WE ARE QVC FOR THE MILLENIAL
GENERATION
Estimated to control over
$990bn annual spending power
(source: Deloitte)
By 2020 spending is
estimated to be $1.4 trillion and
1/3 of all purchases (source: Accenture)
Women spend 30% more on
apparel as other generations, Men
spend 2x .
US Millennials
OPPORTUNITY
Millennial Consumers
… are distracted. 47% multitask on multiple screens - mobile as first screen and TV one of many screens. (source: BI Intelligence)
… tune out big brands & traditional media. Influenced by new media stars, their peers and online communities.
… have their own set of values. They find traditional TV shopping cheesy and over-commercialised.
PROBLEM
The Market
OPPORTUNITY
YouTube: 6bn hours of video content watched every month 1bn unique users & still growing
1 out of 2 people visit YT every month
(sources: SoMotion, YouTube)
The Market
$8.3 billion revenue
Yr 1 = $6,360,000revenue (est.)
365 days, 24 hours/day @
$947k/hr
1-3min shows, 2-4x’s per week @ $122,300 per
week*
106 m+ homes in US
45m+ Talent’s subscribers, YT 1 billion monthly
views
QVC
DSC
OPPORTUNITY *net rev per week for Y1/2016
DSC Audience
QVC – • Broadcast TV
Shopping Leader (50-75 yrs old)
• $8.3 bill annual rev
• $14.7 bill market cap
JOYUS –• Online Shopping
Channel (40-60 yrs old)
• $24 million new growth funding
• Viewers who watch video re 4.9x more
likely to convert
DSC –• New Gen Shopping
Channel (13-34 yrs old)
• 80% 13-24 yrs old
• Mobile first, Highly Engaged
OPPORTUNITY
DSC Magic
SOLUTION
YouTube stars host shows
50% margin on all sales
Owns the customer
Built to scale
MARKETING
YouTubers have global followings
They Appear to Own the
Product on Sale
They bring Trust and Credibility
DSC Authenticity
(See Appendix C)
Conversion Funnel
MARKETING
*Based on industry standards
Do you the videos?GoodNot GoodCoolBoringI Don't KnowOther*
Customer Survey Results
MARKET VALIDATION
*Other Results: Very Awesome
Amazing I don’t like the (old) girl
• 100% Success Rate• 100% Anonymous• 15% Response Rate
What brought you to DSC?
YouTubeTwitter InstagramFriendAn Alien
Customer Survey Results
MARKET VALIDATION
What was your least fave part?
Beta Password Page
*Survey sample includes 57 respondents taken from registered beta users. Using Google sheets participants were chosen by number at random generating purely anonymous results. The survey consisted of 5 multiple choice questions and 1 open question. Forms were sent from [email protected] during the period of Aug 2nd-Sept 22nd.
SCALE
Growth
Watch DSC FitnessWatch DSC Cooking
Organized across passions and verticals
SCALE
DSC Network
"DSC is formally ‘Greenlit’ as a disruptive technology of exceptional global potential, being led by a professional team…”
(See Appendix B)
DSC Network
SCALE
SCALE
DSC Network
DSC Network
SCALE
Shoppable video technology, driven by social media, mobile first.
DSC Value
BUSINESS MODEL
Everyone Wins
-More than doubles their
COGS (even with discounts)
-Retains control of stock
-Gains influencer
endorsement
-Monetization + Share Options in an environment that retains their
credibility
-Brand & affiliate opportunities
-Sales platform for own brand
-TV sales platform for own brand
-Credible way to tell brand story to
millennial consumers
-Entertainment-Brand Discovery
-Affordable Brands
-Influencer Brands
-Sustainable Brands
-Limited Edition Products-Bespoke Products
-A company that shares their
mentality
BRAND YOUTUBE STAR
CELEBRITY
CUSTOMER
BUSINESS MODEL
BUSINESS MODEL
DSC Model
Virtual Fulfillment
Automated Tech
Lean Principles
Experienced Team
Creative Talent
BUSINESS MODEL
DSC Model
DSC Experience:
BUSINESS MODEL
http://www.digitalshoppingchannel.com/watch/68
DSC², a DSC + Actv8me JV, is a lifestyle magazine show shot & aired on network and digital.
