immerss investor pitch deck
TRANSCRIPT
Immerss.com | [email protected] Founders: Alex Wilner | Arthur Veytsman
Discover, Share, Experience and Gain
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Immerss
The Problem
2
MO
NET
IZAT
ION
GEO
GRA
PHY
DIS
COVE
RY
ChefTutor
MixologistYoga
BeautyPerformerInstructor
Dancing
Fitness
TALENT / PRESENTERS BARRIERS AUDIENCE / CONSUMERS
I want to be discovered I want to find a good instructor
I can only reach local customers I have access only to local
instructors
My time is underutilized I would like affordable classesMONETIZATION
GEOGRAPHY
DISCOVERY
The Solution
3
Discovery marketplace connecting users through Live
Interactions
Shared Experiences
Foster an Interest Based Community
Connect Talent with Audience
Monetization
Gain Access to World’s Talent
Discover a Wide Variety of Content
Consumers Gain Affordable Access
Presenters Earn During Off-peak Hours
Empowering Sharing Economy
Original Content Production
Live Bi-Directional Group Video
LiveCast and Recording
Live Interactions
Expand to New Regions
Discover Share
ExperienceGain
Business Model
4
Presenter is setup as a fully functional independent merchant offering sessions for a fee.
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Immerss collects from consumer, retains a portion (10-30%) and distributes the rest to the Presenter.
3Payment
$200 MIL
$160 MIL
$120 MIL
$80 MIL
$40 MIL
-$20 MILYr1 Yr2 Yr3 Yr4 Yr5
Net Revenue (post presenter cost)
EBITDA
Expense
PROFITABILITY PROJECTION
$1.2 MIL
$22 MIL
-$2.2 MIL
$72 MIL
$167 MIL
$20 MIL
Break-even @ 550K Net Revenue on month 19
BASELINE ASSUMPTIONS
Break Even Point
Monthly Rev/Presenter: $400
Active Presenters: 5,523
Enroll Presenter Promote Session
Presenters and Immerss promote session to consumer via social media channels, Immerss LiveGuide™, search and recommendation engine.
Monthly Revenue: $2.2m
Net Revenue: $552k
Fixed Costs: $535k
Variable Costs: $17k
Client Acquisition
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• Recruit presenters with high following
• Bring consumer via presenter’s landing
page
Cross Pollination and Viral Growth
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Talent Aggregator Presenter Consumer
• Inbound marketing by
vertical
• Working with specialty
bloggers• Engage with talent
aggregators
• Small business
Organic SEO Drives Results
MVP and First Interactive Demo
April 2014
Seed Round 750K
May 2014
Launch Private Beta
May 2015
Launch Public Beta
Dec 2015
Presenter and Consumer Acquisition
Experienced execution team
Started Immerss 2 years ago and absorbed the initial risk
The platform is built and has countless business applications
Expanding and unsaturated market
Truly global community
First mover advantage
Sustainable business model
2006 - Broadband
2009 – Video On-Demand
2010 – Cloud Computing
2012 – HD Video Cameras
2013 – Video Conferencing
2014 – Live Streaming
Technology Convergence
Founded ImmerssJuly 2013
Continued Product Improvement.
2011 – Mobile Broadband
The Market
8
IMMERSS
E-LEARNING$45 B
PERFORMANCE$40 B
LIFESTYLE$30 B
US Markets
Ref: IBISWorld Industry Reports
Video technologies are at explosive growth stage
Universal adoption of online, interactive & collaborative communications is increasing rapidly
Target markets are in growth phase and online sector is growing at 3X the rate of brick & mortar market
Technology Platform (completed)
9
Multifaceted and scalable video solution • Produce 3 video outputs from a single effort• Integrated with industry leaders
Feature-rich customer portal • Self-managed profiles• Full social integration• Like, Follow, Rate, Review, Notify• Comprehensive dashboard • Integrated payment processing
Scalable architecture • On-demand scalability• Deployed on AWS• Prepared for big-data
Comprehensive back office • User management• Double-entry accounting, integrated chart of
accounts, system credits, advanced payments.
