Interior Define Overview
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INVESTOR PRESENTATION
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STRICTLY CONFIDENTIAL 2
Interior Define is an e-commerce home furnishings
brand reshaping how customers think about
quality, customized furniture at a superior price
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STRICTLY CONFIDENTIAL 3
$4,459
$29,387 $31,164 $33,529
$52,003 $51,080
$71,548
$81,363
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Jan Feb Mar Apr May Jun Jul Aug
AVERAGING C. 25%
SEQUENTIAL GROWTH
SINCE LAUNCH
OUR REVENUE RAMP HAS BEEN RAPID…
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STRICTLY CONFIDENTIAL 4
The US e-commerce home furnishing
market is only 7% penetrated
In contrast, the current US e-
commerce penetration in apparel and
consumer electronics is 15% and 54%,
respectively
15% e-commerce penetration equates
to a $45 billion market opportunity in
2023, implying a greater than 10%
CAGR
… REFLECTING AN ENORMOUS,
UNDERPENETRATED
E-COMMERCE MARKET OPPORTUNITY
Online
Brick and Mortar
Asher
2013: $223
Billion
Source: Euromonitor
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THE FURNITURE MARKET IS MISSING A
VERTICALLY INTEGRATED, E-COMMERCE
BUSINESS
5
EYEWEAR
APPAREL
JEWELRY
MATTRESSES
MEN’S SHAVING
Taylor STRICTLY CONFIDENTIAL
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STRICTLY CONFIDENTIAL 6
Splurge
$$$
Aspire
$$$$$Save & Settle
$
Best Current Option
$$
ID Prices ID Design & Quality
FEW OPTIONS EXIST FOR PRICE AND DESIGN CONSCIOUS
CONSUMERS WHO STRIVE FOR PERSONALIZED, UNIQUE
FURNITURE
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STRICTLY CONFIDENTIAL 7
INTERIOR DEFINE HAS DESIGNED A SUPPLY CHAIN TO DELIVER
CONSUMERS WHAT THEY ARE WANT
We produce items made-
to-order per consumer
specifications with
carefully selected
manufacturing partners
Our experienced
overseas team carefully
quality controls and
packages every item
We ship directly to
consumers in the US;
in competitive lead
times for made-to-
order furniture
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STRICTLY CONFIDENTIAL 8
Upholstery
Size & Configuration
Leg Styles
Cushion
Fill
Sloan
OVER TWO-THIRD OF OUR CUSTOMERS ARE
CUSTOMIZING THEIR PIECES, DEEPENING
THEIR RELATIONSHIP WITH THE BRAND AND
GETTING EXACTLY WHAT THEY WANT
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STRICTLY CONFIDENTIAL 9
Easton $2,700
Kelley $1,800
COMBINED WITH PRICES ~30% BELOW RELEVANT BENCHMARKS
– CUSTOMERS ARE SAYING “YES!”
Henry $2,548
Axis II $2,698
106” Length 106” length
Wood frame (unspecified) Kiln-dried hardwood frame
Spring and down seating High-resilience foam & goose-down seating
Thin arms Extra padding on arms and frame
Woven polyester fabric Woven polyester fabric
Half chaise arm Unique, full-chaise arm
Plastic legs Hardwood legs
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MADE-TO-ORDER, E-COMMERCE FIRST BUSINESS MODEL
DERIVES MANY TANGIBLE BENEFITS
STRICTLY CONFIDENTIAL 10
$2,700
Retail Ops:
$512 (19%)
Other SG&A:
$728 (27%)
Cost of goods:
$1,268 (47%)
Profit:
$192 (7%)
Cost of goods:
$1,130 (63%)
Profit:
$270 (15%)
$1,800
Advantages to Interior Define’s Model
Made to Order E-commerce first
No inventory / holding
costs
Limited retail footprint
Highly limited
promotional activity
Low occupancy cost
Favorable working
capital dynamic
Aligned with emerging
shopping preference Retail Ops:
$80 (4%)
Other SG&A:
$320 (18%)
Asher
Direct Furniture
RetailerINTERIOR DEFINE
1,269 1,134
513
72
729
324
189
270
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CATEGORY EXTENSIONS WILL EXPAND LTV
STRICTLY CONFIDENTIAL 11
Sofa
• Pillows
• Lamps
• Rugs
• Accent furniture
Bed frame
• Night stands
• Bedding
Patio Furniture
• Outdoor decor
Asher
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High-touch e-commerce phone support
with extensive product knowledge
Swatch mailers with product info and
personalized sales commentary
