causenetwork, inc. overview
TRANSCRIPT
We Bring Giving to Life#LiveToGive
About UsCauseNetwork was conceived with modest goals and driven by the hope we could do good things for great Causes that really need help.
In early 2014, we realized that we had an opportunity to do something extraordinary. Real changes in our national culture and in technology has opened a door. So we set our sights on building a company that can do well and do good. Then we built a solution that rivals or improves upon platforms from companies with valuations reaching into the billions of dollars.
Increasing consumer and market demand for Corporate Social Responsibility, combined with the pace of technological innovation, have created the opportunity to turn the power of capitalism and commerce into non-profit fundraising. Our goal is to be the best solution available for Causes, Supporters and Advertisers alike.
Management will use this round of funding to accelerate growth and achieve our market potential as the world’s first non-profit Advertising network - online and mobile.
We Are a Consumer & Cause-Driven MarketplaceA “Network” Where Everyone Benefits
Great Causes
get free fundraising tools & mobile
messaging channel to connect to
Supporters
Supportersare empowered to
donate to their favorite Cause
through everyday activities, for free
Advertiserssee measureable
ROI that also boosts brand
image, sales & Social-Local-Mobile
reach
We Created a Scalable, Digital Platform
• Free, branded solution turns everyday activities into funding support for Causes
• Includes a web marketplace, mobile app and web app with messaging, donation services, and more
• 1000+ national Advertisers generating up to 10% donation or higher with each purchase
• Local Advertising extends value to small businesses and local Causes.
• Donation Coupons™ offer a unique way to enable sales with donations online, in-store or mobile
• Proprietary tracking system ties sales and donations to Supporters and Causes together
• Partner Program with turn-key tools and support to drive membership and fundraising campaigns. Tightly integrated with social media, email and more
On-line Marketplace Mobile App
Web App Plug-In
Fundraising, Communications, Commerce, and Advertising
We Act as a Clearinghouse that Generates Donations
Supporters connect, shop “in network”,
donate goods, & more
Causes join & ask Supporters to
to use the platform
Advertisers pay via sales commissions
and advertising
CauseNetwork donates 55-90% of
revenues generated*
DONATIONS
Our Tracking Systems Enable Precise ROI Measurement For Advertisers
* CauseNetwork leverages the power and reach of Causes, directly promoting to their Supporters. This saves CauseNetwork money on marketing and advertising, which enables us to pass on a significant portion of our revenue to each Cause as a donation - turning Advertising dollars into Cause funding.
A Simple Way to Look at CauseNetwork
“What’s the difference between these two dresses?”
Both cost $100 from the same Advertiser
• Generated a $10 donation for Mom’s favorite Cause – the Audubon Society
• Made the Advertiser look great to loyal Audubon Supporters
• Made Mom feel great and empowered
• Generated profits for CauseNetwork
But the one bought through
CauseNetwork …
Already 150+ National & Local Causes Signed During Beta“CauseNetwork helps us raise funds
outside of traditional formats… it’s the perfect solution: savings for our supporters and a new source of funding"
Karen Torres, Executive DirectorRonald McDonald House Charities, Greater Washington D.C
“CauseNetwork is a game changer. Students and alumni save AND raise money for scholarships – at no cost to them.“
Mark Kraner, George Mason University
“Cash-strapped non-profits get a freeand entirely effortless way to raise money.“
December 17, 2015
H.O.P.E.
“CauseNetwork’s free, easy to use and can make a positive impact on a cause that is specifically important to you.
…you can finally shop like it matters.”
February 23, 2016
virginia magazine
We Meet Demand Created by Major Market Shifts
Technology
bought products once a year to support a Cause*
Consumers
$95 billionmobile sales
47%
$173 billion**projected mobile sales
Major market shifts have created a unique opportunity…
*IEG, Cone, Nielsen, Edelman and The Cause Marketing Forum** Verify, Inc.
28%
to make CauseNetwork the charity app on half of U.S. mobile devices
2008 2015
bought products once a month to support Cause*
20182015
“What will have the
biggest growth for digital
fundraising?”
survey of fundraising professionals
Mobile giving jumped by 45% from 2014 to 2015*
One in seven online donors gave using a mobile device in 2015, up from one in 10 in 2014.
