Business Plan Overview

April 7, 2012

Proposal Document

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CONFIDENTIAL

Executive Summary

• Our Technology:

• Our innovative computer vision technology allows consumers to take accurate full body measurement using a smartphone

• Our proprietary “personalized recommendation engine” allows precise matching between consumer preferences and garments

• Our Business Model:

• We provide the technology to online retailers and brands, to help them increase online sales, enhance consumers’ online shopping experience and reduce return rates

• Our Vision:

• With real personalization, online apparel shopping will be made as final as other categories (such as books)

• Our Mission:

• IvyPromise will help establish industry standard in 1)collecting human body information; 2) accessing human body information; 3) communicating garment information

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Challenges within the online apparel business

$50

$100

$150

$200

Key Challenges

• Fast growing (~20%

yoy)

• Consumers: a lot of

uncertainty and lack

of confidence

• Retailers: Cost

savings on building

and employees but

waste on returns

Apparel Industry Revenues

Sizes: Lack of standardized size across

manufacturers and “vanity sizing”

Costs: Custom apparel is cost prohibitive

due to labor involved

Returns: 40% online sales ends up

returned, largely due to size/fit problems

Conversion: Low (~10%) conversion rate

relative to other categories (e.g. books)

Online Shopping

2010 US Data (in Billions)

Info: Retailers lack consumers’ body info

to make effective recommendations

Online

Offline

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We can solve the problem with a technology driven solution..

• Save time on fitting

• Make purchasing more

effective by going to the

recommended sections in

stores and malls

• Reduce return rates and

cart abandonment rates

• Provide true

personalization to

improve online shopping

conversion rate

• Drive increased consumer

confidence

• Allow store to have more

data to understand

customer needs and track

usage

• Enable stores to plan

inventory with more

confidence

Enhance Offline

Experience

Improve Online

Ecommerce

Supply Chain

Efficiency

Our Solutions:

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Our core technology offering

Download the app

and take a video

Measurements

Calculated

3D Avatar Constructed;

create a profile

User provides personal info, preferences and goals

1

2

3 -Personalized

Precision Matching:

Size, Style, Goals

-Cross Selling

Gather Body

Measurement

Gather

Personal Info

Match Garment

to Body and

Personal Info

Patent pending technology

1. Patent Details available on request

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Application of our core technology in many ways

Virtual Fitting Room

Location based recommendation

Fit Test Finder

Core Technology

Video Analytics

Measure & Match

1

2

3

45

Online trial and fitting

room based on exact

fit technology

Scan and test if the product

is worth trying on before

going to changing room

Find best fit products within

a store based on your size/

fit and style requirements

Measuring feet data for

customized shoes

recommendations

Analyze store traffic to better

predict gender, style, size and

color of clothes helping plan and

manage inventory

Illustrative

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Business Model

Powered

by Ivy

Brands

Retailers

Consumers

• Consumers can shop

with ease across

brands / retailers

• Helps consumer

discover other brands

• Shop with ease across

different segments

Ivy technology integrated as part of

channel partners sales channel

(Brands and Retailers)

An amazon.com style open platform, where any brand can

plug in and benefit from the customer body database we

have. Consumers also will benefit from a broader collection

Short-Term: Licensing Model

Long-Term: Open Platform

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Go-to Market

Measure Me Best FitPersonal

Stylist

Custom Tailors

Brand / Retailer

Like

1 2 3

Evolution of Offerings

Targ

et

Mark

et

Seg

men

ts

Provide accurate measurements based

on technology

Match the best fit item based on body and garment

measurements

Based on user preferences and styling recommend items that

best suit requirements

Embed IvyPromiseon their portals and

stores to improve conversion Leverage scale to create a

unified platform that helps guide users

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Roadmap & Resources Required

$50000

$200000

$0

$50000

$100000

$150000

$200000

Upfront Investment Stylist based Solution Total Dev. Cost

$100000

Productization

$50000

• Prototype development - Complete

• iPhone/iPadapp to reach the consumer

• Extend the size/fit offering to incorporate stylist solution

Total Cost ($)

Bonobos.com and Macy’s.com willing to license the product

Active conversations with Trunk club.com, Fits.me Levi’s and Land’s end

Accomplishments

Actively raise funds through angel investors and VC labs to drive the product further

Pilot integration with few retail/brand and drive the solution further

6 months 3-4 months 6 months

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Summary

• Evolving Landscape

– Online apparel industry is set to change in the near term future

– Very few solutions exist today which apply “science” to the “art” of measurement and shopping

• IvyPromise.com Offering

– Our technology delivers easy and accurate body measurement

– Helps retailer achieve next level of proficiency in online sales

- Higher conversion rate

- Personalized recommendation

- Reduced return rates

• What’s next

– Complete productization for smartphone distribution

– Provide personal stylist at no cost

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Founding Team

Jenny Maher

• Veteran entrepreneur founding and raising

funds for 3 startups

• 5 years as General manager at Citi, Inc.

with experience in

M&A, operations, risks, sales and

marketing; 2 years of apparel

manufacturing outsourcing experience

• MBA from Stanford University

Li Li

• 8 years in Microsoft with 7 promotions and 2

gold stars

• Expertise in statistics and machine learning

• Main inventor on several US and

international patents

• Co-founded Touch TV Networks

• MS from East Carolina University

Victor Boskovitz, PhD

• More than 15 years as computer vision

researcher and system builder

• Expertise in robust image segmentation, 3D

modeling, and robotic vision. DARPA Urban

Grand Challenge in 2007

• Ph.D. from University at Ben Gurion Ba-

Negev of Israel & Member of IEEE

Mithun Sheth

• 8+ years of management consulting

experience (A. T. Kearney) mainly in CPG /

Retail and analytics; Extensive experience

building and commercializing innovative

solutions for category merchandising,

complexity mgmt etc.

• MS Syracuse University

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Appendix

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Competitive Landscape: The Body Scanning Methods

Ease of Use

Measurement

Accuracy

Unique

(TSA)TC2

Xbox

Kinect-

Based

Ivy

Promise

Upcload

Green: require one

camera (monocular

camera)

Blue: require 2~16 camerasRed: High

frequency radio

wave

Acceptable

accuracy for

apparel sizing

Big Machine / Booth,

setup required

Household item, Easy or no

Installation required

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Risk Factors

Consumers Reluctant to Shoot a Video of Themselves

• Make the “trade” worthwhile for consumers (e.g., incentives)

• Let customers provide “my favorite” garment information to be used as a proxy for the measurements (e.g.: “my favorite pants are Levi’s 520 33x34)

Retailers Slow to Adopt the Technology

• Offer free trial periods

• Provides consumer coupon support

• Offer free campaigns for retailers on IvyPromise platform and social media