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Kornukopia – Investor Pitch
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Disclaimer Scaale Ltd., its officers, representatives and divisions ;͞Scaale͟Ϳ has/have created this document basis on the information received from Kornukopia Inc. and has not validated the accuracy of the shared information. You should not act or rely on any of the information contained herein without seeking professional legal advice. All the information shared shall not, however, as far as legally permissible, create any guarantee or representation of any kind or any liability of Scaale and shall not relieve the recipient from undertaking its own investigations and test. Your recipient of such information does not create any relationship of any kind with Scaale. Further analysis has been conducted basis on the secondary market research for which the sources have been referenced. The information shared is from sources deemed to be reliable but no assurance can be given as to its truth, accuracy, completeness, usefulness or adequacy and you agree to conduct your own due diligence and/or seek the advice of a lawyer, accountant, or other investment advisor or financial consultant. Scaale is neither responsible nor liable in any form for any investment or business decision made by potential investors/partners/clients or any other third party basis this document. You are strongly urged to seek legal counsel and conduct your own due diligence to confirm the accuracy of any information shared by Scaale prior to its use. Scaale does not endorse Kornukopia Inc. to the recipient or public at large and any investment or business decision taken on the basis of this document should be solely at the risk of the recipient and it is particularly the recipient’s responsibility to determine and consider thoroughly the validity, merits, and risks of each offer made by small business before investing in it. Owing to the sensitivity of the confidential information contained herein, prior written permission must be obtained from Scaale before this document is circulated in electronic or printed form to any third party who may or may not be the intended recipient of this proposal document.
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About the Company Founded in 2014, and headquartered in Florida, USA, Kornukopia is an education ecosystem with a modern Software-as-a-Service (SaaS) education management system allowing schools to manage education content, school operations, student data, the learning process, social networking and communication to create an efficient and effective learning environment. The mission of Kornukopia is to change the education information world by providing students everywhere with a superior educational experience. Kornukopia’s Key focus is to provide schools, students, teachers and parents with an easy-to-use interface that provides them with education management tools to facilitate learning and school operations. Kornukopia provides a freemium baseline service that has been adopted by over 1 million users across 2,500 schools since January 2015, where it provides a full service education content marketplace. Kornukopia has presence in United States, Canada and Brazil, Netherlands, Singapore, Germany, UK, Turkey and India and supports 14 different languages. The company expects to grow the user base to 10 million within three years.
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Cody Reinold, CTO and VP of Development
Management Team Christine Peterman, VP of Partner & Customer Relations Sara Hand, CXO Cody Reinold, CTO and VP of Development John Shine, Founder and CEO Richard Porter, CXO, Partnership Development Director
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Product Overview Eduction Publisher (Freemium) Base Features & Modules
Calendar Student Information System Learning Content Management System Course & Grades Group Module School Attendance System Discipline Module To-do Module
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Modules Snapshot Snaphot of the Student Information System Module
Snapshot of Attendance Module Snapshot of Course Module
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Modules Snapshot Snaphot of the Calendar Module
Snapshot of Group Module Snapshot of Resource Center
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Modules Snapshots Template Images of ID Cards
Advanced Communication Module
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Competitor Analysis Company (HQ) Founding Year Geographic Presence
Users Freemium Integrated LMS + SIS + LCMS Publisher Neutral Network & Marketplace Social Community Cloud-based Kornukopia (US) 2014 United States, Canada and Brazil, Netherlands, Singapore, Germany, UK, Turkey and India 1 M+ P Cypher Learning (US) 2009 USA, South Africa, and Romania. 1 M O Moodle (Australia) 2002 234 countries 99 M Schoology (US) 130 countries 12 M Edmodo (US) 2008 150 Countries 77 M Docebo (Canada) 70 countries 3.5 M PowerSchool (US) 2006 70 Countries 32 M Blackboard (US) 1997 100 Countries 20 M Desire to learn (US) United States, Canada, Europe, Australia, Brazil, and Singapore 15M Instructure (US) 25 Countries 9 M Eliademy (Finland) 2013 160 Countries N/A ClassDojo (US) 2011 60 Countries 35M
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Education Technology Market Analysis
Growth of the EdTech Market Size globally, 2015 – 2020 (in $billion) Comparison of market sizing of various industries (in $billion) 300 Global Edtech Industry Market Size (in $ Billions) Global Market Size of Different Industries (in $ Billions) 250 1000 900 800 700 215 862 200 184 157 Ed Tech Fin Tech Ad Tech 150 135 600 557 115 100 50 - 400 360 157 184 215 100 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Growth of the LMS industry globally, 2013 – 2018 (in $billion) Global Learning Management System Industry 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 - 7.8 6.3 5.1 4.1 3.3 2.7 2013 2014 2015 2016 2017 2018
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Education Technology Market Analysis
Growth of the LMS industry across Europe ( ) LMS Market Size in Europe (in $ Millions) 1,400 1,300 1,200 1,066 1,000 875 800 718 589 600 483 400 200 - 2014 2015 2018 2019 Growth of the LMS industry across Asia ( ) Growth of the LMS Market in $ Millions 3,500 3,000 2,884 2,500 2,149 2,000 1,601 1,500 1,193 663 889 500 2017 2021 2022
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Clients Outreach & Pipeline
Users come from: US, Netherlands, Singapore, Germany, UK, Canada, Turkey, India, and Brazil. Users view 8.53 Pages per session Our mobile users (non PC/Mac): Almost 50% engage on an iPhone, 15% on an Ipad, 4.6% on a Windows Rt and yes… 3.71% on an XBOX ONE. Much of their time is spent in the Course view, Calendar and Assignments areas. While the current basic modules are offered for free, Kornukopia plans to launch its key advanced modules in the Academic Year for the schools and institute the begin in September Kornukopia is launching various advanced modules, the School Fee Management platform allows vendors to offer their products and services to the schools, teachers aŶd studeŶts. This ͞ŵarketplace’ provides a stroŶg ŵoŶetizatioŶ opportuŶity for Kornukopia. Kornukopia would strategically partner with Education technology and Teachers experts that work locally with schools on technology choices and implementation for user base accession. Currently KorŶukopia’s efforts have been limited to print advertising and attending a few trade shows, they major efforts have been invested in Google Adwords. Given the current round of funding, Kornukopia can leverage additional methods of reaching its target market of Schools, Teachers & Students, by sponsoring targeted conferences and events.
