Unbound Concepts

Pitch Deck

Transcript

1. Knowledge  is  Power.     Shared  Knowledge  is  Powerful.     2012    
2.   This  Presenta6on  (the  “Presenta(on”)  relates  to  the  offering  (the  “Offering”)  of  interest-­‐bearing  notes  having  a  face  amount  of  $X  AMOUNT(the  “Notes”)  and  warrants  for  the   purchase  of  units  of  Unbound  Concepts  (the  “Warrants,”  together  with  the  Notes,  the  “Securi(es”).    The  Securi6es  offered  hereby  have  not  been  and  will  not  be  registered   pursuant  to  the  Securi6es  Act  of  1933,  as  amended  (the  “Securi(es  Act”),  the  Investment  Company  Act  of  1940,  as  amended  (the  “Investment  Company  Act”),  or  any   applicable  state  or  foreign  securi6es  laws,  nor  has  the  Securi6es  and  Exchange  Commission  (the  “SEC”)  or  any  state  or  foreign  regulatory  authority  passed  upon  the  accuracy  or adequacy  of  this  Presenta6on  or  endorsed  the  merits  of  this  Offering,  and  any  representa6on  to  the  contrary  is  unlawful.    The  Securi6es  are  being  offered  only  to  accredited   investors  pursuant  to  exemp6ons  provided  by  Sec6on  4(2)  of  the  Securi6es  Act,  certain  state  securi6es  laws  and  certain  rules  and  regula6ons  promulgated  pursuant  thereto.     Prospec/ve  investors  having  inquiries  with  respect  to  this  Presenta/on  should  contact:  Ka/e  Palenscar  at  412-­‐913-­‐5332       A  PROSPECTIVE  INVESTOR,  BY  ACCEPTING  DELIVERY  OF  THIS  PRESENTATION,  AGREES  PROMPTLY  TO  RETURN  TO  UNBOUND  CONCEPTS,  LLC,  THIS  PRESENTATION  AND  ANY   OTHER  DOCUMENTS  OR  INFORMATION  FURNISHED  IF  THE  PROSPECTIVE  INVESTOR  ELECTS  NOT  TO  PURCHASE  ANY  OF  THE  SECURITIES  OFFERED  HEREBY  OR  IF  THE  OFFERING   IS  TERMINATED  OR  WITHDRAWN.     EXCEPT  AS  OTHERWISE  INDICATED,  THIS  PRESENTATION  SPEAKS  AS  OF  THE  DATE  HEREOF.    NEITHER  THE  DELIVERY  OF  THIS  PRESENTATION  NOR  ANY  SALE  MADE  HEREUNDER   SHALL,  UNDER  ANY  CIRCUMSTANCES,  CREATE  ANY  IMPLICATION  THAT  THERE  HAS  BEEN  NO  CHANGE  IN  THE  AFFAIRS  OF  UNBOUND  CONCEPTS  OR  ITS  AFFILIATES  AFTER  THE   DATE  HEREOF.     UNBOUND  CONCEPTS  DISCLAIMS  ANY  AND  ALL  OMISSIONS  FROM  THIS  PRESENTATION  OR  ANY  OTHER  WRITTEN  OR  ORAL  COMMUNICATION  TRANSMITTED  OR  MADE   AVAILABLE  TO  THE  RECIPIENT.    EACH  INVESTOR  WILL  BE  ENTITLED  TO  RELY  SOLELY  ON  THOSE  REPRESENTATIONS  AND  WARRANTIES  THAT  MAY  BE  MADE  TO  SUCH  INVESTOR   IN  ANY  FINAL  PURCHASE  AGREEMENT  RELATING  TO  THE  SECURITIES.     INVESTORS  ARE  NOT  TO  CONSTRUE  THE  CONTENTS  OF  THIS  PRESENTATION  AS  LEGAL,  BUSINESS  OR  TAX  ADVICE.    EACH  INVESTOR  SHOULD  CONSULT  SUCH  INVESTOR’S  OWN   ATTORNEY,  BUSINESS  ADVISOR  AND  TAX  ADVISOR  AS  TO  LEGAL,  BUSINESS,  TAX  AND  RELATED  MATTERS  CONCERNING  THE  INVESTMENT  DESCRIBED  IN  THIS  PRESENTATION   AND  ITS  SUITABILITY  FOR  SUCH  PROSPECTIVE  INVESTOR.     NO  SALE  WILL  BE  MADE  TO  ANY  PERSON  OR  ORGANIZATION  THAT  DOES  NOT  QUALIFY  AS  AN  “ACCREDITED  INVESTOR.”    EACH  PROSPECTIVE  INVESTOR  WILL  NEED  TO   COMPLETE  AN  APPROPRIATE  QUESTIONNAIRE  VERIFYING  ACCREDITATION.    