SPYC B pilot with

1 from 12

25M 13M62% apparel &

accessories

sellers:Sellers on

marketplaces other than eBay, boutique owners

Value added services for eBay and other marketplaces.

Spycob is a big data solution helping sellers source and research fashion products for resale

What is Spycob?● We help sellers on eBay and other marketplaces become more profitable by

discovering authentic brands from the top retailers at the lowest possible price via Spycob SaaS solution○ We scout major retailers for deals on apparel and accessories looking

for 50%-99% discounts● Building the B2B solution on the basis of existing B2C site (also have an

Android app)● Pilot with eBay, partnership with PayPal

○ Access to 25mm sellers on eBay and additional 13mm business users via PayPal

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The problem

● Average eBay and PayPal combined fees amount to 12-14% of the value of goods sold

● Buyers on eBay are increasingly unwilling to pay more than 50% of retail price even for new items

● The key issue for professional sellers on eBay and other marketplaces - search for best resale items

○ Good online deals on branded goods often raise authenticity issues ■ Reputational damage and penalties from eBay

○ Many sellers source resell items by physically going to stores like Macy’s and Nordstrom, which is time consuming and inefficient

○ Great offers have a very short life - some get sold out in a matter of minutes

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Our users

From small scale sellers... ...to “power sellers”Characteristics ● Up to 50 listings a month

● Hardly breaking even● Sourcing via physically visiting

stores● No IS/IT in place

● Up to 40K listings a month● Trade across various marketplaces● Have some sourcing solutions

unavailable to small scale sellers● Have some form of IS/IT in place

Needs ● Filters and alerts allowing to find deep discounts on branded products

● Filters and alerts ● Auto-purchasing and auto-listing● Analytics● Inventory management

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Our solution● Our solution is a product customised for needs of every type of seller - from

occasional sellers to “power” sellers● Our product will streamline sourcing of resale items

○ Increase the number of listings ○ Earn more on the sale of each listing○ Gives peace of mind regarding authenticity of the top brands merchandise

● Sellers will be able to put together a solution which meets their needs best by choosing from a ‘menu’ of services:

○ Custom filters and notifications ○ Auto purchasing and auto listing○ Analytics○ Inventory management

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Business model - monetisation Free trial

30 days

Subscription fee

$5/mo $10/mo $50/mos Custom● 1K views ● 10K views ● 100K views ● Unlimited

Simple filters ✔ ✔ ✔ ✔

Custom filters ✔ ✔ ✔

Notifications ✔ ✔ ✔

Analytics ✔ ✔

Auto-purchase ✔

Auto-listing ✔

Inventory mgmt ✔6

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Spycob helps sellers chose products And helps to find products

By request

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By request

Indicative market opportunity (eBay platform only)A. Total ebay sellers: 25mmB. Active sellers: 80% of totalC. Clothes, shoe, cosmetic category: 62%D. Spycob’s share of active sellers: 10%

● 12.4mm sellers = addressable audience

● Spycob’s share = 1.2mm A x B x C x D

High volume / high frequency $50/mo

$10/mo

$5/mo

Medium volume / medium frequency

Low volume / low frequency

Spycob’s revenue:● $10mm/month● $126mm p.a.

“Power sellers” Custom

85%

10%5%

<1%

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● Promote Spycob among its sellers, bringing user acquisition cost for us to zero

○ Featured ads / banners

○ Text/email - eBay’s preferred

ways to communicate with its sellers

● Importantly, any cooperation will require minimal, if any, technology investment on ebay’s part

Our partnership with eBay (pilot project underway)

● Increase revenue/active seller for ebay

○ Customized solutions facilitating

sourcing of items for resale and their listings on ebay

○ Increase the volume of items listed by each active seller

● Attract new sellers to ebay○ Convert “leisure surfers”, spending up

to 3 hours in app, to ebay sellers

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Competitive landscape

Marketers

Consumers

By request

Projections (next 24 mos)

● Projection includes eBay & PayPal partnerships (eBay - 25mm sellers, PayPal - 13mm) ● Break-even / CF positive within 12 mos● Other opportunities: marketplaces (Amazon - 2mm sellers, all other: 3mm sellers),

international via parcel services, expansion into other product lines in lifestyle category), B2C (150mm users in the U.S.)

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Required investment

13

By request

Spycob team

Alex Romanenko

Natalya Matyushenko

Co-founder, CEO/CTO

Co-founder, COO

Serial entrepreneur, software/hardware companies, work with the major banks in Ukraine and abroad, sold own software to China. based in San Francisco

Serial entrepreneur. Project management, operations, business strategy development. In startups since 2012, as COO, Evangelist, Mentor. based in San Francisco

Maria FrolovaCFO/BDO

Corporate finance professional with 15 years of experience in investment banking and private equity. Co-founder of and advisor to a number of startups.based in San Francisco

Appendix

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Status

By request

Our history

By request

How eBay sellers operate now

Physical store

“Up to 75%” ads from major online retailers

Obscure sites with deep discounts/ cheap deals

eBay seller

Purchase @50% discount

eBay buyers

c.13% fee to eBay & PayPal

Sell @50% discount

� Time-consuming

� Time-consuming � Misleading

� Counterfeit risk18

How we want eBay sellers to operate

eBay seller:● More listings!● Higher margins!

Purchase @ 75%+ discount

eBay buyers

c.13% fee to eBay & PayPal

Sell @ 50% discount

● All brands● All major retailers● 50-99% discounts● Only authentic products

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Great team with a track record of successful ventures

By request

Timeline for pilot

Mar-Jul (Aug) 2016 Feb-Mar 2016 Aug-Sep 2016

Users for test group

Web-based solution

25mm users

13mm users

Make PayPal payment method of choice

1

2

By request

Roadmap

22

By request

Additional partners

23

By request

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Competitive landscape

Spycob

deep discount

no discount

store social / discovery

market place

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CompetitorsWhere eBay recommends to look for products for resale?

“Manufacturers make goods and sell at a discount (wholesale) to businesses that have a sales force to resell the product for profit to end consumers (retail).““Can a beginning eBay seller actually get wholesale prices without buying a lot of inventory? The simple answer is no, not really.” “Think of your local department store's after-Christmas sale merchandise... ” Source: ebay.com

Small sellers don't have a lot of money to shop wholesale, so they shop by physically going to stores and spend a lot of time searching the best deals.

Who help them to chose what to buy?No one. All the analytical tools help selling existing inventory, but do not help buying good resale products

1. Retailers: Macy’s, Nordstrom, Yoox, Asos etc.

2. Analytics: Terapeak (eBay&Alibaba only data)

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Process map

DRAFT ...

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SPYCOB