polygen comptool presentation
TRANSCRIPT
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POLYGEN will be the market leader in Big Data for the Green Products Industry by providing quantifiable information to
support Green Procurement and Corporate Social Responsibility Initiatives
Mission Statement
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Initial Sustainability efforts placed emphasis on Recycling Initiatives and Operational Efficiency Programs which
delivered measurable results
Initial Sustainability Efforts
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Companies, organizations, and the individual consumer are improving their environmental footprint and reporting their efforts
Growth of Sustainability Reporting
Corporate Social Responsibility Reporting Statistics
2/3 of Fortune 500 Companies 2000 Companies in North America
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Growth of Green Products & Services
Small Business Green Products and Services Statistics (Green America, Association for Enterprise Opportunity, Ecoventures
International, “The Big Green Opportunity for Small Business in the U.S.”, 2013)
“Companies [we surveyed] reported that they can charge an average 19 percent premium for sustainable products and services.” (Accenture, “Long-Term Growth, Short-Term Differentiation and Profits from Sustainable Products and Services,” 2012)
Indirect Increase in revenue based
on Green Behavior
75% saw an increase in
sales (2008-2011)
75% plan to expand their portfolio of
offerings
79% strongly agree they
offer a competitive advantage
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The Informed Consumer
The availability of information is driven by Consumer Demand and Technology
Kayak: A travel meta search engine
Goal: Enable the consumer to compare hundreds of travel sites at once in one comprehensive, fast, and intuitive display
With full information the consumer can see through marketing schemes and purchase the highest quality offering at the most reasonable price
Zillow: An Online database of more than 110 million U.S. homes including: homes for sale, homes for rent, and homes not currently on the market Goal: Empower consumers with information and tools to make smart decisions
McDonalds: 14,000 locations across the US will voluntarily post calorie information on restaurant and drive-thru menus Jan Fields, president of McDonald's USA: "We believe it will help educate customers. I do think people feel better knowing this information."
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Greenwashing
How do you clear through all the noise?
There are over 400 Green Labels and 3rd party rating systems
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Consumer Confusion
• Green products cost more Price
• There is a lose in performance Performance
• The environmental impact is negligible Impact
Purchasers are still misinformed about green products and make 3 general assumptions:
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Consumer Trend
A majority of consumers would purchase more green products if they:
• Had a better understanding of what makes products Green • Could see the social & environmental benefits of the products right away
• Believed the health and environmental claims
RE:THINKING CONSUMPTION Consumers and the Future of Sustainability ©2012 All rights reserved BBMG, GlobeScan, SustainAbility
Industry Feedback:
“Our Sales Team is asked daily about the environmental impact of green products”
“Looking for a Turnkey Solution”
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CompTool Offering
Providing this information allows the user to make informed business decisions
A platform which provides the user with:
Side by Side Product Comparison
Quantitative Information from an environmental and cost perspective
Analytics around market trends within verticals
Self reporting capabilities
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Revenue Model: PaaS
Sales Tool MRO & Big Box Retail
Procurement Tool Corporations & Government Entities
• Subscription Fees
with upgrades:
• Sustainability Reporting
⁻ Self Reporting
• Data/Analytics
⁻ Impact by Product Group
⁻ Estimated Price of Impact
⁻ Market Trends
• Affiliate Programs
No company aggregates data to provide the quantitative environmental impact
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CompTool Market Strategy
• Additional Focus:
Value Add within Strategic Partners Offering
• Marketing Channels:
Direct Sales
Online Marketing Campaign
Third Party Affiliates
CompTool
Strategic Partners Offering
Final Offering
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CompTool Status
• Through a Strategic Partnership with
• 45,000 products within: Lighting
Material Handling
Cleaning Supplies
Paint
Database / Verticals Channels
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CompTool Screen Shot: Grainger
