Vinylmint's Growth Strategy Story

www.vinylmint.com 1

Growth Strategy

April 2014

www.vinylmint.com 2

Creative directors searchstatic music catalogs today

www.vinylmint.com 3

Finding great royalty-free sounds online,is a challenge.

www.vinylmint.com 4

Variety in freelance voice talentis tough to find, at an affordable rate.

Vinylmint is a non-union, freelance marketplace of voice actors, sound

designers, and translators.

www.vinylmint.com 5

INSTRUMENTALSVOICE OVERS TRANSLATIONSSPECIAL EFFECTS

Why do people use Vinylmint?

www.vinylmint.com 6

High-quality compositions and voice overs

A variety of submissions

A short turnaround time on requirements

Compettive prices for talent

www.vinylmint.com 7

Create a brief with your sound requirements

Launch a contest into the community

You receive world-class compositions

You select a winner

How does the contest work?

1

2

3

4

How does the marketplace work?

www.vinylmint.com 8

Melomics ContestsSound Libraries

• Music Publishers• Social Libraries• YouTube• Gaming Development Platforms• TV Network Libraries

• PROs• Music Publishers• Soundcloud• Melomics• TV Networ Libraries• Vinylmint Community

Buyers Sellers

• Flexible Pricing• Greater Curation and Variety• Saves Time

Value

Business Model

UserAcqusition

Gather User Information

Intelligent Suggestions

RevenueModel

From• SEO and SEM• Newsletter• oAuth Integrations• Social Validation

Includes• User Accounts• Recent • Purchases• Polling• Sound Queries

Based On• Social Network Profiles• Proficiency• Recent Activity, Ratings, Comments

Fee Types• Contest Commissions• Catalog Licensing• Marketplace transactions

www.vinylmint.com 9

Value to Buyers

www.vinylmint.com 10

Find quality sound solutions at a

competitive price

Increase their internal value with external ideas

Quickly recieve effective sound concepts with

high ROI

Use the worldwide online network of musicians

to mantain their competitiveness

Media Buyers

Value to Sellers


Recieve financial rewards

Be discovered by musicians globally

and levorage brandsfor your portfolio

Sell your sounds in a powerful marketplace

to influence sound creators globally

Socially connect with sound designers around

the world

Sound Creators

User Acquisition Cost for SellersConversion

16%

2%

20%

30%

CPU

$25

$125

$0

$100

Source of Users

MailChimp

Facebook

Vinylmint

Craigslist

Data to Leverage

Geographic location, website engagement

Social presence, societal influences, interest, brands they buy, demographic data

User engagement, duration of activity, skill level, sound design style

Talent interest, skill level, and size of talent market

All facts are attributable to IFPI unless otherwise noted.1. NPD Group, internet users aged 13+ Q3 2010 2. Pollstar 3. US Department of Labor and RIAA 4. Tera Consultants

$249 Average price for 40 sounds

$4.6 billion trade value of the digital sound market worldwide


per new contest

Growth Strategy


API Marketing

• Integration with Unity Asset Stores• Soundcloud oAuth and file sharing• Content ID resgistration with YouTube• File sharing integrations into Box, Dropbox, and Skydrive• API posting in the Mashape

marketplace

DAWs, Social, & Software

• Sound libraries available

on mobile phones

• Cataloging for ringtone services

• Keyword optimization from affiliate

libraries, Shazaam, and Pandora

Content Marketing

• Reddit Partnership

• Vinylmint Music Forum

• Vinylmint Music Blog

• Music Blog Acquisitions

• Academic Whitepapers

• Fireside chats, town halls,

and hangouts

Catalog Integrations

• You Tube• Vimeo• Getty Images Music• Unreal• Oculus• Videoblocks• Pond5• Second Life

PR & Direct Marketing

• Guest Blogging• Blog Placements• Music School Fellowships• Graduate Fine Arts and Advertising Schools• Seminars and Webinars

• Tradeshows and Conferences

Launch Growth Maturity

SEO & Retargeting

• Google keyword optimization• Twitter, Facebook, YouTube and LinkedIn Ads• Keyword search re-engineering• Retargeting across media networks• Referral systems and social

notifications


Competitive Advantages

Key Competitor

• Competition based revenue model

• A volatile competition model launch

• An uncurated community

• Underdeveloped sound library

Potential Entrants

• Remix competitions used to

advertise products and services

to their communities.

