slang dang final 3 9 2010

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News the Moment it Happens Trent Krupp | Talat Fakhri | Michael Williams March 8 th , 2010

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SlangDang: News the Moment it HappensThis is the presentation to potential angel investors for the web application SlangDang. SlangDang uses social media to identify breaking news and then displays real time search results and relevant news content so that users can follow all available information related to a breaking news story as it happens.

TRANSCRIPT

  • 1. News the Moment it Happens Trent Krupp | Talat Fakhri | Michael Williams March 8 th , 2010

2. : News the Moment it Happens 3. Team Trent Krupp CEO & Founder Founder ,Hobocans(consumer product development) Consultant ,Constitution Group(high-tech recruitment) Founder ,Quantips(software consultant) Mathematician ,MindValley Labs(web marketing) Talat Fakhri Director of Engineering Founder ,Mementum(online product marketing) Product Development ,MindValley Labs(web marketing) Michael Williams Director of Marketing 4. Market 76.5 million people in the US use the Internet as primary news source (18-65 years olds)

  • Market 2: News Data Market
    • 450,000 users (across Bloomberg, Reuters and others), $6-Billion Market
    • SlangDang would offer real-time news updates as a supplement to existing news data users. Possible $8-million market opportunity.
  • Market 3: SmartPhone Application
    • BNO charges $2/download plus $1/monthly.At 5MM unique users, a .5% conversion generates $227,500 in yearly revenue.

Unique Visitors / Mo Pageviews Advertising / Mo Media Partners 10,000 60,000 $60 $250 50,000 300,000 $900 $1250 100,000 600,000 $3,000 $2500 1,000,000 6,000,000 $30,000 $25000 5,000,000 30,000,000 $150,000 $125,000 10,000,000 60,000,000 $300,000 $250,000 5. Competitors

  • SlangDangs Comp Advantages
  • Purely algorithmic, which is faster than other approaches for breaking news
  • Dependable intellectual property versus relying on human custodians
  • Allows users to easily find social media and news stories related to breaking-news feed
  • Lower overhead
  • Only a news wire service now
  • Not marketed towards consumers
  • Not fully automated, dependent on the founders
  • Users cant follow RTS results
  • Add suggestion algorithm to existing real-time search
  • SlangDangs Defensibility
  • Current algorithm and iterations are not public
  • Possible copyright protection for US market
  • First to market will secure the platform for people as the first place to get news

6. Value to Users and Partners SlangDang combines the appeal of BNO with the audience of CNN or Drudge Report and uses both business models: Custom news wire service and online advertising. 7. User Acquisition Launch Growth Maturity Breaking news and getting word of mouth referrals Directly approaching journalists, technologists, and news junkies Being placed in RTS results Marketing additional algorithms for other niches Posting SlangDang news on social media networks and websites like Digg, Fark, Hacker News Linked back by media partners Custom algorithms for governments, marketing departments and financial services firms SEO search results on recent news events 8. Business Model Future Potential: News-wire Service User Introduction Return Users Funnel User to Media/Advertising Partners

  • From :
  • Breaking News
  • Blog Features
  • Links from News Stories
  • Social Media (Viral)
  • SEO
  • Based On :
  • Bookmarked by users
  • Checked multiple times daily for news updates
  • SmartPhone downloads
  • Social media links-back
  • Revenue :
  • High page-views
  • High CTR to media partners
  • High average time on site
  • Consistent audience

Partner with Bloomberg or Reuters Market additional SlangDang feed Provide business customers with to-the-second breaking news feed Service for 8 billion-dollar market 9. Financials Sept - Dec 201010 2011 2012 Assumptions Page Views /Mo Avg1 600,000 6,000,000 30,000,000 Investment =$250,000 Advertising Stake =10% Ads2,3 $12,000 $360,000 $1,800,000 Hurdle Rate = 5% Media Referrals2,4 $10,000 $300,000 $1,500,000 News Wire Pro Service5 $27,000 $63,000 SmartPhone App6 $45,500 $227,500 Total Revenue $22,000 $732,500 $3,590,500 IRR = Research and Development7 $33,750$90,000$135,000 Sales and Direct Marketing8 $16,100$64,350$198,150 28% General and Adminstrative9 $1,898$18,980$94,900 Total Expenses $51,748$173,330$428,050 EBIT ($29,748) $559,170$3,162,450 10. Exit Strategy News Wire Services News Organizations Information Services SlangDang would add value to their existing news wires and customers. SlangDang would provide a social media breaking news component to existing audience. SlangDang would offer suggestions improving the usability of real-time search results. 11. Q & A

  • Product
  • Team
  • Market Size
  • Value to Users and Partners
  • Business Model
  • User Acquisition
  • Financials
  • Financial Assumptions
  • Potential Acquirers

12. Financial Assumptions

  • Page-views: Based on similar style websites.Given as Avg PV /mo. ( Drudge ReportValuation)
  • Unique viewers: Taken as 1/6 thof page-views. Based on similar style websites ( Drudge ReportValuation)
  • Ad prices: Based on similar style websites (Quoted as $5 AVG / 1000 PV for large viewership websites) ( Desilva and Phillips )
  • Media Referrals: No specific data. Set rate at 5-cents per click with a CTR of 50% of unique viewers, given low value media market but high relevance of SlangDang to media websites.
  • Customer growth of news wire based on BNO News success.Fees based on $1500/month assumption, which is inline with other news wire subscriptions. ( Thaindian News ,Forbes )
  • SmartPhone App: Based off of BNO Pricing ($1.99 to download, $1/mo) ( TechCrunch ), 30% of revenue going to Apple ( TechCrunch ) and .5% of unique viewers purchasing app.
  • R&D Expenses: To hire 1.5 developers in 2010, 2 in 2011, and 3 in 2012.Assume $45k/per full-time developer based in Malaysia (top Malaysian talent).
  • Sales and Direct Marketing: Covering one sales person in the US 1/2th time in 2010, then full-time in 2011 and 2012.$30,000 base plus 5% of advertising sales.
  • General and Admin: Includes server and bandwidth costs.Based off of Atlantic Metro quote of $249 for 3000 gigs/mo then scaled based on page-views. ( Atlantic Metro Quote )
  • For 2010: Expenses given over 6-month period (June to December) and revenue given as a 4-month period (September to December) based on a public launch in August 2010.