fund music ed - investment deck

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Investment Deck - June 4, 2014 ) for Music Education Crowdfunding (i.e. Contact: Chris Purifoy | [email protected] | 615-722-7106 Legal Notice: This overview is for informational purposes and is not an oer to purchase or sell securities. 1

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Page 1: Fund Music Ed - Investment Deck

Investment Deck - June 4, 2014

) for Music EducationCrowdfunding (i.e.

Contact: Chris Purifoy | [email protected] | 615-722-7106Legal Notice: This overview is for informational purposes and is not an offer to purchase or sell securities.

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Page 2: Fund Music Ed - Investment Deck

Chris Purifoy CEO, Tech Lead Founder of Innovate School Music. www.linkedin.com/in/chrispurifoy

Rick Hack President Former VP Entertainment for CBS Radio. www.linkedin.com/in/rickhack

Founding PartnersKelli Richards Advisor Former Director of Music & Entertainment for Apple Inc. www.linkedin.com/in/kellirichards

Marina Terteryan VP Marketing & PR Former PR Director for Alfred Music Publishing Co. www.linkedin.com/in/marinaterteryan

Cole Thornton SEO, Online Ads CEO Gadget Grave, Founder Buy My Phone. www.linkedin.com/in/colethornton

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Page 3: Fund Music Ed - Investment Deck

School Music Programs have decreased by 50% in the last 5 years.

Funding for the arts in schools is the #1 problem facing music education today.

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Page 4: Fund Music Ed - Investment Deck

Music students regularly go on to live successful & creative lives. You would be surprised how many of our world’s leaders and innovators were also musicians. !Our next generation of leaders are missing out on the benefits that come naturally to music students.*

• Discipline • Teamwork • Math skills • Creative skills • Many other benefits

How Music Education Affects the Future of Our Global Economy

*See the University of Kansas Study

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Page 5: Fund Music Ed - Investment Deck

Unlike other online fundraising methods, crowdfunding is proven and growing rapidly (see page 6). Crowdfunding allows each school’s community to donate online, while also receiving one of several tangible rewards for themselves. !The secret that makes crowdfunding so successful is its appeal to the pledger’s altruism and self interest equally. Because of this, it has become one of the fastest growing trends in technology.

Crowdfunding - A Proven Solution to Solve a Timely Problem

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Page 6: Fund Music Ed - Investment Deck

The Crowdfunding Market at a Glance

• Crowdfunding Platforms raised $2.8 billion in 2012 – an 81% increase over 2011.

• The industry grew to $5.1 billion in 2013, and it is expected to triple in 2014 with new crowdfunding legislation passing (Jobs Act).

• Social Causes drive close to 30% of all crowdfunding activity.

• The music education market is wide open for disruption without competition.

See the 2012 Crowdfunding Industry Report

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Why Investors are pouring millions into crowdfunding @CNNFortune

Page 7: Fund Music Ed - Investment Deck

Business Model & Revenue Opportunities

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• Fund Music Ed (FME) keeps 10% of all funds raised by schools.

• FME acts as a merchandise vendor by providing turn-key items for pledge rewards.

• Schools that are successful will repeat usage each year or multiple times a year.

Page 9: Fund Music Ed - Investment Deck

Traction & MilestonesPreregistration (Lean Tests)

• 146 schools preregistered to raise $1.4M in budgets in a 3 day marketing test to our existing Facebook network in November, 2013 (only $36 spent marketing).

• 132 schools preregistered at the NAfME National Conference in November, 2013 (budget size was not gathered in this study).

!World Class Development on a Shoe String

• A fully functional crowdfunding portal was built and branded without fundraising between Dec 2013 - Feb 2014, with 90% of Kickstarter’s features and a top level dashboard for admins.

!5 School Private ALPHA Pilot

• FundMusicEd.com launched a pilot in March, 2014. • $8,200 was raised for music education in the 4 week trial.

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Page 10: Fund Music Ed - Investment Deck

Leverage Existing Network Innovate School Music provides Fund Music Ed with unlimited free access to their membership & network outlets targeting 17,000 schools. Distribution channels include: email lists, social media, conferences, blogs, newsletters and webinars. !Proven Online Ad Techniques Two of Fund Music Ed’s founders are experts in SEO, Facebook & Google Ads. These proven techniques were used to grow a business from a $12k startup fund to $4M in sales. !Referral Programs A referral program will reward music education organizations with a 1-3% margin of funds raised by schools they refer. This will enable those most passionate about music education to work together for the common good, by providing affiliated music ed orgs with funding to run their programs. i.e. 50 State Music Education Associations, Manilow Music Project, Bands of America, etc..

Creating Awareness & Adoption for Local Schools

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Page 11: Fund Music Ed - Investment Deck

Learnings & Plans to Increase the Daily Pledge AverageOur spring pilot taught us that there is a need for incentivizing students to maintain campaign momentum.  We are designing new Peer-to-Peer Crowdfunding features to motivate students and parents to participate and increase the daily pledge amount.

Peer-to-Peer Crowdfunding: • Students have an individual goal as a subset of the school’s goal. • Prizes are given for every student who completes their goal. • Prizes get bigger for doubling their goal, tripling and so on. • The student who raises the most receives a grand prize. • Mobile apps help students share online, create short promo videos,

pick out prizes, and see where they rank among other students. • Individual student goals will motivate parents to help their

students win, by sharing their student’s individual page with co-workers and extended family.

!

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Page 12: Fund Music Ed - Investment Deck

*All revenues are based on the daily pledge amount per school from our March, 2014 pilot.

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Revenues for Music Education & These projections reflect a conservative growth rate of 10 new schools per week. Our 5 year target represents only 16% of the schools in our partner’s existing membership & network.

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Page 13: Fund Music Ed - Investment Deck

Seed Investment Round

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Fund Music Ed is seeking up to $1,100,000 to scale its offerings, with a minimum of $150,000. !Funds will be used to finalize state registrations, build mobile & student incentive components, employ a small management team, and scale the Fund Music Ed platform in the United States. !A subsequent Series A investment round may also be used to scale this important technology to school music programs worldwide.

Page 14: Fund Music Ed - Investment Deck

•We have a world class team that knows how to plan, test assumptions, and execute.

•We already have over 1/4 of the entire US school market in our personal network and almost all of them in our extended network.

•The need is dire.

•The solution works.

Why We Win, & Music Education Wins

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Page 15: Fund Music Ed - Investment Deck

) for Music EducationCrowdfunding (i.e.

Contact: Chris Purifoy | [email protected] | 615-722-7106

Legal Notice: This overview is for informational purposes and is not an offer to purchase or sell securities.

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