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CompTool Screen Shot: Grainger
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Product Analysis: Grainger
6,021 Total Products 1,049 Green Products
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Analytics: Lighting Category
2,593 Lighting Products 907 Green Lighting Products
Complete Lighting Product Bar Chart
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Analytics: Linear Fluorescent
515 Linear Fluorescent Products
Non Green vs. Green Product Price Comparison (Sample Size of 30 Products)
Non Green vs. Green Product Environmental Comparison
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Product Comparison: Linear Fluorescent
T12 T8
Manufacturer GE GE
Product Part # F40XL/SP41/ECO F28T8XLSPX30ECO
Price Per Unit $8.66 $12.25
Green Environmental Attribute Product Contributes To Reducing Energy Consumption
Useful Life 24,000 Hours 42,000 Hours
Price Comparison over Useful Life $17.32 $12.25
Watts 40 28
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POLYGEN P3: Environmental Comparison
Environmental Impact: T12 vs. T8
Please note: Comparisons calculations use a baseline average
useful life of 24,000 hours
Alternate Product has a 66% longer useful life
Units of Measure
o CO2 Emissions - LBS
o Electricity - kWh
o Oil – Barrels (BBL)
Overall Environmental Impact
30% reduction in CO2 Emissions, Energy Usage, and Barrels of Oil
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POLYGEN P3: Everyday Comparison
Environmental Impact: T12 vs. T8
Please note: Comparisons use a baseline average useful life of 24,000
hours for calculations
Units of Measure
o Miles Driven
o Trees needed to Sequester CO2
o Homes Powered
Overall Environmental Impact 30% reduction in Miles Driven, Trees Required to Sequester CO2, and
Homes Powered
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Beta Development
• Project Scope- 6 Months
Platform Design
• Dashboard/User Functionality
• Analytics
• Reporting
Implementation
Testing
Maintenance
• Additional Scope
Increase Database
• Additional Verticals
• Additional Channels
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Funding Requirements
Seed Round - CompTool Development/Customer Acquisition • Use of Funds
Beta Development- $200,000 Marketing - $72,000 Operating- $54,000
• Total - $326,000 See appendix for breakdown
Sales
Development Operating
• Key Personal with Focus on: Why will Customer Pay for Product Creation of Product Customer will pay for
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24 Month Milestones
Revenue generated
On Going
On Going
6 Months
1 Month
3 Months
3 Months
6 Months
Product Development
Customer Acquistion
Product Roll Out
CompTool Launch
Procurement Contract…
Sales Contract #1 Signed
Beta Platform…
POLYGEN CompTool
0 3 6 9 12 15 18 21 24
Series A Funding- $1.5MM
$
Ramp Up-Additional Developers, Sales Staff, Marketing, Operating
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Exit Strategy
Two Potential Exit Strategies:
• Acquisition by Strategic Partner, Customer or Technology Company Corporations may see POLYGEN as a value add to current offering MRO, Large & Mid Cap Tech Firm, Procurement Software Company
• Initial Public Offering POLYGEN will explore this option once the company generates revenue
to justify offering
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Contact Information
Jason Hancock (224) 717 – 4686 [email protected]
Website: www.polygeninc.com
Matt Stawiarski (847) 757 – 6210 [email protected]
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Appendix 1. Market Statistics (p. 28) 2. Competitive Landscape (p. 29-32) 3. CompTool: Additional Benefits (p. 33) 4. Risks (p. 34-35) 5. Seed Funding Burn Scenarios (p. 36) 6. Why are we raising money? (p. 37-38) 7. Subscription Model (p. 39-40) 8. Revenue Projections (p. 41-44) 9. CAC Projections (p. 45-46)
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Market Statistics
• Lifestyle of Health and Sustainability consumer has grown to over $300 billion in buying power
• Green Building market (2013) $96 - $130 Billion
• Per Transparency Market Research, Global Green Packaging market was $109 billion in (2011) and expected to grow at a CAGR of 7.6% from 2013 to 2018
• Per The Freedonia Group, World demand for green packaging - including recycled-content, reusable and degradable packaging - is projected to rise 5.7% per year to US$212 billion in 2015
• Per Markets and Markets, Global Green Solvents and Bio Solvents market (2012) was $4.0 billion and
is estimated to reach $6.5 billion by 2018, growing at a CAGR of 8.5% from 2013 to 2018
• In a joint study with McKinsey & Co. on the (Sustainability software) market, SAP predicted the market for SAP’s solutions would be worth as much as a total of 7.5 billion euros between 2009 and 2014.
