Wigwamm July 2013 Pitch draft

Transcript

1. Wigwamm
   Local auctions to automate lettings
   @WigwammHQ
   rayhan@wigwamm.com
   

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2. Wigwamm is…
   

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3. How £750bn rental property is let by agents
   Read: How agents ruin their collective reputation
   Note: ONS (UK) estimates 3.6m private residential tenancies x £1,400pcm average rent = c.£50bn pa UK rent
   

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4. Agents represent landlords,
   yet spend 95% time on tenant enquiries
   Landlords = revenue; tenants = cost
   

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5. Wigwamm automates the Xs
   Our software solutions
   rayhan@wigwamm.com
   @WigwammHQ
   

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6. Agents subscribe
   to list on portals they are members of
   Landlords pay-as-you-go
   similar to Upad.co.uk
   List property from your phone
   So simple, my 2 year old niece can create a professional looking listing
   rayhan@wigwamm.com
   @WigwammHQ
   

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7. Market homes beautifully
   White-label sites, for agents to replace their current, unusable/ugly ‘hosted web solutions’
   

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8. Agents have clear control
   without the time overhead
   

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9. Tenants self-serve online
   all the questions tenants ask, answered up-front; saving everyone time
   

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10. Until all the Xs are automated
    

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11. …including the transaction
    

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12. All tenants referenced prior to auction night
    @WigwammHQ
    rayhan@wigwamm.com
    Weekly rental property auctions
    Pre-referenced tenants bid on all local property at 7pm on Monday
    

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13. Path to growth/Business model
    • Target 15,000 UK agents; use their marketing footprint to scale
    • Generate some revenue, while critical mass built for auction
    1. Control primary data: Listing App for agents - £50pm
    2. Convert to using our platform as their website - £150pm
    3. Critical mass achieved in an area, agents turn on auction
    • 1% of transaction value to Wigwamm (from weekly auction)
    – Average rent (£1400pcm) x Contract value (12 months) x 1% fee = £168 per property
    – UK auction revenue potential of £350m
    @WigwammHQ
    rayhan@wigwamm.com
    Note: Wigwamm 1% fee of annual rent on transactions. Average tenancy 18 months. Revenue potential = £750bn x 7% average rental yield x 1% fee x 2/3 = £350m
    

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14. Market
    Wigwamm cash flow projection
    3 Developers, 1 designer
    10 new customers a week onto trial of app
    Chase PR for hockey stick growth
    £,000s
    Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Sep-14 Oct-14 Nov-14 Apr-15
    Total Cost Projection £11k £15k £15k £15k £15k £15k £15k £15k £20k £28k £28k £31k £34k £34k £49k
    Revenue projection (monthly) £360 £720 £1,240 £2,480 £3,155 £3,530 £3,905 £4,280 £9,343 £14,213 £19,355 £30,437 £34,493 £38,549 £74,576
    Month Profit/Loss -£10,630 -£14,710 -£14,190 -£12,950 -£12,275 -£11,900 -£11,525 -£11,150 -£10,417 -£13,317 -£8,175 -£423 £303 £4,359 £25,956
    Cash Balance £139k £125k £110k £98k £85k £73k £62k £51k £40k £27k £19k £9k £9k £13k £111k
    Notes Seed (£150k) Series A Auctions begin Breakeven
    Test rate of sign up - 100 calls, should lead to 10 signups, should lead to 1 subscription
    Upsell subscribers to website (25% conversion rate), then turn on auction when critical mass (10+ agents) in one area
    Calculate cost of acquisition
    Financials
    

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15. What makes us different?
    1. Value proposition: phone book
    2. UK property portals revenue £150m
    1. Value proposition: e-commerce/one-stop-shop
    2. Wigwamm UK revenue potential £333m**
    • If Amazon rarely had available stock, it would be a tiny player
    in a huge market. That’s Rightmove (and its clone, Zoopla).
    • We want to be the Amazon for £50bn of UK lettings*.
    • Listings = noise, frustration, fragmented market
    – portals – Rightmove, Zoopla, Gumtree, Craigslist
    – aggregators – Adzuna, Zillow, Trulia
    – start-ups – Zumper, Lovely
    • Websites = outdated
    – 3rd parties – Property Jungle, Homeflow, Estates IT, Expert Agent
    • Start-ups = trying to be agents
    – Rentify, OpenRent, Rentlord, AdvanceToGo
    rayhan@wigwamm.com
    @WigwammHQ
    

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16. Team
    Founder Sales
    Tech Design
    Rayhan
    Nathan
    Caroline
    
    12 years overseeing family
    property business
    4 years travelling world opening
    investment banking offices
    Failed Computer Scientist
    Seeking
    business
    focused co-
    founder
    Famous
    designer
    behind Comic
    Sans Criminal
    Both full stack devs
    Caroline an expert on
    auction mechanisms
    Nathan also a
    talented designer Matt
    rayhan@wigwamm.com
    @WigwammHQ
    

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17. Achievements to date
    • Customer development
    – spoken to over 1,200 agents, to test market fit of auction
    – 80% of pitched to agents sign up for beta trial
    – have interacted with many tenants to help shape user
    experience
    – customers want the Listing App first
    • Product demos
    – Listing App: http://wigwamm.co.uk
    – Auction: http://old.wigwamm.com (use keyboard arrow keys)
    rayhan@wigwamm.com
    @WigwammHQ
    

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