love and pride investors 2014

WWW.LOVEANDPRIDE.COM

Investor Presentation

January 2014


LoveAndPride.com has all the

ingredients to become a prominent

destination site for Jewelry and

gifting needs for the “LGBT and

friends” market


Company Snapshot

• Launched by award-winning

jewelry designer Udi Behr

• Product suite includes marriage-

related jewelry, fashion,

accessories and gifts

• Philanthropic partnerships with the

top four LGBT foundations

• Headquartered in New York with

fulfillment in Philadelphia

• $750K sales in 2013

L&P worn by celebrities like Elton

John, Ringo Starr, Jay Leno,

Sharon Stone, Paris Hilton and

Paula Abdul


Well-Connected, Experienced

Leadership Team

Top designer - Winner of multiple int. awards, designs featured in top big box retailers

and major TV shows Revenge, Star Trek, True Blood, Dancing with star

Endorsed by the LGBT community and major press - Winner of MSF award, blogger in

major gay publications

Udi Behr, Co-Founder & Chief Creative Officer

Ido Levanon, Co-Founder & CEO

Managed one of the largest jewelry manufacturing and wholesale companies in the US

Carl Barbeto, Strategic Adviser Previously VP, David Yurman, VP; Currently President at Mulberry NA

Richard J. Berman, Strategic Adviser 35 years of venture capital, senior management and merger & acquisitions experience

Original Copyrighted Designs, that are Beautifully Made

Rainbow Collection $150-$350

Love Peace and Hope $1,000-$4,000

Love Made in Heaven $750-$4,000

Love and Honor engagement, commitment, anniversary $1,000-$4,000

Sochi Russia 2014 Campaign Supporting causes and organizations $40 - $80


Capitalizing on Large, Fast-Growing,

Highly-Desirable Markets

Sources: IDC, Harris Interactive & Witco Communications, IBIS World May 2013

Global E-Commerce

& M-Commerce: >$1 TRILLION

in 2012

US Online Jewelry &

Watch Market:

$10 BILLION in 2012

US LGBT MARKET:

$790 BILLION of

buying power


LGBT: Loyal, Educated Target Market with

Spending Power

71% Of LGBT people would remain loyal to brands that

supports their community

23% Of LGBT adults have switched products or services in

2012 in order to patronize a company supporting the

community

46% Same sex couples have college degree (compared to

32% for different sex couples)

83% Same sex couple labor force participation (compared to

69% for different sex couples)

$94,000 Median household income for same sex couples (with

both partners in labor force)

Sources: Harris Interactive & Witco Communications, UCLA


LoveandPride.com

Segment Price range Type Drop-ship /

inventory

Exclusive

products

Young and

coming out $29-$300

Silver and alternative

metals 90% / 10% 20%

Trend setters $49-$500 Fine and alternative

metals, leather, rubber 70% / 30% 20%

Newlywed $199-

$10,000

Fine and alternative

metals 90% / 10% 20%

Same sex

families $49-$1,000

fine and alternative

metals, rubber, leather 90% / 10% 20%

Philanthropy* $39-$100 Fine and alternative

metals 0% / 100% 100%

• Drop-ship with strict brand governance


LoveAndPride.com is already part of the

LGBT community

L&P is active and supporting it.

Note that there are no competition

that cater the LGBT segment

specifically !


Competitive Landscape

• Selected comparable competition to describe the difference

• Note that there are no competition that cater the LGBT segment specifically

Name Gifts Bridal Fashion

Blue Nile #1 online diamonds X

Tiffanies Better high-end quality X

Zales(Signet) Diamond mall X

Jared(Signet) Higher end, mid-west X

David Yurman #1 American jewelry brand X

Roberto Cohen X

Macys Affordable to moderate jewelry selection X X

Crate and Barrel Leader in housewares and gifting X

Paul Smith leader in high quality great designs for

the stylist man moderate price X


Focused Strategy to Accelerate Growth

Online shopping

experience

• Exceptional mobile commerce experience

• Superior customer service and after sale

service

Online & Social media-

focused marketing

• Brand evangelists

• Targeted Facebook interest groups –

lower customer acquisition cost

• PR - focus on activism

Wholesaling • Retail presence in major cities and LGBT

sites


Financial Projections (in thousands)

