12/30/2016

JerSmarter Inc. Competition Report

CONTENT Company's Summary ......................................................................................................... 3

Brief Introduction .............................................................................................................. 3 Main Competitive advantage ............................................................................................ 3 Main competitors ............................................................................................................... 4 Other competitors .............................................................................................................. 4

JetSmarter Business Model ............................................................................................... 5 Background ......................................................................................................................... 6

Location of offices............................................................................................................. 6 History ............................................................................................................................... 6 Ownership and Corporate governance .............................................................................. 7

Products ............................................................................................................................... 8 Products offered ................................................................................................................ 8 Other regular products developed ..................................................................................... 9

Marketing .......................................................................................................................... 10 Objectives, mission statement ......................................................................................... 10 Promotional strategy........................................................................................................ 10 Distribution channels used .............................................................................................. 11 Pricing.............................................................................................................................. 11 Expansion strategies ........................................................................................................ 11

Personnel ........................................................................................................................... 12 Number of employees ..................................................................................................... 12 Organizational Hierarchical Structure ............................................................................. 12

Financing: complete informations .................................................................................. 15 Funding History Total Funding ...................................................................................... 15 Investors .......................................................................................................................... 15 About latest fundings ...................................................................................................... 16 Possible allocation for the new founding raised ............................................................. 16

COMPANY'S SUMMARY

Brief Introduction Jet Smarter is a mobile marketplace that offers instant pricing and availability for private jets

worldwide. The application democratizes the private jet industry by decreasing the entry price for

consumers, and helping air carriers' gain more exposure within the market. By eliminating the middle

man when it comes to booking a private jet, this app takes the process in the future with simplicity and

ease. The JetSmarter app in available for iOS and Android.

Main Competitive advantage Predictive maps and algorithms to find where the demand is, so that JetSmarter will never over supply

the market, and can just meet the amount of demand we have. Other companies would over supply

and fly where they’d have 20% loads. JetSmarter has zero deadhead weight on our shuttles and a 90%

load factor.

JetSmarter doesn’t own any planes, but instead works with operators, owners and carriers who

manage and maintain the planes, hire pilots and deal with safety and compliance issues for the heavily

regulated industry. Partners with 800 air carriers all over the world. Between them, the carriers are

making more than 3,000 aircraft available to JetSmarter customers - and this number is growing.

JetSmarter possibly has not any direct competitors because there are services out there that only sell

empty legs, there are services out there that only give shuttles, there are services out there that only

give charters. There is no service that only gives all three like JetSmarter.

Main competitors Stratajet (United Kingdom) Invertors: JamJar Investments, Octopus Ventures, Piton Capital and Playfair Capital Total funding: 13M

JetSetGo (India) Investors: Puneet Dalmia and YouWeCan Ventures Total funding: 2M

Other competitors SurFair Website: surfair.com

WheelSup Website: wheelsup.com

THE BUSINESS MODEL OF JETSMARTER Chartering a private jet can be a hassle, even for the 1%. Traditionally, booking private travel has been

a confusing process, with lots of forms and back-and-forth with brokers. JetSmarter came to make it

faster, easier and safer - simplify the process. Its Business Model Explained below:

BACKGROUND Location of offices

HEADQUARTERS

FORT LAUDERDALE JetSmarter Inc.,

500 East Broward Blvd., 19th Floor, Fort Lauderdale, USA, FL 33394

+1 (888) 9 VIP JET +1 (888) 9-847-538

LONDON DUBAI The Broadgate Tower JetSmarter FZCO

Third Floor Dubai Airport Freezone 20 Primrose Street Building 5EA, Suite 710

United Kingdom, London EC2A 2RS P.O. Box 371135, United Arab Emirates +44 (20) 7193 0727 +971 4 230 8300

ZURICH RIYADH

JetSmarter Switzerland GmbH, JetSmarter KSA Uraniastrasse 28, 25 Floor, Kingdom Tower

Zurich, Switzerland, CH-8001 Riyadh 11573, Kingdom of Saudi Arabia +41 (44) 520-2000 +966 (54) 922-2252

MOSCOW HONG KONG

JetSmarter Rus OOO, JetSmarter Hong Kong Limited 11 Timur Frunze St., Bldg 2, Suites 1-17 20/F., Alexandra House, 18 Chater Moscow, Russian Federation, 119021 Road, Central, Hong Kong

+7 (499) 350-2090 +852 8198 0095

History JetSmarter was founded in 2012 by entrepreneur Sergey Petrossov, whose idea made him one of

Forbes' 30 under 30 business leaders of 2016. In August 2012, the beta-version was launched and

tested among a closed group of private aviation users. After testing proved successful, Petrossov

sought and received substantial venture funding to expand JetSmarter’s scope.

