BzzHive Investors Deck
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1 smart marketing made simple for small business. © bzzHive LLC Confidential – Not to be Reproduced
Transcript of BzzHive Investors Deck
1
smart marketing made simple for small business.
© bzzHive LLC Confidential – Not to be Reproduced
the bzzHive founders’ team & board of advisors
dave walker, co-founder|ceo founder|ceo: geomentum, nsa media, wahlstrom, oag cmo|vp marketing –toys r us, musicland, circuit city/carmax
derick thompson, co-founder|cto founder|ceo: daily digital product development: godigital media group, remotelink
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rick blair board chair
tim hanlon vertere group advisor
john edwards pursuit group advisor
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bzzHive development partners & contributors
© bzzHive LLC Confidential – Not to be Reproduced
© bzzHive LLC Confidential – Not to be Reproduced 4
small businesses spent
$82Bil to win customers & grow sales
5 Million Buyers spent $5000 to $500,000 with
25,000+ Sellers
so we asked 6500 small businesses:
are you happy with your marketing & advertising?
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is it any wonder why?
too much new & unknown
means expensive mistakes
nothing is simple anymore
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what works?
what should I spend?
how do I do it?
who can I trust?
but the boiled-down questions are pretty simple…
© bzzHive LLC Confidential – Not to be Reproduced
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smart marketing made simple for small business
and the suppliers
who serve them.
© bzzHive LLC Confidential – Not to be Reproduced
our solution:
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learn budget buy do + + +
the job of smart marketing simply
© bzzHive LLC Confidential – Not to be Reproduced
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typical bzzHive user experiences
am I paying too much?
© bzzHive LLC Confidential – Not to be Reproduced
hivetalk
anyone here done groupon?
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typical bzzHive user experiences
who’ s best for my new site?
© bzzHive LLC Confidential – Not to be Reproduced
where are new customers?
map tool
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what works
what to pay
how to do it
who to trust
+ + +
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expert advice
peer wisdom
bid & select
1-stop shop
+ + +
is a “freemium” model that combines
© bzzHive LLC Confidential – Not to be Reproduced
free $19/mo
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smart marketing made simple for small business
and the suppliers who serve them.
and our solution goes further:
© bzzHive LLC Confidential – Not to be Reproduced
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reach engage acquire sell + + +
to millions of small businesses in need of help
© bzzHive LLC Confidential – Not to be Reproduced
bzzHive helps expert suppliers sell smart to small business in a new way
easy lead generation
referral reviews
digital showroom
& store
personal profile
manage, present, distribute and transact in one place 24-7
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community access
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24-7 audience
virtual storefront
instant transact + + +
combines the value propositions of
© bzzHive LLC Confidential – Not to be Reproduced
free $19/mo
lead gen & referrals
lead fee 15%
25K+ sellers
selling >$50K/Year
5Mil small businesses spending >$5K/Year
bzzHive makes money providing needed expertise and valuable connections
$$$ via
fragmented demand
fragmented supply
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e-commerce & lead gen engine
• low-cost recurring subscriptions to access • plus lead gen & affiliate fees
• transaction fees • & licensed technology & content fees
Marketing or media
specialization
General non-compete
offering
Small Business
Focus
Small Business Interest
the bzzHive landscape
the bzzHive business model
upsell & cross-sell
from: • social/viral • sem/seo • direct • partner
fragmented demand meets
fragmented supply
find/acquire: • connections “just like me” • advice/services “just for me”
educate/qualify/fit the right seller with
the right buyer
outcomes: • grow sales • win customers • get jobs done • simple & fast
get results and build on them
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buy/sell/do transaction
intelligent matching
customer acquisition
lead gen fees suppliers only
silver subscription
$19/mo $149/yr
gold subscription
$49/mo $374/yr
free trial transaction fees – 15%
suppliers only
extensions: • premium & add-on services • other small biz services
leverage trust to continuously
expand offering
licensing fees technology & content
co-marketing affiliate, display,
revenue share, etc.
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pre-money 4-Year financial projections
Pre-Money Pro-Forma2012 2013 2014 2015
Q3/Q4 Q1/Q2 Q3/Q4 Q1-Q4 Q1-Q4
Total Basic Free Users 2,500 40,123 120,370 531,465 1,632,263
Total Premium Paid Users 500 6,500 21,450 115,117 429,746
Revenue (000s)
Total Revenue (Prior 12-Month Period) 43$ 766$ 3,736$ 33,324$ 195,762$
Annualized Run Rate 172$ 2,094$ 7,709$ 60,390$ 313,545$
Expense (000s)
Total Expenses (Prior 12-Month Period) 258$ 1,289$ 3,962$ 15,750$ 46,063$
G&A 135$ 596$ 1,512$ 8,277$ 26,477$
Development 48$ 318$ 1,070$ 600$ 600$
Sales & Marketing 75$ 375$ 1,380$ 6,874$ 18,986$
EBIT (215)$ (524)$ (225)$ 17,573$ 149,699$
RPU (average annual) 98.90$ 117.78$ 174.19$ 289.48$ 455.53$
CPA (average annual) 150.00$ 57.69$ 65.87$ 73.38$ 60.34$
Revenue Highlights Expense Management Highlights
- 5% TAM penetration by end of 2015 - low relative headcount, concentrated in service/sales
- "hockey stick" user growth based on referrals - Supplier-generated content leveraged to add value
- RPU growth from affiliate & lead gen fees - Continuous optimization of acquisition costs
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investment thesis
• serves millions of buyers and sellers
• multi-tiered acquisition strategy
• multiple revenue streams
• both acquisition & platform play
• proprietary technology & content
• highly profitable operating model
• early stage investments & milestones already made
