LanMedia - Seed Capital phase 1 - public

Seed Capital ProposalPhase 1 – May, 2013

28% of Brazilian Users uses Lan-Houses to get connected

Cybercafes & Lan-Houses

The “Lan-House” plays a very important role in Brazilian market.

They´re used by low income users, called “new-to-the-net”, aspiring social inclusion, becoming digital & willing to acquire products and services.

This is a very interesting target for several advertisers.

We expect to monetize this during next 2-3 years at least.

* TIC CGI.br 2011 Research

Home Lan-House

In the last year our free management software reached 5.6% of the market, growing 182% YoY

* Internal numbers + total market estimates from TIC CGI.br 2011 Research

182%Network base growth - 2012

Dispite the canibalization in the broadband access, Lan-Media already covers 5.6% of all brazilian Lan-Houses*.

Our Value Proposition & Strategy

In the Online Advertising Industry

DESKTOP & BROWSING ADVERTISING

Distribute MyCyberManagement Software for Lan-Houses

The management software incorporates advertising technology into every station.

Each reach 500 users and generates 25.000 impressions per month.


Monetize Target AudienceThe software captures anonymous info about websites & domains browsed, including user behavior in the station.

Profile

A B C D E

Behavior

Lan-House Profile, GEO-IP, Sex, Age

Application Program in use

Navigation Domain, Website, Channel,content type


1 REDIRECT

The first browsing landing page(opening of each session)

Our core value: Emerging users, low income, new-2-net, good targeting & coverage with great advertising flexibility

2 DISPLAY

SKY Bannerimpressions servedevery 45-90 seconds(during all session)

Business Plan

Traction & Milestones

Traction Plan & Milestones

1. Establish Company (ID, Legal, Management Board)

2. Setup Sales Systems (CRM & Forecasting)

3. Team Hiring, Legal Registration & Train

4. Market Mapping & Go-to-Market Planning

5. Sales Traction & Generate Pipeline (demand)

6. First Sale & First Campaign Setup

7. Recurring Sales in Key Accounts

Financial Plan – Costs & Risks

Current Pipeline EvolutionQ2 Pipeline evolution

8 weeks of sales activity:-BRL 421k total pipeline-BRL 125k weighted pipeline

About 60% of marketcovered

Great feedbacks from themarket

Working Team

Board Solutions Advertising Legal & Finance

Finance AnalystAdOps MgrSales Mgr

Account Executive

Head of Advertising

Head of Legal & Finance

Head of Solutions

Support Analyst

Valuation Proposal

Become a seed investor in our business

Current Shareholders

5% LegalInvestor

28,5% AdvertisingInvestor

66,5% ProductEngineeringInvestor

Current ShareholdersContracts & Legal specialistProvides legal consultancy

Experienced in SAS, M&Aand general contracts

Advertising Sales Operations ProfessionalProvides advertising & sales consultancy

Experienced in Online AdvertisingIndustry & Biz Development

Lan House ManagementSoftware DeveloperProvides product developmentand support

Experienced in Program Develpment& Software Engineering

6 yearsProfessionalexperience



Valuation & Seed Investor Proposition

5% LegalInvestor



Current Shareholders

Total Investment:BRL 100.000

Proposed Investment

5% LegalInvestor



20% Seed CapitalFunding

New Social Capital:BRL 125.000

Business Plan (money usage):

BRL 25.000 - working capital (3 months investments)

NPV Valuation (2 years earnings):

BRL 700.000 - Considering: - 50% goals attained - BRL 800k avg incomes/yr

Capital Leverage:

460% - Expected – 700k earnings12% - Worst case – 140k earnings (break-even line)

Risk:

Money loss (no earnings in next 3 months)

Investor Upsides

- Possibility to use unsold media & unsold redirects to launch own products

- Possibility of business development upon lan-house distribution channel* * considering no conflict of interests or canibalization with LanMedia core business

- Possibility to trigger investment against goals

The Investors we’re looking for

- Someone that could generate upside for the business

- Synergic Business/Operations with our Market

- Proven experience in Online Advertising Media

Thank you!

[email protected]

11 3912-3772

LANMEDIA INTERNET LTDA.CNPJ: 17.829.137/0001-56

AV. BRIGADEIRO FARIA LIMA, 1.461 – 6º ANDARCEP 01452-002 – SÃO PAULO - SP

mailto:[email protected]

LanMedia - Seed Capital phase 1 - public

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