Joanne Chen | Michael D’Orazio | Victor Ho | Alan Rutledge April 20, 2007
Mint: Save Time & Money Transactions List of detailed transactions grouped my category All assets All debt Current net worth Tags, to customize transactions into folders Line graph plotting spending over time •
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Goals List of goals Current net worth allocated to goals How much of goal is achieved All assets All debt Current net worth Notes
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Team & Advisors Aaron Patzer
Lead Architect , Nascentric (chip simulation software)
CEO & Founder
Founder , GetAWebsite (search engine optimization)
David Michaels
Director of Technology , ShockMarket Corporation
VP Engineering
Director of Engineering , PGP (security software)
Dave McClure
Director of Marketing , PayPal (micro-payments)
Director Marketing
Director of Marketing , Simply Hired (job search)
Jason Putorti Lead Designer
CTO & Founder , Novaroura (acquired by FittingGroup) Co-Founder , Six Madison (anti-fraud SAS)
Investors & Advisors First Round Capital, Felicis Ventures, Ron Conway, Scott Cook (Intuit Founder & CEO) 3
Marke kett Si Size - US 49 Million People
31 Million Prospective
22 to 35 age range
Mint Users
64% of target demographic use online banking
Referrals (CPA)
Advertising (CPC)
$8 RPU per year w/ 14% CAGR
$4.50 RPU per year w/ 22% CAGR
Conversion
CPA
Referral
Data to Leverage
0.75%
$50.00
Savings Accounts
Zip Code (feasibly: School or Workplace)
1.00%
$75.00
Internet
Age (feasibly: Gender)
0.50%
$75.00
Credit Cards
Income (propensity to spend)
0.25%
$50.00
Cell Phone
Where and when you shop
0.10%
$200.00
Bank Accounts
What brands you buy
$388 Million Total Addressable Market Opportunity w/ 16% CAGR 4
Competitors Key Competitor: Wesabe •
Potential Entrants • Develop simple, easy-to-
No revenue revenue model model – Free Freemium mium
use, free personal finance online application to cater to mainstream
Community based Community based - limited source of information from “wisdom of the crowds” •
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Poor traction
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Unspecific suggestions
• Acqu Acquire ire Wesab Wesabe e or similar online application
Mint’s Comp. Advantages
Mint’s Defensibility
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User-specific saving opportunities
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High service switching costs
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Compelling AI-based auto-sorting
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3 non-pending technology patents
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Easy and intuitive user interface
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Integration partnerships (TurboTax )
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Value to User f o Easily tracks and logs e e s s U data from multiple sites a E s t s o C s t i f e n e B
Free to use; Automated billing and categorization
Saves time Save money
Finance Software
Online Banking
Finance Social Networks
Steep learning curve; UI cluttered with excessive features
Inconsistent layout; difficult to aggregate other sites
Intuitive interfaces; simplified features
Required initial investment and update fees
Integrated with bank account and bill pay
Users must contribute to add value
Powerful feature set for keeping finances organized
International presence; strong advertiser network, existing users
Low quality usergenerated advice
Mint offers the most m ost compelling and easy way to manage your personal finances. 6
Value to Partners Prospective Partner
Product or Service
Customer Acquisition Cost1
Mint Referral
Value Proposition
Wamu
Savings Accounts
$200.00
$50.00
$150.00
Comcast
Internet
$200.00
$75.00
$125.00
Capital One
Credit Cards
$150.00
$75.00
$75.00
Cingular
Cell Phone
$325.00
$50.00
$275.00
Wells Fargo
Bank Accounts
$175.00
$125.00
$50.00
E-Trade
Brokerage Accounts
