empowering the next generation of builders

Empowering the next generation of builders

Build-It-Yourself seeks partners who can help bring our unique online learning environment direct to

kids and their parents at home.



What We Do

Build-It-Yourself provides after-school and at-home workshops that inspire and empower kids tocreate, design, build and invent.

We engage boys and girls in playful approaches to design, invention and scientific inquiry.

We train kids to apply complex technology to solve problems.



Value Proposition


• Large and growing demand for technology training and constructive, after-school activities.

• Collaboration with MIT Media Lab.

• Proven and acclaimed content.

• Unique workshop delivery model.

• Access to Harvard/MIT student specialists.

• Experienced, talented team.

Consistent, high-quality high-value, engaging, technology instruction at half the cost of traditional instruction.


The Product

Database of Content Elements:Online database of:• Playful storylines and associated

challenges • Building tricks and lessons• Functional building blocks that

enable kids to build complex projects quickly.


Content Specialists

Collaboration


• Seth Mastin – BA Computer Science, MIT• Rebekah Gendron – MEd, Rhode Island Univ• Max Seidman – Sophomore BB&N• Valeria Roman – Science Journalist, Argentina• Naseem Makiya – Junior Harvard• Michael Hsu – Sophomore, Choate• Liu Huan – Senior, Shanghai High School• Joan Tarud – MS Mechanical Engineering, MIT

Network of Specialists:Graduates and students from the Harvard/MIT community who inspire and guide kids.


The Product

Content Specialists

Collaboration


Effective Collaboration Tools:2-way audio/video webcast platform enables kids to collaborate with peers and specialists in a global laboratory.


The Product

Content Specialists

Collaboration


The Value Net

Suppliers:Marratech / GoogleCraft StoresRadio Shack


Customers:Summer CampsAfter-school programsParents


Complementors:PublishersManufacturersRetail OutletsSchools


Competitors:TeachersLocal MuseumsMad ScienceBright Horizons


Build-It-YourselfBuild-It-Yourself


The Demand Factors

1) Kids seek rich, online experiences.

2) Two-thirds of U.S. families are now headed by either two working parents or a single working parent. These families need after-school programs.

3) Many parents want to position kids to get into good schools.

4) Corporations are demanding a labor pool that is better trained in engineering and technology.

Kids Parents Corporations



Customer Profiles

ParentsParents seek engaging, constructive activities for their kids when not in school.


Camp DirectorsCamp Directors seek popular programs.7.3 million kids attend 12,000 summer camps.

After-School Program DirectorsAfter-school Program Directors seek educational programs. 3 million kids are enrolled in after-school enrichment programs.

Sources:American Camp AssociationInstitute for Educational Science, US Dept. of EducationDigest of Education Statistics: 2005


23 MillionKids

Grades 3 to 8

Opportunity:

1. Summer Camps7.3 Million Kids

2. After-school TimeOrganized by schools2.5 Million Kids

3. After-school TimeOrganized by families15 Million Kids

Sources:American Camp AssociationInstitute for Educational Science, US Dept. of EducationDigest of Education Statistics: 2005

@ Home

Assume 65% of kids can afford a computer and $120/year15M Kids

Customer Market Segments

Public After-school

Private School

Commercial After-school

26,569 Schools 3M Kids450K Kids (15%)

71,270 Schools 20M `Kids

Public School

5 largest for-profit organizations160K Kids

2M kids (10%)

Private After-school

Summer CampsSummer Camps 12,000 Camps 7.3M Kids


The Value Net











Differentiation

1) Playful storylines appeal to a high percent of boys and girls.

2) Build-It-Blocks enables students execute complex ideas quickly.

3) Build-It-Yourself offers consistent, high-value technology instruction at low cost.

4) Build-It-Yourself projects are creative and artistic.



