Company Overview
Company VisionCompany Vision
NomadIQ intends to bridge the gap
between the urban nomad and the
real world around them by offering
a complete combination of location
of location-based contentlocation-based content.
Founders, Management Founders, Management and Backgroundand Background
• NomadIQ is an Israel-based company currently HQ’d in Jerusalem
• Founded at January 2000
• Founders Jacob Ner David, Ari Gottesman and Michael Kagan
• Currently employs around 60 employees
• Acquired by Omnisky – January 2001
The ProductThe ProductOverviewOverview
NomadIQ is the provides location-basedlocation-based applicationsapplications for the Mobile InternetMobile Internet.
These applications, provide Cellular Network Operators, ISP’s and Mobile Portals, with an immediately deployable and end-to-end solution, to offer as Value Added Services to their customers.
The Product The Product RealPeopleRealPeople™™
RealPeopleRealPeople - connecting users to a local environment and community:
• RealFriendsRealFriends - Find friends online and find their location.
- Instant messaging
- MatchMaking
The ProductThe ProductRealPlacesRealPlaces™™
RealPlacesRealPlaces - Allow the user to find relevant information about establishments nearby or in any geographical location:
• Restaurants• Bars• Nightclubs• Stores • Movies
The MarketThe Market
200520032001
Wireless Internet Users
Total Handheld devices
Projected number of online handheld devices in the years 2001-2005(all numbers are represented in units of millions):
M-Commerce Users
M-Commerce Revenues
* Source: e-paynews (http://www.epaynews.com/statistics/mcommstats.html) Jupiter Media (http://www.jup.com)
315 864 1511
20
36
$435
183 614
195 469
$950 $4,000
Wireless Advertising Revs $0 $200 $700
Possible Revenue Possible Revenue streamsstreams
NomadIQ’s revenue streams include:NomadIQ’s revenue streams include:
(1) Advertising (push and pull)
(2) M-Commerce
(3) Premium membership services:
• Premium Gaming
• Premium coupons and special offers
Model 1 AssumptionsModel 1 Assumptions
(1) Nomad provides the service to the carrier free of charge
(2) Nomad market share – 5%
(3) Basic Services – free
(4) Entertainment & Premium services – Extra fee services
FinancialsFinancials(business model 1)(business model 1)
Projected year 2005 (Business Model 1):
M-Commerce
Premium Services
Advertising $17.5M
$4M
????
Total $21.5M
Revenues
Model 2 AssumptionsModel 2 Assumptions
(1) Nomad provides the service to the carrier free of charge
(2) Nomad market share – 5%
(3) yearly subscription fee for Information services – $30
(4) Entertainment & Premium services – Extra fee services
FinancialsFinancials(business model 2)(business model 2)
Projected year 2005 (Business Model 2):
Other Activities
Premium Services
Subscription fee $700M
$5M
????
Product Development $20MMarketing & Sales $15M
General & Other $15M
Total $21.5M
Total $50M
Revenues
Expenses
Model 3 AssumptionsModel 3 Assumptions
(1) Nomad market share – 5%
(2) The carrier pays Nomad $6 a month per subscriber
(3) Content is delivered by the carrier
FinancialsFinancials(business model 3)(business model 3)
Projected year 2005 (Business Model 3):
Other Activities
Premium Services
Carrier Fee $1600M
N / A
N / A
Product Development $20MMarketing & Sales $15M
General & Other $15M
Total $1600M
Total $50M
Revenues
Expenses
Competitor AnalysisCompetitor Analysis
VINDIGO
AIRFLASH
SLICE
GO2ONLINE
SESSAMI
NOMADIQ
CompanyCompanyLocation Location
InfoInfo
CommunityCommunityOfferingOffering
InstantInstantMessagingMessaging
WirelessWirelessAppApp
OnlineOnlineContentContent
ActiveActiveClientsClients
VindigoVindigo
• American based company
• Founded June 1999
• Funding – Around $15M
• Investors – VC Funds (General Atlantic, Flatrion Prth.)
• Provides location based information for Palm, Cell-Phone, Pocket PC in about 20 cities.
• About 500,000 registered users
• Business Model - $29.95 for yearly subscription
RisksRisks
Market Risks:Market Risks:• Is the there a real need for the product?• Numerous Competitors• Indirect Competition
Technological Risks:Technological Risks:• Low entrance barrier• Unfounded cellular technology (3G? 4G?)
Financial Risks:Financial Risks:• Deterioration of investment in cellular and information
technologies
NomadIQ – OmniSky MergerNomadIQ – OmniSky Merger
OmniSky Corporation (Nyse: OMNYE):OmniSky Corporation (Nyse: OMNYE): • Provider of wireless Internet and e-mail services to users of handheld devices
• January 2001 - OmniSky issued 2.5 million shares of its common stock (5%) to the shareholders of NomadIQ
• Senior management team retained
• At signing shares priced at $26.3M$26.3M
OmniSkyOmniSky
• Dec 4, 2001 - OmniSky stock suspended from trading
• Dec 7, 2001 - OmniSky Announces Sale Of Substantially All Of Its Assets, Including Subscriber Base, To EarthLink
• Dec 7, 2001 - OmniSky files for chapter 11, in order to enable itself to provide wireless services during the transition period.
NomadIQ – OmniSky MergerNomadIQ – OmniSky Merger
Merger Motivation:Merger Motivation: • Funding
• Strategic Partner
• Reputation
• Access to the American market
• Public company
NomadIQ – OmniSky MergerNomadIQ – OmniSky Merger
Merger Influence:Merger Influence: • Technology – no major shift in product development. additional tasks added - maintenance of existing OmniSky applications and E-mail client.
• Business – conservative approach to strategic changes, disclosure duties and sbject to public regulation
• Marketing - halt of all public exposure attempts
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