discotech investor presentation 10 1-15

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Discotech OpenTable for Nightlife 1 For additional information: Ian Chen Co-Founder & CEO Cell: 301-793-0186 Email: [email protected]

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Page 1: Discotech investor presentation 10 1-15

Discotech OpenTable for Nightlife

1

For additional information: Ian Chen Co-Founder & CEO Cell: 301-793-0186 Email: [email protected]

Page 2: Discotech investor presentation 10 1-15

Nightlife Market is Ripe for Disruption

1

1%

99%

Traditional Promoters Other

Nightlife reservation market is comprised of 100,000+ individual promoters (human

middlemen) and is highly fragmented

Discotech will disrupt the nightlife industry the same way that Priceline and Kayak

disrupted the travel industry

Then Now

$25B Global Market

Page 3: Discotech investor presentation 10 1-15

Why Discotech?

Texting and calling club promoters to get information and access to nightlife

venues is non-transparent and inefficient.

Typical customer experience

2

Nightlife venue pain points

Large teams of individual promoters are hard to manage, unreliable, and

difficult to scale. Data collection and analytics non-existent.

Page 4: Discotech investor presentation 10 1-15

The nightlife app for millennials

Discotech aggregates venue and event information all in one place - Making it easy to discover local attractions.

Discotech provides users with pricing options for tables and tickets directly on the app. Customers no longer need to text and call multiple promoters for quotes.

Discotech allows users to make reservations, purchase tickets, and receive confirmation with a few simple clicks.

INFORMATION TRANSPARENCY EFFICIENCY

Discotech changes that experience

3

Page 5: Discotech investor presentation 10 1-15

Venue Partners

Discotech is currently working with over 90 venues in Los Angeles, Las Vegas, and San Francisco. Our partners include 7 of the top 10 largest clubs in the country.

4

Page 6: Discotech investor presentation 10 1-15

Mobile App % % % %

Event Discovery % % % % %

Table Booking % % % % %

Guest List %

Ticket Sales %

Loyalty Program % %

Competition

Discotech is the only “One-Stop Shop” for Nightlife Booking

5

Page 7: Discotech investor presentation 10 1-15

Discotech & Wantickets Partnership

In January of 2015, Discotech entered into a partnership with Wantickets to roll out the app on a world wide basis. Wantickets will provide Discotech with access to all of its ticketing inventory, including to venues where it has exclusive partnerships.

Wantickets is the largest ticketing provider in the nightlife/EDM space, working with over 1,000 venues in the U.S and 1,300 world wide.

Partnership with Wantickets gives us instant national distribution

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Page 8: Discotech investor presentation 10 1-15

Exclusive Ticketing Partnerships

Wantickets is the exclusive ticketing provider for the country’s largest venues

7

Page 9: Discotech investor presentation 10 1-15

10-20+% commissions on revenue booked

$3-7 commission per guestlist attendee

15-20% service fee commission on ticket sales (charged to the end customer)

$1-10 per guest “bounty” for some tickets

TABLE BOOKINGSGUESTLIST TICKETING

K

Primary Revenue Model

*a

8

Page 10: Discotech investor presentation 10 1-15

Gross revenue has grown significantly in 2015

$0

$45,000

$90,000

$135,000

$180,000

Jan'1

5Fe

b'15

March'1

5

April'15

May'15

June

'15

July'1

5

Augus

t'15

Sept'1

5

$164,269$179,029

$167,910

$146,879

$113,965$101,493

$61,861

$34,465$37,610

Dollars ($)

9

*Gross Revenue is a combination of table bookings, gross ticket sales, and guest list commission.

Page 11: Discotech investor presentation 10 1-15

Guestlist Signups growing consistently

0

5,000

10,000

15,000

20,000

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 July + Aug.

18,530

12,386

6,742

4,7544,2712,730

1,075

# of Guest List Sign Ups

10

Page 12: Discotech investor presentation 10 1-15

Gross Profit vs. Marketing Spend (Monthly)

$0

$4,500

$9,000

$13,500

$18,000

Nov'13

Jan'1

4Mar'

14

May'14

Jul'14

Sep'14

Nov'14

Jan'1

5Mar'

15

May'15

Jul'15

Sep'15

Marketing Spend (monthly) Gross Profit (monthly)

Dollars ($)

Monthly contribution has greatly surpassed monthly marketing spend in 2015

11

Page 13: Discotech investor presentation 10 1-15

Cohort analysis - Table Booking Gross Revenue

$0.00

$3.50

$7.00

$10.50

$14.00

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

19-21 months16-18 months13-15 months10-12 months7-9 months4-6 months1-3 months

Table Booking Dollars per download ($’s)