DSC² services the mature Millenial, increasing customer lifetime, decreasing Customer Acquisition Cost.
OWNING THE MARKET
DSCDSC² - a joint venture
…a Digital 1st Broadcast series
creating a new format for a new generationActv8 technologylaunches in 2015 on 27 US networkintegrating 70% of US retailers in 2015
OWNING THE MARKET
Ad Rev & Affiliate model
DSC² - Broadcast + Online + Retail
DSC Bible = Production Manual
$5k = 3 Original Shows @ 2-5 mins each
Low Production Cost, High Production Value
BUSINESS MODEL
DSC Production
Add’l Marketing
MARKETING
$1,000-$3,000 pcm invested in various online advertising systems
to measure most effective ROI
YouTube pre-roll, Adwords, Facebook (text/video), twitter cards, etc.
Affiliate Marketing Initiatives
GROWTH
Content Distribution
Own label
White Label (production or tech backend)
Big DataCredit Card bounty
(new credit card users)
Affiliate Marketing
Add’l Revenue
Brand Awareness
Product Categories
BUSINESS MODEL
CategoriesCooking
Beauty
Home/Gadgets
Fashion
DSC TEAMFounder, Noelle RenoFashion Entrepreneur, TV Personality, and blogger. Experienced businesswoman – grown, sold & invested in fashion businesses. Produced and presented content for global multichannel entertainment properties.
“Everything I've learned has been building up to this – everything DSC needs to be a success.”
CTO, Matthew Trewhella Director, Sam WashingtonEngineer turned
Business Development6 years at Google in hybid engineering +
sales role , Launched Number 10 site
Commercial and Film Director with production, marketing, and agency backgrounds.
THE TEAM
(Launched: July 23rd 2015 Semi-Closed) Beta
• Successful Video Conversions
• Successful Logistics Execution
• High Engagement Period
• Audience Validated Presumptions
• 75% aged 13-24 years old
• Mobile, driven by social
$5m valuation = Raising $750,000 (seed round)
CURRENT STATUS
Year 2016 Year 2017 Year 2018
Net Revenue $6,360,426 $9,162,720 $15,523,146
Gross Profit $3,237,213 $4,667,760 $7,904,973
G&A ($2,537,590) ($3,056,667) ($5,594,257)
EBITDA $699,623 $1,611,093 $2,310,716
P & L
PROJECTIONS
APPENDIX A
FUNDING TABLE (@ 100% Sales)
Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16Opening Cash/Cash Balance (Self
Funding): $ 20,000
Beginning Monthly Cash Balance: $ - $ 917,815 $ 839,932 $ 737,222 $ 635,122 $ 542,435 $ 450,655 $ 494,275 $ 404,143
Investor Funding: $ 1,000,000
** Cash Receipts $78,863 $97,948 $105,966 $148,124 $159,550 $173,734 $326,606 $291,934 $323,060
Expense:
Product Expense (Vendor Payable): $0 ($48,038) ($59,664) ($64,548) ($90,228) ($97,188) ($105,828) ($198,948) ($177,828)
Production Costs $ (20,000) ($44,229) ($44,229) ($44,813) ($52,479) ($52,479) ($57,479) ($57,479) ($57,479) ($57,479)
Payroll ($56,542) ($56,542) ($73,792) ($73,792) ($73,792) ($73,792) ($73,792) ($73,792) ($73,792)
* Office Establishment Fixed Assets $ (42,000) $ (26,400)
Other G&A Costs (includes shipping) ($18,277) ($19,269) ($21,686) ($23,876) ($24,470) ($25,207) ($33,319) ($31,518) ($36,135)
Talent Costs: ($7,753) ($8,722) ($9,129) ($11,269) ($11,849) ($12,569) ($20,329) ($18,569)
Net Funding Position: $ - $ 917,815 $ 839,932 $ 737,222 $ 635,122 $ 542,435 $ 450,655 $ 494,275 $ 404,143 $ 363,401
APPENDIX A.1
FUNDING TABLE (@ 50% Sales)
If we achieve just 50% of projected sales this is what it looks like.
Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16
Opening Cash/Cash Balance (Self Funding): $ 20,000
Beginning Monthly Cash Balance: $ - $ 917,815 $ 814,977 $ 697,838 $ 589,479 $ 473,400 $ 355,196 $ 300,995 $ 184,699
Investor Funding: $ 1,000,000
** Cash Receipts $78,863 $48,974 $52,983 $74,062 $79,775 $86,867 $163,303 $145,967 $161,530
Expense:
Product Expense (Vendor Payable): $0.0 ($24,019.2) ($29,832.0) ($32,274.0) ($45,114.0) ($48,594.0) ($52,914.0) ($99,474.0) ($88,914.0)
Production Costs $ (20,000) ($44,229) ($44,229) ($44,813) ($52,479) ($52,479) ($57,479) ($57,479) ($57,479) ($57,479)
Payroll ($56,542) ($56,542) ($73,792) ($73,792) ($73,792) ($73,792) ($73,792) ($73,792) ($73,792)
* Office Establishment Fixed Assets $ (42,000)
Other G&A Costs (includes shipping) ($18,277) ($19,269) ($21,686) ($23,876) ($24,470) ($25,207) ($33,319) ($31,518) ($36,135)
Talent Costs: ($7,753) $0 $0 $0 $0 $0 $0 $0
$ - $ 917,815 $ 814,977 $ 697,838 $ 589,479 $ 473,400 $ 355,196 $ 300,995 $ 184,699 $ 89,910
GOV’T SUPPORT
APPENDIX B
500,000-1million 1m-1.5million 1.5m-2.5million 2.5million+
iheartmakeup 700k 700,000clothesencounters 1m 1,000,000Camila Coehlo 2m 2,000,000Andreas Choice 3m 3,000,000
Maddi Bragg (810k) 810,000Evelina 1m 1,000,000Kalel 1.78m 1,780,000
Shameless Maya 580k 580,000FleurDeForce 1.2m 1,200,000sprinkleofglitter 2.2m 2,200,000Joey Graceffa 5m 5,000,000
Claire Marshall 750k 750,000Tess Christine 1.4m 1,400,000iJustine 2.3m 2,300,000Zoella 8.7m 8,700,000
ciaoobelllaxo 850k 850,000BeyondBeautyStar 1.1m 1,100,000JLovesMac1 1.9m 1,900,000Tanya Burr 3.1m 3,100,000
TiffanyRotheWorkouts 650k 650,000Niki and Gabi 1.7m 1,700,000DulceCandy87 1.9m 1,900,000Jim Chapman 2.3m 2,300,000
Chriselle Lim 510k 510,000NiinaSecrets 1.3m 1,300,000pixiwoo 1.8m 1,800,000StilaBabe09 3.6m 3,600,000
katliette 741k 741,000BarbiePahetaci 1.4m 1,400,000krazyrayray 1.8m 1,800,000Carli Bybel 3.1m 3,100,000
Charisma Star 610k 610,000Taciele Alcolea 1.4m 1,400,000shaaanxo 1.8m 1,800,000blogilates 2.5m 2,500,000
Fashionista804 600k 600,000 cutegirlshairstyles 2.3m 2,300,000bubzbeauty 2.9m 2,900,000
Strawberry17 980k 980,000 Kandee Johnson 2.1m 2,100,000iJustine 2.3m 2,300,000
Catrfic 640k 640,000 bubzbeauty 2.9m 2,900,000
Mandy Jiroux 610k 610,000 cutepolish 2.5m 2,500,000
ItsMyRayeRaye 856k 856,000 PointlessBlog 4.4m 4,400,000
ShirleyBeniang 578k 578,000 Mylifeaseva 3.5m 3,500,000
hollyannaeree 508k 508,000 cutiepiemarzia 3.6m 3,600,000
Makeuplocalypse 733k 733,000 Lilly Singh 6.1m 6,100,000
MayaMia 826k 826,000
BritPopPrincess 591k 591,000
APPENDIX C (subscriber base)
TALENT
BRANDS
