investor pitch deck template - fanzine€¦ · mobile penetration: globally mobile internet grown...
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Executive SummaryMission statement: With 4 billion supporters, football is the biggest sport in the
world and we have developed world-class Apps for these Fans
Problem/Solution: Replacing bland official Club and basic generic news apps with
content rich club-specific Apps, seamlessly connecting the fan’s daily journey…
Roadmap: With a real-time platform and 22 Apps/Websites already built for
Premier League teams, this will now scale:
➢ Horizontally: By white-labelling 180 football teams globally (2019-23)
➢ Vertically: Configuring this modular software for new sports, like Cricket, Golf, NFL, NBA
Revenue potential: With three revenue streams, Affiliate Betting (£21.3m) is the
biggest, ahead of Advertising (£4.5m) and email (£1.9m) during 2019-23
ProblemGeneric apps: Both the official club and competitor apps are functionally
basic, they lack rich content and so force football fans to visit multiple sources
Fractured content: Complaints of information overload are wholly justified
in football/sports, with fans missing news and wasting time searching for it
Disjointed journey: The ‘disconnect’ between social media and regular
App/Website news & fixtures is a glaring gap ready to be bridged
Buggy apps: Despite serving a huge football audience globally, even
FotMob, Forza, 90Min, AllFootball and OneFootball are buggy and unstable,
particularly using 3G. Only the betting apps tend to be reliable
SolutionClub specific: Apps and Websites capitalizing on the huge club affinity
creating tremendous brand loyalty, mirrored socially with 535k followers
Aggregated: ‘One-stop shop’ for News, Gossip, Social, Video & Podcasts
Functional USPs: That all competitor apps lack: Chat system, email, Pub,
Restaurant, Hotel, Travel guide (GPS enabled) as well as Betting Analytics
Betting PropositionSummary: Bookmakers sharing 40% of lost bet revenues with affiliate
companies that drive new customer traffic to their platforms
Betting Analytics: Enriching bet markets (type) with the precise metrics
Traction: Affiliate contracts signed with 50+ Bookmakers (so far) globally
Enhance, not disrupt: Already mature market, with betting analytics to aid
the punter, still using their preferred bookmaker via our odds checker
18+: Crucially disabling betting for users under 18 years of age
Technology PlatformArchitecture: Scalable cloud-based data drive platform, consuming multiple
feeds to deliver real-time content to native mobile and web devices
Fanzine PlatformModules: Software components for
news, Twitter, Instagram, in-game
fixtures/tables, video, podcasts, chat,
email, betting and GPS venues & travel
Security/Payment: Mobile verification
and authentication, integrated with
PayPal, Apple & Android Pay
Defensible IP: Unique club domains
underpin loyal social following with
modules delivering USP features
Roadmap: 2019-20Product development: During 2019 focusing on key features such as
Betting Analytics, Podcasts, Chat Channels & Last Fan Standing
Vertical scaling: Branching into new sport/s during 2020, potentially Cricket,
Golf, American Football or Basketball leveraging our modular code base
Achievements to datex22 Apps/Websites: Built against a single codebase ready to scale for 180 football
teams globally, and then onto Cricket and the US Sports
Social followers: Totaling 535k across Twitter (190k) and Instagram (345k), for all 22
Clubs, generating 50 million monthly impressions
Global reach: With app downloads in 115 countries, so far:
Investors: £200k received from 13 investors,
with CrowdCube campaign planned (Nov 2019)
Contracts: 40% revenue share agreements
struck with 50+ Bookmakers globally
Revenues: Strategic advertising from Football
Index along with @domain email addresses for
2.1% of downloaded apps have contributed to
early revenues
Influencers: Symbiotic relationships
established with Fan TVs, Podcasters,
Supporters’ Clubs, YouTubers, Vloggers
and big Social accounts
Social Engagement
➢ Daily posts: Scheduled at 6:45am,
over lunchtime and then again at 5pm
➢ Match day: Posting in-game videos,
coupled with opinions and polls
➢ Engagement: With Likes, Retweets
and Comments driving the 50 million
monthly Impressions
➢ Organic growth: Weekly growth of 15k
followers, based on user engagement
Driving downloads: Actively posting for 22 Clubs on Twitter, Instagram &
Facebook 7 days/week, connecting social posts to App engagement
Market Size & Outlook
Sports Betting: Biggest driver of internet traffic, market cap of ~$250bln
