Disrupting how employers reach mobile employees Beekeeper Disrupting how employers reach mobile employees Shuyuan Chen John Jenkins Jr. Philip LaMaster Kyle Packer Eller School of Business

Agenda Situation Problem Analysis Recommendation Implementation Financial Projections Risk Summary

Beekeeper Is At A Crucial Point High Growth Startup Multiple Customers and Industries Transition from social networking to work messaging Organization structure changes Changing client disposition Beekeeper sits at an inflection point Situation Problem Analysis Recommendation Implementation Finances Risk Summary

What’s the problem? Beekeeper engineering resources are strained (Only 12% of staff are engineers) Undefined customer base results in complex customer variations Situation Problem Analysis Recommendation Implementation Finances Risk Summary

What are our choices? Should we continue or sell-out? Which industries should we sell in? Should we customize or standardize core product? Situation Problem Analysis Recommendation Implementation Finances Risk Summary

The Three Industry Focus Is the Right Balance Will this grow revenue sustainably? Can we do this with our resources? Hospitality Only Standardize Customize Big Three Focus Broad focus Situation Problem Analysis Recommendation Implementation Finances Risk Summary

Hospitality Pro Con Focus on opportunities only in hospitality Smaller Target Market Disrupted by AirBnB etc. Exposed to cyclical forces Solid product fit Strong beachhead Situation Problem Analysis Recommendation Implementation Finances Risk Summary

The Big Three Focus Pro Con Focus on opportunities only in manufacturing, retail and hospitality Pro Con Solid product fit Current customer base Diversification Requires customization Organizational changes Situation Problem Analysis Recommendation Implementation Finances Risk Summary

Broad Focus Create standardized product that can be applied across any industry Pro Con Uncertain product fit Difficult to land large clients Competing against established firms Diversification Situation Problem Analysis Recommendation Implementation Finances Risk Summary

What can we do about it? Define Differentiate Deploy Beekeeper is a product for the Three Core Industries Differentiate Customize our product for each industry Deploy Organize salesforce and engineering around three industries Situation Problem Analysis Recommendation Implementation Finances Risk Summary

How can we do it? 2018 Q2 Q3 Q4 2019 Q1 Q2 2020 Q1 Leadership -Communicate -Restructure -Recruit Engineering -Develop industry core product -Customize for VIP customers Sales & Marketing - Develop sales leads - Marketing push

Leadership Phase 1: Communicate Phase 2: Reorganize Phase 3: Sustain Internal: Communicate key strategies and upcoming changes External: Phase out legacy clients outside target industries over 12-18 months Begin expanding engineering teams Phase 2: Reorganize Phase 3: Sustain Seek further Series B&C funding Leadership Manufacturing Retail Hospitality Sales Engineering Corporate Functions Situation Problem Analysis Recommendation Implementation Finances Risk Summary

Engineering Phase 1: Develop industry-core products Develop three customized industry templates that meet ~80% of industry needs Phase 2: Develop VIP customizations Phase 3: Sustain Situation Problem Analysis Recommendation Implementation Finances Risk Summary

Sales & Marketing Phase 1: Initial Customer Development Expand initial VIP customers per target industry Phase 2: Marketing Marketing push to reach mature clients that aren’t early adopters Phase 3: Sustaining Continuous sales/marketing efforts Situation Problem Analysis Recommendation Implementation Finances Risk Summary

Risks & Mitigates Risk Impact Probability Mitigation Lower than expected client adoption in core industries Medium Low Early client input on product features Proactive updates to correct customer difficulties Lose Contracts in Core Industries High Proactive integrate with other industry systems Engineering demands grow after restructuring Manage and prioritize client expectations vs. staffing levels Situation Problem Analysis Recommendation Implementation Finances Risk Summary

Financial Investment Situation Problem Analysis Recommendation Implementation Finances Risk Summary

Sustaining our Growth 2019 Q1 We project Series B funding in two rounds of 15 and 10 million respectively. Situation Problem Analysis Recommendation Implementation Finances Risk Summary

Summary Define Communicate with internal teams and external clients Differentiate Deploy Develop core industry products for retail, manufacturing and hospitality Expand into target major companies within three target industries

Back-Up: Cost Assumptions Head Count Rate Cost Engineering Core Product 20 120,000 2,400,000 Customize 10 100,000 1,000,000 Sales/Marketing Sales 30 80,000 Marketing 65,000 650,000 Office Expansion 5,000,000 Security/Legal expenses 500,000

Back-Up: Project Costs 2018 Q2 Q3 Q4 2019 Q1 Q2 2020 Q1 Engineering Core Product 240,000 480,000 - Engineering Customize 100,000 300,000 Sales/Marketing Sales Sales/Marketing Marketing 65,000 130,000 Office Expansion 1,250,000 Security/Legal expenses 50,000 Total Cost 720,000 1,060,000 1,375,000 1,440,000 2,020,000 1,720,000 1,655,000 1,350,000