iconsumer investor deck - #getyourshare
TRANSCRIPT
Ownership Is The Ultimate Loyalty Program
The Opportunity
Democratize the ownership of a public startup, giving everyday people a Wall Street experience.
2
To build a company in a completely different way where our shopper / shareholders own and share in the success of the company together.
Enable shopper / shareholders to “do good” with every purchase.
MISSION
Ownership earned simplyby being customers.
3
Take share from incumbents in proven large market by making customers owners of a public company.
Expand the market by attracting millennials and others who find playing the Wall Street game for no cash “cool”.
HOW
In Billions
$140 $2 $4 $6
PROVEN OPPORTUNITY
$8 $10 $12
In Millions of Members at Event
900 10 20 30 40 50 60
Digital coupon/cash back industry is a proven, large market.Multiple billion dollar liquidity events in last five years.
70 80
2008 recession impact. Scared to invest, dislike Wall Street.
Millennials feel disenfranchised;burdened by debt.
GROWTH OPPORTUNITYWe expand beyond the traditional cash back market by engaging millennials on an emotional and aspirational level.
Digital natives. “Pinched for money.”
Fundamentally different – seeking both personal gain & “social benefit.”
6
STRUCTURAL OPPORTUNITY
Every shopper becomes an owner.
Regulations have changed, “beingpublic” less costly under Reg. A+.
Giving shares away creates a unique, non-cash currency to acquire members.
Leverages iGive infrastructure, staff, &1,700+ retailers.
Leverage members to recruit additionalmembers with equity rewards. Jet.com example.
iConsumer public as of 9/29/16.
7
BUSINESS MODEL
1 iConsumer members haveaccess to shop at 1,700+ retailers Retailer handles all aspects of transaction (billing, shipping)
Retailers pay iConsumer a commission (~1-20% of transaction)Additional revenues from advertising & data mining
As consumers spend more on iConsumer, they earn more stock Consumers also earn shares for referring other customers
iConsumer shares commission with member~ 80/20 split (i.e. 20% gross margin)
2
3 4
OPERATING ASSUMPTIONS
~ $ 384 eBates sold for ~$384
per member, other liquidity events valued members ~$200
~ $ 50-100 annual revenue
per member
~ 80% avg. cash
back rebate
~ $ 10-15 per annum cost to support early
members, costs reduce as we scale
~ $ 5-20 operating profit per
member per year
< $ 50 cash to acquire member
currently $24
PHASED GROWTH
Phase I Create successful operating company
Phase II Test by switching customersfrom incumbent competitors
JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY
• Beta Began – Jan. 2016 • Added Gatekeepers • Tested Viral • Promotional – increased cash back• First qtr. member acquisition testing
• Alpha Began 6/15 • Message Testing – 2nd half, 2015 • Launch apps / site / browser add
ons
2015 2016
Complete
PHASED GROWTH / USE OF FUNDS
JUN JUL AUG SEP OCT NOV DEC JANFEB MAR APR MAY
Phase IIIa Go Public - Launch
Launch $500,000 Raise to:• Rebrand for #GetYourShare• Get Listed OTC QB
• Provide shopper / shareholders with publicly visible value for their equity
• Prep & start campaign for $1,500,000 raise
Beta Phase Milestones Achieved• Public - SEC Qualified – 9/29/16• 11,500 Customers• Revenue• Member Acquisition Metrics confirmed -
$24 per shopper
2016 2017
PHASED GROWTH
JUN JUL AUG SEP OCT NOV DEC JANFEB MAR APR MAY
Phase IIIb$1,500,000 Raise
Phase IV Continue focus on public marketProduct portfolio expansion
Investor Focused Campaign• Begins during tail end of $1,500,000
campaign (est. 9/17)• Qualify for OTC QX (2 market makers, other
requirements)• Goal: Institutional investor interestIntroduce new products
Member Acquisition Campaign• Begins ~ 90 days after close of $500,000
raise (est. 4/17)• CrowdfundX campaign
• Investors & Customers• Min. $100 / investor • $.09 / share, preferred (Goal: double prior
round valuation)
2016 2017
TRACTION
Revenue ($)0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
New Members Total Members Transactions0
100020003000400050006000700080009000
10000
2015 Year Total Jan 2016 Feb 2016 Mar. 2016
In Q1 2016, we tested various member acquisition strategies to achieve scalable, affordable growth.
Users/Members 12,000 50,000 250,000 1,000,000
Est. Date Achieved NOV 2016 APR 2017 JAN 2018 DEC 2019
Annualized Rev.
Gross Margin
Fixed Operating Costs
Annualized Net Profit
Variable Op. Cost
$2,000,000
0
$ 400,000
(260,000)
$ 25,000
(125,000)
$ 75,000
$ 500,000
$ 600,000
$3,500,000 $12,500,000
$ 2,500,000
$ 750,000
$ 950,000
$ 500,000 $ 2,000,000
$ 5,500,000
$ 1,500,000
$ 10,000,000
$50,000,000
PRO FORMA OPERATING FORECAST By Membership Level
Marketing – Non. Acq. 0 $ 150,000 $ 300,000 $ 1,000,000
Tot. User Acq. - Cash $ 250,000 $ 1,000,000 $ 12,500,000 $ 50,000,000
Variable Head Count
Support 0.1 1 5 20
Retailer Relations 0 0 1 4
Company Ownership Cash Back Savings Exit
$960M Sale to Rakuten
$1.7 Billion IPO
$1.5 Billion IPO
$13 Billion IPO
COMPETITION
Going Public – Reg. A+:SEC QUALIFICATION
INVESTORS HAVE FREELY TRADEABLE STOCK
~ 3rd Qtr 2016
OTC QB listing expected
~ 1st Qtr 2017 Create robust market
EXIT STRATEGY
Investor stock is registered, and freely tradeable.
AS SEEN IN
Robert GrosshandlerCEO & Co-founder
Founder, iGive.com – 1997350,000 Members currently
Founder, eComXpo sold – 2008
Co-founder, The SOFTA Groupfounded 1981, 160 employees, sold 1993
EXECUTIVE TEAM
Sanford SchleicherCTO & Co-founder
CTO – iGive.com - 2008
j2 Global CommunicationsDirector
Co-founder and Chief Architect,Onebox sold – 2000
BS, Computer SciencesUniversity of Illinois
Melinda MooreCMO
CMO, Crowdfunder – 2015
Co-founder, LovingEco sold – 2012
Co-founder, Tuesdaynights2012 – 2016
BAUniversity of Los Angeles
ADVISORY BOARD
David CarlickVenture / Co-founder DoubleClick, Former CEO Public Company
Michael BrennanReal Estate / Private Equity, Former CEO Fortune 500 REIT
Robert [email protected]
AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT. YOU MAY OBTAIN A COPY OF THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT AThttps://www.sec.gov/Archives/edgar/data/1652350/000164460016000189/offeringcircular-8.htm.YOU SHOULD READ THE OFFERING CIRCULAR BEFORE MAKING ANY INVESTMENT.
CONTACT
“We have a chance to make a dent in the Universe.”
- paraphrasing Steve Jobs