• Small to mid-sized companies with access to capital to raise additional

investment rounds.


Defensibility

Competitive Advantages

• User specific cost savings

• Custom sound designs to enhance a brand’s acceptance

• Highly skilled community of creative sound designers

• Ability to A/B test sound engagement and nurture brand evangelists

• Easy and intuitive user interface

Defensibility

• High service switching costs

• Alternative income source

• Integration partnerships to expand platforms to a global scale (Ole Musicbox, YouTube, Box and SkyDrive)


Vinylmint is poisedto become a market leader

X X

X

Curation Collaboration Customization

X

Product Evolution

Advertising and Predictive Analytics

Large expectedUser base

Real-timeuser data

Highlyengaged brand

evangelists

Highly targeted sounds and key

data points


Sound Marketplace


Business and Tech Team Has Strong Track-Record

Associate Marketing Director,

Kedar Entertainment Group

(digital content strategy)

Jeff MullerCTO & Co-Founder

Jeremy JohnsonCIO & Co-Founder

Byron MorganCEO & Co-Founder

Bryan NelsonDeveloper & Co-Founder

Creative Director,

JohnRich Media,

(user interface design

and community management)

Lead Systems Architect,

Tele-Consultants Inc.,

(systems architecture and project

management)

Database Administrator,

InnovaSystems International,

(business intelligence and database design)


Board and Other InvestorsPhilip Hawken• COO/ Business Manager of ESL Music

Joe Fuller• CTO of Dominion Enterprises

Rusty Greer• General Counsel of Landmark Communications

Eric Spence• Vice President of Mosley Music Group

Dr. David A. Bryan• Director of Advanced Technology

at Polycom

• CTO of Jasomi Networks

(Acquired by Ditech)

• Lead Architect of Vovida

(Acquired by Cisco)

Gary McCollum• General Manager and SVP, Cox Communications Virginia

Aneesh Chopra• Managing Director of the Advisory Board Co.• Secretary of Technology for Gov. Time Kaine• Chief Technology Officer for Pres. Barack Obama

Peter Ryder• President, Americas of Jovoto• Managing Director of Computer Sciences Corporation• Partner of GPS International

Additional angel investors:• Zack Miller, Managing Director of Hatch Norfolk• Rob Goodman, Partner at Kaufman & Canoles• Dr. Wil LaVeist, President of LE Enterprises

Market Size - US & UK

sounds submittedto digital libraries each year

• 50% increase in digital music licenses sold by 2016

Source: IFPI

130 M

• Creators between 16-35 age range

13 M 13 Million sounds licensedto digital music services

US

UK



Advertising Agencies

19,949 462,300 $4.8 Billion

Agencies FreelancersMarket

Opportunity

Video Game Development Communities

13,313 2,000,000 $12.1 Billion

Company Game DesignersMarket

Opportunity

US & UK Music Publishers

772 1,500,000 $4.2 Billion

Company Composers Market

Opportunity

Market Segmentation & Targeting


Revenue Forecast ($000)actual 2014 2016

Revenue

Expenses

EBIT

$218

100

$118

$8,500

1,000

$7,500

Investment Sought:$150K Seed Round: Now$1MM Series A Round: 18 Months

Use of Proceeds:Implementation of a contest self service model, inventory automation, audio-tagging, payment disbursement system, acquiring business development talent. Acquire Melomics technology.

$10

9

$1

$1,404

625

$779

2015


High Revenueand High Margins

Great revenue potential for in community transactions, increased contest volume, and appreciating music catalogLaw of large numbers ensures high revenue

Very high operating marginsFree customer acquisition, digital goods transactionsfor supplemental income for users creates incentives

Execution difficulty decreases as Vinylmint increasesit’s network of buyers and music portfolioHardest part is grabbing great case studies to prove

+01 757 295 7757

[email protected]

@vinylmint

Byron Morgan

Vinylmint's Growth Strategy Story

Marketing

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