A hell of a journeyfavit’s way May 2008 – Oct 2009

Atanas Youroukov, Head of Product Design• Strong web product visionary• Creative UI designer

Konstantin Hristov, CEO, Biz Dev• Sales and Marketing • VP of M & S in Outsourcing • Citigroup

Nenko Ivanov, CTO• Top 3 Software engineer in BG

JANUARY 2008, 3 guys knock on a VCs door...

The Plan

What exactly was favit suppose to do:

• Digg.com• Delicious• Google Reader• Blogger• MySpace

All in one place

Rate

Communicate

Interact

Share

Create

Search

Save & Organize

Read

The Content...

UserUser

User

User

User

User

User

User

THE CONTENTpost + rate + comment

UserUser

User

User

User

User

User

User

friends

Interest mates

THE CONTENT

Bears IDEAS that ...

THE CONTENTGroups + focus

= mini societies

User

User

User User

User

User

User

SUB-CONTENT

Provoke INTERESTS and ...

d

d

dd

d

User Groups

THE CONTENT

d

d

dd

d

User Groups

d

dd

User Groups

User Groups

Shape BEHAVIOUR ...d

d

d

d

d

d

User Groups

Actually the goal is...The CONTENT is king...

Web Nation

Clique Cult

Loyalty

Siz

e

favit

We had a tons of arguments ...

Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007

Content 38.3% 39.4% 41.4% 44.7% 46.0% 48.1%

Communication 38.6% 38.7% 37.6% 33.6% 33.5% 32.7%

Commerce 17.6% 16.5% 15.9% 16.9% 15.8% 14.5%

Search 5.4% 5.4% 5.0% 4.8% 4.7% 4.6%

Average share of time US Internet Users spend online

Now is the time …

1,225

2,145

2,883

3,5594,136

0

1,000

2,000

3,000

4,000

5,000

2007 2008 2009 2010 2011

Mill $

Worldwide Online Social Network Advertisement Spending

Source: eMerketer.com

April 2008

1. favit.com first

2. started working hard immoderately

We’ve got the $

May - August 2008

It became clear that our initial idea can be developed further more

Time to market Technology innovation

• Follow the plan and continue as is• Passive behavior to potential threads and opportunities• Short term advantages• Short term innovation

• Concentrate and become Technology leader• React, adapt and improve when potential threads arise• Long term advantages• Middle and Long term innovation

The winners (Potential threats)

The losers – Try not to make the same mistakes as they did

August 2008 - October 2009

So fearless we embarked to our journey to create the most powerful

Social network in the world

favit now

Lessons – the hard way

Where we made mistakes – What we have learned:

1. If you see a better solution to a problem already solved

1. Implement it NOW2. If you discard it – you will regret in the near future

• Never take in consideration user complaints about features and decisions you believe in:

• This will slow you down• Innovation is always difficult to accept by users – force and help

them to overcome their fears

1. Hiring a developer takes more than 1 month

2. Preparing a developer takes more than 2 months

Paid growth doesn’t pay-off in the early stage

The future

Completely open webWe haven’t seen an animal like that

Speed and CredibilityHow to get credible information first

Blogs will die – or will transform

Advertising without context will die(and it’s dying now – ask some portal sites)

CPM, CPC, CPA will merge: CPECost per Engagement

favalanche will be on the front row of this transformation

favit has already started being a trendsetter

Thank you for your time!

Konstantin HristovYou can call me anytime: +359.896.863.500Or drop a mail: konstantin.hristov@favit.com