LX Ventures November Investor Presentation

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TSXV: LXV | NOV 2013 INNOVATION STARTS HERE LX Ventures acquires & integrates SaaS-based technology companies that are at revenue lxventures.com
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LX Ventures is a publicly traded technology accelerator that acquires, integrates and accelerates high growth technology companies. We are vertically integrated with internal best-in-class practice area teams in sales, marketing, engineering and finance that are leveraged to turn our portfolio companies into industry leading organizations, one by one. We are in the business of building businesses. For further information about LX Ventures, please visit: www.lxventures.com

Transcript of LX Ventures November Investor Presentation

Page 1: LX Ventures November Investor Presentation

TSXV: LXV | NOV 2013

INNOVATION STARTS HERE LX Ventures acquires & integrates SaaS-based technology companies that are at revenue

lxventures.com

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Certain statements contained in this document constitute “forward looking statements”. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “propose”, “anticipate”, “believe”, “forecast”, “estimate”, “expect” and similar expressions as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the Company’s current views with respect to future events and are subject to

certain risks, uncertainties and assumptions. Many factors could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company does not intend, and does not

assume any obligation, to update any such factors or to publicly announce the result of any revisions to any of the forward- looking statements contained herein to reflect future results, events or developments except as required by law.

DISCLAIMER

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IMBALANCE IN CANADIAN CAPITAL MARKETS

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TSX Weighting

Tech makes up less than 3% of TSX

172 Tech Companies listed Vs. 2055

Resource Companies

Over 30% of the technology companies on TSX are

graduates of TSXV

Tech was best performing sector on TSX in 2012 (share

price appreciation)

$1.3B raised for tech Vs. 56.6B raised in total for

all sectors in 2012

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About LX Ventures

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+  LX Ventures is a publicly traded accelerator that acquires and integrates SaaS-based technology companies that are at the revenue stage

+  We identify exceptional products and teams that require expertise in scaling revenues

+  3 Wholly-Owned Subsidiaries…all at revenue:

Management and Advisors Exits:

$2 Billion +

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EXPERIENCED MANAGEMENT

Mike Edwards, CEO, Director

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+  20 years of startup technology experience +  Recent exits to Google, Twitter and Marchex

Ray Walia, COO, Director

+  Serial entrepreneur, 2 successful exits

+  Startup and marketing guru +  Built and sold 2 marketing companies

Patrick Audley, Managing Director +  Seasoned

technologist with 18 years experience

Mark Binns, Managing Director

Bernd Petak, President

+  Experienced entrepreneur, executive, consultant and advisor. Former Deloitte Consulting Partner.

Kevin Rathbun, CFO

+  CA, CFA, Capital markets +  Dozens of M&A transactions +  Realm Energy & Newstrike

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Alison Lawton, Advisor

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+  Social Venture Philanthropist

Reza Kazemipour, Advisor

+  Silicon Valley and Canadian start-up Board advisor

+  Co-CEO of Virgin Group

David Baxby, Advisor

Lance Tracey, Advisor

+  Co-founder of PEER 1. Sold for $526MM.

WORLD CLASS ADVISORY BOARD

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Derek Lew, Director

Keir Reynolds, Director and IR

+  Seasoned capital markets executive +  $200MM in equity raised

+  Active technology angel investor +  Corporate, commercial and real estate law

Jeff Durno, Chairman and Director +  Managing partner of ASKD

Law LLP +  Chairman of Emprise Capital Corp., a Vancouver based merchant banking co.

BOARD OF DIRECTORS

Mike Edwards, CEO, Director

Ray Walia, COO, Director

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HOW WE SELECT OUR TARGETS

+ At revenue generation stage …There is a complete product

+ Within our market focus: HealthTech, AdTech and FinTech

+ High margin, reoccurring revenues …Not one time sales

+ Solving a big problem in a large and consolidating sector …NO WINNER TAKE ALL

+ Emphasis on B2B markets …not as fickle as the fractured consumer markets

+ Suitable for M&A or Spin Out within 12 to 24 months …typical acquisition is 2 to 3 years in its lifecycle

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OUR INVESTMENT MODEL

+  Within 18 to 24 months seek to monetize subsidiary

+  Technology project generator

+  IPO, RTO, Spin Co., Acquisition or M&A

+  Scale revenues

+  Utilize our class-leading biz dev and sales talent

+  Additional Funding by VC’s, outside of public markets

+  Acquire high-growth tech companies

+  Integrate talent and control business

+  Greater than 51% ownership

Acquire Accelerate Exit

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2014 Valuation Goal Sector

SUMMARY OF COMPANIES

Wholly-Owned Subs $100.0M

CDN

HeathTech

AdTech

FinTech

$100.0M CDN Current Market Cap: $18.5M @ $0.38

Share price at $100M = $1.35 includes 25M shares of dilution

~350%&Poten,al&Upside&

+

+ Acquisitions

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Acquired in May for $600K all stock deal

Monetizes social media followers

Connects brands to their desired audiences

Highly disruptive ad tech (achieves 35% ad unit consumption

versus 0.05% display ad average)

MANAGEMENT TEAM

MOBIO TECHNOLOGIES INC.