In March 2013, the JetSmarter app was launched and made available to the general public on both

iOS and Android devices.

In June 2015, JetSmarter announced its new European Headquarters in Zurich, Switzerland.

In early 2016, it launched flights between Europe. According to Business Insider and TechCrunch

JetSmarter has raised $20 million from the Saudi Royal Family, American rapper Jay-Z, American

serial entrepreneur and investor Wayne Chang,and investment bank Goldman Sachs Capital

Partners. In total, Jetsmarter raised $56 million since its inception and has offices in Zürich,

London, Moscow, Dubai, Riyadh and Fort Lauderdale.

In December, 2016, JetSmarter announced it had raised an additional $105 million at a $1.6 billion

valuation.

Ownership and Corporate governance

Ownership

CEO and founder: Sergey Petrossov

Co-Founder: Ruslan Tolba

Corporate governance

President: Gennady Barsky

General Counsel: David Schubauer

Board Observer: Abdulwahab Ahmad Al-Nakib

Board Member: Bradley Stewart (CEO of XOJET)

PRODUCTS The company, which currently offers about 50 routes between more than 30 cities around the world.

It's goal is to add another 80 routes within 2017.

Products offered PrivateCharter When you want to fly in private

- Create a fully customized privete charter flight in the most efficient way possible

- Build and book your custom itinerary in minutes

- Browse al aircraft results, right in the app

- When you select an instant booking aircraft, your price and flight are guaranteed the moment you

book

SharedCharter If you don't need the whole plane and would like to share with other members

- Create a fully customized shared charter flight, quickly and conveniently

- Browse all aircraft results, right in the app

- We'll invite the other members to buy the empty seats and pass the savings on to you

- When you select an instant booking aircraft, your price and flight are guaranteed the moment you

book, whether we fill the empty seats or not

Jet Shuttle If you want to book seats on pre-scheduled flights between major cities

- Book seats on scheduled routes, worldwide

- Bring along friends and family by purchasing additional companion seats

- Or create your own shuttle (AKA SharedCharter) and any of our posted routes. You choose the date

and time, and we'll invite other members to book the open seats. You're guaranteed to fly, either way

Jet Deals If you're looking for a magically-random getaway, and want to get up and go today

- Book seats on spontaneous flights, worldwide

- Reserve available companion seats for friends and family

- Set your favorite locations in the app, and receive notifications when new JetDeals for there cities

become avaiable

- Choose from more the 250.000 seat annually on tens of thousands of flights

Other regular products developed In addition to flexible flights whenever you fancy, the company is running regular routes between a rapidly growing number of cities:

United States

Europe New York – Los Angeles

London – Geneva

New York – Las Vegas

London – Paris New York – Miami

Moscow – Nice

New York – Palm Beach

London – Nice New York – Chicago

Paris – Nice

New York – San Francisco Fort Lauderdale – Los Angeles Fort Lauderdale – Las Vegas

Middle East Chicago – Fort Lauderdale

Kuwait – Dubai

Chicago – Los Angeles

Jeddah – Riyadh Dallas – Houston

Dubai – Riyadh

Las Vegas – Los Angeles Las Vegas – San Francisco Los Angeles – San Francisco Mammoth – Los Angeles

MARKETING JetSmarter has no declared objectives, vision and mission statement, however based on several

interviews with the CEO Sergey Petrossov I find out what could be their strategies.

Objectives, mission statement Mission

Simplify the process of chartering a private jet and create a new class of travel - new segment between

private and commercial.

Vision

Petrossov says: The long-term goal is to eventually make all air travel private.

Promotional strategy Invite people JetSmarter usually offer highly selected people and celebrities to try their service. They aren't usually

paid to promote JetSmarter. That's all part of JetSmarter's strategy for appealing to people around the

world who can afford to fly on private jets. JetSmarter also has some well-known clients. Kim

Kardashian tweeted about it to her millions of followers, for instance.

Hosts and sponsors events The company then hosts and sponsors events that will cater towards people who can afford to join.

But even then, JetSmarter is selective about who it wants to be seen using its service. "You have to be

very careful. Just because someone is famous doesn’t mean they’re good for our product," Grusevich

says.

Member Testimonials JetSmarter members represent leaders in business, sports, entertainment, and culture. They use it for

its own promotion.

About membership It’s a country club in the sky. It’s people who can afford a membership that get to [join]. People

actually like talking to each other and getting to know each other. They make friends. Some people,

very few actually, in the United States they buy memberships just to network. Some World-Class

Membership Benefits:

Vip Events Jet Smarter brings you a one-of-a-kind experiences both in the sky and on the ground. Get access to

exclusive events, gallery, openings, celebrity meeting-and-greets, and more

HeliTransfers Use our helicopter transfer service to bypass traffic, and arrive cool and collected. Available at select

airports, and seasonally to the Hamptons.

