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Published byMelissa Chandler Modified over 9 years ago
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Projected Financial Analysis Charles Pei 09/2013 1
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The Company seeks first-round funding of $3MM, to be invested in R&D, marketing and business development. Top brands, research companies, advertising agencies have shown strong interest in trial runs, we need to reach sufficient scale within a relatively short period of time to build/defend first-move advantage 2 Investment Proposal – Summary View Key Areas of Investment Acquisition marketing (from current 300K users to 3.4MM by the end of 2014, with average acquisition cost of RMB 5-6 pp) Team size increases from 16 to 25, upgrade team with sales, marketing, business development experience Operations cost increases with scale of the business Infrastructure investment with additional server, database and software development (outsource/speed-to-market) Valuation ~RMB300 MM with conservative set of assumptions Exit multiple of 10-15x earnings, estimated user base of 14MM Investment ProposalPreliminary Valuation
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微差事 www.weichaishi.com 3 Investment Proposal (2013-2014 Financials) Highlights Scaling up user acquisition -Step up user acquisition after initial proof of concept with top brands - Average acquisition cost increases in the short-term, but will decline over time when scale is reached Diversifying business model -Initial focus on Crowd Sourcing (e.g., Nelsen)/Spot Check (e.g., Nestle) -Diversify into Lead Generation and Advertising, which will be more scalable (e.g., MetLife) - Around 60% of tasks and 75% of revenue come from Leads and Brands/Advertising by 2014YE Increasing average payout -Gross payout increases with more tasks related to lead generation and brand tasks (including advertising) - Net payout ratio reaches ~50% Expenses primarily driven by acquisition marketing -60% of expenses driven by acquisition; 30% from staffing cost, the remaining 10% from operations - Majority of the expense are variable, with limited infrastructure investment
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