depict deck oct 2015 overview jkg · controllable via web or mobile apps. business model frame ......

DEPICT

There are billions of blank walls and millions of people and businesses who want to consume visual beauty, enjoy variety, and communicate something about themselves and their brand.

The explosion of visual digital media is fundamentally changing the way people interact and express themselves, but this explosion of digital visual content has not yet found its way on to all these blank walls.

Instead people and businesses are left with archaic options for wall decor that are characterized by inefficient distribution and discovery, poor quality or high prices.

If digitally distributing fine arts like music and literature can redefine industries and the way we view the media itself

while creating billion-dollar businesses,

Why can’t art?

Leveraging the explosion of digital visual content into a platform that enables people and businesses to consume it

3DEPICT Depict, Inc. Confidential

Depict is capitalizing on the last giant media market ripe for technological innovation

¹ Source: statista.com

Pre-industrial Human Players Live Theater Manuscripts Oil and paper

Industrial Revolution

Internet Revolution

Global Market Size¹ $47.7B $88.3B $102.8B $151.4B

DEPICT


Depict uses technology to bring the experience of art into the fold of everyone’s daily life with a marketplace and platform enabling delightful and efficient discovery, cost effective and secure access to art and instant display. All with a single installation that enables customers to change their art at any time.

Depict is targeting the $200B Decor Market with a customizable solution for consumers who prefer personalization and on demand services. The market for art and wall decor is characterized by high transaction costs, inefficient discovery, narrow analog distribution, limited discovery, bulky physical installation, poor reproduction and chaotic rights licensing. Furthermore, our definition of “art” is changing.

Depict provides a high-quality physical object; a deep and varied catalog of content to assure variety and delight; DRM to validate the experience of ownership and ensure artists are compensated; a flexible pricing model to service all segments of the art-buying public.


Depict is redefining how we think about art and wall decor with a new ecosystem for visual media

CLOUD DRM: Provides sophisticated software services for digital watermarking Secure content storage and distribution, and payment processing Distribution: standardized, quality assured, secure, consistent

CONTENT MARKETPLACE Exclusive to Depict Discoverable through Depict’s curation and taxonomy platform Sold for ownership in editions Rented via subscriptions

FRAME 4K resolution + 24/7 4K streaming Proprietary electrical, firmware and software technology 50” matte coated display Portrait or landscape Controllable via web or mobile apps

BUSINESS MODEL

FRAME $1800 via depict.com

SUBSCRIBE Monthly collections assembled by tastemakers Standard: $20/month Premium: $50/month

OWN Limited Editions $8-$500+ per edition incremental price increases as editions sell out works protected by proprietary security technology

ENTERPRISE Enterprise Frame + VIP subscription packages Price dependent on order size

No company currently exists with the technological and content/brand sophistication… …to build a scalable and aspirational product for the digital economy


Depict’s areas of competitive advantage are brand, exclusive content and rights management, and technology development and ownership

Competitive Industries Brand Content & Rights Technology

PHYSICAL SALES OF PHYSICAL ART • A few huge brands owning the ultra high-end

• The larger <$5K market is totally disaggregated

• No centralized entity for licensing and tracking provenance

• Authenticating art is very difficult and rife with fraud

• Consumers in the middle market suffer

• A handful of the largest galleries implement technology at its bare minimum

• They have websites of their physical catalogs

ONLINE SALES OF PHYSICAL ART • Hugely fragmented, discovery is painful, tons of poor quality content, no standards

• No dominant Brand • Purchasing a physical item online

considered high risk by average consumer

• Online sales of physical art solve none of the content and rights management issues of physical sales

• One can argue that online distribution almost makes this problem worse

• Expand the discovery potential to the Internet audience but do not address purchasing friction and inefficiencies, expectations of the online on demand consumer, or authentication and rights

SCREEN DISTRIBUTORS • Brand association is with TVs and bad industrial design

• No established purpose built “Frame” brand

• No companies in this area exist that are addressing this issue

• No companies are building marketplaces or distribution platforms for 4K streaming content, especially not art

• Their 4K streaming tech is behind ours


Go-to-market includes enterprise customers, strategic partners and direct-to-consumer

Enterprise (Amplifiers) Online Retail Content Partners Distribution Partners Depict Galleries

17.5M 40M+ 582M+ 191M+ Un-modeledAddressable Customers


Enterprise Customers: Strong early traction from brand-building hospitality, retail, and corporate

Customer IndustryUBER CORPORATE

21C MUSEUM MUSEUM/HOSPITALITY

NEIMAN MARCUS RETAIL

CHRISTIE’S AUCTION

MANDARIN ORIENTAL HOSPITALITY

DEUTSCHE BANK CORPORATE

MAYBOURNE HOTEL GROUP HOSPITALITY

SAKS FIFTH AVENUE RETAIL

ROSEWOOD PROPERTIES HOSPITALITY

VIRGIN HOTELS HOSPITALITY

NORDSTROM RETAIL

RICHEMONT GROUP RETAIL

W HOTELS HOSPITALITY

EMIRATES LOUNGES TRAVEL

Enterprise Pipeline


Depict Consumers span a number of sizable, addressable market segmentsJASON BECKMANBanker @ Coldbeck

New York, NY

Customer type: Art Enthusiast Consumers who are already actively

participant in buying art. The current art market is $151B, with 75% of the market share going to

purchases of works under $5K.

