playsav pitch deck 2017
TRANSCRIPT
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