24/7 Concierge Concierge services to book reservations at the finest hotels, restaurants, and clubs, and to fulfill the

most bespoke requests imaginable.

Distribution channels used This a 100% App company. They are available at Appstore and Google Play. Everybody can download it

- it had 800,000 downloads and people registering through the app. However, when asked how many

people actually use JetSmarter, Grusevich says that it transported a total of 20,000 people last year

(which includes people who had seats booked for them by JetSmarter members).

Pricing JetSmarter has about 6,700 members who pay $15,000 for the first year and $11,500 every year

thereafter and fly with the company about 12 to 15 times a year on average. They pay no additional

fees for seats on flights scheduled by JetSmarter but do have to pay to create a charter flight or to take

a member-created flight.

Expansion strategies Before expanding to a new market, JetSmarter buys flight data and examines it to see which routes are

popular. It also translates its app to the local language and looks at how many downloads it has had

already.

PERSONNEL Number of employees Approximately 250 employees

Organizational Hierarchical Structure Name Position Hierarchy Level Abdulwahab Ahmad Al-Nakib Board Observer 0 Bradley Stewart Board Member 0 David Schubauer General Counsel 0 Wayne Chang Angel Investor 0 Servey Petrossov CEO 1 Edward Codispoti CFO 1 Mikhail Kirsanov CTO 1 Gennady Barsky President 1 Joseph Gnaster Senior Vice President of Aviation Partnerships 1 Paul Grusevich Head of Global Expansion 1 Joaquin Avino Senior Vice President of Business Development 2 Lolita Frangulyan Executive Vice President of Sales and Operations 2 Brent Hollenbach Director of Sales | USA 2 Collin Renshaw General Manager | MENA 2 Eric Jantzen Director of Sales | Europe 2 Karina Frangulyan Director of Internal Audit 2 Merzah Al-Askar Corporate Country Manager| MENA 2 Tom Engelhard General Manager | Europe 2 Wanda Will Strategy Director, Business Development 2 Brianna Zangara Head of Shuttle Flights 2 Sabrina Abitan Director of Shuttle Flights | USA 2 Nick Williams Head of Shuttle Flights 2 Veit Couturier Director of Shuttle Experience 2 Jena Kilbride Head of Member Experience 2 Amal Al Zubeidy Director of Member Experience- MENA 2 Anton Virchenko Head Data Architect 2 Jamie O'Connor Director of Human Resources 2 Matthew Atkatz VP, Executive Creative Director 2 Ryan Brisse Head of Treasury 2 Karina Frangulyan Director of Internal Audit 2 Antonio Caballero Director of Events 2 Gregory Schesser Culinary Director/Business Development 2

Matthew Hoeffel Operations Coordinator 4 Nick Vrbenec Shuttle Flight Coordinator 4 Brooks Newcomb Shuttle Flight Coordinator 4 Jamilla Munford Lounge & In-Flight Experience Coordinator 4 Anastasija Snicarenko Chief Counsel | Operations 4 Andrea Wolniewitz Executive Assistant to President 4 Jennifer Lawson Executive Assistant to CEO 4 Maria Mantilla Aviation Specialist 4 David M. Sheriden Sr. Aviation Specialist 4 Victor Schaefer Sr Membership Specialist 4 Peter Habib Aviation Specialist 4 Alexandria Daniels Shuttle Aviation Specialist 4 Holly Finn Account Executive 4 Krystal Succar Concierge Specialist 4 Rana Melis Karaoglu Marketing and Sales Executive 4 Joe Benson Senior Aviation Specialist 4 Ashley Palmore Shuttle Aviation Specialist 4 Jacob Karasiewicz Account Executive 4 Jags Minglani Senior Aviation Specialist 4 Drew Doidge Senior Membership Executive 4 Justin Harbor Senior Membership Executive | USA 4 Joseph Stanley Senior Membership Executive 4 Carlo M. Software Engineer 4 Tiffany Kaplan Concierge Specialist 4 Andrew Gerardi Media Buyer 4 Bryan Bellicini Aviation Specialist 4 Karim Ritani Data Engineer 4 Shemeem Ummerkoya Aviation Specialist |MENA 4 Justin Hruska Account Executive 4 Matthew Kepto Senior Aviation Specialist 4 Serhii Maletin Senior iOS developer 4 Pierre Samin Senior Membership Specialist | Europe 4 Matthew Sullivan Senior Aviation Specialist 4 David Anzolin Senior Membership Specialist | Europe 4 Andrew Sanchez Staff Accountant 4 Juliya Semchi Office Manager/Employee Relations 4 Michael Capalbo Staff Accountant 4 Jose Mugaburu Software Engineer 4 Genderie Rivera Senior Aviation Specialist 4 Bryan Binsse Membership Sales Executive 4 Sam Kimmell Account Executive 4 Olga Oleyarsh Data Econometrician 4 Erin Wolfkiel Senior Membership Specialist 4