$475.00
$100.00
$375.00
Blue Cross
Insurance
$225.00
$100.00
$125.00
Bank of America
Mortgage
$550.00
$325.00
$225.00
Partners can increase revenue via cost-effect customer acquisition 1. http://www.emetrics.org/articles/acquisition.shtml
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User Acquisition Launch
Growth
Maturity
Word of mouth & viral, Blogosphere referral badges, sharable website tags
Direct email
Distribution partners
Internet advertising
• Targe Targeted ted opt-in opt-in email lists lists
• Affil Affiliate iate networ networks ks
• Ove Overtur rture e + Adwords
• Colle College ge list list serves serves
• Mutua Mutuall linking linking sites sites
• Sympos Symposium ium & events • Person Personal al finance finance lists lists
PR • Buzz market marketing ing
SEO
• Comp Company any blo blog g
• Org Organi anic c search search
• PR tac tactics tics
• Optimiz Optimized ed page page markup markup
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Business Model User Acquisition
Gather User Information
Intelligent Suggestions
User Switches = Referral Fee
From
Includes
Based On
Fee Types
• Adv Advert ertisin ising g
• Acc Account ount Types Types
• His Histo tory ry
• Ban Bank k Account Account
• E-m E-mai aill
• Spend Spending ing Pattern Patterns s
• Us Usag age e
• Cred Credit it Card Card
• Viral Mark Marketing eting
• Credit Histo History ry
• Spend Spending ing Habits
• Cell Phone Phone Carrier Carrier
• Dist Distrib ributi ution on Partners
• Dem Demogra ographi phics cs and Preferences
• Curr Current ent Market Market Deals/Rates
• ISP • Lo Loa an
Mint makes money when users make money rather than relying on creating value through added services Future Potential: Advertising Large expected user base
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High quality user data
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Premium targeted ads
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High Profit Potential 9
Financials 2007 T ota l U se rs Referrals C r e d it C a r d s S a ving s A c co un ts B a n k A c co u nts I nte rne t S er vi ce P ro vider C e ll P h on e T arg ete d A dv er tisin g T ot al R e ven u e
Assumptions Investmen t Stake Hurdle Rate
Projected Year Ending December 31, 2 008 20 0 9 201 0
10 0 .0
18 0. 0
30 9 .6
5 10 .2
$5 6 .3 5 0 .0 3 0 .0 9 7 .5 1 7 .5 50 0 .0 $ 75 1 .3
$ 11 1. 4 10 1. 3 6 2. 1 19 3. 1 3 3. 3 1,0 1 2.5 $1 $1,5 1 3.6
$ 21 0 .7 19 5 .9 12 2 .8 36 5 .3 6 0 .4 1, 95 9 .2 $2 $2, 91 4 .3
$3 $ 3 82 .0 3 63 .2 2 32 .8 6 62 .1 10 1 04 .6 3 ,6 32 .3 $5 ,3 77 .1
S a le s a nd Ma rk e tin g E x p en se
22 5 .4
30 2. 7
29 1 .4
2 68 .9
General and Administrative Administrative Expense
300.0
54 4. 0
94 2 .7
1 ,5 65 .3
R e se a rch a nd D ev elop m en t E xpe n se EBIT
18 7 .8 $38.1
34 0. 6 $326.3
59 0 .1 $1,090.1
9 80 .0 $2,562.9
Expected Earnings
$ 3.0M 1 5% 5%
IRR: 25%
Revenue by Source 5.0
$5.0
4.5 $4.0
4.0
) s $3.0 n o i l l i M ( $2.0
)3.5 s n 3.0 o i l l i 2.5 M ( s2.0 r a l l 1.5 o D 1.0
s r a l l o $1.0 D
$0.0
0.5 2007
2008
2009
2010 0.0
($1.0) Dow ns ide
Ex pec ted
Ups ide
2007 Target ed Ad Adv er ertising
2008 Sav ings Ac Acc ou ount s
Cr edit Ca Car ds ds
2009 Bank Ac Ac co counts
2010 Cell Phone
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Exit Strategy
Allows Google entrance into personal finance industry by providing simple, free application
Low switching costs for current product set; desire to increase lock-in
Expand personal finance presence by bringing personal finance software to mainstream
Expand personal finance presence by bringing personal finance software to mainstream
More targeted advertising; increased customer lock-in
More targeted advertising; increased customer lock-in
Increase product upsell; augment patented technology
Integration with MS Money by providing online interface
Seamless integration with Google Finance site
Seamless integration with Yahoo Finance site
Integration with Quicken by providing online interface
