a curated platform enabling luxury brands reach their ideal customer worldwide

www.runway2street.com

Atelier to Closet

30+ million

Women

1000s of

Independent &

Emerging Luxury

Fashion Brands

Anywhere to Anywhere ShippingGlobal Customs Handling

Mobile Platform

Hand Picked High QualitySlow Fashion

150 countries

worldwide

150 countries

worldwide

1. IT costs and technology

2. Reduced margins

3. Marketing costs

4. International expansion

5. Brand Dilution

6. Forecasting

Problem for brands

1. International selection

2. Discovery of exciting emerging brands

3. Curation

4. Personalization

5. Quality & Authenticity

6. Value & Transparency

Problem for consumers

R2S Solution

Boutique Storytelling

Curated community

International Supply chain/logistics

Cutting edge mobile ready platform

Self serveBrand tools

Retail Analytics

Transparency & Value

30+ million

Women

150 countries

worldwide

1000s of

Independent &

Emerging Luxury

Fashion Brands

150 countries

worldwide

Market Opportunity & Business Model

20MTarget

Customers

CurrentAvg. Order Value

$400

Sales1 sale/yr.(typical retailer -4/yr.)

$8B $300B

*Assuming reach of 20M out of 30M addressable market (Polyvore has 20M, Lyst has 10M)*R2S makes 25% commission/sale (Potential to increase to 35%) on retail opportunity (above).

*Luxury industry was 300B in 2013, growing at 13% in US and 30% emerging.

Unique Users X Conv. rate X Avg. Order Value X Commission% = Revenue

Additional opportunities

BEAUTY & SKINCARE

• Expand to emerging/cult beauty and

skincare products. A logical extension to

brand.

• 55B industry

• Acts as a gateway drug – easily afforded

option for a women. Increase customer

reach & engagement.

• Ability to add 10M additional millennial

addressable market. They want to be early

adopters.

Additional opportunities

WHOLESALE/VIRTUAL SHOWROOM

• Extend offering as wholesale marketplace

for R2S brands

• Showrooms take 10% commission/sale

• Leverage supply chain network worldwide.

Results in better discounts with carriers for

shipping and returns.

• Positions R2S a premier site for discovery

of up and coming brands

• Holistic retail analytics

Founding Team

Rathna has combined a love for fashion and online retail with years of experience in technology, advertising, and international logistics to bring runway2street to life. Prior to runway2street, Rathna was the Director of Product Management at Microsoft, where she was responsible for overseeing the Advertiser Marketplace for Bing Ads Business Group. Earlier in her career she held technology leadership positions at UPS, Menlo Worldwide Logistics, and Emery Worldwide. Rathna Sharad,

CEO/Founder

Sherwyn Soff, CTO/Co-Founder

Sherwyn is an entrepreneur at heart with a strong, deep rooted software engineering background and a passion for cutting edge e-commerce technology which helped create runway2street marketplace. Sherwyn founded enQoS, a successful online marketing and technology solution company with global presence.Prior to that he gained vast experience at Microsoft building crucial engineering platforms within online advertising such as Search, Display, Apps and Ad Exchanges.

Advisors/Investors

Tarek Najm, Technical Fellow, MSCEO, Parllay

Michelle GoldbergPartner, Ignition Ventures

Jessica Michaels, Founder, Bread and Butter Digital

Sophia BanksCelebrity/Fashion Stylist

Diane Najm, Founder, PhotoPad/ Angel Investor

Heather Redman, VP Biz Ops, Indix/Angel Investor

Retail Evolution

Brick and Mortar

MallsDept. StoresBoutiques

Online RetailersVertical brands

Marketplaces 1.0Fast

Fashion/Outlets

Specialty Marketplaces

2.0OmniChannel retail

Neighborhood Variety/ ChainsEntertainmentCurated experiences

DistributionScaleAvailabilityLow costConvenience

InternationalCurationCommunityReachAll devicesOnline/Offline play

In house supplier fulfilment

Regional sourcing & distribution centers

Global sourcing&Regional fulfilment

Global sourcing&Global supply chain network

CUSTOMER

RETAILERS

FULFILMENT

Retail Landscape:Fragmented space and no global platform/retailer leader in emerging luxury

Luxury

Established designers

Emerging designers

High street

1. Our products (unique and not found at typical retailers)

2. International logistics & supply chain integration

3. Business model (Atelier to Closet)

4. Worldwide markets (specifically emerging)

5. No inventory and Fulfilment costs

6. Cutting edge Technology platform

7. Self-serve brand tools

8. boutique-style consumer experience

9. Curated fashion community

10.Our team/skillset

Competitive advantage

Customer Acquisition and engagement Plan

Social media Marketing Industry

Partnerships

Influencers

(bloggers &

stylists)