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Monetization Avenues The Monetization Avenues for Kornocopia are:
Particulars Cost ($) Advanced Communication Module (ACM) Annual Fee per School 399.00 Assessment Tool ID Management Solution (IDMS) App Fee per User 1.00 Visitor/Volunteer Management System (VMS) Annual Fee per School (that also adopt IDSM) 100.00 Annual Fee per School (that do not adopt IDSM) Content Publisher (H5P) School Fee Management % of Transaction Value 3%
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Revenue Break Down by Type of Module
Revenue Strategy Revenue Break Down by Type of Module Amount in $ 80,000,000 70,000,000 60,000,000 School Fee Management Content Publisher (H5P) Visitor/Volunteer Management Sytem (VMS) ID Management Solution (IDMS) Assessment Tool Advanced Communication Modeule (ACM) 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 2017 2018 2019 2020 2021 Graphical Representation of Monetization Strategy
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Projected Income Statement
Amount in US$ Particulars 2016 (A) 2017 2018 2019 2020 2021 Sales - 803,987 6,122,681 16,357,173 35,044,607 72,944,962 Gross Profit 745,947 5,586,168 13,904,582 28,052,013 58,892,648 Total Operating Expenses 34,706 368,268 2,195,083 5,075,703 10,945,017 21,184,956 Earnings Before Interest, Tax, Depreciation& Amortization (EBITDA) (34,706) 377,679 3,391,086 8,828,879 17,106,996 37,707,692 Earnings Before Interest & Tax (EBIT) 352,389 3,347,425 8,765,303 17,018,814 37,587,758 Profit Before Tax (PBT) Profit After Tax (PAT) 282,499 2,610,992 6,836,936 13,274,675 29,318,451
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Opportunity for Investors
Kornukopia is looking to raise $1 million in mid-2017 to launch its key monetizing features and convert clients before the beginning of the academic year in September. Investments will go into: Team Building Marketing, PR & Advertising Expenses Other Operating Expense Particulars Amount (USD) Team Building 3,00,000 Product Development Marketing Expenses Other Operating Expense 1,00,000 Total Investment 10,00,000
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Potential RoI for Investors
Year-on-Year Valuation Growth (in $ Millions) 2021 $196.6 M 2020 $93.5 M 2019 $46.7 M 2018 $21.6 M 2017 $6.4 M
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Milestones of Kornukopia
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Exit Strategies The EdTech industry continues to transform traditional education system and expects to see this trend to continue going forward. The traction witnessed by Ed-Tech solutions in the coming years would lead to more acquisitions and partnerships for increased synergies among the stakeholder. Consolidations amongst companies like Blackboard, Moodle, Powerschool and acquisitions by players like LinkedIn, Pearson, Intel, are both evident & peaked in 2014. The possible exit routes for Kornucopia are as follows: Acquisition by a large Competitive EdTech Firm: While Kornukopia is entering a market that has a few large players already holding strong market share and expanding, Kornukopia can serve as an attractive acquisition target for these larger companies to increase their market share and give them a competitive edge. This are not limited to, but include Blackboard, Moodle, amongst others. Acquisition by large Complimentary EdTech Firm: While large players are often looking for product diversification to provide better integrated solutions, large publishing houses or education firms that are looking to acquire a modern education technology firm can consider Kornukopia as an attractive target to get access to a company with unique offerings. Exit by a Financial Investor: While Kornukopia is raising its initial round of capital, it looks forward to a long roadmap of partnering with various financial buyers that can enter at various stages. Late stage private equity investors or secondary funds can be attractive targets for existing investors to consider for an exit route.
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Media References: Press Releases
Announced Top 10 LMS 2015 & 2016, Education Technology Insight Magazine. Announced amongst top 50 EdTech Solution Provider 2016. providers-2016.html
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