Download - Trust egg overview 01 21-13
The simple way to save
Company OverviewJanuary 2013
An online financial institutionthat creates an easy to usesocial saving network
How it works
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The first viral financial product
• Parents invite family & friends to contribute
• Family & friends sign up new accounts
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Common Trust Fund
Behind the Scenes
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UTMAUTMA UTMA UTMA
Parent opens one UTMA for each child
TrustEgg pools accounts into a CTF
As custodian, TrustEgg invests CTF
Two years of legal & expert research
Families save a lot for their kids
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<$35k $35k to $100k >$100k
$51.1k
$20.6k$13.7k
Source: “How America Saves for College”, SallieMae NaPonal Study of Parents with Children Under 18, Conducted by Gallup 2010
Average Savings at age 18 by Level of Income
60% are saving for their children’s college80% start before the child turns 667% use regular savings or checking accounts
$28k overall average$132 per month
$53 per month
$35 per month
$73 per month
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529 plans not widely used
• Less then 3% parPcipate
• Of those that do have:– 25x more money
– 3x median income
• Reasons cited: Too complicated, don’t understand, fees to high, could lose money if child doesn’t go to college, don’t know which state, too many choices
$170 billion under management
The market is ready
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---------- Forwarded message ----------From: Ernie KrauthDate: Sun, Jan 20, 2013 at 12:23 PMSubject: Re: TrustEggTo: Jeff Brice <[email protected]>
Jeff,
My Brother actually read an article about your company because I am expecting my second child any day now.
I think this is a great idea and I am definitely willing to try setting it up. I really want my family to participate but they are a little technically challenged so I hope it is as easy as it sounds.
I look forward to the launch and preparing for my children's future.
Ernie---------- Original Message ----------On Sat, Jan 19, 2013 at 4:32 PM, Jeff Brice wrote:Ernie,Thanks for your interest in TrustEgg. We're currently testing and preparing for our launch. We will definitely let you know when we're taking on accounts.So where did you hear about us? What do you think of the site?
Accounts extremely valuable• Zero churn accounts
• Ability to market other financial products
• Every child’s first banking relaPonship
• Valuable relaPonships with parents & other donors
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<$35k $35k to $100k >$100k
$51.1k
$20.6k$13.7k
Source: “How America Saves for College”, SallieMae NaPonal Study of Parents with Children Under 18, Conducted by Gallup 2010
Average Savings at age 18 by Level of Income
$28k overall average$132 per month
$53 per month
$35 per month
$73 per month
$329 CLTV$498 CLTV
$1,242 CLTV
$687 Average Customer LifeAme Value
Marketing plan
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Phase 1•Test & “harden” product•Test SEM/FB AdverPsing•Hone sign up process•Hone referral process•Test pledging dollars•Technology press•Blogger outreach
Phase 2•Drive up viral coefficient•OpPmize SEM/FB Ads•OpPmize conversion•Financial press•FoundaPon partnerships•Seed co-‐markePng deals•Sponsor baby showers•Win Finovate “Best in Show”
Phase 3•Raise Series A•Begin mass markePng•Baby registry integraPon•Empowering charitable iniPaPves
Q1 Q2 Q3
The perfect team
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Jeff Brice – CEO 7 years trust & bank accounPng experience Y-‐Combinator Winter 2011
Kinda Hatamale – CMO Head of acquisiPon markePng for Mint.com GM of PayTrust, a division of Intuit Business Strategy – Provide Commerce MarkePng Manager-‐ Home Depot
John Zdanowski -‐ CFO 15 years high growth startup experience CFO Linden Lab/Second Life CFO HouseValues, IPO 2004
Financial projections• Paid CAC starts at $100 & declines
slowly from there
• Each UTMA account refers 0.5 accounts per year
• Average Monthly ContribuPon equals average family savings per month
• Spend $50k per month in markePng aler raising $2m in Sept
• No other revenue streams
– Student loans
– Credit cards
– First financial relaPonship
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$1 Billion of CLTV in year 3$60 Billion under management in year 10
(1/3rd of 529 Plans aler 16 years)
Key Advisors• Honorable Robert List -‐ Former Governor of Nevada, former Nevada State Aoorney General
• Scoo Walshaw – Former Banking Commissioner for the State of Nevada
• Les Revzon – 40 year veteran of the Trust Industry
• Gabe Krambs – Co-‐founder, 8 years technical experience at Sonic Foundry & JD
• Eric Genrich – Wisconsin State Assembly
• Chris Yeh – Former Ustream CEO
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Current Investors
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• David Vivero, Founder/CEO RentJuice Sold to Zillow