Increase product upsell; augment patented technology
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Q&A Product
Product Comparisons
Team
Alternative Revenue Revenue Streams
Market Size
Management Expertise
Value to Users
Potential Acquirers
Business Model
5-Year Revenue Projections
User Acquisition Financials Acquirers Risks & Precautions
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Risks & Precautions Risks Low barriers to entry; new competitors
Lack of user commitment
Low user referral rate
Existing competitors adding similar features
Slow initial growth
Mitigate
Precautions Develop name brand to assure high market penetration and growth rates; patent proprietary technologies Leverage high value, low time investment proposition for users; develop user community
Push high monetary value of utilizing suggestions; offer multiple choices Technology patents filed; feature set would be difficult to integrate with a boxed product Utilize management team’s superior know-how and clear viral marketing potential to ensure growth
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Competitive Response Microsoft
Result
Attempts to copy MyMint’s website and business model
Delays Microsoft market entry and increases costs
Leverages brand name and market reach
User base safe, competition for new users may occur
Extensive experience and software specialization
No advantage
Synergies with current software such as Quicken
MyMint offe MyMint offers rs a unique product
MyMint Enforce patent protection of proprietary technology
Satisfied users have little incentive to switch
Highly experienced management team
Technology extends beyond reach of existing software
Defensibility 14
Financial Assumptions User Base Adoption Rate
1 2 3 Referrals Credit Cards
80.0% 80.0% 80.0% 100.0%
72.0% 68.0% 72.0% 90.0%
64.8% 57.8% 64.8% 81.0%
Step (15.0%) (10.0%) (10.0%)
1 2 3
0.75% 0.50% 0.75% 1.00%
0.83% 0.55% 0.83% 1.10%
0.91% 0.61% 0.91% 1.21%
1.00% 0.67% 1.00% 1.33%
Step 10.0% 10.0% 10.0%
1 2 3
1.00% 0.75% 1.00% 1.25%
1.13% 0.83% 1.13% 1.44%
1.27% 0.91% 1.27% 1.65%
1.42% 1.00% 1.42% 1.90%
Step 10.0% 12.5% 15.0%
1 2 3
0.15% 0.10% 0.15% 0.20%
0.17% 0.12% 0.17% 0.23%
0.20% 0.13% 0.20% 0.26%
0.23% 0.15% 0.23% 0.30%
Step 15.0% 15.0% 15.0%
1 2 3
1.3% 1.0% 1.3% 1.6%
1.4% 1.1% 1.4% 1.8%
1.6% 1.2% 1.6% 1.9%
1.7% 1.3% 1.7% 2.1%
Step 10.0% 10.0% 10.0%
1 2 3
0.35% 0.25% 0.35% 0.45%
0.37% 0.25% 0.37% 0.45%
0.39% 0.25% 0.39% 0.45%
0.41% 0.25% 0.41% 0.45%
Step (15.0%) (10.0%) (10.0%)
1 2 3
$5.0 $5.0 $5.0 $5.0
$5.6 $5.5 $5.6 $5.8
$6.3 $6.1 $6.3 $6.6
$7.1 $6.7 $7.1 $7.6
30.0%
20.0%
10.0%
5.0%
39.9%
35.9%
32.3%
29.1%
(10.0%)
25.0% 25.0% 25.0% 25.0%
22.5% 23.8% 22.5% 21.3%
20.3% 22.6% 20.3% 18.1%
18.2% 21.4% 18.2% 15.4%
Step (5.0%) (10.0%) (15.0%)
Savings Accounts
Bank Accounts
Internet Service Provider
Cell Phone
Advertising Targeted Advertising Advertising
Costs Sales and Marketing Expense General and Administrative Expense Research and Development Expense 1 2 3
Step 10.0% 12.5% 15.0%
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Exit Calculation Multiples Analysis for MyMint Dollars in Millions (MyMint in Thousands)
Company P lan et Ou t. inc D e a lerT ra c k S y n c h r o n o s s T e c h n o lo g i e s
Ticker LG B T TR A K SNCR
Enterprise Value $ 61 .9 $9 40 .2 $4 90 .8
2007 Sales $76 .0 $ 219 .8 $ 101 .8
2007 EBIT ($ 7.2 ) $ 5 7.3 $ 2 4.0 1 2 3 4
MyMint S a le s E B IT Cash Flows Reinvested IRR
2 00 7 7 5 1. 3 3 8. 1 (3,000) 25%
2 00 8 1 ,5 13. 6 3 2 6. 3 1 $49
2 0 09 2 ,9 14 .3 1 ,0 90 .1 2 $164
201 0 5 ,3 77 .1 2, 2,5 62 .9 3 $6,259
20 1 1 20 12 9 ,5 32 .4 1 6, 278 .8 4 ,9 94 .7 9, 223 .1 4 5 $0 $0
EV/Sales .8 x 4 .3 x 4 .8 x
EV/EBIT N /A 1 6. 4x 2 0. 5x
4 .8 x 3 .3 x 4 .3 x .8 x
2 0. 5x 9. 4x 1 6. 4x N /A
High igh Avera Average ge Medi Median an Low
Sales Year Method Assumptions I nv nv es es tm tm en ent S ta ke H u r d le R a t e
3 1
$ 3. 3.0 M 15 % 5%
EV $25,914 $52,414 Average E $39,164
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