Our Mission:Gobstopper seeks to

revolutionize the reading lives of kids.

Our Vision:

10 years from now,

10 million kids will read

10 books a year on Gobstopper.

Books are a 15th century technology.They don’t provide feedback. They aren’t interactive.

Reading 1.0 Is Broken

By 12th grade, only 21% of students read regularly.

“when . . .the majority of your class go home and blog about how much they hate [the assigned book], it starts to seem like a Fahrenheit 451-style plot to destroy people's interest in reading.” 1

1 from “4 Ways High School Makes You Hate Reading” ( http://www.cracked.com/blog/4-ways-high-school-makes-you-hate-reading )

21%

Reading 2.0 Rocks

+ Questions, quizzes, and rich media literallyjump out of the text.

+ Reading is supercharged with the best of gaming and social.

+ Gobstopper is browser-based, mobile optimized, and lives in the cloud.

+ Real-time feedback and right-time instruction is provided as students read.

Reading 2.0 is Teaching on Steroids

+ Crowd-sourced marketplace for curriculets

+ Curriculets and reports are aligned to Common Core.

+ Teachers can easily create their own “curriculet” layer.

+ Teachers receive interactive daily reporting.

+ Radically enhanced teacher workflow.

Enabling Trends

475% growth in Young Adult ebook sales from 2011 to 2012.

“Half of 9-17 year-olds say they would read more books for fun

if they had greater access to ebooks — a 50% increase since 2010.”

+50% of high school students in the US own a smartphone.

55% of schools already implement BYOD (Bring Your Own Device) programs.

Filling a Big Gap

is streamlining behavior

management

is fixing the data pipe

is tearing down classroom walls

is revolutionizing how books are bought, taught,

and read in schools

is flipping Math instruction

is simplifying video-based instruction

is bringing social to K-12

Reading 1.0Book Sales

$3.8B2012 Annual

Revenue

Secondary School Students (including homeschool students)

Significant Market Opportunity

Reading 1.0Products

& Services

$7.76BSIIA pegged non-hardware related elearning revenue

for 2012

Reading 2.0Addressable Market

$290M

2011 Annual Revenuejust for Scholastic & Accelerate Reader

32M

3.2M Teachers & Home School Parents

Market Fundamentals:

Mauricio Alvarez | Co-Founder and CTO+ Co-Founder and CTO of ZangZing, a photo sharing company

+ Managing Director of Next Stage LLC, a seed investment firm

+ Deputy CTO for BEA Systems (now part of Oracle Corporation)

+ Co-Founder and VP of Engineering for The Theory Center (Acquired by BEA Systems)

+ MS in Computer Science from Cornell University

Jason Singer | Co-Founder and CEO + Entrepreneur-in-Residence at New Schools Venture Fund

+ Founder & Principal of two nationally recognized KIPP schools

+ Co-Founder & VP of Bus Dev, FairAir - Market Exchange for Airline Tickets

+ Co-Founder & Executive Director, CHALK - Youth Development Agency

Marika Ismail | Lead Curriculum Developer+ Veteran English and Composition teacher

+ MFA in Creative Writing from the University of Michigan

+ Published poet

Sean Neden | Lead Software Engineer+ Front-end and UX specialist

+ Senior Software Developer for GoDaddy

+ Founder of NoSweaters.com

+ BA in Computer Information Systems from DeVry University

A Phenomenal Team

Revenue Assumptions

Notable Current Investors:

+ Reed Hastings, CEO of NetFlix

+ New Schools Venture Fund

+ Jennifer Moses & Ron Beller

Raising Our Seed+ Round

$365K Amount of convertible debt raised to date

$1M Goal for close of seed+ round.

Major Milestones Acheived:

+ Pilot in 6 classrooms with > 400 students

+ March 1st beta launch

+ Robust full-featured product

+ Over 1000 teacher users in 3rd month

+ Deal with Big 5 publisher

Seed Round Milestones:

+ 12 months of runway

+ Commerce platform complete

+ 100 books with curriculets

+ Book rentals operational

+ iOS and Android apps launched

+ 100 school site licenses sold

+ 1000 paid teacher users

+ $1M in revenue