88Mirrors: Block 4 Update

Spencer Holt, Sara Pollack, Roopesh Nair, Nilesh Savkoor

Business Model CanvasKey Partners• Supplier networks• Social networks• Trade unions and

professional organizations

Key Activities• Ongoing

authenticity of referrals

• Marketing• Develop and

maintain platform• Drive

traffic/customer acquisition

Value Propositions• Search for people

and projects using trusted social network

• Create profile & projects

• Promote your work• Give referrals• Build and leverage

reputation & experience

• Supplier – access to targeted cust base

• Track and aggregate all creative professional activity as a feed

• Consumers, fun gamified experience

• Accounting, Legal, Financial services

• Integrated budget/payment for creative productions

Customer Relationships• Brand

advertisers, direct sales

• Suppliers –self service

• Consumers – self service

• Trade unions, professional orgs.

Customer Segments• Corporate media,

commercials• Motion pictures &

TV producers• Musicians, music

video producers• Short film,

documentary, Independent film producers

• Architectural designers

• Graphic designers• Creative industry

suppliers• Fashion, Home

Interior Designers• Artists, Authors,

Writers, Performing arts, Culinary Arts, etc

• Financial, Accounting,

• Legal, Healthcare &

• Event management professionals

Key Resources• Platform• Customer data• Advertiser and

supplier network

Channels• Mobile• Web• Social widgets

(example Facebook)

• Trade unions and professional organizations

Cost Structure• Customer acquisition costs• Platform development and maintenance

Revenue Streams• Customer data and access• Premium social network service• B2B transactions between customers and suppliers of creative projects• Advertising• Monthly subscriptions• Supplier sponsored listings, Marginal %age of revenue, Brand advertising

New

New

Block 4 Overview• Here’s What We Thought:

– That we would launch a business to match above-the-line and below-the-line talent in the film vertical, despite a small market size, based on passion and a desire to execute on a validated pain point

• Here’s What We Did:– Got introspective and honest about why we were rejecting ideas– Re-assessed other creative verticals and conducted 30 interviews – Put out a new survey to further validate other verticals and to address willingness to pay

(42 responses to date)– Built an MVP with multiple iterations on functionality, copy and video – Invited EarlyVangelists to offer feedback on the MVP (50 sign-ups to date)– Designed a process for cataloging and processing feedback and for updating our MVP

• Here’s What We Learned:– Other creative verticals have a need for a service like 88Mirrors – Addressing other creative verticals will necessarily make the functionality of the site more

complex – Willingness to pay could be an issue; need a fully functioning MVP to truly test (have now)– Design and search functionality are critical to our target

• Here’s What We Are Now:– “Facebook for Creatives”: a social network that helps Creatives connect, create and

collaborate• Here’s What We’re Doing:

– Refining MVP based on initial feedback– Launching Facebook/AdWords campaign to drive more traffic to MVP– Soliciting additional rounds of MVP feedback from customers– Asking for money

A Market for Other Verticals: Survey Responses

Industry %

Film 54%

Music 14%

Advertising 43%

Publishing 11%

Performing Arts 21%

Fashion 4%

Graphic Design 25%

Culinary Arts 11%

Visual Arts 14%

Architecture 7%

Other 21%

Why do you work with same team on different projects?

Best team possible for the job 29%

Ease of existing relationships 71%

How do you typically find the talent you work with?

Introduction through a friend 86%

How would you characterize your access to creative talent?

Limitless 0%

Decent 29%

Could be Better 71%

Not good 0%

Would you be willing to pay?

$14.99 per month 11%

$150 per year 28%

Nothing - please tell us why 33%

Other amount - please tell us 28%

How would you characterize your access to creative projects?

