mint - founder institute

8/3/2019 Mint - Founder Institute

1/17

AaronPatzer,Founder&CEO

June30,2008

FoundersIns:tute

Accoun:ngforStartups


2/17

OutlineLearnSequen:ally

! Phase1Garage(


3/17

Mint.comisthe#1personalfinanceweb

applica:on...

Seeallaccountsinoneplace Understand&categorizespending Setbudgets Trackinvestments Findsavings(WaystoSave) Avoidfees Educa:onalblogcontent

Helpsusersgaincontroloverand

domorewiththeirmoney

Accessibleonthego(iPhone)

andacrosstheweb(Yahoo!)

3


4/17

Aaron=Geekwithaccoun:ngskills

DukeEE/Comp.Sci.

PrincetonPhDDropout

Financial+Managerial

Accoun:ng


5/17

GarageGoal=Prototype

! Prototypedevelopment

! Idea! MarketResearch! BusinessPlan

Pre-revenueValua:on

+$500k/

engineer

-$250k/

businessguy


6/17

GarageExpenses

Expenses MinimumCost

Founders(livingexpenses)

$30k/yr

EngineeringFirstHires(lowsalary,highequity1-5%)

$30-50k/yr

Office(bythecube) $400/cube/mo

Tech(laptops+coupleofservers+devsoware)

$10k

Legal(Corporatesetup)

Deferredpaymentfor0.500.75%ofco.

2founders+1engineer/contractor(Assumes1technical+1businessfounder) =$150k/yearburn

RaiseSeedmoneywithin9mo.


7/17

SeedGoal=AlphaLaunch

! Usable,butnotpolishedorscalableproduct

! Headcount5-6 3-4engineers 1product/frontend 1businessgeneralist


8/17

SeedExpenses

Expenses Cost Annual

Salaries(equitydecreases,salariesrise,butbelowmarket)

$50-90k/yr $450k

Overhead(facili:es+benefits+taxes+food+laptops)

+20% $100k

Legal(andVCswillmakeyoupayforthefinancing) $25k(incorpora:on)$2k/mo(general)$50k

Totalburn(5-6personteam)

=$600k/yr

RaiseSeriesAwithin12mo.


9/17

SeedRevenueProjec:onsYouhavearevenuemodel,right?

2007 2008 2009 2010

$1m

$10m

$50m

! Yourabsoluterevenueprojec:onswillbebullshit(seebelow)! Everyoneslooklikeahockeys:ck! Peruse/perclientrevenueismoreimportant! Andahugemarketopportunity! LetsseehowMintdidit


10/17

Mint - Money Intelligence

Consumers

Competition:

Quicken & LowerMyBills

US User Base(millions)

2

20

65

LowerMyBills /

Uswitch

Quicken / Money Online Banking

Difficult to use Costs money: $30-70 Does not save or

make user money

4 of 5 quit within onemonth

Save money, but Manually search fordeals

No insight into yourfinances


11/17

Lead-Gen & CPA

Opportunity: $30+/user/yr

Category WhereonMint

CPARevenue

Frequency

OfAcSon

UserAdopSonRate(%)

=GoalRevUser/Year

CreditScore WTS $36 2yr 20% $3.60

CreditCards WTS $60 2yr 10% $3.00

Check/Save WTS $30 2yr 10% $1.50

IRA Center $100 3.5yr 5% $1.40

Brokerage Inv/WTS $200 Once 5% $2.00

CDs WTS $30 Once 10% $0.60

DailySavings Txn $1.50 1mo 20% $3.60

Insurance WTS $15 2yr 10% $0.75

Comm.Services

WTS $50 2yr 10% $2.50

MortgageRefi. WTS $200 Once 5% $2.00Travel Goals $50 2yr 10% $2.50

HomeImprove Goals $200 Once 5% $2.00

Edu&529 Goals $200 Once 5% $2.00

=$30


12/17

Mint - Money Intelligence

Business Model:Referrals & Lead Generation

7% of $16B online ad market Fastest growing ad segment

Up 160% from 2004 to 05(Source: IAB)

$1.0B in mortgage lead-gen,to triple by 2008(Experian)

20 65 M x $30 = $0.6 1.8 B

User base Rev/user/yr Mint Opportunity

Lead-Gen

2.1

6.0

2005 2008 est.

Billion

($US)

Advertisers


13/17

Funded=Launch&Lead

Goal:

Launcharealproduct&

growaprofitablebusiness

HiddenExpenses

! Legalpatents,trademarks,contracts,financing,

employment,immigra:on

! ConsultantsSEO,SEM,design,logos,DBtuning,etc.


14/17

FundedExpenses

Expenses Cost

Salaries+Overhead(Salariesatmarket+taxes+benefits+facili:es)

$200k/yr

COGs(customerservice,SMS,bandwidth,serverstoscale)

Widelyvarying

Legal(contracts,patents,employmentscaleupwithheadcount) $10-50k/mo

Totalburn(30personteam)

=$6.0m/yr

Profitablewith2years


15/17

BuildaModel

! Showusergrow,reten:on,COGs,revenuepersale/user,profit! Accumulatedlossletsyouknowwhentoraise! Backfitwithactuals

Revenuevs.Expenses

COGs

RevenueOpex


16/17

AcquiredMorethan$$$

! NerdCEO! Crea:ngsomethingfrom

nothingthesourceofallwealth

intheworld.

! Self-confidence


17/17

Ques:ons?

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