Post on 04-Jul-2015
description
URBAN AGENDAENJOY YOUR CITY
STARK TEAMAlfonso Tienda Braulio
Computer ScienceEngineer
Pedro Olivares Sánchez
Computer ScienceEngineer
Rubén Salvador Edo
Telecommunications& Electronic Engineer
Victor Benkovsky
ArchitectUrban Planner
Paula Salvador Edo
ArchitectUrban Planner
Our concept is based on the idea that, on the
one hand any business needs advertising, be
seen and attract customers. On the other hand,
customers need quick information about events
occurring in the city: the current era requires
platforms that allow users to make quick
decisions at every moment and in any place.
If all this is focused on the entertainment industry,
we get "Urban Agenda App", the mobile
application that allows you to enjoy the city to
the fullest. Taking performance to the
environment, is to take performance to life.
THE CONCEPT
• INTRODUCTIONPROBLEM/SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING
INTRODUCTION - PROBLEM /SOLUTION
PROBLEM
A lack of a smart and useful
platform of information about the
events in the city
+
Business needs advertising
SOLUTION
URBAN AGENDA APP
• INTRODUCTIONPROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING
INTRODUCTION - PRODUCT
• INTRODUCTIONPROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING
INTRODUCTION - PRODUCT
• INTRODUCTIONPROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING
INTRODUCTION - PRODUCT
• INTRODUCTIONPROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING
INTRODUCTION - PRODUCT
• INTRODUCTIONPROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING
INTRODUCTION - PRODUCT
• INTRODUCTIONPROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
• MARKETING
• SALES
• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING
INTRODUCTION - PRODUCT
What's special about Urban Agenda?
We focused on functionality demanded by our
potential customers and not available in other
solutions
We have designed a modern and comfortable
interface
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FORECASTING
INTRODUCTION – INITIAL CANVAS MODEL
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FORECASTING
MARKETING
MARKETING EXPERIMENTS
According to our potential customer survey, 86%
of them find their cultural information speaking
with friends and using social networks, so we
create a Facebook page and a Twitter
account.
They obtained dozens of followers in less than 12
hours (7 "Like it" and 83 followers).
We consider them potential customers, with no
acquisition cost.
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INITIAL BUSINESS MODEL
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FORECASTING
MARKETING
MARKETING EXPERIMENTS
From our partner survey, we know that most of
them (35 %) are pubs with pop/rock concerts.
So in our web we advertised two musical events
in pubs (see http://stark.coolpage.biz/index.html)
After the concert, we asked the audience if they
knew about the concert from our web page.
20% did, and we brought this information back to
the pubs. One of them will consider paying for
highlighting his events.
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FORECASTING
SALES
Urban Agenda is a service that operates as an
intermediary. This is why sales operate between
two sides:
SALES TO PARTNERS
1) We sell the service through different rates,
depending on the visibility that the Partner
wants to have within Urban Agenda App.
2) By Ticket Service, Urban Agenda retains a
percentage.
SALES TO CUSTOMERS
We sell the “premium version”, which includes
service Augmented Reality capability. The
application is available for free with “freemium
version”.
Yes, if it
brings
more
customers
72%
No
28%
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SALES – TO PARTNERS
PARTNERS SURVEY: PAYMENT FOR UA SERVICES
Advertising is a potential income channel. Our lo-fi
prototype got good acceptance from our
partners.
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FORECASTING
SALES – TO CUSTOMERS
CUSTOMERS SURVEY: PAYMENT APP
Yes
27%
No
73%
“Freemium” model can be applied by adding
extra value.
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FORECASTING
PARTNERSHIPS
• The network of partners and content suppliers
play a critical role in our business model.
• These strategic alliances composed of museums,
art galleries, cafes, clubs, cinemas will provide
Urban Agenda with valuable contents and events
for our customers.
• Face to face interviews with many customers
were scheduled.
• Very positive feedback and worthy inputs were
provided by our customers
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INITIAL BUSINESS MODEL
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FORECASTING
DISTRIBUTION
• Urban Agenda will be downloaded at the
most popular online app stores:
Google Play
Apple's App Store
• QR codes for quick access to the downloadwebpage will be available at strategic
locations as tourist info offices, train stations,
cinemas, theaters. cafes, etc.
