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UP Investor Deck - May 2014TRANSCRIPT
Click. Share. Earn.
Travis Steffen | Simon Turner
• Facebook – 1.9 billion users
• Twitter – 600 million users
• Google+ - 300 million users
• LinkedIn – 260 million users
• Instagram 200 million users
• Competing with these brands would be
suicide.
• Augmenting and incentivizing their use
could be powerful if done correctly.
Market Opportunity
• Most brands use “in your face” methods and
begging to spark shares – mainly because a
better option doesn’t exist
• There are currently no clear incentives to share
other than a favorable reaction from your
network
• No current tools exist that help brands
encourage and reward continued, specific viral
behavior
Market Problem
• In order to encourage any desired
behavior, there must be a strong
incentive.
• Injecting an element of competition in
the mix encourages continued use.
• Users currently must check numerous
networks to see sharing activity. But
what if there was one to rule them all
by letting you save time, money and
frustration?
The Solution
What’s UP?
• UP is a gamified feed of all the shares that take place
across all your networks
• Each time you share content, you get points you can cash
in for cool stuff in our store
• The more interaction that share gets, the more points you
earn, and the more exposure the site owner gets
• UP is also a robust set of B2B social tools, and a source for
previously-unharvested social data and analytics on
sharing and rewards behavior
Click
1. Users discover great content on their
favorite sites and blogs
2. They mouse over one of our widgets, click
on the arrow, and sign up with one click
without ever leaving the site
3. From then on, each time a user shares
content from an UP partner, they get points.
4. The partner then gets data on that user’s
viral behavior
For Users
Share
• Whatever users and their friends from all their
linked networks share shows up in their feed.
• Shares from any network can be reshared to
any other network in one click.
• The more a users friends or followers interact
(like, retweet, comment, share, favorite) that
share, the more points they get
For Users (cont.)
Earn
• At any time, users can cash in their points for
cool stuff in our store.
• Store items range from deep discounts and
deals, free swag and merch, and exclusive
experiences you can’t get anywhere else.
• Our system learns what the user likes. The
more they interact with it, the more relevant
the items they see become.
For Users (cont.)
Free Sharing Tools
• Becoming an UP partner is free, and has
significant benefits
• Partners can select from any of our cloud-based
responsive sharing widgets
• The more of a partner’s users sign up, the more
data they get, and the more accurate the
conclusions they draw are
• Users also instantly know the get something
tangible for sharing
PartnerUP
Viral Activity Feed
• As users share links and begin a social
conversation about a partner’s brand,
it appears in the partner’s real time
viral activity
• Partners can track brand-specific
hashtags, can see links shared, how
they’re shared, and points earned
PartnerUP (cont.)
Real time analytics
• As users voluntarily link their networks and
grant UP access to their sharing history
across numerous networks, our analytics
and correlations are significantly more
powerful than all current social data
operators, and show correlations and
patterns that have never been available
before.
PartnerUP (cont.)
Hashtag Tracking
• Partners can indicate which hashtags
they want to promote to their users
• Doing so grants users points for using
that hashtag on their networks, keeping
the brand in the social conversation
• We then can show cross-network
hashtag related trends and correlations
PartnerUP (cont.)
Achievements
• Partners can also incentivize viral patterns
user our Achievements section.
• For example, your local coffee shop could
create an achievement offering a free cup of
coffee for users who use their hashtag 3x in
one week.
• This section acts as a viral loyalty punch card
of sorts.
PartnerUP (cont.)
Rewards
• If partners sell products, they can also submit
their rewards to our store.
• Groupon-like experience creates an engine for
targeted giveaways and promotion.
• UP links with most shopping cart providers for
automated redemption statistics.
• This data translates into even more powerful
correlations and insights for the partner.
PartnerUP (cont.)
• We’re working on a CPC system for in-stream
promoted shares to phase in when we hit
critical mass
• We’re expanding our rewards section before
and during Beta, and moving to a more
localized, Groupon-like model
• Our new “Level UP” system will encourage
ongoing use by amplifying the rate at which
users earn points after certain milestones
Working Additions
Meet the Team
Simon TurnerCo-founder, CEO
Paul HiattRoR Developer, Publisher System
Sergio LopezRoR Developer, User System
Jose UribeJavascript Specialist
Eric MooreCore System Architect
Mahendra LiyaMobile Developer
Travis SteffenFounder, President
Experienced technical founders
…with 5 combined acquisitions
…a scrappy, efficient team
…using lean methodologies
…creating intuitive, scalable tech
…to disrupt a stagnant industry
Competitive Advantages
Users: Free
Partners:
• Sharing Widget: Free
• Data & Analytics: Free
• Rewards: CPA Reward Redemption
After critical mass: CPC Promoted Shares
*All revenue models are contingent on positive A/B test results
Business Model
(mostly)
Partners = Users
• Users sign up through our cloud-based widgets,
never leaving the partner’s site.