Proprietary tools • LiveGuide™ with API support for back-linking• Immerss Control – mobile app to manage live
session
Secure REST API • Support for mobile clients• Extended to support business entities
Revenue Model/Projections
10
$200 MIL
$160 MIL
$120 MIL
$80 MIL
$40 MIL
-$20 MILYr1 Yr2 Yr3 Yr4 Yr5
Net Revenue (post presenter cost) EBITDAExpensePROFITABILITY
$1.0 BIL
$800 MIL
$600 MIL
$400 MIL
$200 MIL
Yr1 Yr2 Yr3 Yr4 Yr5
$30 MIL$125 MIL
$332 MIL
$727 MIL Gross Revenue
REVENUE
$2.2 MIL
$1.2 BIL
$1.4 BIL
Presenter Acquisition Schedule
Revenue Per Presenter
Monthly quotas: 15Per Sales Associate
20Per Marketing Associate
50Per Biz Dev Associate
Viral presenter growth: 2.5Per year from each
active presenter
Sessions per Month: 4
Gross combined revenue per session:
$1006 interactive seats @$12
+ 4 livecast seats@$7
VoD revenue per presenter:
$12 Per month
Average revenue split: 75/25percent
Presenter attrition rate: 63%
$1.2 MIL
$22 MIL
-$2.2 MIL
$72 MIL
$167 MIL
199K presenters
1,200presenters
14k presenters
39k presenters
98k presenters
$20 MIL
Break-even @ 3.2 mlgross revenue per month
Mo-19
Competitive Advantage
Integrated content delivery• Three video outputs from single effort• Cross platform / Cross devices• Support variable internet bandwidth
Discovery/Connection Engines• Back-linking through LiveGuide™• Interest based suggestions • Consumer friendly search
Marketplace Setup• First mover advantage with all-in-one
platform• Highest monetization for Presenters• Group video environment promotes
better pricing for consumer
Defined Revenue Generation Model• Variable revenue split drives higher
earnings • Referral models for all user types
Competitive Landscape
11
Stre
amin
g
WideModerate
Inte
racti
veRe
cord
ed
Low
C o n t e n t V a r i e t y
Int
er
ac
tiv
ity
Team
12
Arthur VeytsmanCEO
Started and managed 6 companies over 16 year span. Prior to that spent 6 years
in management consulting, implementing technologies for various industries.
Overall experience covers all aspects of business management with emphasis on
Leadership, Business Strategy, Operations and Financial Accounting.
Alex WilnerCTO
15 yrs. of experience leading global technology teams in product and R&D
development. As a chief software architect and software-manager, lead
enterprise-level nationwide projects for domestic, governmental and
international agencies and companies with specialty in high-transaction systems.
Preethi Pillaipakkam
Community ManagerBusiness Development professional with well
rounded experience in Product Development,
Complex Solution Sales, Competitive Market
Landscape and Product Placement.
Adam NegoslawskiDigital Marketing
Marketing professional specializing in the
development and implementation of digital
marketing strategies, leveraging data and
analytics to drive insight.
Ofer ShapiroStrategic Advisor
Mr Shapiro co-founded Vidyo and served as its CEO for 10 years. He has been an innovative force in Video Conferencing industry and holds over 50 patents.
Investments
13
Seed Round – $750,000
Portal Development
FUNDS SPENT
$350,000
Video Technology Integration $150,000
Scalable Infrastructure Development $75,000
Mobile Integration $35,000
Total $750,000
Brand Development $35,000
Licensing $35,000
Marketing $30,000
Operations $40,000
Round I – $1.5M (12 months)
Product Development
USE OF FUNDS
$693,180
Sales & Marketing $575,898
Management Overhead $129,600
Administrative Overhead $91,060
Net Cash Requirement $1,126,010
Management Reserves $30,000
Total Expenses $1,519,738
Estimated Net Revenue $439,644
COGS $45,916
Gross Profit $393,728
*Current Burn Rate $50,000