playsav pitch deck 2017

24
SAVING MONEY HAS NEVER BEEN SO MUCH FUN! Investor Presentation Jeff Cates Co-Founder, CEO Josh Comstock Co-Founder, COO ACCELERATOR:

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SAVING MONEY HAS NEVER BEEN SO MUCH FUN!

Investor Presentation

Jeff Cates Co-Founder, CEO

Josh Comstock Co-Founder, COO

ACCELERATOR:

Interactive Incentive Gaming changes the way advertising is done in the

web and mobile environments.

ADVERTISINGADVERTISINGDONE RIGHT.

92% of all advertisers advertise within

web/mobile environments.

However…

Advertisements + web/mobile = USER FRUSTRATION.

User Frustration = Ineffective advertising

Current Solutions

Time Enforcement Ads

Roll-over Expansion Ads

Forced Redirect Ads

Responsive Ads

Multiple Ads Per Screen (MAPS)

Market Problem

Eliminate user frustration by making the advertisement part of the function and purpose of the game, thereby turning said advertisements into a pursued discount.

Creates a mutually beneficial engagement between advertiser and user.

Solution

In 2012, the mobile ad spending was $2.6B. Mobile ad spending in 2016 was $101B.

3900% increase in 4 years.

There are approximately 27M SMB’s nationwide that spend an average of $184/mo. in web/mobile advertising.

There are 913 national businesses, with over $1B in annual revenue, that each spend between $250K-$330M+ annually in web/mobile advertising.

Target Market Overview

59%

41%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Discounts Offered

% offering discounts % no discounts offered

SMB Advertiser Market

46%

54%

$400 avg. Monthly Advertising Budget $184 spent in web/mobile advertising.

Digital Advertising Traditional Advertising

Our market segment is 7.3M SMB’s which offer discounts in this space.

Our total addressable market is 1% or 73k SMB’s in the US alone.

Our target is 33% of their digital advertisingbudget or $60/mo.

48%52%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Discounts Offered

% offering discounts in mobile space

% no discounts offered

National Advertiser Market

$330.72

$358.28

Annual Advertising Budget ea. avg. $689M (top 100 by revenue)

Mobile Environments (in millions)

Traditional Environments (in millions)

Of the 913 $1B+ businesses, our total US addressable market is 12% or 113, which offer discounts that our people want.

106

180

210

0

50

100

150

200

250

2012 2016 2019

U.S. GAMER GROWTH

GAMERS x MILLIONS

Gamer Market

60%

40%

Preferred Advertising Content

% prefer discount ads % not prefer discount ads

Of the 174.6M gamers, 104.8M prefer discount ads over other advertisements.

Average time spent daily on mobile games – 33 minutes.

Offering advertisers approximately 518.6M minutes of daily advertising.

Ages between 16-54 / 58% male, 42% female

Launch SMB’s Target Market

0 10,000 20,000 30,000 40,000 50,000 60,000

Local SMB's

58,621

34,586

346

1.6 MILLION POPULATION

TM SAM TAM

$216$124

$60

Monthly SMB Advertising Budget Breakdown

Traditional Advertising Digital Advertising

PlaySav Digital

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1.6 Million Launch Area

1,600,000

928,000

556,800

83,520

POPULATION / GAMERS

1.6 Million Launch Area

Gamers

Gamers Prefering Discount Ads

PlaySav Market1% target market or 346 local SMB’s.

Launch National Advertisers Target Market

0 200 400 600 800 1,000

N'tl Advert.

913

113

12

1.6 MILLION POPULATION

TM SAM TAM

$3,445,000

$1,628,796

$24,804

Monthly Local National Advertiser Budget

Breakdown

Traditional Advertising Digital Advertising

PlaySav Digital

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1.6 Million Population

1,600,000

928,000

556,800

83,520

POPULATION / GAMERS

1.6 Million Population

Gamers

Gamers Prefering Discount Ads

PlaySav Market

Jeff Cates, Founder & CEO 25+ years of management and corporate training, coupled

with an extensive international sales and marketing background.

Josh Comstock, Founder & COO 15+ years computer science with an emphasis on mobile

and web technologies, and advertising within these environments.

Matt Brass, CTO 20+ years computer science with an emphasis on source

code, functional specs, along with software and database development.

Team

Jeff Cates - Chairman, Josh Comstock, Matt Brass Andrew LeChard, Secretary

Andy has nearly 25 years of banking experience and currently serves as a Vice President with JPMorgan-Chase.

