Table of Content

Introduction

Problem Solved

Competitors

Market Differentiator

Algorithm Accuracy

Market

Persona

Challenges

Subscription Business

Revenue Model

Founding Team

Addendum: Competitors

Stock Circles Team

AAPL

FB

BABA

GMCRADBE

FacebookSocial Consensus

Is a Strong-Sell basedon 256 votes.

Introduction

There is an 87% correlation between stock market behavior and social media sentiment. (Spencer et al, 2012)

Stock market price is based largely on News. When news hits the wire, investors talk about it on social media.

Stock Circles leverages this information to identify emerging stories, computes a course of action with an algorithm and alerts its users when the market changes.

Stock Circles Team

$FBOn it’s way up at 9:40AM ET

Demo Stock Circles Team

stockcircles.com

Problem Solved

• Our algorithm helps solve big problems:

• Reduces stock scanning complexity (finding emerging stock stories is computed for you)

• Market trends accuracy is high (confidence levels up to 97.5%)

• Monitoring and alerting is automatic (tells you when to buy or sell before it’s too late)

• Simplifies money making to a minimum

• Maximizes yield

Stock Circles Team

Competitors

• Direct competitors are few:

• Hedgechatter.com

• Marketprohit.com

• Social Market Analytics

• Indirect competitors:

• Traditional trading stations

• Traditional stock scanners

• Traditional market intelligence providers

Stock Circles Team

Market Differentiator

• Battlefield Dynamics Algorithm similar to what the military uses to inform fighter pilots of incoming threats.

• Multithreaded feed analysis

• Course of action determination

• Rules engine

• Real-time monitoring

• Pattentable technology

Stock Circles Team

Algorithm Accuracy

• The algorithm is very good at spotting emerging trends and at assigning the correct course of action (COA).

• If the volume of social media votes surveyed by the algorithm is large enough for specific stock, we can confidently say that the story is real.

• Inversely, if there is little data to survey, the algorithm’s margin of error rises accordingly.

Stock Circles Team

Market

Self-directed Investor Market

• 43 million in the U.S.

• These investors can be segmented down to 3 categories (Celent):

• Passive investor <3 trades per month: 23 million

• Active investor 3 and 10 trades per month: 17 million

• Active trader over 10 trades per month: 3 million

Our sweet spot are the active investors and traders or 20 million.

Stock Circles Team

Persona Stock Circles Team

Paul Birch

Age: 51 years oldYearly Household Income: $170,000Occupation: IT Director

Investments: Invests in Stocks, Mutual Funds in E*tradeMoney Invested: $590,000Anxiety: Can’t stand the volatility of the market

Frequency: 10+ Trades/MonthMarket Knowledge: Very knowledgeable

Challenges

Fear of innovations

• Traders using technical analysis are entrenched into their methodology

• Lack of influencers supporting the technology

• Finance is always a little behind when it comes down to adopting new technologies

Stock Circles Team

Subscription Business

• SEM, SEO, email program targeting proficient Self-Directed Investors

• Free: Watchlist: 5 stocks, limited access.

• $29/month: Watchlist: 10 stocks, Unlocks all views.

• $99/month: Watchlist: 50 stocks, all the above plus alerts daily.

• $499/month: Watchlist: 100 stocks all the above plus alerts in real-time.

Stock Circles Team

Revenue Model Stock Circles Team

TOTAL ONLINE METRICS

Dec 2014 Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015

Total Monthly Revenue $31 $102 $443 $1,253 $3,695 $7,991 $16,828 $28,594 $51,246 $80,471 $117,246 $160,409 $468,311Total Monthly Marketing Cost $250 $375 $2,500 $8,200 $12,600 $20,000 $25,500 $31,500 $41,250 $50,000 $66,250 $72,500 $330,925Total Monthly Online Margin ($219) ($273) ($2,057) ($6,947) ($8,905) ($12,009) ($8,672) ($2,906) $9,996 $30,471 $50,996 $87,909

Margin % N/A N/A N/A N/A N/A N/A N/A N/A 19.5% 37.9% 43.5% 54.8%

Total Monthly Trialers from Online 52 77 172 448 747 1,301 1,603 2,034 3,324 4,149 5,212 5,882 25,001 Total Monthly Subs from Online 1 3 12 30 90 168 348 504 946 1,316 1,762 2,220 7,400

Overall Monthly Cost / Trial (CPL) $5 $5 $15 $18 $17 $15 $16 $15 $12 $12 $13 $12

Overall Monthly Cost / Acq. (CPA) $240 $145 $208 $274 $140 $119 $73 $62 $44 $38 $38 $33

Accumulated Revenue $31 $134 $577 $1,830 $5,525 $13,516 $30,344 $58,939 $110,185 $190,656 $307,902 $468,311

Accumulated Marketing Cost $250 $625 $3,125 $11,325 $23,925 $43,925 $69,425 $100,925 $142,175 $192,175 $258,425 $330,925

Accumulated Margin ($219) ($491) ($2,548) ($9,495) ($18,400) ($30,409) ($39,081) ($41,986) ($31,990) ($1,519) $49,477 $137,386

Accumulated Margin % N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 16.1% 29.3%

Accumulated Gross Margin, Online (219) (491) (2,548) (9,495) (18,400) (30,409) (39,081) (41,986) (31,990) (1,519) 49,477 137,386

Accumulated Gross Margin % N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 16.1% 29.3%

Accumulated Trialers from Online 52 129 301 749 1,496 2,797 4,400 6,434 9,758 13,907 19,119 25,001

Accumulated Subs from Online 1 4 16 46 135 303 651 1,155 2,101 3,417 5,179 7,400

TOTAL SUBSCRIBERS FROM ONLINE 1 3 15 42 123 266 561 953 1,708 2,682 3,908 5,347

Breakeven Month - Online Margin Month 42217

Payback Month - Online Margin Month 42278

Payback Month - Gross Margin Month 42278

Revenue First 12 Months Stock Circles Team

$0

$20,000

$40,000

$60,000

$80,000

$100,000

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$140,000

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$180,000

Dec 2014 Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015

First 12 Months Revenue

Founding Team Stock Circles Team

Jean F. Boisvert Annouchka Yameogo

Gurinder Singh Jana Clemons

CEO

V.P. Engineering

COO

V.P. Marketing

Addendum: Competitors Stock Circles Team

Direct: Stock Sentiment Apps

• Social Market Analytics: Startup - Just launched in February 2014. Has been in the business of providing social insights to hedge funds and banks via their API since 2012.

• HedgeChatter: Startup - Provides an all-in-one platform which finds REAL-TIME insights, using social media stock sentiment analysis. Generates social alerts on the next market movers.

• SNTMNT: Startup – Financial markets aren't rational. Emotions influence asset pricing. SNTMNT captures these emotions by analyzing social media sentiment.

• StockFluence: Startup - real-time market mood detection. automated trading agents which can send you buy/sell signals in real-time. customizable Media Analysis.

• Market Prophit: Start up - Using data from Twitter and other social media outlets, we provide popular market sentiment.

• Contix: Start up - Deliver value to investors and traders via analysis of social media.

Indirect: Pro Brokerage Platforms

Are interested in implementing Social Sentiment Analysis to

their trading platforms. Example:

NYSE’s intention to provide SMA to their clients via their

trading platform

Indirect: Stock Recommendations Providers

Such as Bloomberg, The Street, Seeking Alpha, Financial

Times

Trending on Twitter: Social Sentiment Analytics