68% of Americans own a smartphone, according to Pew Research Center.
Nearly 30% of US households no longer own a landline **
Mobile coupons are 10X more likely to be redeemed than traditional coupons.***
95 - 98% of notifications are read within minutes of receipt.****Causes can’t afford nor do they have the
internal skills to build mobile apps, so very few have them.
We Put Everyone’s Heart In Their HandsWith a Free Mobile, Multi-Channel Engagement Platform
* Blackbaud, a processor of online donations ** Summer 2011, http://www.hipcricket.com/ *** http://www.mobilecommercedaily.com ****Multiple sources
We Make Mobile Campaigns Free & EasyWith a Dashboard and Tools for Cause Administrators & Marketing Professionals
Multi-platform in-app messaging connects Causes to all Supporters via mobile and desktop
Messaging offers better response & is cheaper than direct mail, telemarketing, and door-to-door
Multiple fundraising tools including direct donations, commerce, and travel
Messaging can get key information out: events, news, schedules, galas, legislation, etc.
App works for national, local and social campaigns with mapping built in
“…the ‘Boomerang Generation’… is exerting it’s potent influence to reshape Corporate Social Responsibility
(CSR) in the most powerful place of all – the marketplace.”
“Advertisers are learning that the good they put into the world is now returning to them – as a boomerang in
the form of return on investment.”
“Millennials are the most racially diverse generation group in the United States… at more than 86 million
people, the largest in history.”
Millennials Pull Corporate Social Responsibility into the Marketplaceby Russ Stoddard July 23, 2014
We Connect Causes to a New Generation of Donors
We Added New Revenue Streams for 2016
• CauseNetwork converts old-fashioned local sponsorships to mobile ads with coupons• Donation CouponsTM let Supporters donate to their Cause through local Advertisers• Uses Cause volunteers as a low-cost salesforce• Platform in place, sales tools being developed, testing begins Q1 2016
DonationServices
National Advertising
Local MobileAdvertising
• Aggregating no-cost services makes them usable by all Causes and Supporters • Consumer electronics donation service launched Dec 2015• Additional services targeted for 2016 include cars, clothes, click/text to donate
• Premium Cause Advertising for national brands across all sites • Capabilities are in place, initial conversations indicate significant interest• Pilot tests to quantify offerings in Q2 2016, with 1st sales Q4
In addition to revenues from each marketplace, we’re adding new ways for Supporters to generate donations and profits
OperationalServices
• Cause-centric services built organically or provided by third parties• Includes dedicated platform, volunteer management, scheduling, content management• Strategic partners extend sales and capabilities as well as increasing speed of growth
Our platform enables:
National Advertisers can secure positioning across all Causes and reach every Supporter
Local Advertisers can choose all or regionally targeted Causes to support
All advertisers can utilize Donation CouponsTM
We Focus on Advertising
Top placement in the mobile app and on-line marketplace Inclusion in Cause branded promotions, emails and newsletters Ability to control the ad, coupon, price throughout the year
CONSUMER ELECTRONICS:• Used electronics across many categories accepted today.• Supporters complete a form listing products to donate, then send
them in postage paid, and we do the rest• Partnership with TradePort, the country’s leading Refurbish/Reseller.• Donors get a tax write-off for the full resale value of the products.
We Convert “Goods” Into Donations (and Profits)
&
&
CARS:• In 2015 only 3% of Causes could take car donations, but in Q2
2016, every Cause can accept car donations via CauseNetwork.• CauseNetwork has a partnership with Insurance Auto Auctions
(IAA), the leading North American salvage auto auctioneer.• Donors get a tax write-off for the full resale value of the car.
Our Next Generation Solution Will Deploy This Year
The next version of our solution utilizes a “mobile first” design approach that will deliver a customizable suite of features offering our Causes an even greater number of tools and content options.
Management plans to offer all of these features in our basic version for free.
