funtick
DESCRIPTION
It's a social platform which helps people to orginize any type of events.TRANSCRIPT
Executive summary
Description - Funtick.club is a social platform for creating, sharing and discussing events of any type– from small party at home to rock festival at stadium.
Problem - Many people would like to organize their own events: for fun, for personal growth or to earn some money. To make it they should find a suitable place, equipment, and inventory, advertise and sell tickets. It is hard for ordinary person to succeed in it and many won’t even try because of such difficulties.
Solving – Funtick will help people to organize events. It will replace promoters, producers, advertising agencies and managers.
*User just has to select the type of event, the date, quantity of visitors and add the description, and system. And then, basing on predefined tags for the types of events and keywords in description Funtick will find suitable place, suggest the necessary equipment and related services from our partner's offers' and will automatically calculate their total cost.
Market - European and US entertainment market. People aged from 16 to 40 years (about 220 Millions).
• Funtick contacts mail: [email protected]
phone: +38 (093) 436-60-66
• Financial Information Company Stage: Prototype ready
Pre-money Valuation: $2,200,000
Capital Seeking: $214,000
additional issuance of 10%
double cash on cash return in 2 years
Description What we do & why
Our main goal is to give our users the possibility to meet each other in real life more often!
Funtick is a platform which will help you to organize an event from A to Z. Starting from idea to ticket sales for ready event. And the most important, You don’t need to be event-marketing specialist to organize everything.
In addition, this is a social network, where each can communicate with friends, invite others to the interesting events, and arrange meetings
We think that real friendship is better than virtual!
• Real life communication
• Social network
• Possibility to organize own events
Product How does it looks like
Create your own event invite your friends Sell the tickets
Product How it works
Our know-how is event constructor!
User Idea
Simple registration
Event creation
Partner verification
ready event
* User just has to select the type of event, the date, quantity of visitors and add the description,
system will find suitable place, suggest the necessary equipment and related services from our partner's offers’ and will automatically calculate their total cost!
* When partners submit all the necessary information, event will appear on the main page.
You can use part of the money earned on selling tickets to pay for providers services
F r e e e v e n t s h a v e n o comission
*Everything will happen on the Main page, where people will communicate, meet new friends, share events, invite others to their place, create appointments, hike, listen to concerts of their favorite
bands and dance together at the best parties.
We’ll bring our users back to the real world
Future is in real-life communication!Many social network users comply that they have more than 500 friends, but at the same time there are nobody who will invite them to drink a coffee. With our service you can easily choose where to go and gather a big company of friends.
Our site will help to find an event which is especially interesting to you.
You can invite your friends to accompany you just in two clicks. There is no need to phone or write them
Our goal
Everything old is new again!
Problem What’s going wrong?
What we have now!It’s not enough just to have musical talent to organize your own concert. You’ll need to find a suitable place, sound equipment, advertise and of course, sell tickets. If you are not afraid of difficulties, you will have to call to dozen of clubs or pubs, to find suitable rent some equipment, buy advertising, in addition pay to the event agency 10% of tickets revenue. You have to be experienced in event-marketing to complete such task successfully and not to pay with your own money for it. The same situation with almost any type event that you might want to organize. Master class? How people will know that it’s happening? Where will it be? Sightseeing tour? Same problems. Local football championship? Where are you going to play it?..
Many people leave this idea in the very beginning, when they realize how many problems they have to solve to create a great event.
What to do if you don’t have experience and money?!
Solution How we will change the world
What will be Funtick will help people to organize events. It will replace promoters, producers, advertising agencies and managers for ordinary people who do not have organizational skills.
User just has to select the type of event, the date, quantity of visitors and add the description, and system, basing on predefined tags for the type of event and keywords in description will find suitable place, suggest the necessary equipment and related services from our partner's offers' and will automatically calculate their total cost. So user will have the possibility to scroll everything and choose most acceptable variant or provide his own place or discard some services that are unnecessary for him.
Moreover Funtick will attract customers to our partners. So it can act as an advertising platform for different organizations from service, entertainment and HoReCa industries.
With Funtick you can start your own small business !
Market overview Who will be our users & why
• The need for such service exists on the market for several years, as it is evidenced by many attempts to create similar projects, which unfortunately didn’t take into account the needs of ordinary people, not only big agencies (but we have something to offer them as well)
• People would like to have a way to communicate with each other, not just a regular poster with events
• We have interviewed more than 500 of our potential users and 90% of them told that they have some knowledge or skills that they could to share with other people. Also they’ve admitted that Funtick can help them to earn some extra money, by selling tickets to events they can organize.
Finance How do we earn money
! More detail regarding the income and costs structure could be provided after NDA signing
! Payroll expenses greatly differ due to the stage of the company
Income structure Cost structure
CAPEX Payroll
! Advertising income – mainly income generated by banner ads on the main pages of the web-site
! Event promotion services – value-added services related to promotion of the event on the site as well as placement of services providers in event constructor
! Tickets – income generated by issuance of e-tickets (funticks)
! Payroll – described below ! Office rent ! Internet costs ! Utility ! Expendable office materials ! Business trips ! Advertising ! Server rent
! Software development costs – part of payroll capitalized as R&D costs (subtracted from payroll costs in Income statement)
! Hardware – office equipment, appliances
! Administrative staff – CEO, CFO, CTO, COO ! Sales managers ! IT – Junior developer, UX designer. iOS developer,
Android developer, Lawyer, Marketing, Designer, Accountant, Senior front-end developer, Technical administrator, Server administrator
Income and cost structure of the project!