2013 2014 2015 2016

Q4 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total

Revenue $215 $196 $276 $512 $865 $1,849 $1,167 $1,417 $1,679 $1,882 $6,146 $2,405 $2,978 $3,544 $4,207 $13,134

COGS $90 $69 $97 $182 $316 $664 $440 $542 $648 $731 $2,361 $1,009 $1,160 $1,312 $1,564 $5,045

Shipping+Returns $30 $37 $43 $61 $98 $239 $121 $146 $168 $179 $613 $252 $290 $328 $391 $1,261

Gross Margin $95 $91 $136 $268 $451 $947 $606 $730 $863 $973 $3,172 $1,143 $1,527 $1,905 $2,253 $6,828

% of Revenue 44% 46% 49% 52% 52% 51% 52% 51% 51% 52% 52% 48% 51% 54% 54% 52%

Operating Expenses $0 $0 $0

Product Development $43 $49 $49 $49 $189 $45 $45 $45 $45 $180 $38 $43 $49 $59 $189

Sales & Marketing $107 $192 $279 $383 $961 $484 $540 $628 $704 $2,356 $706 $812 $918 $1,095 $3,532

Administration & IT $99 $105 $119 $125 $449 $185 $193 $212 $216 $805 $212 $244 $275 $328 $1,059

Operating Expenses $135 $249 $346 $447 $557 $1,598 $714 $778 $885 $965 $3,341 $956 $1,099 $1,243 $1,482 $4,780

% of Revenue 63% 127% 125% 87% 64% 86% 61% 55% 53% 51% 54% 40% 37% 35% 35% 36%

Income Before Int &

Taxes ($0.04) ($158) ($209) ($178) ($106) ($652) ($108) ($49) ($21) $8 ($169) $187 $428 $662 $771 $2,049

% of Revenue -19% -81% -76% -35% -12% -35% -9% -3% -1% 0% -3% 8% 14% 19% 18% 16%


Investment Opportunity

Amount of Raise: $50K - $100K

Security: Series A Preferred Stock

Use of Proceeds: • Highly-targeted, efficient marketing and

advertisement (today @ ROI positive)

• Online sales and social media team


Summary:

Why Love & Pride? Why Now?

• Capitalizing on fast-growing e-commerce and highly-desirableLGBT market ($790B of buying power in the US alone)

• The time is now: opening of new, and expansion of existing,markets due to recent and ongoing same-sex marriage legislationthroughout the world

• Only e-commerce and m-commerce platform providing both unique

product selection and a focus on giving back to LGBT causes

• Accelerated growth to over $20M monthly run rate in Dec 2016projected based on foundation of successful existing business

• Highly respected, experienced and well-connected managementteam


THANK YOU

Love and Pride [email protected]

800 Chestnut Street ,Ste 104Philadelphia, PA 19107

mailto:[email protected]

Summary

• L&P target the LGBT and friends community, with original copywrited products priced from $100-

$5,000 with multiple collection for various occasions.

• Sales of L&P in third year of operation were nearly $3M, and recently with new investors in place

L&P ompleted a restructuring process.

• New experienced team in place:

– Carl Barbeto – Adviser – VP at David Yurman for 9 years and now president at Mulberry

– Richard J. Berman – served as a director and/or officer of over a dozen public and private

companies

• Q4 ‘13 sales: $220K, 65% gross margin. Expecting to grow to $4MM sales in Q4 of 2016 with

19% EBITDA.

• Assuming pre tax income of $2MM at the end of 2016 the company valuation 5x its current

valuation of $4MM (per PWC latest data: consumer goods gets 10x EBITDA).

• In 2017 pre tax income is estimated to be $6.2MM and company valuation will be more than 10x

current one.

• We have $500K committed and looking for another $1MM with pre valuation of $4MM

• Gay community is spending $800B yearly. The US online jewelry sales total $10B! This market

represents an enormous opportunity as it is a glaringly underserved market. In fact, L&P does not

have a single substantial competitor. And the timing is perfect as the market grows rapidly with

more and more states and countries legalizing gay marriage. Now is the time!

love and pride investors 2014

Investor Relations

lgbt community

alternative metals

us lgbt market

lgbt foundations

lgbt people

lgbt adults

different sex couples

sex families