100% owned subsidiary company of LXV

Has attracted influencers as big as Ke$ha (30M followers)

Mark Binns Patrick Audley

President Serial entrepreneur in the marketing and technology space with 2 exits

VP Technology

Seasoned technologist with more than 18 years

of startup experience

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•  Platform for fans of film and sports celebs

•  $19.3 million in VC funding •  Greylock, Comcast Ventures

•  Monetizes brands social networks •  $14.1 million in VC funding •  Acquired by Google in July 2012 for

$350 million

Exits Market Size: $38.4 billion (US) At 1% Market Share: $384M in revenues

MOBIO TECHNOLOGIES INC.

Peer Comparables •  Social media marketing software for small and medium-sized businesses

•  $1.45M million in VC funding •  Acquired by Infusionsoft in January

2013 for $25 million

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MOBIO TECHNOLOGIES INC.

Reach 20 influencers with scale 1M+ by March 2014

Achieve 500K platform users by Q1 2014

Ad Revenue Per Unit target of $0.25 by Sept. 2014

Milestones

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SOSIDO NETWORKS INC.

HealthTech Market Vertical

100% wholly-owned subsidiary of LXV

Online knowledge exchange community for healthcare professionals

(HCP’s: 4M+ in North America)

100% of members are monetized

Tanis Steward

Sponsorship deal with

MANAGEMENT TEAM

Co-Founder & CEO Experienced leader in healthcare industry

Has led numerous healthcare associations such as CANO,

CBMTG, ISCT. Malachite Management, StemCell Technologies

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SOSIDO NETWORKS INC.

•  Professional network for scientists and researchers to make their research visible.

•  $35 million in VC funding •  Bill Gates, Tenaya Capital

•  Professional network for physicians to connect, get noticed and earn honoraria.

•  $28 million in VC funding

Peer Comparables

Market Size: $400M annually At 10% Market Share: $40M annually in reoccurring revenues

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SOSIDO NETWORKS INC.

Milestones

Sign 5 Medical Associations by Dec 2013

Secure first US Association by Q1 2014

20,000 users @ $100/user by Dec 2014

Sign 6 Pharma funding deals in the next 12 months

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100% owned subsidiary company of LXV

Service and SAAS model – High Margins

Cloud CFO – to service, scale and monetize the cloud accounting industry

Targeting small businesses globally

Gary Boddington MANAGEMENT TEAM

Chief Executive Officer

Last exit: Alchemex, acquired by Sage Group

in 2011

FODIO TECHNOLOGIES (+ FinTech)

Growth phase of business, revenues began in Q2 2013

Accomplished and driven entrepreneur and executive

Deep expertise in business intelligence solutions

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•  Modern bookkeeping for small business

•  $7.5M in seed funding •  Acquired in 2012 by

GoDaddy

Market Size: $3 billion annually (North America) At 5% Market Share: $150M annually in reoccurring revenues

FODIO TECHNOLOGIES

•  HR, finance and accounting in the cloud

•  $9 million in VC funding •  Google Ventures

Peer Comparables

Cloud Accounting

Traditional Bookkeeping

Market Positioning

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Milestones

Fodio SaaS implementation by Q1 2014

2 new acquisitions by March 2014

6 FinTech integrated companies by Dec 2014

FinTech (Fodio + Acquisitions)

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HOW WE GENERATE RETURNS

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EXITS AND MONETIZATION

Multiple Exits - We offer multiple exit strategies: IPO, RTO, Spinout, "Acqui-Hire" and M&A

Dividends - LXV shareholders will receive special dividends of cash or shares on exits

Near Term - We focus on acquiring companies that grow our consolidated revenues

Coming Wave - We are incubating tech companies for the coming wave of new money flowing in from sector rotation

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CAPITALIZATION – Nov 2013

Issued: 48.9M shares

Fully Diluted: 71.1M shares

Cash: $1.5M

Fully Diluted Cash: $7.1M

Debt: $0

Options: 4.9M @ $0.16 to $0.32

Warrants: 11.1M (@ $0.30)

6.2M (@ $0.22)

Mgmt & Insiders: 24%

Market Cap: $18.5M

Recent Price: $0.38

Avg Daily Volume (3m): 1,057,000

Previous Financings: $2.2M @ $0.10

$800k @ $0.20

$1.6M @ $0.15

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WHY INVEST IN LXV?

Positioned - Get positioned for the anticipated sector rotation

Management - Expert management team with more than $2B worth of technology company exits

First Mover - First entity to truly bridge Silicon Valley-style technology companies with the TSX Venture

Multiple Exits - Exposure to our wholly owned subs offering multiple exit strategies

Deal Flow - We collaborate with some of the world's leading VC's

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CONTACT US

Investor Inquiries

Keir Reynolds Tel: 778-998-9242

Email: [email protected]

Media Inquiries

Mark Binns Tel: 778-628-7427

Email: [email protected]

Web: lxventures.com

Address:

Suite 300 – 128 West Hastings Street Vancouver, BC, Canada