• Wikibon forecast the Big Data market will grow at an astounding CAGR of 58% between now and 2017, hitting the $50 billion within five years.
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Competitive Landscape
• Current participants: Green Certification and Labeling Organizations Green Rating Systems
Green Labels Rating Systems
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EPEAT
Label Description: • EPEAT is an online rating tool helping institutional purchasers select and compare computer desktops, laptops
and monitors based on product criteria.
• EPEAT was developed in response to growing demand by institutional purchasers for an easy-to-use evaluation tool enabling them to compare electronic products based on environmental performance, in addition to cost and performance considerations.
• Over 3,000 registered products Criteria: Ratings: 4.1 Reduction/elimination of environmentally sensitive materials 4.2 Materials selection 4.3 Design for end of life 4.4 Product longevity/life cycle extension 4.5 Energy conservation 4.6 End of life management 4.7 Corporate performance 4.8 Packaging
http://www.epeat.net/ 30
Green Seal
Label Description: • Third-party organization offering life cycle-based sustainability certifications for
products, services and companies that meet Green Seal standards
• Green Seal has 31 issued standards that cover over 375 product and service categories Products: • Household • Construction Materials • Paint • Paper • Food Packaging • Cleaning Products • Personal Care
http://www.greenseal.org 31
GoodGuide
• GoodGuide rates products based on the health, environmental, and social performance of products and companies to help consumers make purchasing decisions
Rating System: • GoodGuide's summary rating combines product and company level information to characterize a
product's health, environmental and social impacts.
• The best products rate 8 or above; the worst rate 4 or below
• Health, Environment and Society individually rated as ‘Sub Scores’
Product Categories: • Personal Care • Food • Household • Babies and Kids • Pet Food • Apparel • Cars
http://www.goodguide.com/ 32
CompTool: Additional Benefits
Sales: • New revenue stream with reporting capability • Increase price competitiveness • Indirect increase in sales through improved green behavior • Utilization of the CompTool’s procurement function to report on purchasing
Procurement: • Indirect increase in revenue based on green behavior • Potential savings around price comparison • Savings around self reporting environmental impact
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Risk Factors
Tool & Technology Can POLYGEN develop the tool with the necessary functionality for customer use & satisfaction? POLYGEN has developed the foundation of the CompTool with the initial integration of Grainger lighting and material handling products in the CompTool platform. Similar integration is expected around additional sales channels and product verticals currently being aggregated. Does the CompTool deliver accurate information on price and environmental impact? The key data points such as price, material content, and weight are aggregated by Market Track and filtered through our CompTool’s formulas and backend analytics to provide the environmental impact and market trends. Our analytics for the environmental impact are derived from industry leaders in Life Cycle analysis, international manufacturing trade associates, and government research agencies.
Market Will customers pay for the CompTool? Our market research indicates a gap within the green products market, specific to the environmental impact of green labeled products. Potential users of the CompTool have indicated their demand for a turnkey solution to address this issue. The growth in the Big Data industry illustrates the markets willingness to pay for similar information.
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Risk Factors
Competition Will Good Guide or other market participants present quantitative information? Good Guide’s current methodology and business model revolve around providing the consumer with a rating on each product within their database. POLYGEN’s methodology revolves around providing the user with quantitative information to a) come to their own conclusion by comparing products side by side taking environmental impact and price into consideration b) provide measurable impact reports to include within their CSR Reports.
Team Can the POLYGEN team deliver a commercial product and effectively take that product to market? POLYGEN has successfully built the foundation of the CompTool and partnered with industry leaders to support our efforts.