Cost

After-School Enrichment Competitors

Consistent Quality(Control overcontent + instructor)

$25-$50/hr

$10-$25/hr

$2.50/hr

Mad Science

First LEGO

Invent Now Kids

Local Museums

ID Tech Camps

Private Tutors

Build-It-Yourself

Sports Programs


Technology Program Competitors# kids served Locations

Gross revenue

$/hour per student

Artistic / Playful

Collaborate online

Build-It-Blocks

Focus on presentation Notes

Build-It-Yourself - Camp 440 1 $51K $18.00 Yes Yes Yes Yes Concord Academy Summer Camp

Build-It-Yourself - After-school

170 1 $28K $9.17 Yes Yes Yes Yes Brookline, MA Public School partly subsidized

Build-It-Yourself - @Home 300,000 1 $50M+ $2.50 Yes Yes Yes Yes 5-year plan

First LEGO League G3-8 88,000 8,800 $3.5M $5.00 No No No Yes Manchester, NH: Non-profit, 25,000 volunteer team leaders

US First K-12 130,000 10,700 $15M No No No Yes International

First LEGO Camp 1 $8.33 No No No No Manchester, NH: First School Camp requires one chaperone per group of ten.

MOS / Robotech 1 $28.57 No No No No Boston,MA: Robotech 2D game course (1 day) Director of MOS in 2004 said after-school w orkshops are losing money.

Mad Science (w/o facility) 600,000 166 $25M $7.93 No No No No International, based in Montreal, Canada, Price does not reflect added fees for facility.

iD Tech Camps 30,000 73 $21M $18.00 No No No No National, based in Campbell, CA. Held in 50 universities. Family business. Noah Boskey took Flash course

Children's Tech Wkshp 32 $2M $17.68 No No No No National, Graphic Design; Animation and Digital Video Production; Video Game Creation; Robotics. Jonathan Heckerman took game course,

Science Adventurers …. KLC School Partnerships

200,000 600 $16.00 No No No No Serves 200K kids in 600 elementary schools. Offers content through school partnerships.


The Value Net











Publishers After-schoolPrograms

Retailers Manufacturers

• Monetize web presence.

• Expand curriculum.

• Generate new revenue.

• Add value to products.

• Drive new product development.

• Sell products.

Build-A-BeariRobotLeap Frog

• Monetize web presence.

PenquinSunset

Mad Science

Potential Distribution Partners


The Distribution Plan is Highly Leveraged

Retail outlets promote

Build-It-Yourself memberships because they drive sales of their products, encourage family shopping and monetize their

on-line presence.

5,000 to 300,000 Leverage

Strategic partners place highly valued content in retail outlets such as Home Depot, Radio Shack, Sylvan Learning Centers, Barnes & Nobel.

4 to 5,000 Leverage

Build-It-Yourself sells content branding to highly targeted strategic partners including publishers, after school programs manufacturers and distributors.

1 to 4 Leverage

(Build-It-Yourself) (Partners) (Retail)


Our Workshops Are In Demand

• 16 schools schools served:

– 70% are repeat customers

– Include BB&N, The Park School, Concord Academy

– Growth via word-of-mouth

• More than 1,400 kids served

• More than 15,000 hours of workshops delivered

• More than $320K revenue generated

“Clio was thrilled. She couldn't stop talking about what she did.”

Parent

“I never thought my son would give up soccer for anything.”

Parent

“Wow!”

Program director sitting in on a webcast from China.

Key Statistics Validation



Validation

"The goal is to highlight the 'powerful ideas' in the modules -- that is, the ideas that help you understand how the module works, and provide you with a foundation for building other things."

Professor Mitchel Resnick, from the MIT Media Lab, directing the collaboration between MIT and Build-It-Yourself to develop a database of construction modules

"Build-It-Yourself is a fascinating program that engages students in creative projects to design and build robots. Both of my children --ages 7 and 9-- have participated in Build-It-Yourself workshops and learned greatly from it. It's very interesting pedagogy."

Dr. Fernando Reimers, Associate Professor and Director of HGSE's International Education Policy program, describing the Build-It-Yourself program to colleagues at the Harvard Graduate School of Education

"Thanks for putting on one of the best Robotics workshops that I have been to."

Science teacher at the Jamestown Middle School, RI commenting on a Build-It-Yourself workshop for teachers


Validation


Collaborating on-line comes naturally to the next generation!


Everyone Wins in the Build-It-Yourself Eco-system

Kids

Parents

Corporate Partners- Have fun!- Solve problems creatively.- Integrate multiple disciplines.- Reinforce core curricula.- Collaborate and share ideas.- Develop important tech skills.

