rfa angel list 23jun13
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Complete energy-saving solutions for your home.
The Home Retrofit IT System™for home performance contractors
AngelList Investor PresentationJune 24, 2013
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Build America’s leading network of home performance
contractors – by aggregating select contractors as
licensees, all on a single, integrated IT platform to scale
up home efficiency retrofits.
Revenue Model: License fees, with a fixed monthly fee
and a fee per home retrofit, plus fees for lead
generation.
What’s the investment opportunity?
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What does a home performance contractor do?
Insulate attics
Insulate basements & crawlspaces
Upgrade HVAC systemsSeal or replace ductwork
Seal interior air leaks
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Contractors need a SaaS platform for home retrofits
1. Streamline retrofit management
2. Improve effectiveness: Get to retrofit
3. Generate leads
Energy audit Home retrofit Test out Post-retrofitanalysis
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The Home Retrofit IT System™
The Home Retrofit IT System™
The first fully-integrated IT platform for home retrofits:
1. Customer Relationship Management System
2. Home EnergyAssessmentSystem
3. HomeRetrofitManagement System
4. Retrofit Financial Admin System
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Competing IT Systems: Wide open opportunity
No integrated IT systems available for complete home retrofit process Some home performance contractors using generic software for
different components of home retrofit process:
• CRM platforms, e.g. Saleforce.com
• Home energy assessment software, with focus on building modeling, e.g. Conservation Services Group’s Energy Measure HOME, Hancock Software’s iHeat, or PSD Consulting’s TREAT
• Field service management software, e.g. Dell’s packetTrap
• Financial accounting software, e.g. Intuit’s QuickBooks
Several companies building national/regional contractor networks for home retrofits may develop their own IT platforms
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Developed elements for IT System
Over 200 energy audits and 80+ retrofits in Atlanta
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It works! 40% savings on heating & cooling
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So, how do we scale?
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Six leading home performance contractors signed upLicense fees starting at $120 per month and $40 per retrofit
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Demonstrated demand
Energy Construction LLC (Albany, NY) Retrofits in 2012: 40
HomeRx (Seattle, WA)Retrofits in 2012: 70
Insulation Man (Binghamton, NY) Retrofits in 2012: 33
Neil Kelly Home Performance (Portland, OR) Retrofits in 2012: 400
Sellair (Allentown, PA)Retrofits in 2012: 50
TerraLogos (Baltimore, MD) Retrofits in 2012: 112
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Build America’s leading home retrofit network
67 million single-family, owner-occupied homes384 metropolitan areas (pop. 55,000+) Est. $150 billion retrofit market, with $1.1 billion for IT systems
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Identify core markets in each state – e.g. New JerseyPassaic county
Bergen county
Essex county
Middlesex/Union counties
Morris county
Somerset county
Hunterdon county
Mercer/Monmouthcounties
Monmouth county (Sandy Hook)
Monmouth (Jersey shore)/Ocean counties
Ocean county (Barnegat)
Atlantic county (Hammonton)
Atlantic county (Jersey shore)Cumberlandcounty
Gloucestercounty
Camden/BurlingtonW. Deptford counties
New Jersey Clean Energy Program:
• 155 participating home performance contractors
• Of which 44 contractors are potential licensees in 16 core markets
Home performance contractor
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Lead generation with RFA’s Home Efficiency App™
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How do we execute?
Key Management & Expertise
Key Personnel to hire
• Geoff Berlin, Founder & CEO
• Maxim Ivanov, IT Lead [Ciklum]
• Dr. Matthew Realff, Lead on Home Efficiency App™ [Georgia Tech]
Board members
• Ron Harris, Chair
• Rick Degolia, Director
Geoff Berlin, CEO
• IT Director
• Business Development Director
• Marketing Manager for Lead Generation
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Financing requirements to go to market
Raising $500,000 through issuance of Series A Preferred Stock to:
• Develop and deploy v1.0 of the Home Retrofit IT System™
• Scale to 20 to 25 home performance contractors
Follow by $800,000 to complete IT development and scale
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2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
$(20)
$-
$20
$40
$60
$80
$100
$120
$140
Pro Forma Financial Results$ millions
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How much money do we make?
5-Year Pro Forma Results (2018)
• Contractor licensees: 390
• Home retrofits: 245,000
• Revenue: $41 million
• Operating Cash Flow: $24 million
Revenue
OperatingCash Flow
+ Upside: Home Improvement IT System™ for specialized home improvement subcontractors
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How do we exit?
Build value through IT systems and national network of home performance contractors.
Potential strategic acquirers include:
• Home improvement retailers (e.g. Lowe’s, Sears, The Home Depot)
• HVAC manufacturers (e.g. Carrier, Goodman, Lennox, Trane)
• Renewable energy system installers (e.g. SolarCity, Sungevity)
• Home performance contractors establishing a national presence (e.g. Masco Corporation)
• IT companies with a focus on residential energy efficiency (e.g. OPower)
• IT companies in the home improvement sector (e.g. Dell/Quest Software)
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A proven, successful approach
Demonstrated demand
A high impact investment
The Bottom Line