Larger Causes that wish to utilize CauseNetwork’s platform more extensively will be offered Premium Services (e.g. fully customized mobile app) for a small fee.
We Have Multiple Advantages• Branded mobile app with messaging that is in-demand, free and customized• SoLoMo – app and platform built for social-local-mobile emerging market• Two patents pending: donations via retail coupons and coupon price protection• First-mover branded non-profit Advertising network and marketplace• Solid, experienced team who have built and sold companies• Platform is live, complete, extensible and generating revenues • Back-end tracks sales/giving to Supporters, Causes, and Advertisers• First National and Local, self-service Advertising platform • Low-cost local sales force through the Cause volunteers• Customized promotional tools for Causes and agencies• Cause and industry partnerships drive reach to millions• Parent / Child deployment capabilities allow revenue splits for Causes with chapters• Emotional Supporter data – value will increase as we scale
Our Two Patents Pending Give Us an Edge
Using retail POS systems to capture donations for a user’s Cause: US Patent Pending #14/951,610 Filed: 11/25/2015
This is designed to work with our mobile app. We are in the process of securing and launching in-store coupons with Advertisers in brick and mortar stores now. These Donation CouponsTM, offer a proven, easy way to handle donations at cash registers. Competitors would need to find ways to capture donations in other ways than the one that already dominates the market*.
Exclusive offers on one site, protected & fulfilled on anotherUS Patent Pending #13/913,018 Filed: 06/04/2013
This is designed to protect pricing on exclusive offers from Advertisers. During our early stages, Advertisers expressed interest in price protection so we built, implemented, and proved the concept and value with several of them. Using this IP, Advertisers can sell products and guarantee pricing, order tracking and donations generated with total control over costs and distribution.
• Do research, create plan• Design/build IP and platform• Launch beta with Causes • Refine model/metrics• Right-size overhead, costs
• Leverage audience size with Advertisers to increase revenues and margins
• Accelerate growth• Plan for strategic expansion
We Are Executing Our Growth Plans
Build & Beta
• Add Causes and Supporters • Expand channels and offerings• Increase revenues and sources• Activate In-Store Donation
Coupon and local Advertisers
Grow Capitalize & Expand
1. Increase audience and reach by adding Causes, Supporters and additional revenue generating services
2. Accelerate growth via direct sales and strategic partnerships with third-party non-profit services and technology firms.
3. Add features, functionality and utility to solidify market position
We are fully operational and generating revenues. Our goals for 2016:
We Will Use Our Funding To:Expand and activate Causes, Supporters and Advertisers by…• Adding new Causes of all sizes and across all categories• Increasing direct sales and expanding strategic partnerships• Expanding our marketing and presence in social media
Supporter and revenue growth will be generated by…• Increasing promotions through our Causes and their advertising agencies• Further building out local Advertising tools to deliver on SoLoMo potential• Supporting Cause promotions with improved tools and content
Increase usage of our platform by…• Assisting Causes with developing and executing on their mobile marketing campaigns• Offering more products and services that generate revenue such as car donations,
gift cards, traditional fundraising tools and premium Advertising. • Improving the quantity and quality of our “deals” via multiple channels • Adding Local Advertisers through development of sales tools, training and support• Continuing to automate and enhance our platform features and functionality to allow
for faster growth with reduced costs.
Our Team
Mike RowenCo-Founder, Director
SVP e-commerce and M&A at Capital One, Bain & Co consultant, Board. Director for start-ups & non-profits, engineer with 19 patents issued
Glen Gulyas Co-Founder, Director
Founder, CEO, Key Exec and/or Board Director in numerous startups and multiple exits, deep experience in technology, sales, and operations
Lloyd Griffiths, Dean at George Mason UniversityTracie McMahon, COO of National Student ClearinghouseGeneral Ken Minihan (Ret.), Exec. Director NSA for 12 years
Board of Directors
Clay BuckleyPresident
Team lead, began working with retailer brands at AOL, expanded success in start-ups and in his last role as head of AARP consumer partnerships.
CauseNetwork has a committed team of additional full and part-time employees and contractors who drive marketing, operations and more on a day-to-day basis.