Limitless 0%

Decent 33%

Could be Better 33%

Not good 33%

Minimum Viable Product

beta.88mirrors.com

Initial Feedback on MVP

1. Make site design friendly to appeal to Creative community 1. Minimalistic design, simple to use, rich functionality, enable artists to

promote self, stylized2. Functionality

1. Trusted search value proposition does not come through @ first glance2. Recommendations based on social graph is not clear3. Project and people availability does not show up4. Don’t know what to do after creating profile

3. Concept flow must be clear 1. The search result, in addition to (i) Location (ii) Availability (iii)

Recommendation from a trusted social network… should return (i) current job and last two projects worked on (ii) follow feature

4. Registration and Payments1. “sign in or registration” button does not appear asking for details and

credit card info.

Current Market EstimatesIndustry Who we contacted Estimated # of

professionals

Film Bureau of Labor Statistics, International Film Schools, International Film Commissions, YouTube Partner Program

690,000

Music Bureau of Labor Statistics 240,000

Graphic Design and Artists Bureau of Labor Statistics 508,000

Chefs Bureau of Labor Statistics 942,000

Authors Bureau of Labor Statistics 281,000

Architecture (Lighting) IALD 1,000

Interior & Fashion Design Bureau of Labor Statistics 94,000

Performing Arts Bureau of Labor Statistics 118,000

Total of these targeted segments is 2,874,000 professionals.

Resource Assumptions & Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5

Subscription Revenue (at $11 per month) $1,320,000 $3,056,297 $7,076,480 $16,384,719 $37,936,800Advertising Revenue $410,625 $950,752 $2,201,348 $5,096,951 $11,801,363Total Revenue $1,730,625 $4,007,049 $9,277,829 $21,481,670 $49,738,163

Software Development $600,000 $1,000,000 $2,000,000 $3,000,000 $3,000,000Hosting $3,600 $7,200 $14,400 $32,400 $75,600Operating Expenses $307,400 $505,653 $872,236 $1,453,137 $1,919,838Interest and Tax $327,850 $969,517 $2,515,926 $6,701,370 $17,715,368Net income $491,775 $1,524,679 $3,875,267 $10,294,762 $27,027,357

Revenue flows in 88Mirrors

Content Creator

B2B partner Premium Services

88MirrorsTMSubscription fee

Transaction fee

License fee

Ad payments

Pay Per Use fee

Licensed Development Tools (eg. AWS)

Ad Network (eg. Google AdSense)

Images of logos used for illustration and educational purposes only. Copyright reserved by original logo creators. VAZZU CONFIDENTIAL.

Future Future

MVP Future

What We’re Doing Next

1.Talking to additional customer segments2.Driving traffic to our site; increasing our actual

customers3.Gathering feedback specific to its functionality

around the pain point4.Engaging earlyvangelists at a higher level

(e.g. make them an offer to work with us)5.Adding critical features to MVP in response to

customer feedback6.Collecting fees for access to the beta7.Refining revenue model assumption

Appendix

Who We Compete With

Top 3 Features The Idealists Behance.net Creative Group 88MirrorsSearch crew No Yes No Yes (Trusted search)

Discover/create projects Yes Yes No Yes (Trusted referrals)

Recommend your network No No No Yes

Social NetworksLinkedInFacebook

Creative CommunitiesThe IdealistsBehance.net

Agencies and Trade UnionsPGAThe Creative Group

88Mirrors

Hiring & Production Today

Story Contact Director

Create Project

Hire Producer

Find Funds

Investor Pitch

IndieGoGo, Kickstartr

Seek Crew

LinkedIn

LA411/NY411

IMdb

Seek Supplier

LocationBudgets Craft Svc

Yelp

CraigslistMandy

Production Hub

Ask Friends

YelpYellow Pages

Craigslist

Ask Friends

Refer Other

projects

Google It!

Shoot Film

Calendar

Google Docs

Excel

Notify crew

Ask Friends

Wait to be found Accepted

RejectedBid

NoNo

Scope Work

Scope change

Movie Magic

Post Processing

Sound

Title Design

Effects

Color Correction

Ask Friends

Good reputation

Ask More

Friends

Good reputation

Ask Friends