Finance Our calculations
Rocketing revenue growth rate!
Revenue, USD thds! Costs, USD thds!
! Revenue is expected to grow at CAGR 220% during 2015-2019, mainly due to rocketing increase of advertising and tickets components
! Costs mainly consist of payroll expenses and advertising, that is quite logical for the current stage of the company
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
2015 2016 2017 2018 2019
Ticket income
Event promotion service income
Advertising income
CAGR 220%
0
200
400
600
800
1 000
1 200
1 400
1 600
2015 2016 2017 2018 2019
Server rent
Business trips
Utility
Internet costs
Expendable office materials
Office
Advertising
Payroll
Finance Our calculations
Strong profitability due to market expansion !
Finance Our calculations
EBITDA dynamics, USD thds! Cash-flow dynamics, USD thds!
21%
46%
64%
0
0,1
0,2
0,3
0,4
0,5
0,6
0,7
-500
0
500
1 000
1 500
2 000
2 500
2015 2016 2017 2018 2019 (214,6)
(503,2)
(249,6)
686,3
2 672,1
-1 000
-500
0
500
1 000
1 500
2 000
2 500
3 000
2015 2016 2017 2018 2019
FCFF FCFF Cumulative
Finance Our calculations
Fair valuation with growth potential !
Finance Our calculations
! Primary valuation method is DCF
! Enterprise value of the company is calculated to 2,2 USDm
! Company assumes to have no debt
! We need USD 214’000 to cover our negative cash flow in the first year
! Assuming valuation of USD 2,2m we are planning additional issuance of 10% of the company in order to cover the needs
! This investment will allow the investor to have double cash on cash return in 2 years
Football field valuation, USDm Types of valuation
Basic Assumptions ! WACC – 34% (CAPM) ! Terminal period growth rate – 5% ! Tax rate – 18% ! EV/EBITDA multiple (2019F) – 10.0x
Valuation of Funtick can be done using the following methods: ! Discounted Cash Flow (the primary method) implies construction of comprehensive financial model with the forecast of key fincanials ! Transaction multiples – using the historical or expected EBITDA and Revenue of the project to calculate the enterprise value of the company using the transaction multiples (EV/EBITDA or EV/Sales). In our case impossible due to the low probability of the financial statements in the first few years and negative EBITDA ! Traded companies multiples – using the multiples of listed companies (EV/EBITDA, EV/Sales) to calculate the EV of the project. Needs the assumption of control premium and illiquidity discount.
! The primary valuation method is DCF – EV 2,2 USDm
! DCF (TV multiple) implies calculating the terminal value as EBITDA 2019 (2,3 USDm) multiplied by EV/EBITDA 10.0x
0,0 2,0 4,0 6,0 8,0
DCF
DCF with multiples
Fund raising How much money w need
Protection tools Ownership structure before Round 1
Ownership structure after Round 1
SPV
Founders
100%
Software product
100%
SPV
Founder
90%
Software product
100%
Investor
10% Additional share
issue
Possible protective provisions to founder: ! Call option – the current owner is assumed to have a call option with the strike price plus premium for the additional share issue ! Employee stock option program – CEO, CIO and CFO are provided with the call stock options as part of motivation (vesting every half year) ! Lock-up period – additional share issue is forbidden to be sold for the period of 1 year ! Tag along – minority share holder has a right to sell its stake at the same price if the majority shareholder exits ! Preferred shares – lower voting rights (or even no voting right), but higher return when dividends are paid out. ! Pay-to-Play - requirement for an existing investor to participate in a subsequent investment round Protection of investor: ! Founder Vesting - To protect investors from an early, unplanned exit by the founder, founder ownership is subject to a vesting schedule with nothing up front and sequential vesting over, usually, four years. ! First refusal right - a negotiated obligation of the company or existing investors to offer shares to the company or other existing investors at the price offered, prior to selling shares to new investors ! Drag along - A majority shareholders' right, obligating minority shareholders, whose shares are bound into the shareholders' agreement, to sell their shares into an offer the majority wishes to execute, assuming the bidder for the shares wants 100%. ! Haircut – decrease of EV in case of low probability of the forecasted cash flows
Project Team Who we are
We are passionate with idea and! are planning to use Funtick by ourselves!
Andrey Nadosha Role in the project: CEO. Main ideologist of the project. Education: Institute of international relationships Work Experience: More than 3 years in government institutions
Dmitriy Koba Role in the project: CFO. Develops investment strategy and specializes in financial questions Education: Kyiv National Economic University and Vienna University of Economics and Business Administration Work Experience: more than 4 years of experience in financial/investment industry
Ivan Kusymchak Role in the project: COO. Helps to run the project and to find essential resources Education: National Technical University of Ukraine "Kyiv Polytechnic Institute" Work Experience: more than 8 years in Information Security and IT consulting sphere
Serhii Reinhold Role in the project: CTO. Developer. Specializes in technical questions Education: National Technical University of Ukraine "Kyiv Polytechnic Institute" Work Experience: more than 8 years in web-development
Contacts Reach us if you have any questions
We’ll be glad to talk to you!
Andrey Nadosha Everything about main idea of FunTick
[email protected] facebook.com/andrey.ndha skype: andrey.nadosha
Ivan Kuzymchak Any questions about product
[email protected] www.facebook.com/john.fly.581 skype: john_the_fly
Serhii Reinhold Technical questions
[email protected] www.facebook.com/serg.reinhold skype: serg.rain
Dmitriy Koba Financial questions
[email protected] facebook.com/dmitriy.koba