IF  YOU  ARE  IN  ANY  DOUBT  AS  TO  THE  SUITABILITY  OF  AN  INVESTMENT  IN  THE  SECURITIES  OF   UNBOUND  CONCEPTS,  DETAILS  OF  WHICH  ARE  GIVEN  IN  THIS  PRESENTATION,  YOU  SHOULD  CONSULT  YOUR  INVESTMENT  ADVISOR.    NO  SUBSCRIPTIONS  WILL  BE  ACCEPTED   FROM  RESIDENTS  OF  ANY  STATE  UNLESS  THE  CENTER,  UPON  CONSULTATION  WITH  ITS  COUNSEL,  IS  SATISFIED  THAT  THE  OFFERING  IS  IN  COMPLIANCE  WITH  THE  LAWS  OF   SUCH  STATE.     UNBOUND  CONCEPTS  RESERVES  THE  RIGHT,  IN  ITS  SOLE  DISCRETION  AND  FOR  ANY  REASON  WHATSOEVER,  TO  MODIFY,  AMEND  AND/OR  WITHDRAW  ALL  OR  A  PORTION  OF   THE  OFFERING  AND/OR  TO  ACCEPT  OR  REJECT  IN  WHOLE  OR  IN  PART  ANY  PROSPECTIVE  INVESTMENT  IN  THE  SECURITIES  OR  TO  ALLOT  TO  ANY  PROSPECTIVE  INVESTOR  LESS   THAN  THE  SECURITIES  THAT  SUCH  INVESTOR  DESIRES  TO  PURCHASE.    UNBOUND  CONCEPTS  HAS  NO  LIABILITY  WHATSOEVER  TO  ANY  OFFEREE  AND/OR  INVESTOR  IN  THE   EVENT  THAT  ANY  OF  THE  FOREGOING  SHALL  OCCUR.    UNBOUND  CONCEPTS  RESERVES  THE  RIGHT  TO  APPROVE  EACH  INVESTOR.     THIS  PRESENTATION  DOES  NOT  CONSTITUTE  AN  OFFER  TO  SELL  OR  SOLICITATION  OF  AN  OFFER  TO  BUY  THE  SECURITIES  IN  ANY  JURISDICTION  WHERE,  OR  TO  ANY  PERSON  TO   WHOM,  IT  IS  UNLAWFUL  TO  MAKE  SUCH  OFFER  OR  SOLICITATION  IN  SUCH  JURISDICTION.  
3.     “Literacy  is  the  goal,  but  inspiring  crea6ve  engagement  through  collabora6on  is   our  higher  aspira6on.    That  is  not  just  important,  but  essen6al  to  our  con6nued   evolu6on  as  a  society.”                Ka6e  Palencsar,  Co-­‐Founder   Why  we  do  what  we  do…  
4. CONFIDENTIAL  –  Restricted  Distribu6on   What  is  the  problem?     4   Challenge  :    Average  of  six  different  reading  levels  in   each  classroom   Instructors  are  scrambling  to  find  the  right  content  to  teach  kids   AND     Publishers  are  scrambling  to  match  their  content  with  instructors’  needs   Challenge  :     Publishers  need  to  provide  teachers     up-­‐to-­‐date  leveled  content  and  support  logic  
5. CONFIDENTIAL  –  Restricted  Distribu6on   Through  in-­‐hand  knowledge-­‐gathering  tools  such  as  BookLeveler,     unbound  concepts  is  building  the  world’s  most  accurately  leveled  collec6on  of   K-­‐12  digital  books  and  content.         What  is  Unbound  Concepts?   unbound  concepts’  TextStage™  dashboard  creates  a  data-­‐backed  conversa6on   where  one  NEVER  EXISTED:    between  the  buyers  of  content  (instructors)  and  the   publishers/content  providers  who  are  trying  to  sell  to  them.        
6. Current  Leveling  Methods…   •  Lack  of  Dialogue  between  Publishers  and  Educators.   •  Look  at  quan6ta6ve  analysis  (sentence  structure,  syllables).  They  don’t  take  into   account  -­‐  concepts,  the  reader,  teacher  feedback,  what’s  being  taught  in  the   classroom  –  the  knowledge  of  the  human,  processing  text.     •  Digital  content  providers  such  as  Na6onal  Geographic    have  NOT  categorized   material  by  level  OR  concepts  OR  teaching  objec6ves.     •  Curriculum  buyers  need  leveled  material  to  meet  the  needs  of  their  educators.    