DEA DIA Scotch & Soda Velvet Heart The Allflower CreativeAnna - DND Fashion IncChiara Ferragni FootwearKYYOTE Love by Diego BinettiALO Yoga The Fifth Label Groceries Rebecca MinkoffCovet + Keep Rehab Clothing Buffalo Jeans The Laundry Room Knitwit QupidMIG Apparel (BLANKNYC) Blue Life Tularosa LazyPants Hale BobZ & L English Factory Cameo the Label Numph Hidden Jeans United NudeJusthype LTD Ciel Elliatt Freeze Clover Canyon Jessica SimpsonELUX Noisy May Faithfull Bo-Bel Rebecca Minkoff uncommonLisa Todd The Crème Shop Finders Keepers LNA WILL Leather Goods Little MistressBoy Cherry Chree Glamorous Ted Baker London SuperGA - Steve MaddenPaper DollsSAMOE Cherimoya Isla_Co Beulah Style Chinese Laundry Girls on FilmEnewton Design Stella J.O.A. RE:Named Global Brands Group CIE LUXE BrandsMISCHA The BLVD Keepsake Lotus TitanIndustries Lineau Pellle CollectionA New Stop Nail Lovers + Friends Potters Pot Whitney Eve SAM.Prmitv World LA LA Misha Collection LUSH Latitudes Ramon TenzaDanish&Texas Manhattan Beach MLV BLACK The Classic Odd Molly skiesareblueclothingZEE.GEE.WHY Flying Monkey MVN See You Monday Fidelity Da Vinci of CaliforniaLIRA CRTV SCTV Paul & Joe Sister NYTT LUCE Kling Lennon & McCarthy TeesBLAQUE LABEL Cotton Citizen NBD PPLA Clothing American Blue Boy LondonEmu Australia Moon Collection Raga Drysdale Showroom Cala CoveriiPaul & Joe Sister Thread and Supply Rolla's Just USA Jeans Loomworks Valentine GoodsEleven Paris Nikibiki Sol Sana ark & co. Black or Chid Denim Tara 4779 JewelryBraintrophy Ben Amun Stevie May AMUSE Society e/l/o/n DistrictStela 9 Six Crisp Days T*Lulah Anna - DND Fashion IncFRNCH Happiness
Appendix DContemporary (200+)
Appendix D
BRANDS
Objects with out Meaning Abbot & Main Marida Jewerly Shield & Honor Rachel RuddickSilva Betro Simone Like Dreams Inc Cynthia Vincent Skin SwareTNBP Clothing One BXWD 35 Millimeter C. Luce SundryDENADADDESIGN Dylan George Velvet Heart Capri Blue Dress UpLAZULI Ecuador MY-KO I. Madeline Aspen Bay Candles Phyllis + RosieStill House Jewlery MY-KO I. Madeline Some Days Lovin Hail NailsElectric California Sloane Rouge Kling The Lost Girls Anna Kula DesignsALC See You Monday Desigual Paint It Red Annabel IngallRachel Zoe Nicky Hilton x LP Heather Hunt No More FreewayPepin Wonderland The Laundry Room Evil Twin Balsa 201Tbags Los Angeles Ya Los Angeles L'Etoile Sport Mink Pink IkumiDiane Von Furstenburg Ever Creatures Ted Baker Quirky Circus Buena OndaEquipment FrNch Kristen Elspeth State of Being Loopy MangoElle Sasson Coin 1804 Found Goods Mkt Vero Moda AcquaverdeHaute Hippie Azul by Moussy Miss Marisa Noisy May Rise of DawnJoie Capulet Kaanas Luana Italy LoloJoie Cotton Citizen Ben-Amun by I.M. Larsson & Jennings Blanca Monros GomezPam & Gela The Odells Benjamin Jay Milly Spitfire GirlTanya Taylor Rory Beca Ptakmoda Rebecca Minkoff Sunday SomewhereVince Rails Echtego Markus Lupfur CampbellVince Shoes Jachs New York Koral The Kooples Silke DeblerVince Shoes Once Was The Coverii Velvet Turquoise and TobaccoCaelum Girls on Film Wildfox Selin Kent One Six Five