Funding Will POLYGEN be able to obtain the funds needed for further development and launch? POLYGEN believes by developing it’s MVP (basic platform, robust database with industry leading supply channels, and high volume products within the green products category) and mitigating as much risk as possible we will be able to obtain funding at the right valuation to successfully launch the CompTool and provide the necessary ROI for its seed round participants.
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Seed Funding: Burn Scenarios
*Subject to adjustments dependent on Phase 1 Design (Month 1-3)
9 Months 18 Months
Expenses
*Tool Development $99,000 $200,000
Operating $27,000 $54,000
Marketing $36,000 $72,000
Total Operating $162,000 $326,000
Dry Powder $164,000
Total $326,000 $326,000
Assumptions: • Total Seed Funding: $326,000 • Monthly Operating: $3,000 • Monthly Marketing Burn: $4,000 • Development: 3 Payments
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Why are we raising money?
1. Why are you raising money? POLYGEN identified a void of quantitative information around the environmental impact of green products . Research and market feedback validated the need for a solution leading to the initial development of the CompTool
2. What would you use the money for? Beta Development of the CompTool Platform and initial customer acquisition…getting in the door, generating product awareness. Key Personnel acquisitions specifically… Developer/Development Team /CTO
3. What are your goals as founders? How will raising money impact these goals? Our primary goal is developing a product that we can take to market. With a team that shares our goals and business ethics. Raising capital allows us to accomplish these goal.
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Why are we raising money?
4. What milestone will the funding get you to? Will this milestone lead to either (a) breakeven or (b) another round of financing where the value of your company higher than the previous round. Key Milestones: Identify Product Development Team, Development of Product, Customer Acquisition, Revenue Generation. Leads to Series A round (est. $1.5MM) to launch the product, expand personnel and marketing efforts
5. How are other companies in the industry capitalized and what implications if any does this have for you? Following the roadmap of MVP development, traction and ramp up. Food Genius : $3.6MM over the course of 2 years
6. What is the macro-economic climate? Is the economy growing/shrinking and what will it be doing in six months?
US Equity indices are at all-time highs. At the micro level within the green products and services market research points to growth within the industry. Additional government mandates may positively influence this sector.
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Subscription Model: Sales Tool
Level - 1 Level - 2 Level - 3
Features Compare Product (Enviro) Compare Product (Enviro) Compare Product (Enviro)
Compare Prices Compare Prices Compare Prices Reporting Reporting
Data Analytics
# of Users # of Users # of Users 1 to 10 1 to 10 1 to 10
Price Price Price
Per Year $150,000 $170,000 $220,000 Per Month $12,500 $14,167 $18,333
Average User Fee $15,000 $17,000 $22,000 *Additional Users $11,250 $12,750 $16,500
Sales Tool
*Additional User Fee discounted @ 25%
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Subscription Model: Procurement Tool
Level - 1 Level - 2 Level - 3
Features Compare Product (Enviro) Compare Product (Enviro) Compare Product (Enviro)
Compare Prices Compare Prices Compare Prices Reporting Reporting
Data Analytics
# of Users # of Users # of Users 1 to 10 1 to 10 1 to 10
Price Price Price