7. What  is  the  Solu(on?   Complete  integrated    plamorm  for  applying  human  knowledge  to  text     Shared  Knowledge  is  powerful  
8. Solu(ons   TextStage     Fully  scalable,  customizable  dashboard  with  unprecedented  search   capabili6es  that  enables:     •  An  easy  drag-­‐-­‐-­‐and-­‐-­‐-­‐drop  method  for  publishers  to  upload   digital  content  onto  their  own  hosted  system   •  HTML  conversions  of  texts   ePubformat  of  texts   •  Alignment  of  educa6onal  standards  to  content       Searches   across   specific   text(s)   and/or   en6re   library   TextStage™   gives  publishers  and  content  providers  the  ability  to  search  content   as  never  before,  including  the  following  methods:   •   A-­‐-­‐-­‐Z   Unbound-­‐-­‐-­‐Guided   Reading   Level   &     Level   Descrip6on   (how   Unbound-­‐-­‐-­‐Guided   Reading   Level   methodology)   •  Educator  feedback   •  Reading  level   •  Grade  band   •  High  frequency/vocabulary  word  lists   •  Paragraph  count   •  Sentence  count   •  Word  count   •  Word  sense  disambigua6on   •  Sen6ment  analysis   •  Syntac6c  structure  of  sentences  in  parse  tree  diagrams   •  Headwords,  basewords,  and  rootwords   •  Layouts  of  structure  of  similar  texts  for  writers  and  editors   BookLeveler™     An  in-­‐-­‐-­‐hand  iOS-­‐-­‐-­‐based  app  where  instructors     search  for  and  purchase  teaching  content,  share     feedback  on  the  way  they  use  books  and  learning     content  in  their  classrooms,  and  contribute  levels     for  that  content.     •  Adver6se  directly  to  instructors  and  parents  at  point-­‐-­‐-­‐of-­‐-­‐-­‐ demand  and  point-­‐-­‐-­‐of-­‐-­‐-­‐  purchase.   •  Packages  available  for  preferred  publishers  /  content   providers  in  search  results.   •  Ongoing,  real-­‐-­‐-­‐6me  feedback  from  instructors  and  parents   on  what  is  being  searched  for,  how  it  is  being  used,  loca6on,   and  addi6onal  custom  metrics.       The  benefits  and  features  to  publishers  include:       •  Effec6vely  manage    sales  cycle.     •  Catalogue  and  leverage  exis6ng  content  because  users  understand   what  it  contains.     •  Create  new  content  based  on  demand  for  iden6fied  content  gaps.      
9. $7.5  billion  in  Educa(onal  Technology   $5.5  billion  in  K-­‐12  Revenues   $31  billion  in  Publishers     54.8  million  students  Consume  Content    4.  3  million  Teachers   Market  Opportunity   $  is  in  the:   1)  Searchable  data  &  2)  Connec(ng  supply  with  demand  as  never  before  possible  
10. Revenue  Model   Annual  Contract  that  includes  TextStage  and   API  for  digital  content  and  BookLeveler  Data.     Revenue  from  publishers  for  material   purchased  through  BookLeveler  &  Digital   Content.   Premium  Model  for  educators  to  access  data.     Data  from   Publishers   User  Data   &  Usage   High  Profit   Poten6al   Publishers  are  the  Primary   revenue  source   Pay  per  click    is  a  secondary   revenue  source   Subscrip(on  is  also  a     secondary  revenue  source  
11. Poten(al  Market  Opportunity   Tradi6onal  publishing  and  digital  content  markets  are  merging.     unbound  concepts  makes  this  merge  profitable.      
