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World's Most Trusted
Source For Dating:
Your Friends
Social accountability dating
Trust

Stigma

Chemistry

Time

Private and confidential
Did you know….
63% of married couples found their mate through a friend (versus 20%
found online)
 Online dating is the third most popular on the Internet, followed by music
and gaming; 40 mil people in the U.S. use online dating sites
 64% of people say common interests are the most important factors
71% of those suffering from pre-date doubts use Facebook as a major
source of information
 Facebook applications are used to flirt with other people (e.g., 44% use
Word with Friends to flirt with people)

The SetMeUp platform allows you to meet your friends of
friends, allowing you to build relationships through people you
trust and have common interests
The market opportunity is attractive

$5.5 billion

$7 billion

Global market size for online/mobile
dating industry

Virtual goods through social media

54 million

40 million

Total number of single people
in the United States

18.5 months

People in the United States who
have tried online dating

42 months

Average length of courtship for
marriages that met online

Average length of courtship for
marriages that met offline

$239/year

64%

Average amount a customer
spends on a dating site per year
Source: Reuters; Herald News; PC World; Washington Post

Believe common interests are the
most important factor in
beginning a relationship
Get inside the minds of our target market…
Pain Type

Pain Points

Pain Killers

Stigma

• people who use online dating
are desperate

• leverage your own social
circles to build relationships

Trust

• people can’t be trusted on
online dating sites

• you’re on Facebook, not
an online dating site

Chemistry

• computers don’t set people
up…friends do

• you can only be set up
through your friends

Time

• messaging back & forth is a
waste of time

• post-connection lets you
get face-to-face quicker
Our web app

Our mobile app
How we acquire customers
Our target market
•Target

age is 18 to 26 (20 mil college
students, 4 mil graduate students)
•Can

not remember a time before cell
phones and the Internet
•Hungry

for ways to connect to people

students are active on
Facebook – check-ins, tags, likes, etc
(45 min daily use on Facebook)
•College

Go to market strategy

Phase 1 (within first year)
•College/university focus (soft

launch
in UGA), then top 20 college roll-out
•States such

as Florida, Georgia, Mass,
New York, Texas, and Illinois/Ohio
•Nationwide college/university rollout

Phase 2 (year two and beyond)
•Begin entry into non-college
ecosystems like companies
•Large

company ecosystems like GE,
Citigroup, Verizon, AT&T, BofA, JPM,
Wells Fargo, Coke, Pepsi, HP, EDS,
Disney, Accenture, Starbucks, etc.
Our test market was a huge success
…and manageable
marketing spend…

A good user traction…

662
396
8

34

285

801

912

1,014

$4,529

…has led to a low COCA
$4.48
FB Mkting
Campaign
$0.42 CPC
0.21% CTR

Our approach has been the key driver for success
• Recruited 12 interns (300 applicants)
• Advertised on Facebook
and one strategy manager (stipend)
• Intern competition
• Attended Student Organization Events
• Launch party (incl. corporate sponsors)
• Presented at two career fairs, 12
• Published in school newspaper after
classes, and 5 sororities/fraternities
only 4 days of being on campus (targets
• Led weekly intern competitions
40k students)
Our key advantage lies in our approach and
target market
Our key differentiators…

1

Company type

26-40
Customer Age

18-26

User interface mirrors the
experience on Facebook

4
Over 40+

Utilize friends’
recommendations (recos) to
drive connections

3

Generic
players

Focus on the college market
clusters; Under 26 age
crowd

2

Social
accountability
dating

Post connection enhances
user dating experience
Our revenue model is driven by premium
subscription fees and in-app purchases
Revenue
drivers

Key assumptions

Year 1

Year 2

Year 3

Year 4

Year 5

Total users

Facebook user base
College & graduation
student population

20K

200K

750K

3 mil

7.5 mil

1

Premium
subscription
fees

$7/month
4% free-to-paid
conversion rate

0

$64K

$504K

$4.7 mil

$15.9 mil

2

Date search
suggestions

$.40-$0.80 per referral
4-5% monthly usage

0

$20K

$190K

$1.7 mil

$5.7 mil

3

In-app
purchases

$2 per purchase
2-3% virtual good
conversion rate

0

$30K

$201K

$1.4 mil

$4.2 mil

0

$115K

$895K

$7.8 mil

$25.8 mil

Total
Date suggestions revenue stream is the key to a viral
revenue growth path
Our key select partners