Nelly Snarskaya Senior QA Engineer 4 Dana Robins Aviation Specialist 4 Christoph Daublebsky Senior Membership Specialist | Europe 4 Mina Said Aviation specialist 4 Brett Baumgartner Aviation Specialist 4 Gaieshan Dejean Member Support Specialist 4 Trip McFall Senior Membership Executive 4 Nickolay Yakovenko Senior Membership Specialist 4 Alexy Moshkov Project Manager / Software Architect 4 German Pabon Software Engineer 4 Nawar Yasmine Aviation Specialist | MENA 4 Elena Nikolaeva Accountant 4 Roman Nikolaev Senior android developer 4 Dmitriy Shulick Senior Data Visualization Engineer 4 Abdulaziz Karim Aviation Specialist 4 Hollis Gerth Data Specialist 4 Natalia Dushanalieva Accountant 4 Sakkeer Kuvvakattayil Moidunny Senior Aviation specialist 4 Mikhail Gosis Senior Tax Accountant 4 Jennifer Grimes Aviation Specialist 4 Stanislav Golovin System Architect Russia 4 Lauren Peck Shuttles Aviation Specialist 4 Mitchell Walker Account Executive 4 Anthony Font Senior Copywriter 4 Anisa Alikaj Senior Membership Specialist | Europe 4 Abby Listo Flight Experience 4 Rashaad Lambert Brand Advocate 4 Alana Rodriguez Corporate Paralegal 4 Nikolai Kotchetkov Lead Android Developer 4 Anna Mininkova Product Analyst 4 Luca Gavazzi Betancourt Executive Intern 4 Daniel Callahan Intern 4 Timothée Stephen Member Support 4 Katherine Jones Content Copywriter 4 Matt Yoklic Membership Specialist 4 Patrick Morgan Accounting Intern 4 Kara Boariu Office Manager 4 Davi Abdallah Senior Data Engineer/Data Scientist 4

FINANCING: COMPLETE INFORMATIONS

Funding History Total Funding: $155M Round Date Funding Investors

Series C - II Dec 12, 2016 $105M Challenger Universal, Jay-Z, Jet Edge, KBBO Group, KZ Capital and Saudi Royal Family

Series C Feb 22, 2016 $30M Saudi Royal Family and Undisclosed Investors

Series B Jul 23, 2015 $20M Jay-Z, Saudi Royal Family, Undisclosed Investors and Wayne Chang

Investors

Investor Investor Type Location Participating Rounds

Challenger Universal

Corporation Qatar Series C - II (2016)

Jay-Z

Angel Investor (Individual)

New York, New York, US Series C - II (2016) and Series B (2015)

Jet Edge Corporation VanNuys, California, US Series C - II (2016)

KBBO Group

Private Equity United Arab Emirates Series C - II (2016)

KZ Capital Other London, England, UK Series C - II (2016)

Saudi Royal Family

Family Office Saudi Arabia

Series C - II (2016), Series C (2016) and Series B (2015)

Undisclosed Investors Series C (2016) and Series B

(2015)

Wayne Chang

Angel Investor (Individual)

Boston, Massachusetts, US Series B (2015)

About latest fundings Series C funding

The main information we analyzed was the type of funding. JetSmarter has raised $105 million in Series

C funding. This kind of funding has a specific goal: investors inject this kind of capital in efforts to

receive more than double that amount back. I means that it will almost certainly for scale gain.

As the operation gets less risky, more investors come to play. In Series C, groups such as hedge funds,

investment banks, private equity firms and big secondary market groups accompany the before-

mentioned investors. That's why "common" people like Jay-Z decided to invest on JetSmarter.

Series C is about perfecting, and of course, continuing to scale fast and wide. Companies raise single

digit to hundreds of millions in this final round. One possible way to scale a company could be to

acquire another. Thera are other options. I'll cite in topics below.

Possible allocation for the new founding raised 1) Expansion of JetSmarter in Asia and Latin America: The massive funding round will be used

primarily for global.

2) Funding a cheaper service for shorter flights on small private planes - which will charge

customers $1 per mile flown. For instance: "on-demand” access to seats on a select number of

private flights for non-members. They would pay basically $1 per mile for shorter trips, like Boston

to New York, potentially.

3) Increasing the number of routes and flights available in the U.S.: The company wants to connect

more cities on the U.S. map, including connecting Florida destinations to Boston, New York and

Washington, D.C., and San Francisco to Seattle.

4) Decreasing the entry price for consumers

5) Building concierge services on the ground

6) More sophisticated tool for members to connect and interact with one another: creating more of

a “country club in the sky".