Time Joined

12

Table booking revenue per download has grown significantly across cohorts

Page 14: Discotech investor presentation 10 1-15

Cohort analysis - Guest List Sign Ups

0

0.125

0.25

0.375

0.5

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

19-21 months16-18 months13-15 months10-12 months7-9 months4-6 months1-3 months

Guest list sign ups per download

Time Joined

Guest list usage and retention has grown significantly over time

13

Page 15: Discotech investor presentation 10 1-15

Monthly cost per download

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

Jan'1

4Fe

b'14Mar'

14Apr'1

4

May'14

Jun'1

4Ju

l'14

Aug'14

Sep'14

Oct'14

Nov'14

Dec'14

Jan'1

5Fe

b'15Mar'

15Apr'1

5

May'15

Jun'1

5Ju

l'15

Aug'15

Cost per download (monthly)

Dollars ($)

2014 Avg - $2.17

14

Monthly cost per download has declined significantly across last 8 months

2015 Avg - $1.00

Page 16: Discotech investor presentation 10 1-15

0

1,250

2,500

3,750

5,000

Dec'14 Jan'15 Feb'15 Mar'15 Apr'15 May'15 Jun'15 Jul'15 Aug'15

150621478

730

9221,136

9691,2621,187

3,8123,6443,531

2,443

1,3821,282

792516375

Organic DownloadsPaid Downloads

Paid vs. Organic Downloads

# of downloads

15

Average cost per download has decreased due to growth of organic downloads

1,5621,778 1,761

2,418 2,304

4,009

% Organic 24% 29% 45% 53% 60% 77% 87%

3,173

4,265

88%

3,962

96%

Page 17: Discotech investor presentation 10 1-15

We are targeting a $1.0M round of financing

Use of Funds (18 months): • $270K Management Salaries (3 Founders) • $500K Product Development (Hire Three Developers) • $120K Sales and Operations (Hire 2 Sales / Ops Associates) • $110K Customer Acquisition / Marketing • Total: $1.0M

16

We want to invest heavily in our technology to add social features and growth hacks to supercharge our organic growth. We also want to further develop our data analytics capabilities.

Page 18: Discotech investor presentation 10 1-15

Product Roadmap

Social Features • See where your friends are going • Notifications when your friends make an action • “Invite a Friend” growth hack • Split the bill

Web app development • Implement full app functionality to website • Website received 19K+ unique visitors in July, 2015

Merchant functionality and data analytics • Track & analyze customer preferences and spending patterns • Basic Merchant CRM • Event and Inventory API (For B2B purposes) 17

4-6 months

3-4 months

Page 19: Discotech investor presentation 10 1-15

Discotech will be THE lifestyle app for nightlife

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We are establishing our first beach front in the night club market because of its severe need

for disruption. After penetrating tier 1 markets in this industry, we plan to expand our offering

to include:

$25B Nightclub

Market • Music Festivals • Bars • Lounges • Live music venues (i.e, jazz bars)

$100B+Nightlife Market

Page 20: Discotech investor presentation 10 1-15

The Team

Ian Chen (Co-Founder) CEO Private Equity @ Gores Group, Management Consulting @ Bain

Mark Wu (Co-Founder) COO Marketing & User Acquisition @ Zoosk

Ian Bushong (Co-Founder) CTO Engineer @ Ambarella

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Page 21: Discotech investor presentation 10 1-15

Thank You

For Additional Information, please contact Ian Chen

Cell: 301-793-0186

Email: [email protected]

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Page 22: Discotech investor presentation 10 1-15

Back Up Slides

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Page 23: Discotech investor presentation 10 1-15

Monthly cost per customer

$0.00

$25.00

$50.00

$75.00

$100.00

$125.00

$150.00

Nov'13

Jan'1

4Mar'

14

May'14

Jul'14

Sep'14

Nov'14

Jan'1

5Mar'

15

May'15

Jul'15

Cost per customer (monthly)

Dollars ($)

2014 avg - $51.36

22

Monthly cost per paying customer has declined significantly in 2015

2015 avg - $26.53

Page 24: Discotech investor presentation 10 1-15

Customer LTV is on the rise

$0.00

$25.00

$50.00

$75.00

$100.00

$125.00

$150.00

Nov'13

Jan'1

4Mar'