R2S pop-ups

Trunk Shows

PR

Newsletter

Blog

Content

Syndication

Affiliate Networks

SEO/SEM

Promotions

1. Raised angel/bootstrapped with 200K investment.

2. Launched runway2street to US, UK and IN markets in Jan 2014

3. Created community of ~50 brands across 20+ countries

4. Customer Touch Points ~25K across platform, newsletter and social media

5. Press – Tech, Business and Fashion

6. 4X increase in traffic to website

7. 3X increase in conversion rate

8. 35% return visitors

Traction

Financials Forecast

$156.1K $2.3M

$29.3M

$73.2M

$183.0M

$457.4M

$800.9K $2.0M $7.2M$16.6M

$39.2M

$104.2M

$0.0K

$50.0M

$100.0M

$150.0M

$200.0M

$250.0M

$300.0M

$350.0M

$400.0M

$450.0M

$500.0M

FY1 FY2 FY3 FY4 FY5 FY10

R2S Forecast

Revenue Expenses

1. Women’s apparel, accessories, shoes, and jewelry brands

2. $50 - $20,000 retail price

3. Luxury aesthetic

4. Non-mass produced

5. Production cycle and inventory

6. Customer service

7. Terms compliance

Brand Sourcing (Curation)

1. Fine jewelry

2. $1K - $10K

3. One of a kind design with high

quality workmanship

4. Limited quantities and made-to-

order options

5. Able to meet our inventory needs

6. Beautiful packaging and offer

returns even for custom sizes

Xin, London

• Women

• Global customer

• Active in Social media

• 25 - 55 age group

• Fashion savvy

• Conscious consumer

• Travels the world

• Avg. household income > 75K

• Avg. luxury purchase 2-5K/year

• 30M+ worldwide

“They don’t want ordinary, and in fact, ordinary doesn’t sell for me” – Tom Ford

Our Target Customer

What are our customers saying?

“@runway2street I love my new #armcandy”

“@runway2street1 I am loving my first purchase from you! Many more to come!!!”

Seeking 1M in seed round for next 12 months

Terms:

o Convertible note with 20% discount, 4% APR and 3M Cap

Exit Strategy:

o IPO

o Acquisition in 3-4 years

o Etailers: like NetaPorter.com

o Luxury Department stores: like Neiman Marcus, Nordstrom, Barneys

o Publishing Houses: Like Conde Nast, Hearst

o Luxury Conglomerates: Like LVMH

o Online platform: Like Ebay

Offering & Exit Strategy

Use Of Funds

Customer Acquisition&

engagement

Technology, Ops &

Scale

Team

35%25% 40%

Use Of Funds

Scale Technology, operations and cloud services:-Servers -Tech & Data services-Brand acquisition-Editorial & samples-Returns/insurance/shipping-Operations-Finance/accounting

Retain team and hire great additions:-Hire 1 Marketing Lead+ 1 new developer -Customer service and operations support-Existing full-time team of 3 developers, 1 UX designer and 1 content marketer

Brand awareness, grow and engage customers in R2S fashion community:-Social media (Pinterest, Instagram) -Partnerships with Polyvore & Motilo-Affiliate networks-SEO and content creation-Content syndication (Outbrain)-SEM Search and display networks. Adwords.-Direct/email marketing -Influencers like bloggers and stylists (Fashiolista)-PR for magazine/ tradeshows.-Pop-ups & Trunk shows- Promos/refer a friend

TECHNOLOGY, OPS. & SCALE TEAM CUSTOMER ACQUISTION

1. GAP in international retail landscape

2. Unique and diverse team skills

– 25 years combined experience in building scalable technology platforms

– 13 years combined experience in online advertising and marketplaces

– 10 years experience in international supply chain and logistics

3. Great revenue model with no inventory/warehousing costs

Reasons to Invest

THANK YOU

Rathna.Sharad@runway2street.com

Contact

Appendix

R2S vs. FarFetch

Atelier to closet (no middlemen)

Curation and storytelling about brand.

100% emerging mid-high end brands

Entire collections featured

Worldwide Supply chain/Fully automated

Mobile ready

Extend to Beauty

Extend to Wholesale

Connecting boutiques to consumers (3 degrees of separation from brand)

No curation. Boutiques handle that.

Primarily established brands – with 30% emerging mix

Limited styles for each brand similar to traditional retailers

Worldwide Supply chain

Launching mobile App. End of year.

Boutique model does not support beauty

Boutique model does not support wholesale

Customer acquisition tactics

Tactic Outcome Metrics/Spend

SEM (Search + Display) using Adwords Customer acquisition (30%) <$1 CPC, Conv. Rate 0.3%

Influencer Partnerships: Fashiolista, TheBloggerNetwork

Build fashion communityCustomer acquisition (20%)Brand awareness (4M potential customers, 2.5Knew reg. customers)

$2.4 CAC for registered users, $7000/mo.

Affiliate marketing – PepperJam (Ebay), ShopStyle, RewardStyle and ShareASale

Customer acquisition (8%) 8% order value

Social --custom audience on FB--Polyvore product feed/shop

Customer acquisition (30%)And brand awareness (20M+ potential on Polyvore)

<$1 CPC, conversion rate 0.3% $0.40 CPC, conversion rate 0.5%

PR (online Fashion, Beauty, Lifestyle & celebrity)Promotions (coupons)

Brand awareness and engagement (8%) $5K/mo. For contests, gifting, PR $2K/mo. Promo codes for all channels

SEO and organic- Blog and content creation- Traffic from designers/brand partners

Customer acquisition (4%)Brand awareness and engagement

NA

Remarketing and direct marketing- Popup/trunk shows- Email- Retargeting using Adroll

Build fashion communityBrand awareness and increase engagement

7K/mo for trunk shows (increase conversion rate to 1%) $100/mo. Email (open rate 12%, click rate 1.5%)