• The app will also be reached from ourpartners webpages and facebook profiles
(pubs, theaters, concert halls, museums, etc).
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INITIAL BUSINESS MODEL
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• COST & 5 YEAR
FORECASTING
COSTSCOST STRUCTURE
Year 1 Year 2 Year 3 Year 4 Year 5
Salaries and employeebenefits €160.000 171.200 183.184 196.007 209.727
Occupancy fees 25.000 26.250 28.875 33.206 39.848
Equipment 25.000 26.250 28.875 33.206 39.848
Data processing 32.000 33.600 36.960 42.504 51.005
App development 78.000 145.000 270.000 270.000 350.000
Sales Team 45.000 47.250 51.975 119.543 143.451
Consulting Firm 30.000 34.500 39.675 45.626 52.470
Marketing 35.000 103.950 308.732 916.933 2.723.290
Specialized AR Firm 55.000 57.750 63.525 73.054 87.665
Other 5.000 5.250 5.775 6.641 7.970
Personnel costs and the cost of implementation is
estimated by correlating data from companies in the
same target market. The incremental cost of
marketing is due to the expansion of the project.
Other costs included in „Risks‟ sections
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INITIAL BUSINESS MODEL
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• COST & 5 YEAR
FORECASTING
REVENUE MODEL
FREE
PREMIUM
VERSION
ADVERTISING
TICKETS SALE
PROFITS
$
% $
% $
CONSUMERS
PARTNERS
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FORECASTING
RISKS
Team Risks
Capital Risks
Market Risks
TechnologyRisks
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FORECASTING
RISKS
Id Risk Probability Impact Class
1
The team has no previous experience in the entertainment industry 10 8 Team
2 Debt crisis in Europe 8 7 Capital
3 Economic Crisis in Europe 8 3 Market
4
Lack of knowledge about the laws in other countries 8 6 Team
5
Changes and progress in augmented reality 6 6 Technology
6
Emergence of new unsupported platforms 4 6 Technology
7 Delays in capital contribution 3 7 Capital
8 Changing trends in ticket sales 2 6 Market
9
Expected App acceptance lower than initial estimation 6 10 Market
10
Partners not ready to automate their ticket sales 8 7 Market
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FORECASTING
RISKS
1
2
3
4
56
7
8
9
10
0
5
10
0 5 10
Evaluation
We will take actions to the risks of the upper right
quadrant. They are the most important.
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FORECASTING
RISKS
Actions
RISK ACTIONTYPE
ACTION
1. Team has no previousexperience in entertainment
Mitigate Hiring an experiencedsalesperson in the field. Cost45k€/y
2. Debt crisis in Europe(No bank loans)
Avoid Find funding in VC firms
4. Lack of knowledge in laws in other countries
Avoid Engage the services of aconsulting company specializedin technology startups. Cost30k€/y
5. Changes and progress in augmented reality
Mitigate Partnership with specializedsoftware firm. Extra cost55k€/y
9. Expected App acceptance lower than expected
Mitigate Perform short developmentcycles to quickly adapt to theneeds and requirements of ourcustomers.
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FORECASTING
FUNDING
TYPE DATE AMOUNT
Equity Capital /FFF Month 0 60.000 €
Business Angel Month 6 100.000 €
Venture Capital –Round 1
Month 20 350,000 €
Venture Capital –Round 2
Month 48 2.000.000 €
IPO Year 7 ???
The table shows the funding sources for the project,
indicating the due date and the required amount
of money. The reason for these funding sources and
shareholder dilution are reflected in the cash flow
on the next point.
