Valdate: LinkedIn for DatingJOHN MATTHEWS, Co-FounderEducation: USC (left Spring ‘07)Major(s): Business Administration

Prior Work: Associate, Tech-Focused Investment Banking, Redwood Capital

Development Experiece: Stanford CS184 – Startup Engineering, UC Berkeley 169.1x/169.2x – SaaS, Ruby/Rails coding curricula on Code School

LIZZY PAULSON, Co-FounderEducation: USC ‘07Major(s): Visual Anthropology,

Communications

Work: Industrial Design, Corporate Branding, Public Relations & Outreach, Ethos Design and Time Warner Cable

Executive Summary 40mm online daters lack a trustworthy site – so we

built itValdate is the first online dating platform to use social validation and existing social network data to find and screen potential partners

The existing model is fundamentally flawedIt involves a time and emotional investment in total strangers who are incentivized to lie; that’s silly

Value Proposition to UsersValdate syncs with Facebook, allowing your social network to validate (“valdate”) your profile and share how great you are

Value Proposition to Investors1. Compelling and differentiated business model2. Powerful network effects drive growth3. Instant monetization with revenue at launch4. Highly scalable with minimal cost infrastructure

Online Dating: Fundamentally Flawed

1. Ellison, Nicole, et. Al. “The Truth About Lying in Online Dating Profiles.” CHI 2007.

Involves investing in strangers who are incentivized to lie

1 Spoiler alert: they do lie!

2 For women, can be a “deluge” of creeps”

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An industry so flawed yet so successful is ripe for disruption

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What’s Missing? Social ValidationSocial validation to build trust is used ubiquitously online for commerce

1 Social validation is used universally offline for recommending dating partners

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Validation Online for Transacting

Validation Offline for Recommending Friends

VOID = OPPORTUNITY

Any time friends date among mutual friends

56.1% of married couples met one another through friends/coworkers (offline)1

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1. Rosenfeld, Michael. “Meeting Online: The Rise of the Internet as a Social Intermediary.” Department of Sociology, Stanford University. January 10, 2010.

No one has yet addressed this disconnect

The Valdate Solution

All Profile Info has been “Valdated” by

friends

Social validation from friends gives third party insight, weeds out undesirable options

Social connections shows how much you have in common / whom you know in common (incl. things you didn’t know)

Facebook sync offers dynamic privacy;

only share profile with specific friends

& networks

Incentivized Revenue Model Premium online dating sites such as

Match.com charge $30/month, while others such as PlentyofFish are free

Valdate pricing is a step function:

o $30/month for premium access (mailbox, chat features), $15/month if three Valdations are made by new users, $0/month if five or more Valdations are made by new users invited to the site

Each new user provides revenue growth, network effects growth, or a combination of both

This then further drives revenue/user-base growth creating a positive feedback loop

Users

Valdates

Data

Marketing Powerful Network EffectsMarketing: Powerful Network Effects

Pricing $29.99/month $59.99/month free free $21.99 freeIncentive

($29/$15/free)

Users 15,000,000 20,000,000 30,000,000 45,000,000 N/A 2,000,000 N/A

Social Integration

Powerful Screening Tools

“Undesirables” Prevention

Mobile App

Funding Status

Acquired: $50mm (1999)

Privately HeldAcquired: $50mm (2009)

Privately Held $19mm, Series B

Large Series A in works1

Acquiring Seed Round

Valdate Competition

1. Empson, Rip. “50M Matches Strong, Hot Mobile Dating App Tinder Is Ready To Go Global.” TechCrunch. May 24, 2013.

Financial Operating Leverage

Minimal Development Costs

Low Cost of Sales

Minimal Sales & Marketing

Absorbable Fixed Costs

Cloud Hosting & Card Processing only

Users Invite Others

Ruby/Rails Platform Requires Few Developers; Compensation equity-based

Content is User-Generated and/orimported from Facebook’s Graph API

Summary Opportunity

Fundamentally transforming how people find romantic partners

Powerful Network Effects

Revenue-generating, Positive Feedback Loop

Web 2.0 Social Validation

Minimal and highly-scalable cost infrastructure

Void

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