• The partner wants this to happen as when a
user signs up, they get more data, and the user
realizes they have an incentive to share.
Beta Strategy
• All Beta users get a free tee shirt
• They are sent their shirt after earning their first
5,000 points (a few weeks of continued use)
Customer Acquisition Strategy
Multi-Angle Attack
• When users share content from a
source that’s NOT an UP partner,
they’re prompted to vote on if they
want points for it.
• At a certain point, we reach out –
allowing us to focus our efforts on
user feedback first
• Also, our plugins for most open API
CMS and shopping cart providers
Partner Acquisition Strategy
Activity Feed:
• Instagram is the king of the content-type
specific stream
• We’ve emulated this experience, using
shares instead of photos
• We’ve also added content filters, the re-
sharing features and clear incentives
In other words – if Instagram were gamified
and was for shares instead of photos, it’d be UP.
Feature Comparison
Sharing:
• AddThis is the market leader
• Both widgets are well-designed, smooth and
responsive.
• Clicking AddThis’s logo impedes content with a popup.
Clicking UP’s logo expands the widget slightly.
• AddThis is pay-to-play. UP is free.
• AddThis’s primary value is for the site owner. UP
provides value for both the partner and the user.
Feature Comparison (cont.)
Rewards:
• Market leaders are Groupon and Zulily
• Both have a similar UX, which we’ve
emulated for the user’s benefit.
• Groupon and Zulily are pay-for-play. UP is
points-based, and those points are free.
• Groupon takes the vendor’s margins away
completely. UP is a more profitable option.
• UP Partners get more data and insights.
Feature Comparison (cont.)
Analytics:
• There are no clear market leaders in social
data and analytics as they all use public-
facing data only.
• A user’s consent is needed to view their
sharing history, which they grant to UP.
• Sprout Social and Hootsuite Analytics have
great ways of displaying the data they
gather, which UP has emulated.
Feature Comparison (cont.)
Exclusive:
Many features are exclusive only to UP,
including:
• The Partner’s Viral Activity Feed
• Hashtag Analytics and Insights
• Viral Achievements Creation
• Correlations between systems –
rewards, hashtags and sharing
behavior
Feature Comparison (cont.)
Acquisition
Our exit strategy has always been an eventual acquisition by
a competitor or complimentary service, such as:
• Social network (Twitter, Facebook, Google)
• Social dashboard (Hootsuite, Klout)
• Daily deals company (Groupon, LivingSocial)
• Sharing tool (AddThis, ShareThis, Po.st)
• Other
Exit Strategy
After self-financing our seed round for $60,000,
we’re currently looking raising a $1m Series A
through a 24 month convertible note.
• Post seed monthly burn = $31.5k
• Monthly burn at scale = $55.5k
• $1 million = 18 months at scale
What We Need
▀ Management – 18%
▀ Engineering Team – 38%
▀ Design Team – 7%
▀ Marketing and Promotion – 29%
▀ Marketing Budget – 5%
▀ Misc Expenses – 3%
Use of Funds
Financial Projections 2014 2015 2016 2017 2018
Revenues $9,750 $100,919 $862,168 $3,668,204 $11,905,754
Expenses $376,700 $720,000 $828,000 $972,330 $1,112,780
Profit -$366,950 -$619,081 $34,168 $2,695,874 $10,792,974
Investment $1,000,000
Balance $633,050 $13,969 $48,137 $2,744,011 $13,536,985
Users 60,000 270,000 1,335,000 3,534,000 7,413,600
Revenue per User ($) 0.16 0.37 0.65 1.04 1.61
Partners 270 1,335 3,534 7,414
Promoting Partners - 14 107 424 1,038
Avg Monthly Partner Spend ($) 43 173 389 708
Driving Metrics:
Users Increase per Month 5,000 20,000 100,000 250,000 500,000
Reward Redemption (%) 0.50 1.00 1.50 1.75 2.00
Reward Commision ($) 5 5 5 5 5
Churn Rate (%) 50 50 40 40 30
Users per Partner - 1,000 1,000 1,000 1,000
Promoting Partners (%) 5 8 12 14
Monthly Promoted Posts per Partner - 5 7 10 15
Promoted Post Impressions (% of Total Users) - 2.00 1.00 0.50 0.25
Average CTR (%) - 1.50 1.50 1.50 1.50
Average CPC ($) - 0.18 0.21 0.24 0.27
Operating Expenses Increase (%) 15 15 15
Our hiring plan is simple: stay lean, strive for total
automation, and reward efficiency.
Management = fully staffed
Engineering Team = fully staffed
Marketing & Promotion = 33% staffed
• Currently 7 employees
• 12 employees by year 2
The Team at Scale