14MM (U.S.)

CLAY BAYVORVP @ Google

Mountainview, CA

Customer type: Tech Enthusiast Consumers who love technology

and are actively buying connected home devices. The burgeoning

connected home market is projected to grow to 58B by 2019.

51 MM (U.S.)

JENNIFER STANLEYAttorney @ Fenwick

San Francisco, CA

Customer type: Emerging Affluent Consumers with disposable income

and growing affluence who are interested in decor and

comfortable with technology. The Home Decor market is currently

$200B.

96 MM (U.S.)ADDRESABLE CONSUMERS


Consumer Growth PlanPhase 1 - 2015 Phase 2- 2016 Phase 3- 2017++

OBJECTIVES • Create brand awareness • Create brand credibility • Drive purchase among target segments

• Create brand awareness • Create brand credibility • Drive purchase among target segments

• Create brand awareness • Create brand credibility • Drive mass adoption by targeted segments

WHO • Innovators (8 MM) • Early adopters (43 MM)

• Innovators (8 MM) • Early adopters (43 MM)

• Emerging and Mass Affluent (96 MM)

HOW

Be seen: • Presence at key locations: SxSW, ABMB, Core Club, etc. • Enterprise placements in high end retail and hospitality to

gain exposure to target consumers

Be heard: • PR targeted at tech, business, affluent lifestyle media

Connect: • Community building via social media (e.g. online publishing,

influencer outreach)

Sell: • Direct outreach to tech influencers and investors

Be seen: • Presence at key locations: SxSW, ABMB, Core Club, etc. • Enterprise Placements in high end retail and hospitality to gain

exposure to target consumers • SEO

Be heard: • PR targeted at mass tech, business, mass lifestyle media • Internet of Things Pop-up Shops (test)



Sell: • Internet of Things Pop-up Stores (test) • Cross marketing partnerships (e.g. Sonos, MOMA store) • Outbound marketing to site visitors and customers • Distribution partnerships to extend consumers (e.g. Houzz) • Leverage content partnerships to extend customer reach (e.g

Getty Images, Google Art Project)

Be seen: • Enterprise Placements in high end retail and hospitality to gain

exposure to target consumers • SEO and Paid Search

Be heard: • PR targeted at tech, business & lifestyle media



Sell: • Internet of Things Pop-up Shops (expansion) • Cross marketing partnerships (e.g. Sonos, MOMA store) • Outbound marketing to site visitors and customers • Expansion of distribution partnerships to reach large base of

target consumers (e.g. One Kings Lane, etc.) • Leverage content partnerships to extend customer reach (e.g

Getty Images, Google Art Project)


Depict is partnering with a global network of artists and content partners to curate the world’s best collection of digital art

• Established Artists: Engage through a network of curators and consultants, collectors and gallerists, and artists themselves • Emerging Artists: Engage through social media campaigns and online community building. Leverage on-line influencers, build

creator communities, and provide tools for visibility and building a fan base • Content Partners: Scalable, cost effective approach to add large amounts of high quality content across a range of genres

• Artwork security — art is secured, transactions are safe • Art is properly represented via high quality technology and curation • Economic model is direct, transparent and scalable for artists

• Combine both leading edge technical specifications and experienced curatorial resources • A defined set of curation criteria that includes:

• Technical requirements such as 4K+ resolution, aspect ratio, and color calibration • A curatorial review process to identify digitally native artworks of high quality that express a significant and lasting

intellectual, emotional and visual impact • Artworks that are created with the intention of being experienced on screen

3-Tier Model for Sourcing Content

Value Proposition to Artists

Curation Criteria

Jenny SharafHeather McGrath

Rashaad Newsome

Canyon CastatorUniversal Everything

Heath West

Shantell Martin

Eric Cahan Chris DoyleNicole Cohen

Sean Capone

Casey Reas Eyal Gever

Josh Azarella

Joyce Yu Jean Lee

teamLAB

Depict Artists: a selection of artists we work with


Product Roadmap: Moving from device-centered growth to distribution platform + service

FRAME • proprietary 4K Wi-Fi streaming technology • display optimized for viewing Depict 4K content

• Expand market entry with new products and prices

• As market is validated partner with major ODMs and display manufacturers to produce Frames

• Rev share model. Depict no longer builds devices

CONTENT • Cloud based content marketplace for subscriptions and ownership

• Proprietary technology for protecting works, tracking provenance and resale on secondary market.

