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Projected Financial Analysis Charles Pei 09/2013 1.

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Presentation on theme: "Projected Financial Analysis Charles Pei 09/2013 1."— Presentation transcript:

1 Projected Financial Analysis Charles Pei 09/2013 1

2 The Company seeks first-round funding of $3MM, to be invested in R&D, marketing and business development. Top brands, research companies, advertising agencies have shown strong interest in trial runs, we need to reach sufficient scale within a relatively short period of time to build/defend first-move advantage 2 Investment Proposal – Summary View Key Areas of Investment  Acquisition marketing (from current 300K users to 3.4MM by the end of 2014, with average acquisition cost of RMB 5-6 pp)  Team size increases from 16 to 25, upgrade team with sales, marketing, business development experience  Operations cost increases with scale of the business  Infrastructure investment with additional server, database and software development (outsource/speed-to-market)  Valuation ~RMB300 MM with conservative set of assumptions  Exit multiple of 10-15x earnings, estimated user base of 14MM Investment ProposalPreliminary Valuation

3 微差事 www.weichaishi.com 3 Investment Proposal (2013-2014 Financials) Highlights  Scaling up user acquisition -Step up user acquisition after initial proof of concept with top brands - Average acquisition cost increases in the short-term, but will decline over time when scale is reached  Diversifying business model -Initial focus on Crowd Sourcing (e.g., Nelsen)/Spot Check (e.g., Nestle) -Diversify into Lead Generation and Advertising, which will be more scalable (e.g., MetLife) - Around 60% of tasks and 75% of revenue come from Leads and Brands/Advertising by 2014YE  Increasing average payout -Gross payout increases with more tasks related to lead generation and brand tasks (including advertising) - Net payout ratio reaches ~50%  Expenses primarily driven by acquisition marketing -60% of expenses driven by acquisition; 30% from staffing cost, the remaining 10% from operations - Majority of the expense are variable, with limited infrastructure investment


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