Per Year $15,000 $17,000 $22,000 Per Month $1,250 $1,417 $1,833
Average User Fee $1,500 $1,700 $2,200 *Additional Users $1,125 $1,275 $1,650
Procurement Tool
*Additional User Fee discounted @ 25%
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Revenue Projections: Sales Tool
Year1 Year 2 Year 3 Year 4 Year 5
Rate Fee Fee Users Revenue Users Revenue User Revenue Users Revenue Users Revenue
Addition $ 150,000 1 $ 150,000 2 $ 300,000 4 $600,000 6 $900,000 3 $450,000
Retention 50% $ 150,000 1 $150,000 3 $450,000 6 $900,000
Upgrade 40% *$ 170,000 **$ 220,000 1 $170,000 2 $390,000 5 $1,000,000
Churn 10% 0 -1 -1
Total Clients 1 2 6 11 14
Total Revenue $ 150,000 $ 300,000 $920,000 $1,740,000 $2,350,000
% Revenue Growth
(Year to Year) 200% 307% 189% 135%
*$170,000 represents Level 2 Subscription Fee **$220,000 represents Level 3 Subscription Fee 41
Revenue Projections: Procurement Tool
Year 1 Year 2 Year 3 Year 4 Year 5
Rate Fee Fee Users Revenue Users Revenue Users Revenue Users Revenue Users Revenue
Addition $ 15,000 1 $ 15,000 10 $ 150,000 50 $750,000 450 $6,750,000 330 $4,950,000
Retention 50% $ 15,000 5 $75,000 30 $450,000 255 $3,825,000
Upgrade 40% *$ 17,000 **$ 22,000 4 $78,000 24 $468,000 204 $3,978,000
Churn 10% -1 -6 -51
Total Clients 1 10 59 504 789
Total $ 15,000 $ 150,000 $903,000 $7,668,000 $12,753,000
% Revenue Growth (Year
to Year) 1000% 602% 849% 166%
*$17,000 represents Level 2 Subscription Fee **$20,000 represents Level 3 Subscription Fee 42
Revenue Projections: Affiliate Fees
Year 1 Year 2 Year 3 Year 4 Year 5
Users 1 10 59 504 789
Average Procurement $ $25,000 $25,000 $250,000 $1,475,000 $12,600,000 $19,725,000
Affiliate % 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
POLYGEN REV $750 $7,500 $44,250 $378,000 $591,750
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Revenue Projections: Consolidated
Year 1 Year 2 Year 3 Year 4 Year 5
Sales Tool Total Revenue $150,000 $ 300,000 $920,000 $1,740,000 $2,350,000
% Growth (Year to Year) 200% 307% 189% 135%
Procurement Tool Total Revenue $15,000 $150,000 $903,000 $7,668,000 $12,753,000
% Growth (Year to Year) 1000% 602% 849% 166%
Affiliate Fee Revenue $750 $7,500 $44,250 $378,000 $591,750
% Growth (Year to Year) 1000% 590% 854% 157%
Total Revenue $165,750 $457,500 $1,867,250 $9,786,000 $15,694,750
% Growth (Year to Year) 277% 408% 524% 160%
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
1 2 3 4 5
5 Year Revenue Projections
Yearly RevenueProjections
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CAC: Sales Tool
Cost Audience Conversion Rate Conversion CAC LTV Rate
Direct Sales $87,501 20 5% 1 $87,501 $300,000 29%
Sales MMR $12,500
Subscription Term (Month) 24 LTV $300,000
Max CAC (1/3) $100,000 Ideal CAC (1/5) $60,000
Salary (Sales) $50,000
Marketing $15,000 Overhead $5,000
Commission 7.5% Commission in $ $22,500
Revenue Assumptions: Cost Assumptions:
CAC Assumptions:
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CAC: Procurement Tool
Procurement (MMR) $1,250
Subscription Term (Month) 24
LTV $30,000
Max CAC (1/3) $10,000
Ideal CAC (1/5) $6,000
SEM
CPC $6
Budget/Day $133
Budget/Month $3,990
Budget/Year $47,880
Clicks/Day 22
Clicks/Month (30 Days) 660
Clicks/Year 7,920
Cost Audience Conversion Rate Conversion CAC LTV Rate Direct $57,500 200 5% 10 $5,750 $30,000 19%
SEM $47,880 7,920 0.3% 20 $2,418 $30,000 8% Green Biz Webinar
$30,000 500 1% 5 $6,000 $30,000 20%
*$135,380 *35 **$3,890 **$30,000 **13%
Revenue Assumptions: Google AdWords Assumptions:
CAC Assumptions:
*Cost & Conversion are summed in total **CAC, LTV, and Rate are averaged in total
Direct Cost Includes: Salary, Commission & associated overhead
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