➢ UK football: UK football market turning over $22.8bln (£17.7bln)
➢ Biggest market: Asia accounting for 47% with 12.9% annual growth rate (2019-24)
➢ Fastest growing: United States from $20bln (2009) to $73bln (2018) due to eased regulation
Audience: 3.2 billion people watched the 2018 World Cup
➢ Globally: Over 900 million follow a professional team on Facebook, with 75 million people
playing Fantasy Football globally
➢ Generation Z (9-23 years old): Spending 10+ hours online/day, watching 80+ videos
➢ Generation Y/Millennials (24-39 years old): Many still living with parents, so having higher
disposable income. With less control of the “big screen”, they tend to view-on-the-go
Macro Trends & Insights: 88% of sports betting done on mobiles
➢ Mobile penetration: Globally mobile internet grown from 52.7% (2017) to 61.2% (2018)
➢ Citizen journalism: With widespread “anti club” sentiment, fan coverage is on the rise
➢ Video: Accounted for 73% (2017) of internet traffic, growing to 82% (2021)
➢ e-Sports: Fastest gaming growth is pro-gaming, worth $650m (2017) to $1.5bil (2020)
Customer ProfileUser characteristics: The first 22k downloads have largely been UK &
European based, being driven by social, but the early global reach and multiple
revenue streams are very encouraging
Geography: With apps downloaded in 115
countries, Europe dominates so far with 78.8% of
the users, with 9% in US/Canada and 6.9% in APAC
Social Apps: With social media driving app
downloads, the 18-34 age group is the most
prominent, representing ~60% of social following
Revenue sources: Are currently derived from recognisable age groups
➢ Betting (18+): Both app notifications and social adverts are driving betting analytics
traffic, gaining the most engagement from the 18-34 age group, being the biggest
consumers of Twitter, Instagram & Facebook posts
➢ @email addresses: Are club domain specific, appealing to the 7-16 years old for their
first email address, with 2.1% of users ‘buying into’ this club affiliation
➢ Advertising: Early Football Index adverts on social media are targeting 18+ users
Age Demographics
Routes to MarketCustomer acquisition: Currently we are using the following five
key activities to grow our customer base
➢ Download posts: Publishing daily posts that both highlight a USP, whilst
‘calling out’ a podcast, video or news influencer, giving it some context
➢ Direct Messages (DMs): Accessing our Twitter (190k) and Instagram
(345k) followers by sending DMs with app download links
➢ Facebook strategy: Combining paid/boosted posts, as well as posting
into large supporters groups, many of which have >100,000 followers
➢ Influencer reach: We have a successful ’you help us, we help you’
approach with podcasts, Fan TVs, big social accounts, vloggers,
supporters’ clubs and strategic advertisers like Football Index
➢ Radio: Daily adverts on Time FM with Essex/East London coverage,
promoting Arsenal, Chelsea, Liverpool, Man United, Spurs & West Ham
Competitor AnalysisTop 5: Well funded, with 5-35 million downloads, but poor social presence➢ Funding: Four competitors have undergone multiple rounds, raising between $2m-$66m
➢ Socially: Surprisingly poor, with three only having 13k-30k followers
➢ USPs: Functionally Fanzine apps have seven obvious USPs
Unique Selling Points
➢ Betting analytics: With bet market specific stats
and odds checker engine
➢ Travel guide: GPS access to Pubs, Restaurants,
Hotels & Travel
➢ TV/Radio: Links covering matches globally
➢ email: Premium @domain address
➢ Chat: Connecting friends and travelling fans via
GPS-enabled global chat channels
USPs: Aggregated content with key features that
competitors apps simply don’t have:
Growth StrategyCustomer acquisition: Launch of 22 Apps (Mar 2019) converting social
following into App downloads
Horizontal: White-label more clubs
➢ App rollout: Deploying 10 Clubs in 2019
➢ Social: Daily Twitter/Instagram/FB posts
➢ Podcast/Fan TV: Engage with influencers
Vertical: Cricket or US Sports next…
➢ New sport: Utilising Fanzine platform
➢ Reuse: Software for News, Video, GPS etc
PR & Marketing: Organic and boosted
➢ Promo videos: App launch & new features
➢ Betting adverts: App notifications & social
➢ Prizes: Based on likes/reweets & reviews
➢ @email affiliates: Schools & grass-roots
Growth Metrics
2019 2020 2021 2022 2023
Downloads 50k 500k 1.6m 4.1m 9.7m
Social 750k 2m 5.3m 12.6m 27.8m
Rev perCustomer
£0.82 £1.48 £1.76 £1.81 £1.76
Football Clubs
32 66 110 143 180
Revenue Model
Revenues: Betting (77.0%), Advertising (16.3%) & email addresses (6.7%)
Affiliate Betting: Driven by fan traffic
➢ Revenue: Bookmakers sharing 40% of losing bets