- Deliver high-quality programs.- Reach kids and parents at-home.- Develop new revenue streams.- Differentiate.- Develop future employees.- Affiliate with a “do-good” program.

- See their kids engaged and excited!- Collaborate and work with their kids.

Investors- Receive an attractive ROI.- Help solve a major social problem.



Manage business development

Specify and manage product development.

Manage network of workshop leaders and specialists

Platform development and webcasting

Build-It-Yourself will recruit a business development team

John Galinato – Project ManagementMEE, Cornell University. More than 25 years of software project management experience.

Gabe Kooperman – Operations and Webcast Management

BS Physics, Tufts University

Liu Huan – Engineering Student

MIT class of 2010, Computer Science and Electrical Engineering

Barbara Ross – Business Development Advisor

Co-founder WebCT acquired by Blackboard

Responsibilities

The Build-It-Yourself team is experienced and dedicated to bringing our highly valued programs online.

Team Members – Background


Platform Architecture and Development.

Platform Architecture and Development.

Content development and webcasting

Lesson plan development

Pete Buletza – EngineerBS in Computer Science, Harvard University. 10 years experience with the CIA, Intuit, and start-up companies developing Internet based technology.

Seth Mastin – EngineerBS in Computer Science, MIT 2005.

Rebekah Gendron – Teacher

Masters Degree in Technology Education, University of Rhode Island. Technology Coordinator in Rhode Island School of the Future.

Ann Butler – Content AdvisorMEd, Harvard Graduate School of Education. 10 years experience in training and teaching. Presently writes for the Boston Globe.

Responsibilities

Build-It-Yourself has a long history of attracting talented, highly skilled contractors.

Contractors – Background


Scaling to a Global Market

• On-site

• Fee per workshop

• In-person specialists

• Word-of-mouth distribution

• New England area

• On-line

• Subscription based revenue

• On-line specialists

• Distribution partnerships

• National and international

Current Model Going Forward Model



Financials

5-year Target: 300,000 customers => $60M revenue

36%24%-1%-3%-49%% Earnings / Revenue

$ 21,928,353 $ 5,670,067 $ (51,440) $ (65,075)$ (449,980)EBITDA

$ 38,696,647 $ 18,258,683 $ 7,466,440 $ 2,388,825 $ 1,373,980 Expense

$ 60,625,000 $ 23,928,750 $ 7,415,000 $ 2,323,750 $ 924,000 Revenue

Yr5Yr4Yr3Yr 2Yr 1Conclusions

Annualized #'s based on month 12 of each year.

1,533 667 200 67 40 # Webcasters (tutors)

87 50 25 9 6 # Employees

$ 202 $ 177 $ 165 $ 155 $ 154 Revenue / Member

300,000 135,000 45,000 15,000 6,000 # Online Members

Yr 5Yr 4Yr3Yr 2Yr 1Profile


Year 1 Expenses

Cash Flow

Full time salaries $660K

Webcast contractors $ 91K

Customer acquisition $ 71K

Rent and infrastructure $106K

Administration $ 45K

Total $970K

Revenue will equal expenses in month 24.Worst case cash flow is $1.25 million.


www.build-it-yourself.com617-547-9705

Investment of $1.5 million is required to grow the team, shrink wrap the product, expand infrastructure and develop distribution partnerships.


• Large and growing demand for constructive, after-school activities.

• Consistent, high-quality instruction at ½ the cost.

• Collaboration with MIT Media Lab.

• Proven and acclaimed content.

• Unique workshop delivery model.

• Access to Harvard/MIT student specialists.

• Experienced, talented team.


Support Slides


Potential Strategic Partners

Strategic partners are key to growing quickly!

Build-It-Yourself will invest significantly in developing partnerships that address our distribution, infrastructure and fulfillment needs.

Strategic partners are central to our exit strategy!


Potential Fulfillment Strategic Partners

On-line Fulfillment of Parts, Tools and Supplies

Build-It-Yourself is exploring a partnerships with fulfillment centers and retailers that would enable our customers to order project materials on-line.

A Build-It-Yourself after-school program must order $1500+ in parts, tools, supplies and software to start.

New Build-It-Yourself members may order from $50 to $300 in parts, tools, supplies and software.

After initial investments, Build-It-Yourself projects will drive customers torestock supplies and buy new tools and construction sets.


