111103 vc preso
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Rent Anything
Transcript of 111103 vc preso
Rent Anything
What Is Renterval?
Why Use Renterval?
Renterval.com is the social commerce destination where users can easily rent anything they have (or need)
Merchants• Find new, bona fide local
customers • Accept new forms of payment (or save on current processing fees)
• Fill appointments on your terms• Offer online reservation/payment
Clients• Save on local rentals & services• Browse merchant ratings• Book appointments with ease• Guaranteed satisfaction or it’s free
Renterval’s History
• Developed in 2008
• Member contributions funded Renterval’s development and launch (approximately $80k)
• Renterval.com launched in 2009
• Customer/merchant acquisition tactics limited to word of mouth and “grassroots” tactics
• Renterval LLC founded in April 2011; US Trademark application filed in April 2011
• Enhanced user experience debuted in April 2011
Who Uses Renterval.com?
Merchants
Individuals & businesses with items to rent
Local service businesses offering services priced by the appointment
AND
Clients
Valued-minded shoppers
Do-it-yourselfers
Party organizers
Management TeamAndy Chambers (Founder/President)
– 16 years of B2B and B2C marketing experience
– Southern Methodist University Cox School of Business (MBAwith emphasis in entrepreneurship/marketing)
– Prior start up: JEAL LLC (provider of rental equipment/lodging to municipal/state/federal governments)
Chris Loy (VP, Chief Financial Officer)– Licensed CPA; 20 years in Comptroller/CFO positions for regional
and Fortune 150 companies– Southern Methodist University Cox School of Business (MBA)– Leadership positions in numerous professional financial organizations
Nancy Lerman (VP of Business Development)– 20 years legal experience in public & private organization– Southern Methodist University Dedman School of Law
Key future hires: Full-time web development team, contracted sales force
Opportunity Assessment
• The “traditional” rental industry accounted for nearly $110B in revenue in 2009*– According to the American Rental Association, greater than 80% of rental equipment
companies are family-owned small businesses with little online functionality (extremely fragmented industry)
– The rental industry is notorious for charging high prices and being difficult to do business with (short hours of operation, high delivery charges, expensive deposits, aging equipment, lack of online reservations, etc.)
• Although current rental activities account for a tremendous opportunity, Renterval aims to take share from the traditional “person to person” sales that occur daily on Craigslist, Ebay and other similar services
• Renterval also pursues various non-traditional rental businesses as a source of “rentable” inventory (time or tangible items)– Pawn shops
– Pre-owned sporting equipment retailers
– Pre-owned musical instruments retailers
– Services of every variety that charge for appointments
*Source: US Census Bureau, Annual & Quarterly Services for primary NAICS 532 (Rental and Leasing Services) (2009)
“Pain Points” - Solved
Micro/Small Business Pain Points
Pain Point Renterval Solution
Usually only accept cash/check
Renterval accepts credit cards, PayPal and Google Checkout payments from customers for no additional charge
Limited funds to invest in website development
Merchants can establish a storefront in minutes at no charge whatsoever
Fluctuating customer demand results in peak periods and slow periods
Merchant can offer differing prices for appointments/rentals throughout the day to smooth customer demand
Pre-payment for traditional marketing tactics
Zero out-of-pocket cost to find new customers; fees collected onlywhen Renterval delivers a paying customer
Client Pain Points
Pain Point Renterval Solution
Rental stores have inconvenienthours of operation (half days on Saturdays, closed Sundays)
Browse by hours of operation and rental/appointment availability. Items available 24/7
Items/services can’t be reserved online
End-to-end rental management and online ordering/payment makes using Renterval a breeze
Limited # of “traditional” providers of rental equipment
Renterval’s large selection of equipment options and price points enable users to pick the items and terms that are most attractive
Competitive LandscapeRenterval Groupon Craigslist Zilok Traditional Rental
Businesses
An effective sales channel for businesses of any size X X X X
Business owner controls offer’s price and availability X
A platform that puts merchants on equal footing, regardless of business size
X X X
Customers schedule appts or reserve rentals online X X X
Customers browse and reserve rental/appt without a membership account
X X X X
Known investors Members New EnterpriseAssociates,
members; IPO pending
EBay, members Unknown Members