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INITIAL BUSINESS MODEL
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FORECASTING
COST & 5 YEAR FORECASTINGProfit and Loss Projections
Year 1 Year 2 Year 3 Year 4 Year 5
Income
In-App advertisement and positioning 40.000 42.000 46.200 53.130 63.756
Pro App 28.000 49.840 88.715 157.913 281.085
Tickets revenue 198.000 267.300 697.653 1.820.874 4.752.482
Total Noninterest Income €266.000 €359.140 €832.568 €2.031.917 €5.097.323
Expense
Salaries and employee benefits €160.000 171.200 183.184 196.007 209.727
Occupancy fees 25.000 26.250 28.875 33.206 39.848
Equipment 25.000 26.250 28.875 33.206 39.848
Data processing 32.000 33.600 36.960 42.504 51.005
App development 78.000 145.000 270.000 270.000 350.000
Sales Team 45.000 47.250 51.975 119.543 143.451
Consulting Firm 30.000 34.500 39.675 45.626 52.470
Marketing 35.000 103.950 308.732 916.933 2.723.290
Specialized AR Firm 55.000 57.750 63.525 73.054 87.665
Other 5.000 5.250 5.775 6.641 7.970
Total Expense €490.000 €651.000 €1.017.576 €1.736.720 €3.705.272
Income before taxes on income (€224.000) (€291.860) (€185.007) €295.198 €1.392.051
Taxes on income 30% -67.200 -87.558 -55.502 88.559 417.615
Net Income or Loss (€156.800) (€204.302) (€129.505) €206.638 €974.436
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FORECASTING
Profit and Loss Projections
- Revenues are based on the market
share that we believe we can achieve in
each period.
(€400,000)
(€200,000)
€0
€200,000
€400,000
€600,000
€800,000
€1,000,000
€1,200,000
1 2 3 4 5
COST & 5 YEAR
FORECASTING
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FORECASTING
Cash Flow Projections
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net income (€156.800) (€204.302) (€129.505) €206.638 €974.436 €690.467
Cash fromexternal funding €100.000 €350.000 €2.000.000
Total OperatingActivities (€56.800) €145.698 (€129.505) €206.638 €2.974.436 €3.140.467
Begginning Cash Balance €60.000 €3.200 €148.898 €19.393 €226.031
Ending Cash Balance €3.200 €148.898 €19.393 €226.031 €3.200.467
COST & 5 YEAR
FORECASTING
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INITIAL BUSINESS MODEL
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FORECASTING
Cash Flow Projections
- Second VC funding is to get worldwide
market on year six, to achieve the IPO in
year 7-10.
€0
€500,000
€1,000,000
€1,500,000
€2,000,000
€2,500,000
€3,000,000
€3,500,000
1 2 3 4 5
COST & 5 YEAR
FORECASTING
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FORECASTING
Funding Projections by year
€0 €500,000 €1,000,000 €1,500,000 €2,000,000
1
2
3
4
5
COST & 5 YEAR
FORECASTING
• INTRODUCTIONPROBLEM-SOLUTION
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INITIAL BUSINESS MODEL
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FORECASTING
Shareholder Dilution
Initial Year 1 Year 2 Year 3 Year 4 Year 5Share Value year 5
Partner #1 20% 16,67% 15% 15% 15% 13,9%€2.174.063,81
Partner #2 20% 16,67% 15% 15% 15% 13,9%€2.174.063,81
Partner #3 20% 16,67% 15% 15% 15% 13,9%€2.174.063,81
Partner #4 20% 16,67% 15% 15% 15% 13,9%€2.174.063,81
Partner #5 20% 16,67% 15% 15% 15% 13,9%€2.174.063,81
Business Angel 0% 16,67% 15% 15% 15% 13,9%€2.174.063,81
VC - 1st round 0% 0% 10% 10% 10% 9,3%€1.449.375,87
VC - 2nd round 0% 0% 7,5%€1.175.169,63
Company value (PER based) $ - $ - $ -
$ 3.322.745
$ 15.668.928
Shareholder dilution
- 1st round dilution is based in Risk
Interest 65% and PE Ratio 16,08
- 2nd round is estimated.
COST & 5 YEAR
FORECASTING
• INTRODUCTIONPROBLEM-SOLUTION
PRODUCT
INITIAL BUSINESS MODEL
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• PARTNERSHIPS
• DISTRIBUTION
• COSTS
• REVENUE MODEL
• RISKS
• FUNDING
• COST & 5 YEAR
FORECASTING
COST & 5 YEAR
FORECASTINGShareholder Dilution
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Partner #1 Partner #2 Partner #3 Partner #4 Partner #5 Business Angel
VC - 1st round
VC - 2nd round
Initial
Year 1
Year 2
Year 3
Year 4
Year 5
THANKS FOR
WATCHING
www.stark.coolpage.biz