Mark Budai, Director Mark has nearly 25 years of consulting experience as a software developer and

systems architect.

Molly Maxey, Director As an entrepreneur, Molly founded and built several companies, as well as playing a

pivotal role in building one of the most lucrative international sales team for a multi-billion dollar communications company.

Randell Young, Director Randell is a co-founder and managing general partner of Venture-Net Partners, a

private equity investment group.

Board/Advisors

Pursuing MOU’s from 3 National Retailers

Ignite Northwest Accelerator Spring 2016.

Provisional Filed September 5, 2012 Application Number 61/697,249

PCT Filed March 13, 2014 International Publication Number – WO

2014/039576 A2

Trademarks Filed July 18, 2012 Serial 85680137, 85680105, 85680169

Current Traction

Wire frames and game flow design.

Market tested demo games with:

Push Notifications

Real-time coupon upload with interchangeable place hold advertising

Coupon cloud storage

Logo-embedded QR coding

Coupon integration and redemption

Competitor Ranking Matrix

PRICECOMPETITORSVICINITY

NOTIFICATIONSBETTER

EXPOSUREMUTUAL

ENGAGEMENTUNINTRUSIVE

ADSRANK

1

2

3

4

5

Poor

Fair

Good

Very Good

Excellent

ANALYTICS

PlaySav’s billing is predicated on $0.0001 Rate x Exposure x Duration x No. Users. (Compared to the average of Facebook ads at $0.0066 - $0.0025)

We anticipate revenue streams from the following:

Advertisers / Clients• National Retailers & Non-Coupon Advertisers (42%)• Regional Small Business (55%)

App Users / Gamers• In-App purchases and upgrades (2%)• CPC (1%)

Revenue

2017

2018

2019

2020

2020

240

720

1,200

1,680

2,160

6

18

30

42

54

$0

$3

$12

$25

$49

REVENUESMB's NR's Revenue (Millions)

Revenue Model

148

720 720 720 720

0.5 438

77

153

0

100

200

300

400

500

600

700

800

2017 2018 2019 2020 2021

ANNUAL HITS

SMB Annual Hits (Thousands)

NR Annual Hits (Millions)

Development

HOTB Software Solutions developing 1 game, SDK, PlaySav iOS/Droid App, billing system & analytics, advertiser’s dashboard.

Sales & Marketing 6 sales agents comprised of 4 call-center

agents reaching SMB’s, and 2 agents reaching national advertisers.

Social media and multi-media advertising

Administrative & Legal

Rent, hardware, software, phone systems

Expenses

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Infrastructure &Development

Sales & Marketing Administrative &Legal

2017

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2017

2018

2019

2020

2021

2017 2018 2019 2020 2021

Marketing $508,000 $900,000 $2,500,000 $5,900,000 $8,500,000

Development $392,000 $1,000,000 $2,150,000 $4,900,000 $10,500,000

Operations $70,000 $500,000 $2,550,000 $2,940,000 $6,300,000

G&A $30,000 $400,000 $1,600,000 $1,960,000 $4,200,000

EXPENSES

Expense Model

$28

$11

$6

$4

$2

$0 $10 $20 $30

2017

2018

2019

2020

2021

CAC

CAC

2017 2018 2019 2020 2021

Revenue $0 $2.9M $12M $24.5M $49M

COGS $0 $0.9M $2.5M $5.9M $8.5M

Gross Margin $0 $2M $9.5M $18.6M $40.5M

Fixed Costs $1M $1.9M $6.3M $9.8M $21M

EBITDAEBITDA MARGIN

-$1M0%

$0.1M3%

$3.2M27%

$8.8M36%

$19.5M40%

Financials

PlaySav is seeking $1M in the form of a Convertible Note for development and marketing as follows: Infrastructure development; web and mobile integration

PlaySav Hub App for iOS/Droid

Game (1-3) development & design for iOS/Droid, to be made available for download on the App Store and Google Play.

Sales & Marketing

Regional launch to 1.6 million

Administrative & Legal

Funding

Sharing the Goodness

• According to the World Health Organization, there are over 900 million people globally at the level of starvation.

• 18,000 people die every day from starvation.

• PlaySav is dedicated to the fight of global starvation through our Sharing the Goodness Foundation.

For more information, please contact:Jeff Cates at 208-610-1163 or [email protected]

playsav.comcrowdfunder.com/playsav