• Scalable and exclusive online licensing for artworks

• Continue developing discovery taxonomy • Expand subscription offerings • Partner with leading content publishing sites (in

progress) • Partner with leading Smart TV brands for

distribution (in progress)

• Build out content platform to live on all Frames, Smart TVs and Smart surfaces

• Expand content offerings, data collection and back-end support for creators

DATA • Build out data collection backend • Use backend to collect purchase information and metadata

• Establish Depict as the singular resource for market data

2015 INITIAL LAUNCH

Enter market with complete solution for digital art, creating

an aspirational experience

2016 PRODUCT IN MARKET

With broad 4K penetration grow distribution with new and

cheaper products, Depict Cloud on other systems and content

partnerships. Increasing margin

2017 and beyond DEPICT AS A SERVICE

Maximize margin and secure position as market owner by being

on every device and being the penultimate data source for market


12 month KPIs

RUN RATE$4MM

12 Month KPIs

RUN RATE $4 M

ARTISTS ON PLATFORM 500

ACTIVE USERS 10,000

3 HIGH END RETAIL

ENTERPRISE CLIENTS 4 HIGH END HOSPITALITY

4 CORPORATE HEADQUARTERS

3 MUSEUMS AND AUCTION HOUSES


Excellent early PR coverage indicates market validation and excitement

“In Frame, the Depict team have built something very special. When you see it any preconceptions you have about digital art and digital screens fades into the background. It's art, on your wall or in your home, and it looks incredible.”

—Chuck Kane Director, One Laptop Per Child

“A truly revolutionary concept in regard to the future of wall art, this soon-to-be released beautiful wood-framed digital display is designed to be the ultimate showcase for your digital art. Featuring birch wood joinery, it's equipped with a 4K screen so whatever you choose to display within it will pop with exceptional clarity, drawing eyes in and presenting digital artwork the way it was truly meant to be seen.”

—The Best Design in the World supercompressor.com

“I think something like the Frame, this object where you’re actually showing digital art and the idea of marketplace where digital art is bought and sold and the idea of a market emerging, I think that’s very exciting.”

—Megan Newcome Director of Digital, Phillips Auction House


Strategic ultra-high net-worth investors who bring Depict competitive advantages

MICHAEL BAUM WEILI DAI BLAKE KRIKORIANJIM PALLOTTA DAVE MORIN

Rather than pure art enthusiasts who consider the business of art a necessary evil and technology a secondary hobby


Depict’s team draws on technology, product and business people

KIM GORDON Founder, CEO First domestic carbon trading platform in China

Board Member @ Recess Art

Art Collector

CHRIS MESSINA Product; UI/UX Known for inventing the hashtag

Developer Relations & UX @ Google

Founder of BarCamp & coworking communities

Board Member @ Tagboard

AMANDA SCHNEIDER Director of Content Paul Kasmin Gallery

Lehmann Maupin Gallery

Co-creator and producer of Brooklyn Museum’s famed Artists Ball

KEITH MCCONNEL Software/Firmware Software/Middleware @ Tivo + Amazon Lab 126

Founder of GEMMS Engineering

Director @ C2 Microsystems

Software Architect @ NEC

MIKE DEERKOSKI VP Engineering Head of Eng @ Flickr

Dir. of Eng @ Ticketmaster

Dir. of Software @ Boingo

Software @ Disney Interactive

JESSICA KNOPP-GWYNNE CMO Sr. Marketing Exec @ P&G

Founder & CEO of Global Art Compass, Led Burberry Rebrand

Investor in e-commerce + technology companies

Winning our business requires winning the creative community, establishing our brand as the one of quality in the space and getting an excellent product to market. We are well on our way to accomplishing these things, and as we scale we need more resources to:


Depict’s next funding will drive top-line growth, corner the creative economy, and establish our brand

WIN THE CREATIVE COMMUNITYESTABLISH OUR BRAND

• Hire Head of Sales to land grab enterprise amplifiers

• Hire Digital Marketer to grow consumer customer base

• Hire Head of Customer Service to ensure delightful customer experiences

• Hire Head of Ops to scale high-quality service

• Fund marketing growth plans

• Grow the curatorial team to engage more artists

• Hire dedicated partner managers to optimize content partner relationships

• Add engineering resources dedicated to expanding the artist facing platform

• Hire Community Managers to grow Depict creator communities online

DRIVE PRODUCT EXCELLENCE

• Grow design team to ensure delightful UX for customers and creators, while developing our visual brand

• Hire Android developer to build out Android Applications

• Expand engineering team to accelerate product development and innovation

• Hire an Account Manager to work with Hardware partners

Appendix & Images


Digital art creation and discovery happen online but no platform exists to (securely) distribute it

Content Device Distribution

Music

Books

ART DEPICT

DEPICT

depict deck oct 2015 overview jkg · controllable via web or mobile apps. business model frame ......

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