21. Segment
Relationships22. Screen Shots +
Demo23. Use Cases24. Contact Center
Justification25. Thru.im Backend
26. Automation Software
27. Launch Plans28. Competition29. Break Even30. Exit Value31. Investment Slide32. Investor Slide33. Thru.im v.
#AnythingOTW
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Value to End Users
Multitask: Speak to more than one business at a time
Get things done faster: Never on hold, deal with phone trees, click through
buttonsBe creative: Say whatever you want
like you would on a voice call
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Value to Businesses
Link to mobile, text savvy generationContact center assistance
Learn from what customers are saying to improve customer service
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Value to Behavioral Targeting Companies
Limited supply of conversation data today
Mobile focusConversation data between customers
and merchants improves user behavioral profiles
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Segment Relationships
End Users: Founders’ grew up on text and we have sold products to our target beforeBusinesses: UMICH contacts who have
cracked the code on disruptive consumer-business technology like Groupon, Opentable,
and OWNBehavioral Targeting: Datalogics and JumpTap (Jeff Raab) and Radium One (Steve Eskenazi)
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Screen Shots and Demo
www.Thru.im/demoBest viewed on your mobile screen
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Justification for contact center
First, an intermediary step to generate user demand
Then, a sales team to onboard customers
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How Thru.im’s Backend Works
For businesses that use text messaging, email, or twitter, Thru.im automatically translates messages from the user to the
business
If the business does not use text based customer service, Thru.im has a team of agents who will call the business on the user’s behalf and text back a response
The quicker a business responds, the higher they get ranked in our search, incentivizing them to have conversations themselves
or to pay us a % of sale
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Automation Software
Automatically translate messages to business
Automatic text responsesText to speech + voice to textAPIs like Google Maps/Places,
Opentable, Ordr.in
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Launch Plans
Soft launch in Ann ArborWeek 1-2: Get 50 local users, 30% repeat
Week 3-4: Get 200 new local usersWeek 5 – 10: Reach 1000 users nationwide
Target receptive communitiesMarket additional use cases to repeat users
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Competition
Talkto Yelp, Opentable, Campusfoods
Other players like Google
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Break evenIf, 1 employee costs $10/hour and
80% of conversations result in a sale of $10 with commission of 5%, then:
$10/(.8*$10*.05) = 25 conversationsIf, at max capacity 1 employee can handle 35 conversations, then: we need to operate at
~70% utilization to cover other costs like office overhead
But this does not include data mining activities
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Exit valueINVESTMENT
RevenueRound Amount $1,000,000 Pre Valuation $2,000,000 Post Valuation $3,000,000 Exit Year 8 Exit Amount $858,000,000 Cash-on-cash 286IRR 102.8% Multiple 2.20 Year 8 Revenue $390,000,000
Rev(year 12) = $7.4BRev(year 8) = ~5% * Rev(year
12)
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Investment Slide
Angel: $1M for 33%Pre-money = $2M
Post-money = $3M $$$ needed for call center employees
and mobile developmentSeries A: $10M
$$$ needed for operational expansion
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Investor Slide
Steve Eskenazi: Lead investor in Blue Lithium and Radium One
Lightbank Capital: Lead investor in Groupon, commercializes consumer apps
Union Square Ventures: Lead investor in Twitter, values disruptive data plays
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Thru.im versus #AnythingOTW
#AnythingOTW is a project Thru.im is a venture backable
businessShared resources keeps us efficient
