Candace Klein,

Founder & CEO of Bad Girl Ventures and SoMoLend

© 2011 Candace Klein

Secrets of The 5-Minute PitchFrom the start-up’s perspective

Personal Story• Three most important things that make you better fit to run this company than anyone else

• Vulnerability• Personality• An excercise

Key Topics • The Products or Services• The Market• Sales Strategy• Management Team•  IP /Patents/Barriers for Future Competitors

• Ownership and Control• Summary Financial Info• Capital Needs

Where to Start…

•An overview of the company

– Uniqueness of product or service

– The problem it solves!

– Competitors (current & future) their products and strategies

– Unfair competitive advantage

Market & Strategy

• The Market– The target market and target customer

– The size and growth rate of the market

• Sales Strategy– The channels to be used to go to market

– Sales strategies

Leaders & IP

• Management Team– Senior managers, and their relevant skills/experience

– Any open positions, and the key skills needed

– Advisors (but only the good ones)

• Intellectual Property-- significant patents or other key intellectual property

Owners & Projections

• Ownership and Control– Board of Directors– Capitalization table

• Summary Financial Information– Five year projections– Exit scenarios

$$$• Capital Needs

– Funds already invested by management and outsiders (who are they)

– Current capital needs– Projected use of funds– Future financing plans (“Capital Access Plan”)

– Pre-money valuation of the Company and terms of the current offering

Closing

• Conclusion/Summary

– Summarize the main points

– Call to action

– Thank you

Pitfalls• No exit plan• “no competition”• Jargon/acronyms• Too many words per slide/no graphics• Not telling how you’ll make money• Unrealistic projections• “If I just capture 1% of the market…”• Reading slides• Mistakes/misspellings (not mispellings)

Were you listening???

What do investors look for in your presentation?

Canaan Pitchbook

Candace Klein, J.D.

Founder & CEOSoMoLend

Commercial Loan Volume

Banks

Local Governments

Business Associations

Corporations

Individuals

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DDDDDDDDRRRRRREEEEEE

Candace Klein / Chief Executive Officer• Founded Bad Girl Ventures in 2010• 4 years as an attorney, 6 years as a lobbyist• 4 bachelors degrees, and a J.D. from Northern Kentucky University

Christopher Calvert / Chief Operations Officer• Senior Strategic and Business Development Officer for Axcess Financial• Former consultant for Arthur Andersen, Ernst & Young and Brady Ware Capital• BS in Finance, Miami University, and J.D., University of CincinnatiMichael Hawkins / Chief Technology Officer

• Over 16 years of software engineering, product management and business development experience• Product and technology leader at organizations including startup, mid-size and large global companies

Cheryl Stamm / Vice President, Sales• 25 years sales management in the software industry• Former VP of Sales for Balanced Insight, Inc.• 6 years at SAS Institute as Sr. Sales Director

Dustin Garis, Marketing Director

Advisors

Directors

Rahul Bawa

James Alexander

Madeleine Ludlow

Todd Federman

Candace Klein

Jack Wyant

Vidar Jorgenson, CEO

Craig Hopewell, Former In-House Counsel

Madeleine Ludlow, Former CFO

Mark Richey, Pricipal

Carlin Stamm,Former Division COO

WorkWear Corp.

Financial Overview

2012 2013 2014 2015 2016Revenue

Transaction Fee Revenue $245,320 $5,045,363 $16,000,000 $45,000,000 $60,000,000Advertising $0 $0 $250,000 $500,000 $1,000,000Data Sales $0 $0 $250,000 $500,000 $1,000,000

Total Revenue $245,320 $5,045,363 $16,500,000 $46,000,000 $62,000,000

Transactions Number of Loans (with revenue) 207 4,025 26,667 75,000 100,000 Average Loan Amt $40,000 $30,000 $30,000 $30,000 $30,000

Expenses Total Operating Expenses $600,832 $1,104,192 $4,210,000 $10,470,000 $13,500,000 Development Costs $286,000 $1,040,000 $2,600,000 $3,900,000 $4,500,000 Total Transaction Expenses $99,517 $413,750 $3,306,667 $9,300,000 $12,200,000 Legal $108,594 $120,000 $300,000 $400,000 $500,000Subtotal $1,094,943 $2,677,942 $10,416,667 $24,070,000 $30,700,000

Net Income ($849,623) $2,367,421 $6,083,333 $21,930,000 $31,300,000

Legal(IP &

Securities)

Software Developmen

t

OperationsIndividualInvestors

CincyTech

Holekamp Ventures,

LLC

North Coast Angels

30%

410K

150K

150K 25

0K240K

Queen CityAngels

SoMoLend Founded: May 2011MILESTONES

Technology Alpha (Borrower UI, Key) Beta 1 (Lender UI) Beta 2 (Peer-to-Peer) Beta 3 (Mobile App) Full Rollout

Loans Closed on 15 Loans

Lenders $1M LOI (Key Bank) 41 Insitutional Lenders 235 Individual Lenders 1,000 Individual Lenders Anticipated

Borrowers 100 and Growing 450 and Growing 1,100 and Growing 3,000 Projected 10,000 Projected

IP Provisional Patent Application Filed Final Patent Application Filed

Regulatory JOBS Act Signed into Law Lead CFIRA Industry Group General Solicitaion Permitted Crowdfunding Legal

Q1 Q2 Q3 Q420132012

Q1 Q2 Q4Q32011

Customer Acquisition

Automating Technology

Mobile App

still seeking

Customer Service

$5M

$7.5

Questions?

Candace Klein1220 Vine Street, Suite 5

Cincinnati, Ohio 45202

859.803.9499

Candace@SoMoLend.com