Profitably Seed Prospectus

Raise money, yo!

Transcript

1. Adam Neary | CEO
2. Summary being raised to support product/market fit >175 small businesses signed up to date >485 We have traction We have a team, a market, and a product is like Salesforce.com…for Finance We are raising funds $500k channel partners looking to deploy with their clients full time team members addressable market minimum viable product launch 4 $4.0 Billion Sept. 2010
3. The Team Adam Neary CEO Francis Hwang CTO Chad Pugh UX & Visual Design • Vice President at AlixPartners • Head of BI at Concentra • Manager at A.T. Kearney • Lead Engineer at Diversion Media • Director of Technology at Rhizome • Founder of Gotham Ruby Conference and NYC.rb • UX & Visual Design at Hot Potato • UX & Visual Design at Knowmore • Illustration and UX at Vimeo Graham Siener VP of Customer Dev. • COO at Cape Systems • Dir. of Tech. at The Island School • Director of Special Projects at Cape Eleuthera Institute • Sr. Consultant at Arcadia Solutions
4. Finance is currently an Excel nightmare. The Solution is faster, easier, and simpler.
5. What We Do Salesforce Automation Finance Automation Marketing Automation is like Salesforce.com…for Finance • Finanace workflow • Cash management • Budgeting/forecasting • Profitability, P&L • Benchmarking • Sales workflow • Leads management • Pipeline forecasting • Email automation • Sales analytics • Marketing workflow • SEO tools • Content mgt • Blog platform • Marketing analytics • Support workflow • Ticket management • Forums & feedback • Knowledge base • Support analytics Targets VP of Finance Targets VP of Sales Targets VP of Marketing Targets Support Team Support Automation
6. The Market Source: 1) US Census Bureau, SBA analysis; 2007 2) Forrester, Gartner; 2009 analyses There is a ~$4B market among firms of size 5-99 2.2M businesses1 $2.8M1 avg rev. $4.0B market $150/mo price point Firm size: 5-99 1-4 3.7M1 $20/mo $387k1 $0.9B Accounting software suffices 100-499 89k1 $2k/mo $41M1 $2.1B Customized analytical solutions 500+ 18k1 $50k/mo $1.0B1 $10.0B2 Enterprise BI and ERP solutions
7. Customer Acquisition Costs Customer Lifetime Value ~$1.4-2.0k ~$350-500 Outbound marketing High-touch sales Free “satellite” product (future) Touchless conversion Inbound marketing Net promoter score Referrals Tiered pricing Recurring subscriptions Regular affiliate revenue “White label” edition Customer churn Inactive customers Customer Acquisition Strategy Credit: David Skok “Customer Acquisition & Monetization” Customer lifetime value drives customer acquisition
8. Channel Strategy • Moderate volume & cost • Accountants & consultants • Deep engagement Trusted Advisors Inbound/Organic • High volume, low cost • Long-term focus Our “Trusted Advisor” channel is performing best, driving deepest engagement at scale. Intuit App Center • Low volume, low cost • Short-term focus Paid Search • High volume, high cost • Currently being tested Direct Sales • High volume, high cost • Currently being tested 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Lead Sign-up Engaged Organic Search Paid Search Intuit CPA Direct 11,140 288 22
9. "What's really exciting about Profitably is that they are taking [app in the cloud] concepts and bringing them to millions of small businesses... These businesses have a wealth of data sitting latent on their desktops, and Profitably is poised to unlock that value for these businesses.“ Matt Marshall Editor and CEO VentureBeat Traction Initial traction has been fantastic. (The press loves Profitably!) >175 small businesses signed up to date >485 channel partners (CPAs, accountants, bookeepers...) have expressed an interest in deploying with their clients
10. The Technology We short circuit the process by partnering with Intuit, the makers of QuickBooks Alex Chriss Director / Business Leader Intuit Partner Platform The Profitably team is firing on all cylinders right now. They understand the pain points, but they also know to prioritize user experience and great design. “ Of ~6M businesses in the US, 4M use QuickBooks as their accounting software.
11. Roadmap and Funding Requirements Achieved to date: Founding team Intuit partnership Live product shipped 485 businesses signed up Revenue streams initiated Seed round teed up Z Feb 2011 Seed Round Z Series A ~Q1 2012 With seed funding: o Product/market fit o Customer acq. channel data o 1,000 paying customers o $750k run-rate annual revenue o Validate CAC vs. LTV o Series A teed up $325k raised to date $500k seed investment sought
12. Seed Round Specifics Seed round specifics • $425k committed • $500k target ($750k ideal) • $25k Minimum Participation • $3.0 MM Pre-Money Valuation • Option Pool of 7% out of Pre-Money • Pro Rata Rights for Investors • Founder Vesting (4 years) • Standard NVCA terms • Target close date: February 22
13. Appendix
14. Shawn O’Connor President and Founder Stratus Prep It’s all but impossible for businesses like mine to quantify customer acquisition costs, since our prospects often have multiple touch points during the sales cycle, both online and offline. This is the absolute top priority for my business, and Profitably is all over it. Customer Testimonial
15. We don’t make Accounting software We don’t do Business Intelligence QuickBooks Xero, NetSuite Outright Indinero (They make better partners) Metricly, GoodData YouCalc, Indicee QlikView, PivotLink Birst, Pentaho CloudEra SAS, Microstrategy The Competition Manual Analysis
16. Business Model Analysis dictated that we kill the “freemium” model Est. Customer Annual Value $750-950 Est. Customer Lifetime Value $2.5k-4.5k Tiered monthly subscription model Freemium subscription model Affiliate revenue from strategic partners Free “satellite” product (business diagnostic) Current Future