Monthly visitors < 500 9MM 90MM 250K N/A
Renterval is the only turnkey market for services and rentals priced by the interval
Competitive LandscapeRenterval TaskRabbit Zaarly
An effective sales channel for businesses of any size X X
Business owner controls offer’s priceand availability X
A platform that puts merchants on equal footing, regardless of business size
N/A N/A
Customers schedule appts or reserve rentals online No Calendar function N/A – primarily sales & odd
jobs
Customers browse and reserve rental/appt without a membership account
Known investors Members Shasta Investors, Floodgate, baseline, First Round
Capital
Kleiner Perkins Caufield & Byers ($14M). Meg
Whitman joined BOD
Monthly visitors < 500 1.2MM 925K
Renterval is the only turnkey market for services and rentals priced by the interval
The Business Model
Revenues
• Transaction commissions
– Sliding scale fees based on interval sold/transaction value
• 10% to 20%
– Optional advertising revenues
Expenses
• Merchant payment
– Revenues (net of Renterval’s commission)
• Marketing
– Attract merchants and consumers to the Renterval marketplace
Renterval makes money by collecting commissions on the rental transactions we facilitate
Key Performance Indicators (KPIs)
Current
• Average transaction value: $50
– Renterval commission: $6.00
• Current registered users: 250
• Current average monthly visitors: 690
Projected (Yr. 2)
• Average transaction value: $55
– Renterval commission: $8.15
• Cost per new merchant account acquisition: $21.15
• Cost per new consumer visit: $2
• EOY 2011 registered users: 28k
• EOY average monthly revenue: $744k– EOY average monthly Renterval
commission : $98k
Product Roadmap• Completed
– Advanced search (by availability, interval price, proximity)
– Referral program
– Batch upload of listings
• Near term (~6 mos.)
– Facebook “like” widget on rental listings
– Automated listing tweet
• Mid term (~9 mos.)
– Renterval.com mobile app (Android/iPhone)
• Long term (+12 mos.)
– Licensing “My Renterval” store for power users (ABCRental.Renterval.com, e.g.)
– Add “rent to own” functionality
– Dynamic pricing option
– Insurance coverage on listed items
– Optimal pricing algorithm
$337 $4,758
$31,721
$122,515
$295,393
$(969) $(1,966)$(957)
$15,968
$22,914
$(5,000)
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Year 1 Year 2 Year 3 Year 4 Year 5
Renterval.com 5-year Revenue/EBIT Projections
Net revenues EBIT
Financial Projections
Revenue• Year 1: $337k
• Year 2: $4.75M
• Year 3: $31.7M
• Year 4: $122.4M
• Year 5: $295M
5-Year EBIT• Year 1: ($0.968M)
• Year 2: ($1.965M)
• Year 3: ($0.965M)
• Year 4: $15.968M
• Year 5: $22.941M
($000)
How Will It Scale?
Business
• Renterval’s plans include consolidating companies with similar business models (through partnership or acquisition), quickly bringing additional vertical categories and users to the business
• Renterval’s product roadmap includes a plan to license the technology to smaller businesses; through this means, Renterval will generate a revenue stream without the need for direct management over transactions.
• Renterval’s back-office management is limited to batch payment processing and customer service. Because of Renterval’s “variable expense” business model, expenses are directly related revenues (so expenses will never exceed revenues).
Technical
• Renterval’s easy-to-use interface enables and encourages multiple listings by users
• Renterval is built on an infinitely-scalable relational database, which means there is no cap on the number of rental listings that our users can post.
• There is no limit to the size or number of payment transactions that can be processed.
• Renterval.com is hosted at a tier-one Internet Data Center, meaning that there are redundant paths to our servers (preventing the likelihood of a catastrophic failure).
Exit Strategy Options
• Purchase by private equity firm
• Purchase by organization with track record of building marketplaces (Ebay, Amazon, CraigsList)
• Initial Public Offering
The Ask
Renterval is seeking an equity investment of $5M (minimum investment of $1M)
Investments & Intentions
• $4.95M –Marketing Funds Necessary To Grow Awareness & Adoption
– Direct marketing
– Contracted sales force
– Social/guerrilla marketing
– Online advertising
– Partnerships/referral marketing
• $50k – Website maintenance, mobile app development
People Are Talking
Move Over Social Media; Here Comes Social Business BY FC Expert Blogger Drew NeisserSun Sep 11, 2011
Apps let you rent out your home - and yourself
$1.93bn Funding for Social Commerce Startups in First Trimester 2011
Services Let You Rent a Car Out of Your Neighbor's Garage
THE WALL STREET JOURNAL
Want to Learn More?
• Check us out at Renterval.com
• Follow us @Renterval
• Friend us at Facebook
• Tune in to our YouTube channel (Renterval)
• Email : [email protected]