➢ Analytics: Targeted stats for each bet market
Advertising: Video adverts & PPC campaigns
➢ Revenue: Chargeable per campaign
➢ Demographics: Utilizing user age, gender and location
email: @domain address signifying belonging
➢ Revenue: £1.99/month (global pricing) recurring
➢ Audience: 7-16 y/o for Snapchat/Insta & Xbox/PS4
Revenues: 2019-23
Team & AdvisoryFanzine Team
Kevin Lenehan (Founder)
Social Media/Design (London/Liverpool)➢ Talented Social Media team - six young ex-Pro/Semi-Pro players
➢ Award-winning graphics designer
Development (Kiev)➢ Highly skilled iOS, Android, Web & SQL Server developers
➢ Ukraine has an excellent Computer Science reputation
Advisory BoardStrategy
➢ COO from a major global Insurance company
Legal Counsel➢ Richard Williams from Keystone Law, specialist Gaming legal advisors
➢ 25 years in The City: Investment Banking Software/Trading Systems
➢ 6 years Derivation CEO: Grew revenues by 465% sold for x6 EBIT to Linedata in 2016
➢ Football coach and Arsenal season ticket holder
Investment & ValuationSeed Round & Investment to date:
➢ £500k Seed Round sought for 10% Equity (£5m pre-money valuation)
➢ EIS eligible with £5k minimum investment
➢ £500k Early Stage from Founder plus £200k from 13 investors (all at £5m valuation)
Use of Proceeds:➢ Runway: £500k funding key deliverables until end-2021
➢ Impact: 1.6m customers (5.4m social) generating £2.8m revenues
➢ Product development: £150k (30%) 110 football clubs plus cricket app launch
➢ Marketing: £200k (40%) multiple channels across social, influencers & radio
➢ Staffing: £150k (30%) building out social media team➢ #
Valuation: £5m with five significant contributing drivers
➢ x7 EBITDA: Market Cap of £11.2m (2021), £37.8m (2022) and £95.9m (2023)
➢ Defensible IP: Unique domains with strong social growth, pending TV betting ban
➢ White-labelling: New football teams with ease
➢ New Sports: Configuring modular code base for Cricket, Golf, NFL, NBA etc…
➢ Market depth: Sheer size of team sports and betting market
Financials
5-year financial forecast: Driven by social following
and App downloads
Key Financials
2019 2020 2021 2022 2023
Revenues £185k £824k £2.8m £7.3m £16.6m
EBITDA -£167k £119k £1.6m £5.4m £13.7m
Expenses £352k £705k £1.2m £1.9m £2.9m
Rev/Customer £1.06 £1.65 £1.74 £1.84 £1.72
Downloads 50k 500k 1.9m 4.8m 11.3m
Exit StrategyTrade sale: Same-sector synergies entice strategic buyers into a trade sale.
Early positive PR will ensure that potential buyers know exactly who Fanzine are…
5-year timeline: Key milestones around product, marketing and scaling out:
➢ 2019-20: Launched 66 football apps with successful influencer relationships globally
➢ 2021-22: Vertically scaling into Cricket and US Sport/s with associated marketing effort
➢ 2023: Due diligence, prep and stewardship towards trade sale, with plc style reporting
Why acquire?: Three compelling characteristics:➢ Scalability: Product expansion into 180 football teams as well as Cricket & US Sports
➢ Global reach: Huge audience utilization driven by high affinity sports teams
➢ Multi-revenue: High volume betting, demographic advertising & recurring email streams
Who?: With independent odds checking as a key feature, the buyer will not be a
bookmaker, but instead a media or affiliate company
M&A activity: Examples in the affiliate sector:➢ ASAP ITALIA (Jun 2018): €16m Catena Media sports betting firm on x8 times EBIT multiple
➢ Finnish gaming (Jan 2018): €15m XL Media acquisition on a x12 times EBITDA multiple
➢ BettingPro (Jul 2017): £13.9m Catena Media buys betting advice firm for x6 times EBIT multiple
SummaryOpportunity: Replacing the fractured content and generic platforms with club-
specific apps that aggregate and “bridge” the Social App gap for fans globally
Achievements: x22 apps/websites downloaded in 115 countries bolstered with
535k social followers and powerful influencer relationships established globally
Scalability: Real-time platform that will “white-label” 180 Football apps with
ease and then re-purpose the modular software for Cricket & US sporting teams
Market & Customers: UK football betting is worth $22.8bln, with Asia the
biggest market and the US growing the fastest. Early global reach of customers
are 79% Europe, 9% US/Canada & 7% Asia, with 60% being 18-34 years old
Multiple revenues: Affiliate betting, advertising and club-domain emails are
being marketed across Social/DMs, Facebook boosts, Influencers and Radio
Exit: The trade sale acquirer is likely to be an Affiliate or Media company and the
buyer who identifies the most “strategic” value will attach the highest bid
Assumptions & Revenues