Necto Seed Round Deck

Transcript

1. INTERNET SERVICE PROVIDER S TA RT E R K I T JoinNecto.com
2. ISPs are hard to start Traditional model requires 40% market share to be profitable Running last mile fiber costs $25,000-$400,000 per mile Network engineering talent is unavailable or cost prohibitive
3. Fixed Wireless makes it cheaper Fixed wireless only requires 5% market share to be profitable Wireless last mile infrastructure costs as low as $73 / customer Doesn’t fix the network engineering talent issue.
4. Necto makes it easier WE TAKE CARE OF THE NETWORK ENGINEERING We work with operators to develop a deployment plan and get access to the internet backbone We help them market, grow, and increase their distribution footprint
5. Necto’s ISP Starter Kit Operational Support Software (so a non-engineer can understand the status of their network) All the networking equipment necessary to start (now a commodity) Billing integration (we get paid directly from customer receipts) Training on how to operate the business Monitoring of core infrastructure
6. Necto Business Model The operator provides the infrastructure capital The operator does the marketing, installations, and first layer of support We centralize the network engineering operations We monitor the network We take 25% of each operator’s revenue
7. INFRASTRUCTURE BUSINESS & SOFTWARE MARGINS Necto is an infrastructure business with software margins. Like AirBnB & Uber, we grow our network without having to pay for the infrastructure.
8. NETWORK EFFECTS • Each new operator benefits from the collective experiences of the operators who came before them • A distributed “network of networks” enables Necto to have a wide distribution channel for additional services and smart home products
9. Our Team Benjamin Huang (CEO) Adam Montgomery (CTO) • First engineer at a sales automation company (Groove.co) that sold thousands of licenses to Google, Uber, BBVA, etc. • Involved in a community mesh network in Oakland before starting Necto • Emory University - Computer Science • Developed a sales and operations automation system for the home services industry • Owned and ran a 120 employee home services company in Florida (Sold to ARS/Rescue Rooter 2016) • McGill University - Economics
10. WE STARTED OUR OWN ISP IN SF
11. Fixed Wireless Deployment
12. Public launch: Jan 22nd
13. OUR FIRST OPERATOR • Travis - owns apartment buildings in a town in South Dakota • Comcast owns the local ISP • Travis will invest $13k to light up his building, and will make $43k / year of profit • Necto will earn $29k / year from his operation
14. Market for Broadband Internet Current market in the US: $118 Billion Only 13% of US census blocks have truly competitive markets for broadband (>2 providers 
 @ 25Mbps) Our local operator model isn’t limited to just the US
15. Seed Round RAISING $2M @ $10M CAP (YC STANDARD SAFE) Hiring a network engineer, developer, and ops person To process our current pipeline and launch our first batch of networks