12.     Sta6s6c  Based   (Quan6ta6ve)   ✔   ✔   ✔   Meaning  /  Clarity   (Qualita6ve)   ✔   ✔   Con6nual  Feedback   Loop   ✔   Consumer  Facing   Plamorm     ✔   ✔   Database  Size   150,000   Books   18,000   Books   110,000   Books   30,000   Books     (Growing   Daily)   Compe((on   Leveling   Basis   Dynamic   Plamorm  
13. Financials   Projected Statement of Operations For the Twelve Months Ended December 31, 2012 2013 2014 2015 2016 Revenue 0 $ 1,000,000 $ 2,200,000 $ 6,600,000 $ 16,500,000 $ year over year growth 220.0% 300.0% 250.0% Cost of Revenues 0 $ 600,000 944,000 2,310,000 5,610,000 Gross Profit - 400,000 1,256,000 4,290,000 10,890,000 Operating Expense 159,000 450,000 750,000 1,050,000 2,250,000 Operating Profit (159,000) (50,000) 506,000 3,240,000 8,640,000 Other Income/(Expense) Interest Expense 2,000 24,000 - - - Depreciation Expense 100 7,000 19,000 28,000 42,000 2,100 31,000 19,000 28,000 42,000 Tax Provision - - 97,960 1,285,000 3,439,000 Net Income ( Loss) (161,100) $ (81,000) $ 406,140 $ 1,927,000 $ 5,159,000 $
14. Ka6e  Palencsar  is  CEO,  Partner,  and  our  lead  educa6on  and  policy   wonk.  With  an  M.S.  in  Curriculum  and  Instruc6on,  her  work  with   NYC  Department  of  Educa6on,  renowned  for  its  forward-­‐thinking   innova6on,   combined   with   Blue   Ribbon   Savannah   Country   Day   School   and   Johns   Hopkins   University   Center   for   Talented   Youth   has   provided   her   with   an   in-­‐depth   knowledge   of   the   challenges   educators  face  across  all  segments  of  society.    An  avid  proponent   of   women   in   business   Ka6e   is   a   graduate   of   the   female   entrepreneur  program,  ACTiVATE,  and  inspires  many  as  one  of  the   few  women  CEOs  in  the  technology  space.       Ka(e  Palencsar                                                                Benjamin  Bengfort   Benjamin  Bengfort  is  CTO,  partner,  lead  programmer,  researcher,  and   master   of   all   things   data.     Ben's   focus   on   networks,   wireless   communica6on,   ar6ficial   intelligence   (specifically   seman6c   search),   and  sosware  engineering  brings  a  skill  set  that  pumps  the  heart  of  the   Unbound   Concepts   learning   engine,   Meridian.   Ben   graduated   with   a   Master's   degree   in   Computer   Science;   Phi   Kappa   Phi;   Upsilon   Pi   Epsilon,  and  is  con6nuing  his  PhD  research  in  Computer  Science  at  the   University  of  Maryland,  Bal6more  County.    While  sta6oned  overseas   during  his  wife’s  postgraduate  studies  as  a  Rhodes  scholar,  he  began   developing   sosware   within   a   publishing   environment   at   Oxford   University  Press,  and  there  sparked  a  deep  interest  in  natural  language   processing.     Experienced  Team   Jesse  English                                                                          Amy  Christopher                                                                     Amy  Christopher  is  owner  and  President  of  Christopher  Consul6ng,  a   marke6ng  and  management  consul6ng  firm.    Formerly  the  president  of   warschawski,   a   global   marke6ng   communica6ons   agency,   she   has   provided   strategic   counsel   to   some   of   the   world’s   leading   brands,   including  The  Athlete's  Foot,  CSX,  GORE-­‐TEX,  Under  Armour,  Stanley| Black   &   Decker,   Penguin   Publishing,   DEWALT,   The   Interna6onal   Olympic   Commivee   and   Boeing,   among   others.     She   has   achieved   industry’s   highest   awards   for   work   on   communica6ons   strategy   and   implementa6on  for  major  financial  deals,  corporate  branding,  product   launches,   and   change   management,   notably   leading   the   corporate   communica6ons   ini6a6ves   surrounding   Under   Armour's   ini6al   public   offering,   which   was   the   most   successful   American   IPO   debut   in   five   years’  history.     Jesse  English,  PhD,  is  CSO,  partner,  and  is  the  brains  behind  our   language   engine,   which   applies   human   knowledge   to   digital   content   –   much   the   same   way   the   human   brain   does   –   using   computer   science.   Jesse   holds   a   PhD   in   Computer   Science   from   University   of   Bal6more   County,   where   he   published   his   thesis:   “Learning   by   Reading:   Automa6c   Knowledge   Extrac6on   through   Seman6c   Analysis.”   Formerly   a   Research   Associate   with   the   University  of  Maryland,  Bal6more  County,  CSEE,  he  chose  to  join   the  Unbound  Concepts  team  as  part  of  his  “desire  to  understand   the   greater   human   experience.”     He   also   holds   an   M.S.   in   Computer  Science  from  University  of  Maryland  Bal6more  County;   and   a   B.S.   in   Computer   Science/Mathema6cs   from   Salisbury   University.   His   primary   research   areas   include   natural   language   processing,  machine  learning,  and  machine  reading.  
15. Freemium    Subscrip6ons   API   200  users  on   launch  date   10,000  book   bibliography     First  Publishing   Partner   Established   5,000  users   10,000  book   corpus   Expanding  to   100,000  book   corpus  with  a   growth  rate  at   or  near  100   books  per  day.        Build  Sales   and  Marke6ng   Team   100  Premium   Subscrip6ons    Build  editorial   team  and  hire   CIO   10  sosware  or   content   partners  using   the  API   15,000  app   and/or   subscrip6on   users   2012   2013     Q1   2013   Q2   2013   Q3   2013   Q4                   2014   Milestones   ✔     ✔     ✔    
16. Knowledge  is  Power.     Shared  Knowledge  is  Powerful.   Ka6e  Palencsar   412-­‐913-­‐5332   ka6e@unboundconcepts.com