Post-sale full-time concierge assigned
Proactive, personal outreach when
product is manufactured, arrives in US and
is delivered
Others
Call center with limited product knowledge
Mail you a piece of fabric with generic
company information
Part-time retail employee or call center
Automated tracking numbers
STRICTLY CONFIDENTIAL 12
WE AREN’T REINVENTING CUSTOMER SERVICE BUT
WE ARE GOING AT IT RIGHT
Asher
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WITH A MULTI-CHANNEL APPROACH WE CONTINUOUSLY REINFORCE
OUR BRAND POSITIONING AND VALUE PROPOSITION
STRICTLY CONFIDENTIAL 13
Rich web experience Highly curated showroomPersonalized swatch mailer
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CONTINUED POSITIVE MOMENTUM IN AUGUST
STRICTLY CONFIDENTIAL 14
Over 13,000 unique online visitors and 100 swatch orders in August
supports continued revenue ramp in to the end of 2014
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15
Launch: September 9. 2014
English roll-arm sofa & Straight-
arm sofa
CO-DESIGNED COLLABORATIONS
Launching October 9th, 2014
Launching September 4th, 2014
STRICTLY CONFIDENTIAL
Upcoming co-designed products provide
meaningful brand endorsement and
awareness aimed squarely at our target
consumer
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OUR TEAM
STRICTLY CONFIDENTIAL 16
Steve McClearn / CEO. Former VP of home
appliance eCommerce & strategy at Sears.
MBA Harvard Business School.
Rob Royer / Founder & Head of Brand.
Former Director at Draftfcb; Director of CRM
at Bonobos. MS Integrated Marketing,
Northwestern Univ.
Jordan Diab / VP of Finance. Former UBS
Investment Banker. BS Economics, Loyola
University Chicago
Adam Rosen / GM of China office. Former
Chinese Logistics & Sourcing at Target. BS
Chinese, George Washington University.
Andy Dunn / Founder & CEO of Bonobos
Gary Kohler / Chief Investment Officer, Blue
Clay Capital
Peterson Ventures / Founded by Joel
Peterson, Chairman of Jet Blue.
Brendan Wallace / Former CEO of Identified
– led successful exit (Workday).
Executive Team Advisors & Investors
Key Team Members
Proudly run in Chicago by a
team of design junkies, brand
zealots, techies, foodies,
supply-chain aficionados,
reformed consultants, and
champions of exceptional
experiences.
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STATUS OF CURRENT ROUND
STRICTLY CONFIDENTIAL 17
$1.5 million target raise
$800,000 currently committed
Final close in late September 2014
Pre-money valuation of $2.25 million
6% deferred interested convertible
note
Taylor
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APPENDIX
STRICTLY CONFIDENTIAL 18
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PROJECTIONS SUMMARY
STRICTLY CONFIDENTIAL 19
Gross margins are expected to expand from mid-20% to over 30% as
the business scales and achieves break-even profitability in 2016
800
3,162
7,139
15,407
192 837
2,121
4,867
(1,800)(1,393) (1,155)
(65)
(4,000)
(2,000)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2013 2014 2015 2016
($U
S)
Sales Gross Margin Operating Profit
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PROJECTED TO END FY2014 ON ABOVE A $1MM RUN-RATE,
INLINE WITH BONOBOS, A RELEVANT BRAND WE ADMIRE
STRICTLY CONFIDENTIAL 20
ID actuals
0
20
40
60
80
100
120
140
160
180
Mon 1 Mon 2 Mon 3 Mon 4 Mon 5 Mon 6 Mon 7 Mon 8 Mon 9 Mon 10 Mon 11
($0
00
)
Revenue Comparison - Interior Define & 1st Year Bonobos
Interior Define Bonobos
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5.0x
3.0x
2.0x 2.0x
Instagram Pinterest Facebook Twitter
SOCIAL MEDIA CHANNELS ARE GAINING TRACTION
STRICTLY CONFIDENTIAL 21
June to August Growth in Followers
1,176 381 4,301 572
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Fundraise will accelerate growth and
improve the customer experience
STRICTLY CONFIDENTIAL 22
Proceeds from ~$1.5 million round will aim to support efforts to broaden
the brands awareness and bolster our web experience
Marketing33%
Technology / Web Development
20%
Personal47%