five tier - investment presentation - q4 2016
TRANSCRIPT
The way you work will never be the same.
Investor Presentation Fall 2016
Safe Harbor ProvisionSafe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This presentation contains forward-looking statements. These statements relate to future events or to our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other comparable terminology.
You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement you read in this presentation reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise.
Contents
● Our Story
● The Marketplace
● Our Solution
● Case Studies
● Opportunity
● Management Team
● Contact Information
The Five Tier Story
Five Tier was born out of a successful business, a globally recognized, award winning marketing agency.
Over more than a decade we developed technology to run our business and to solve our clients’ problems.
One day in 2013, we decided to put that technology together into a Software as a Service (SaaS) solution that helps more people work better and enables more businesses to easily, and affordably, access advanced technology.
Outdoor
Market Opportunity
DAM
SSPDSP
CRM
SPSDMP
There is a 15-to-20 year cycle in most industries between fragmentation and consolidation. This cycle is driven by a number of things: innovation, mergers and acquisition, consumer adoption, saturation, and market expectations. The SaaS industry, specific to operations management and marketing, is right in that 15-to-20 year window when measuring from the end of the dot com boom - which was more consumer driven - the lead to SaaS business platforms. The market is saturated1 and buyers are looking for an integrated solution.
Social
Display
Mobile
Analytics
Automation
Chat Bot’s
Offline
1 http://www.lumapartners.com/resource-center/lumascapes-2/
Outdoor
Market Opportunity
DAM
SSPDSP
CRM
SPSDMP
Key events in the 15-to-20 year cycle are outlined below from the birth of the SaaS business around 2002, to the explosion of digital and social in the mid-2000’s, through the premature start of consolidation and the subsequent boom in programmatic and artificial intelligence. Most telling of Five Tier’s timing is the editorial discussion around marketers and advertisers being at odd’s, and Alex Bogusky - one of the most well known AdMen of our age - publishing an article about the lack of accessible technology for the every man (or woman.)
Social
Display
Mobile
Analytics
Automation
Chat Bot’s
Offline
Dot-Com Boomleads to need for businesssoftware.
Salesforce leads the “no software” SaaS revolution.
Digital and Social explosion leads to need for more software.
2006Salesforce begins acquisition spree.
2012Adobe launches Adobe Marketing Cloud.
Mobile becomes a focus.
Consolidation begins with solutions like Percolate entering the market.
Programmatic Media and AdTech rise, boasting intelligent solutions.
2013Five Tier founder begins consolidating agency technology.
Continued fragmentation, segmentation, fast followers, and “free to market” alternatives (i.e. Marketo to Mautic)
2015Five Tier incorporated as Odem Global, Inc, which would be used as our Beta trial brand.
2016Five Tier launches out of Beta, shows positive revenue growth, wide acceptance.
Programmatic AdTech Implosion marketers and advertisers lose trust due to lack of transparency and results.
ANA’s and 4A’s battle, Alex Bogusky publishes “It’s like they built the New York subway system, but there are only a few rich dudes riding around on it because they haven’t built any stations, tickets or turnstiles for the rest of us to get on.” http://bit.ly/2gLhKyM
Late 1990’s Early 2000’s 2003 - 2010 2011 2012 - 2013 2014 2015 2016
A confused, frustrated marketplace...
...to which we bring clarity.
Outdoor
Market Opportunity
DAM
SSPDSP
CRM
SPSDMP
Five Tier is the integrated solution, replacing or enhancing functionality of alternative solutions with added benefits that include an intelligence tier which makes sense of big data and a service tier which has a revolutionary “bottom up” credit model. We are the stations, tickets, and turnstiles for the Subway system Bogusky references that others have failed, neglected, or have been unable to build.
Social
Display
Mobile
Analytics
Automation
Chat Bot’s
Offline
This is Five Tier
We have five key differentiators
● Better
● Faster
● Accessible
● Affordable
Includes all functionality of comparative systems plus advanced features otherwise not available.
Instant guided setup and access granted upon subscription. Most customization and integration for Enterprise clients can be performed within 30-days.
Easy to use, award winning interface.Cross platform - web, desktop, mobile, and browser.
Subscriptions start at $19/month or $9/week.Enterprise accounts start at $4,999/month or $1,495/week.
● Seamlessly IntegratedAll functionality of other platforms, API’s to integrate with existing systems.
We cover the five things everyone needs,
Communication
Organization
Automation
Intelligence
Service
in one, integrated solution.
Communication: • outbound campaigns - email, direct mail, sms, ads • internal multilingual chat (50 plus languages) • intelligent AI Helper Chat Bot - automates responses,
provides information and completes work Organization: • integrated task and calendar management• real time visual customer relationship management• asset version tracking• review queues for approval/signoff Automation:• preset workflows with intelligent enhancements• automated reactive marketing campaigns based on
real-time influencers of behavior including the weather, news items, entertainment trends and customers’ own behavior
Intelligence: • automated real time reporting containing words, graphs
and images using Natural Language Generation and multiple layers of data
• auto-generated individualized messaging in real time Service:• a team of experienced marketing, technology and
management professionals• a marketplace of partners giving clients direct access to
vetted resources when needed
How do we elevate ourselves?
Natural Language Generation
Customizable
Functional IntelligentAutomation
On Demand Services
Multi-Lingual Use and Communication
Big Data Integration
IoT Ready Paid, Earned, Owned, Online, and Offline Channels (Every Channel)
Our Users
Marketing
Big Businesses Small Businesses Agencies Consultants
Operations Management
Small Business Case Study
Idea to start a local vodka brand developed by two seasoned spirits industry professionals.
Subscribed at 10:30am.
First round of branding, digital presence, basic marketing materials, one month of marketing communications and a growing following delivered by 1:00pm.