Advanced Contemporary (200+)
Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16Previous Month Ending
Balance: $1,000,000 $917,815 $839,932 $739,422 $637,322 $544,635 $459,655 $503,275 $413,143 $388,301 $416,788 $468,355 $428,898 $403,490 Receipts (STRIPE net receipts) $0 $80,064 $99,440 $107,580 $150,380 $161,980 $176,380 $331,580 $296,380 $327,980 $350,980 $472,020 $459,860 $490,260 $593,620 Receipt of Ad Revenue (Received Quarterly) $2,200 $6,800 $15,900 $75,000 $19,850 (Less Product Payments to Brands, 30 days) $0 ($48,038)($59,664) ($64,548)($90,228)($97,188)
($105,828)
($198,948)
($177,828)
($196,788)
($210,588) ($283,212)
($275,916) ($294,156)
(Less Stripe Fees 1.5%) ($1,201) ($1,492) ($1,614) ($2,256) ($2,430) ($2,646) ($4,974) ($4,446) ($4,920) ($5,265) ($7,080) ($6,898) ($7,354) ($8,904)DSC Seed Invesment in Preferred Stock $0
Purchase of Fixed Assets ($42,000) ($26,400)
Talent $0 $0 ($7,753) ($8,722) ($9,129)($11,269)($11,849)($12,569)($20,329)($18,569)($20,149)($21,299) ($27,351)($27,993) ($29,513)
Payroll $0 ($56,542)($56,542)($73,792) ($73,792)($73,792)($73,792)($73,792)($73,792)($73,792)($80,500)($80,500) ($93,438)($93,438) ($93,438)
Production Costs($20,00
0) ($44,229)($44,229)($44,813) ($52,479)($52,479)($57,479)($57,479)($57,479)($57,479)($57,479)($57,479) ($62,479)($62,479) ($62,479)Other G&A Costs (includes shipping) $0 ($18,277)($19,269)($21,686) ($23,876)($24,470)($25,207)($33,319)($31,518)($36,135)($37,312)($43,507) ($45,790)($48,488) ($54,263)
Net Cash Flow $0 $917,815 $839,932 $739,422 $637,322 $544,635 $459,655 $503,275 $413,143 $388,301 $416,788 $468,355 $428,898 $403,490 $454,358
Monthly Net Increase/Decrease in CF ($82,185)($77,883)
($100,510) ($102,100)($92,687)($84,980) $43,619 ($90,131)($24,842) $28,487 $51,567 ($39,457)($25,408) $50,868
CASH FLOW
APPENDIX E
• We are a community built on passion and the desire to share.
• We believe in good - what’s good for customers is also good for business, what’s good for our employees is good for our brands, and what’s good for the bottom line can be good for the planet.
• We are a millennial company in the way we think, what we believe, what we do, and why we do it.
• We aim to be one of the most trusted companies of our generation and our customer is key in us achieving this goal.
• We work with brands, talent, production, and individuals who share in the DSC vision;
– Let’s Make People Happy
A New Gen Company
THE TEAM
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