recurrence investor deck

RECURRENCEINC.

BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY

RECURRENCEINC.


RECURRENCEINC.BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY

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… BUSINESS STUDENTS.

… MEDICAL STUDENTS.

… POLITICAL SCIENCE STUDENTS.

… CORPORATE LEARNERS.

… AND MILLIONS OF OTHER LEARNERS.

RECURRENCE – Revolutionizing Education“Learning will be driven by interactive gaming, role playing and real

life data - we are designing the products, and the platform, to deliver those applications.”

The Signature Case by Recurrence

RECURRENCEINC.

BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGYBUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY

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Introducing The 21st Century Case Study - The Signature Case

Watch the Signature Case Method in action.

https://youtu.be/QZ-Mhu_8KEI

https://youtu.be/QZ-Mhu_8KEI

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Sales – Our Penetration Strategy

Existing competitors sell to the institution WE

CHANGE THE GAME!

sell to the professor

collect revenue from the student

expand within the school

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Sales – Who is buying

…and dozens more, names available upon request

UNIVERSITY OF WASHINGTON

PENN STATE UNIVERSITY

STANFORD UNIVERSITY

UNIVERSITY OF TEXAS

UNIVERSITY OF VIRGINIA

FLORIDA INTERNATIONALUNIVERSITY

UNIVERSITY OFCOLORADO

UNIVERSITY OF MINNESOTA

UNIVERSITY OF ARIZONA

CLAREMONT MCKENNA COLLEGE

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Sales – Why Our Customers BuyStudent Professor Program

DirectorProduct 92%

Preference; Higher

Engagement.

Receive higher student

evaluations.

Perception of innovation with

students.

Service Gain leadership analysis and development

plan.

Individualized insight into

student thinking.

First ever ability to see

student performance

against global averages

Benefit A better learning

experience.

A tool to enhance their

ease & success.

Insight into future program development

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Sales – What It Takes To Close Them84% of the professors that we demo the

product to commit to adoptWe average 2 calls to close a

professor

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Sales – RevenueThe average annual value per

professor in the pipeline is $17,148. The value of the qualified pipeline is

>$270,000

Estimated annual revenue per sales person is $1M

(booking +$80K/mo since 1/2016)

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Launch

Direct salesTargeted e-mailReferralsPR

Growth

Expand our presence in existing accountsOpen up new markets by developing new contentDevelop International marketsDevelop sales channels

Maturity

Professor referralsLeverage the data we create with DeansDevelop an app marketplaceCorporate trainingServices

Sales – Strategy

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Sales - Bottom Line

In our first 3 months of cold sales, we averaged $154 of annual recurring revenue per e-mail we send!

With additional capital we can increase sales by:• Growing the sales team• Expanding our presence in existing accounts• Opening up new markets by developing new

content• Developing International markets• Developing sales channels

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Market - What is the Opportunity• Global education market; $4.4 trillion with massive diversity.

• TAM for initial line is $1.4B in U.S.; Logical beachhead

• TAM for second market is $149B annually.

• Near limitless market expansion opportunity.

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SIGNATURE CASE

CAPSIM GLO-BUS/BSG EVEREST V2 PAPER CASES

TEACHES BUSINESS x x x xEXPERIENTIAL & ROLE BASED xUSES REAL-WORLD DATA x xREAL-TIME FEEDBACK FOR STUDENTS x xREAL-TIME UPDATES xEASY TO USE FOR STUDENTS x x xEASY TO USE FOR INSTRUCTORS x xIMPOSSIBLE TO CHEAT ONLINE xFUN x xMODERN GAMING EXPERIENCE xPRICE $47.50 $54 $45 $40 ($15

w/discount) $5

Market – Competitive Analysis

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Market - Risks & PrecautionsRisk PrecautionExisting competitors chase

A major competitor tries to copy

Slow case production

Slower growth rate

Regional, flagship partnerships.

Multiple publishers; copyright.

Double-down on sales; increase simultaneous production.

Current growth rate sufficient; If slowed, mature acquisition strategy.

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Financials (Implement Chart)

2016 2017 2018 2019 (2,000) -

2,000 4,000 6,000 8,000

10,000 12,000 14,000 16,000 18,000

377 1,995

5,529

15,895

656 2,183

4,567

9,514

(279) (188)

962

6,381

Revenue - Expense & EBITDA Projection in USD'000

Revenue Expenses EBITDA

In USD'000 2016 2017 2018 2019

Revenue 377

1,995

5,529

15,895

Sales and Marketing Expense

165

888

2,357

5,411

General and Administrative Expense

418

1,064

1,974

3,861

Research & Development Expense

73

231

237

242

Total Expense 656

2,183

4,567

9,514

EBITDA (279)

(188)

962

6,381

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TeamBrayden Olson, Founder & Co-Inventor• Gamification pioneer in Fortune, Huffington Post, BusinessWeek, et al.• Youngest person ever admitted to Seattle’s Entrepreneur Organization• Selected Young Professional of the Year by Bellevue City Chamber

Bruce Avolio, Director & Co-Inventor• Executive Director, UW’s Foster Center for Leadership &

Strategic Thinking• Respected Voice in Academia; 11 books and 150+ articles

published

Smahil Hellal, CFO (Starting in Q3 2016)• 15+ years international experience structuring profitable software

companies• Experience in managing economic strategies and forecasts for

multinational SaaS companies

Robert Savette, COO• 20+ years growing seed through mid-stage software companies.• Experience with 4 successful exits.

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BoardVolker Hirsch, Director• Two decades of experience in creating and advising game and education

companies• CSO for Scoreloop; Built to 100M users; Sold for over $70M (exact price

undisclosed)David Pritchard, Director• Former European Managing Director of Apple’s Software

business Claris• Founder of OpenTable, Europe and Senior VP at OpenTable

Inc. Outcome: IPO (Nasdaq:OPEN) and subsequently bought by Priceline for ~$1.5B

Russell Braun, Director• Former director of all development - Nintendo of North America• General Manager for RealNetworks; Outcome: IPO (Nasdaq: RNWK);

Valuation $500M

Kevin Harrington, Director• The inventor of the infomercial, original Shark on Shark Tank, and Pioneer

of "As Seen On TV" • Launched over 500 products resulting in more than $5 Billion in sales

worldwide.

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Investment - ObjectivesRaising $750K at $7M Pre-Money Valuation

Capital will:o $1 to $10.34/yr.o Customer upsell.o International licenses.o Additional Cases toward marketplace.o Organize documentation for growth or exit.

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Exit strategyAcquisition - we believe that with a strong financial partner we will be able to rapidly grow the company into an ideal acquisition candidate, examples would be:

•Traditional education players •Traditional gaming companies •Private equity

Acquisition StatisticsIn 2015, there were 415

M&A events in the education space worth

$18B.

Almost 20% were in the “higher ed, media &

technology” segment we fit into.

Private equity now outpacing purchases by traditional

publishers and media/technology companies

are entering the buying market.

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ConclusionWe believe that Recurrence is a great investment for the following reasons:

• Six months of market validation ($500K+ in commited revenues).

• Heavy R&D.• Validated future R&D will be paid by university partners.• Strong management.• Proven product; clear ROI.• Ideal acquisition; multiple exit options.

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“Tell me and I forget. Teach me and I may remember. Involve me and I learn.”

– Benjamin Franklin

recurrence investor deck

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