Helped with every stage of getting product to retail six months from inception.
The Process
Upon subscribing, Five Tier and client together determined our deliverables.
Our client success team assisted with setup and configuration of required accounts, including email and domain registration.
Additionally, we advised on business structure and certification process.
Big Business Case Study
Global cosmetics company challenged with adherence to brand guidelines and information sharing.
Utilized Five Tier for multi-lingual chat, translation, file library, update requests, asset history, commenting, review queues, and forums.
The Result
Employees around the world communicate effectively and know what is occurring across the entire company.
Efforts are not duplicated and standards are upheld.
Consultant Case Study
Political consultant wanted a deep dive into specific markets to identify influencers.
Approached us for assistance in mining data for meaning.
The Result
We plotted data based on multiple sources to show biggest area of opportunity, voter preference, and voter activity.
Additionally, we provided the tools to automate outreach based on optimization criteria for reaching voters with the right message, through the right channel, at the right time.
Financial Opportunity
Salesforce.com (industry leader) $6.6B in annual revenues
Marketo (private to public to private) $1.7B acquisition by Vista Equity
Marketing Services Industry $1T forecasted spend by 2020
Our exit strategy is to be quickly acquired by a major technology company or competitor (within 24 to 48 months.) We are already in discussions with potential acquirers, most from multiple angles (potential clients, partners, and re-sellers.) Recent SaaS multiples have ranged from 3-8x revenue however they have gone as high as 15-20x. We are in a unique situation where we have a fully developed product with a revolutionary delivery model - both in data and services - which is appealing to monolithic targets.
Blocked Content - Please contact by emailing [email protected] for exit strategy.
Financials FY 2016E Q1 2017E Q2 2017E Q3 2017E Q4 2017E FY 2017
Revenues $750,000 $510,000 $1,000,000 $1,400,000 $1,900,000 $4,810,000
Expenditures $600,000 $580,000 $765,000 $920,000 $1,125,000 $3,390,000
Net income $150,000 ($70,000) $235,000 $480,000 $775,000 $1,420,000
• In 2015 revenues shifted from services-centric (2008-2014) to platform-centric (2015 forward).
• The platform launched in 2015 under the name Odem Global. The beta product was successful, with an even distribution of
clients across the different platform and service offerings.
• Revenue increased nearly 3x quarter over quarter in Q3 2016.
• Five Tier is on track to meet 2016 projections.
• Expenditures Q1 2017E reflect the incremental sales and marketing required to close the leads generated in Q4 2016 - Five
Tier’s current momentum.
Notes
Financial Summary
Blocked Content - Please contact by emailing [email protected] for financial summary.
Overview of Company Funding Stage
Estimated 2016 revenue: $750,000
2017 Rev Growth Rate: 6.4x
External Capital Sought: Up to $300,000 still available of total $500,000 raise
Pre-money Valuation: $9,900,000
Use of Funds: Sales and Marketing Ramp Up ~60%Product Enhancements ~20%Scaling Operations ~20%
Offering / Raise
Blocked Content - Please contact by emailing [email protected] for current offering / raise information.
Frank O’Brien, Founder and CEO, is an award-winning marketer and entrepreneur, the owner of an Inc. 500 business, former chairman and current board member of the Better Business Bureau of Metro New York, and a recognized marketing and communications expert. Among his accomplishments are recognition by the White House as an Empact 100 winner for his contribution to growing a US-based business, appearing on Cable Network AMC’s ‘The Pitch’, and multiple citations in the New York Times, Forbes, Entrepreneur Magazine, and on CNN.
Kevin Martell, became Co-Founder and COO when his prior startup, ChatLab, was absorbed into Five Tier in July 2015. His other entrepreneurial ventures consist of founding and operating an always-open restaurant in Washington D.C.; an ongoing technology architecture, installation and support firm; an ongoing technology staffing firm; an ongoing search engine optimization and interactive design firm; and an ongoing international renewable energy investment and development firm in which he is still an investor.
The Management Team
The Management Team
Adam Levine is a marketing and branding executive with over two decades worth of growth experience with some of the country's leading ad agencies (Deutsch, FCB, DDB and McKinney) and has worked on brands as varied as Zoloft, Revlon, Snapple, Microsoft and IKEA. He has been Chief Growth Officer at Draft FCB and iCrossing and was Chief Marketing Officer at McKinney. His professional passion is to grow brands; whether agency brands or consumer brands by helping them connect with their audiences both strategically and creatively through integrated strategy and execution.
Nathan Riley, CTO, is a seasoned and highly experienced information technology and services leader with deep design and development skills focused on real world applications. He served as the Director of Product Development at Conversation from 2011 to 2016. Prior to joining Conversation, Nathan founded Fans Galore which was acquired within nine months of its launch. Nathan also acted as Director of IT & Systems Development at Strategic AR Solutions in the home medical equipment (HME) and durable medical equipment (DME) industries which he grew from 2 to 500 customers. At Strategic AR Nathan created and implemented DME/HME billing system interfaces for Fastrack, TIMS, Brightree, and others. Strategic AR was named one of the fastest growing companies by Inc. Magazine in 2012 and 2013.
“4 star platform rating”“the reports spilled the beans and made
it crystal-clear why some brands excelled and others failed”
“winner of the Startup Exchange between Berlin and New York City
pitch competition”
To Request a Demo or to SubscribePlease Visit fivetier.com
Thank You For Your Time
For more information contact:
Frank O’Brien | Founder and CEOfrank.obrien @ fivetier.com m. 917 583 4207
Kevin Martell | Co-Founder and COOkevin.martell @ fivetier.com m. 917 969 6444
Five Tier is headquartered in New York City with an ever expanding global footprint.
Subscribe now at fivetier.com