Cycle 19 final meeting transcript

Flirtuity Million dollar matchmaker charges 20K per client; what are you going to charge; Doesn’t seem like $100/transaction is not going to be enough revenue; How does this differentiate with myspace/facebook – they can exchange information for free? Do you have anyone lined up? When you say quality, do you have any yet? Where did pricing come from? Why not $200-300? What were the assumption for income of the users – who is the target in terms of annual income or age? How will you control the age? These numbers are big. What do you mean by these? Tell me what affiliate sales means – this is $10M in the first year; Who have you partnered with for revenue sharing yet? Year 3 net profit soars, but growth rate of visitors decreases, I’m assuming its because cost of goods sold rate doesn’t grow, that’s COGS. Why is net profit going up so fast?? What contributes to that high increase? What’s the profile of a sign-ups so to date? What age group were the signups? What was the male/female ratio? What benefit did they get by signing up? You’ve mentioned you are targeting socialites, do you have any strategies for achieving that? [why target socialites if the problem is lack of confidence/skill with meeting new people?] What is your source of experts? How does your strategic partner plan fit with that? The number of impressions by year 5, 11B, can you explain that? How do you define an impression? [model says 3B, slide says 11B) What are the conversion rates of these activities? I don’t believe this is achievable. These numbers are too big. You can’t believe a model without question. How did you reach the 10M figure in the first year? How are you making the connection from CTR all the way to ad sales. Where did the $3.00 CPM come from? What are the sales expected to be in year 5? 2 times multiple of sales is what you expect to sell for? Over what timeframe can we expect that return? Is the investment worth 10x? Why do you need $20M? What will that pay for? How did you establish your valuation today? What lead you to conclude the company is worth $30M today? What have you accomplished so far that makes it worth $30M today? Autism Buying Network How do families pay for it now? Can you talk about your competitor, autismspeaks.org? How are you using surveymonkey to find people to survey? What would the relationship between you and autism one be? Why these buyers? Have they shown the propensity to buy companies like this in the past? Do you have any idea what the multiples go for in companies like this? What annual savings for families do you project? What percentage of the market already has their children in treatments? Buying from professionals is not a commodity. If they have a working relationship, will they want to change providers to save some money? Will your service help them find the right one? How do you dial into that turnover in the market? How are you going to identify a good therapist vs. a bad one? How are you actually going to get them to give you a discount? Have you considered a service that would qualify providers? Give an advantage to providers who join the network – a stamp of approval. The people who are providing discounts need to believe they will sell more. Haven’t yet addressed why they would do it and what the value proposition is for them; They don’t believe they have a problem selling – they believe they have all the clients the can handle. Shortage of psychologists. Show some numbers on how much time it takes to find the right person to get help. How will you handle controversial positions, such as inoculations? Second Opt Where were the people you surveyed? Who did you survey? How many respondents did you have? What is the demographic makeup of respondents? Male/female, Ages?, any income data on the people surveyed? Not clear on how you are differentiating yourself from ebay? What research do you have to support that personableness is an important factor in buyers making purchases? What are the pain points that the market is not getting today? What’s to prevent a bait and switch? They can show you anything on the video. Is fraud really a big problem in this marketplace? What percentage of those 660M monthly online buyers/sellers are unsatisfied? How will you handle complaints or disputes of fraud? Where does your responsibility come in? Will you make the customer whole and reimburse? Do you have to spend money on legal fees? Do you do refunds? This is completely different from Monday when it was second hand/consignment shops, did you get advice that took you off the original plan? Can I buy from a local thrift shop? You are selling trust. What would the investment required be to do the original idea for servicing businesses? Would there be any advertising packages for them? Debrief Weny White Eagle Victoria Halas Julie McNeil Steve Miller Tom Churchwell Shad Churma Al Stamps Did well with presentations, not nervous; did well handling larger audience group; Knowing materials, comfortable, no hands shaking (only one); Not overly wordy slides – good job of speaking to slides and no reading of slides. Knew material very well. No guessing. Attempted to think through process on the fly, and admitted areas that had been overlooked. Transitions between group members was strong – handoffs – I’ll let the CFO answer that question. The challenge is a complex presentation with a lot of information in a short amount of time. Good at presenting the problems and solutions. Tell a story. All had good beginnings and mostly good endings. Middles were tough. Didn’t feel like you had envisioned what it would be like to run these businesses. Very large numbers. Not able to explain what value was there. Or what you would use the money for. No discussion of the organization – who are you going to hire, what are those 400 people doing? Have much smaller amounts of money required up front. You have evidence these ideas are working. You need to wrap those successes into your story. Flirtuity feedback Should have been knowledge across the team about the numbers lining up. Threw dejuan under the bus. The question I was asking was basic and should not have required the cfo to answer. Disappointed you didn’t show a demo. A learning from that is to back it up. We talked about the need for a backup on project 1. technology will always fail. Things were more ‘in theory’ access to coaches and experts. Didn’t get a sense of how you were going to make use of it. Felt like this was what the four of you wanted, vs. what you learned from the market or from talking to people. You did not necessarily understand or learn from your market. For example, 18-34 what percentage would be willing to spend on a service like this. Autism Buying Network Team introduction was extraordinary. Anecdotal experience. Presenting the team’s experience. Recapped and again talked about the team. Specific partnerships setup. With names, with outcomes. Obvious effort. Financial projections over the top growth. Much more realistic. Seamless. Knowledge of where the business was going in the future – clear and confident; In depth knowledge of the space; Credible. Competitive advantage slide was not clear – looked like consumer health alliance was close to what you are doing. Wasn’t clear how you would have sustainable advantage. Passion and balance. Divided your partnerships and competition strangely. Some people were competition others partners. Not clear. Defined in terms of economics. Is that really the problem? As a family, is there something else that is really the problem. What is it that they are not satisfied with. the subscription might be a hard sell up front. Adds to problem before savings. At end, could take this idea and apply to other diseases. We love that. Platform technologies. Reuse it in new context. Good news for investors. Long term, quality aspect will take you further; people are obviously not satisfied if they are searching that much online. Second Opt Strategic change this week. You should talk to advisors. Team made its own decision. Advisors gave different advice – real world. Think about your audience. Always tailor your presentation. People come in to me all the time who have no idea what we invest in, how we invest, what we expect. All of that information is easily available. Do your due diligence on your audience; Oh by the way we weren’t going to ask for money, we wanted advice; The original idea, going to resellers, you are reducing tension and anxiety on the part of the buyer. There is bricks and mortar there. That is differentiator. Not all benefits are economical, there is psychological benefit here. Who else is doing this? Talk to them. Interview small businesses. What do they need? What is there pain? Cycle Debrief Sad Wow Beneficial Exciting Exhilarating Relieved Experience Tired Transcendental Testament Breathtaking Sad that its over

A Measurable Impact

Initial placement rate:
90%
Industry retention rate:
81%
College attendance rate:
55%
Alumni actively engaged in their communities:
72%
Average 12-month earnings before program:
$10,790
Average 12-month earnings after program:
$44,010