14

May'14

Jul'14

Sep'14

Nov'14

Jan'1

5Mar'

15

May'15

Jul'15

Customer LTV (monthly)

Dollars ($)

23

Customer LTV is $49.09 at the end of August and has been growing consistently

Page 25: Discotech investor presentation 10 1-15

Advisors

Jim Yang CEO @ Gather

Founder and CEO @ Identyx (Identyx acquired by Red Hat)

Advisor @ Mobicents and TeleStax Early Investor @ Refinery29

Diego Carlin CEO @ Wantickets

Co-Founder @ Hot Air LLC President @ Sound in Color

Director @ Abound

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Patrick Sarkissian CEO @ SM

Co-Owner @ Scion Group Founder @ ONEArmenia

Page 26: Discotech investor presentation 10 1-15

Website traffic is growing

0

7,500

15,000

22,500

30,000

Jan'15 Feb'15 March'15 April'15 May'15 June'15 July'15 Aug'15

23,82023,770

19,218

13,48012,290

8,941

4,0563,009

# of unique visitors

25

Page 27: Discotech investor presentation 10 1-15

Discotech is Sticky

0%

25%

50%

75%

100%

% of Boo

kings

34%

66%

One-time Users Repeat Users

0%

25%

50%

75%

100%

% of Boo

kings

87%

13%

Bottle Service Guest List

Since inception, we have had significant repeat usage in bottle service and guest list

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Page 28: Discotech investor presentation 10 1-15

Discotech Burn Rate

Discotech has been extremely lean since our inception

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*Note: Founders have not drawn salary since founding of company

Part 1 Expenses SG&A Total

Aug-13 $918.58 $8,500.00 $9,418.58

Sep-13 $3,264.64 $10,000.00 $13,264.64

Oct-13 $5,177.28 $11,500.00 $16,677.28

Nov-13 $4,481.71 $0.00 $4,481.71

Dec-13 $1,920.63 $11,000.00 $12,920.63

Jan-14 $5,427.93 $5,000.00 $10,427.93

Feb-14 $5,058.05 $5,600.00 $10,658.05

Mar-14 $12,834.73 $8,500.00 $21,334.73

Apr-14 $9,209.06 $9,500.00 $18,709.06

May-14 $10,878.88 $6,925.00 $17,803.88

Jun-14 $7,511.83 $4,358.00 $11,869.83

Jul-14 $7,591.01 $3,000.00 $10,591.01

Expenses SG&A Total

Aug-14 $8,133.78 $7,319.30 $15,453.08

Sep-14 $7,494.18 $7,330.70 $14,824.88

Oct-14 $6,984.88 $9,436.55 $16,421.43

Nov-14 $4,723.31 $10,099.40 $14,822.71

Dec-14 $2,381.23 $13,488.44 $15,869.67

Jan-15 $8,547.39 $20,114.22 $28,661.61

Feb-15 $7,957.10 $15,691.35 $23,648.45

Mar-15 $8,810.71 $15,509.19 $24,319.90

Apr-15 $5,307.58 $55,096.59 $60,404.17

May-15 $4,974.21 $8,608.50 $13,582.71

Jun-15 $4,225.57 $4,408.28 $8,633.85

Jul-15 $5,771.99 $11,625.00 $17,396.99

Aug-15 $2,519.94 $11,750.00 $14,269.94

Page 29: Discotech investor presentation 10 1-15

Discotech Geographical Expansion Plan

Cities where we have most club venues

Cities where we have some presence Next 5 Cities Next 10 Cities

Los Angeles Washington D.C San Diego Austin

Las Vegas Miami New York City Atlanta

San Francisco Chicago Boston

Seattle Dallas

Toronto Philadelphia

Montreal

Orlando

Phoenix

Vancouver 28

Page 30: Discotech investor presentation 10 1-15

Recent Acquisitions in Space

$280M

$1.6B

$2.6B

$1.8B

Acquired Amount Date

June 2014

$658M

Buyer

June 2013

Jan 2015

July 2014

Feb 2015

0.7x

1.9x

13.7x

6.1x

4.5x

Sales Mult. EBIT Mult.

-9.8x

25.8x

56.0x

45.2x

8.9x30

Page 31: Discotech investor presentation 10 1-15

Recent Acquisitions in Space Continued

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Page 32: Discotech investor presentation 10 1-15

Potential Acquirers

Market Cap $55.5B $9.9B $4.9B $1.1B $320M

P/E 24.65 29.82 4240.5 390.5 N/A

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