Potential Fulfillment Strategic Partners

On-line Fulfillment of Parts, Tools and Supplies

Build-It-Yourself Parts, Tools and Supplies FulfillmentBased on Projections from V19 Straw Dog Spread Sheet

SummaryYr 1 Yr 2570 9,360 # Kids served152 2,496 # Orders (Mar, May, Aug, Dec)

8,550$ 140,400$ Value of Replenishable Supplies14,250$ 228,000$ Value of Reusable Parts and Tools8,550$ 140,400$ Value of @home Sales

31,350$ 508,800$ Total Fulfillment Revenue


Potential Infrastructure Strategic Partners

Webcast Infrastructure

Google purchased Marratech in early 2007. Marratech has been judged best in class among numerous Webcast platforms including WebEx, Horizon Wimba and Elluminate.

Marratech provided free service to Build-It-Yourself for over a year. Build-It-Yourself was a valuation/reference account for Marratech because of the research it is doing in collaboration with MIT.

Build-It-Yourself will explore development and distribution agreements with Marratech/Google to integrate products like Google Talk and ThinkTank.


Software publisher

Build-It-Yourself is exploring a partnership with Microsoft. A senior scientist at Microsoft is an investor in Build-It-Yourself and has offered to make introductions to several groups at Microsoft whose interests would be advanced by the Build-It-Yourself program including:

• Xbox• MS Robotics Studio• The Gates Foundation• MS HR Dept

Potential Distribution Strategic Partners


Manufacturer

Build-It-Yourself is exploring a partnership with iRobot to develop projects around the iRobot Create. The Create ($200) is a robotics platform based on the Roomba for the hobby market. iRobot asked Build-It-Yourself to build a copy of the Robotic Receptionist we developed at the Greater Lawrence Technical School which they said they would like to put in their lobby.



Publisher

McGraw Hill asked Build-It-Yourself to write a proposal for a robotics book as part of their successful Evil Genius series. Build-It-Yourself explored a partnership with McGraw Hill to publish a robotics project of the month POS booklet which would drive online memberships.



Value to Sales Ratio

Sources:Fidelity as of Sep 2007http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticleHomePage&art_aid=31345http://www.thealphamarketer.com/2007/08/club_penguin_has_grown_329_fro.html

After School Prog Symbol Mkt value 2006 Sales P/E Ind Avg P/S Ind AvgBright Horizons BFAM $ 1,071,390,060 778,000,000$ 24.5 28.9 1.43 3.43Publishers Symbol Mkt value 2006 Sales P/E Ind Avg P/S Ind AvgMcGraw Hill MHP $ 16,690,825,000 17.5 23.89 2.59 3.41Pearson $ 8,669,000,000 Riverdeepe-Learning Platform Symbol Mkt value 2006 Sales P/E Ind Avg P/S Ind AvgBlackBoard BBBB $ 1,195,675,740 191,069,000$ 86.19 28.12 5.43 6.44Web 2.0 Social Sites Mkt value 2006 Sales P/SClub Penquin / Disney 350,000,000$ 49,980,000$ 7Neo Pets / Viacom 160,000,000$ 10,000,000$ 16Face Book / MS 15,000,000,000$ 150,000,000$ 100


Subscription-based Web Clubs/Services

Monthly Fee

Number Members

Revenue

New York Times 8$ 221,000 21,000,000$ eDiets 20$ 1,800,000 48,000,000$ JamPlay.com 20$ Sony Games 13$ 500,000 78,000,000$ Matchmakers 25$ 20,000 6,000,000$ Club Penquin 6$ 700,000 65,000,000$

Notes:1) Members may not all be paid members2) Revenue may include advertising or sales

Empowering the next generation of buildersEmpowering the next generation of builders

Board ofDirectors

PresidentDevelop distribution partnerships.

Manage budget and admin.

Product MgrSpec and manage product evolution.

IT Mgr Set up and maintainhardware + software

Operations MgrHire, train and

manage webcasters+ workshop leaders

DevelopmentContractors

WorkshopContractors

Board ofAdvisors

Organization Chart – Year 1


Build-It-Yourself seeks partners who can help bring our unique online learning environment direct to kids and their parents at home.


empowering the next generation of builders

Documents