Revenue arrangement

Post connection referral

10-12% commission on local deals Book a date; buy gifts
(Avg ~$65 per deal, yields $6-7/deal)
8-10% commission on local deals

Book a date; buy gifts

40 cents per dinner date booked

Book a dinner date

4-10% on all purchases

Book a picnic date; buy gift items

10 cents per movie date booked

Book a movie date

10% commission on items booked

Buy “after date” gift

Driving users to post connections will enhance our
viral revenue growth path
A staged approach leads to fast earnings growth
$

M

Key assumptions
 4% free-to-paid conversion rate
 Premium membership - $5-10 / month
 19 average connections per user
 Over 7 million users
 2-3% virtual goods conversion

Milestone #1: Product
development complete;
20K users; $2K revenue
bookings

Milestone #2: Lock-in
early adopters; 200K
users; focus on
nationwide college
students

Milestone #5: 7.5 million
users on System
Milestone #4: Reach
profitability; begin
process to scale business;
3 million users
Milestone #3: Breaks over
$1.3 million sales with
750K users and begin
targeting non-college
student market

$11.7M Profit

$3.2M

$ M

Key Business Levers and Drivers
 Total users
 Free-to-paid conversion rate
 Revenue per paid user per month

$14.1M Expenses

$7.8M

$0.9M
$0.1M
($0.8M)

$25.8M Revenue

$0.9M

$4.2M
$3.5M

($2.0M)

 Click-through rate
 Cost-per-click (Average)
 Average number of connections
If successful we’ll be of interest to the following
acquirers

Online dating
companies

Facebook platform

Mobile
companies

Why buy? Gain

Why buy? Extend product

Why buy? Owning a

competitive advantage and
take out threat

and/or service offerings

larger “share of wallet” of
customers

Exit timing: 4-5 years
Exit valuations have been attractive
Date

Amount
($ mil)

Value per
user

1

Sept 2012

$10 mil*

$21 / user

2

Oct 2011

$190 mil Not disclosed
(sold stake)

3

Dec 2010

$90 mil*

$25.7 / user

4

July 2009

$80 mil

$20 / user

5

Feb 2007

<$10 mil

~$20 / user

6

July 2005

$29 mil

Not disclosed

Acquiree

*Includes earn out and deferred compensation
**Company estimates

Purchaser
Exit value, etc
In five years, we can expect to sell for over
$200 million in market value

We will need $400K in Seed B capital

Seed B Capital: $400K

~$200-$250 mill
Key assumptions
 7.5 million accounts
 4% free-to-paid conversion
 Avg $7 per month (premium
membership)
 $2 avg price for virtual goods
 3% conversion rate for virtual
goods sales
 $.40-$0.80 per date referral; 45% monthly usage

G&A
Marketing
Technology
development
World's Most Trusted
Source For Dating:
Your Friends
Social accountability dating
Trust

Stigma

Chemistry

Time

Private and confidential
Our team has the unique combination of relationship
psychology, technology, and online marketing
experience

Jay Wadhwani
Co-founder & CEO

Abhishek Jain
Co-founder &
Director

Monica Ohara
Online marketing

Francis Cruz
Outreach/Recruit

Kelby Barbosa
Graphic
Designer

Elliot Volkman
Social Media

Ty Hill
Operations

Maranda Donato
Blogger / PR
Our Indian outsourced team developed the online and
mobile applications

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Set meup company presentation v8 present

  • 1. World's Most Trusted Source For Dating: Your Friends Social accountability dating Trust Stigma Chemistry Time Private and confidential
  • 2. Did you know…. 63% of married couples found their mate through a friend (versus 20% found online)  Online dating is the third most popular on the Internet, followed by music and gaming; 40 mil people in the U.S. use online dating sites  64% of people say common interests are the most important factors 71% of those suffering from pre-date doubts use Facebook as a major source of information  Facebook applications are used to flirt with other people (e.g., 44% use Word with Friends to flirt with people) The SetMeUp platform allows you to meet your friends of friends, allowing you to build relationships through people you trust and have common interests
  • 3. The market opportunity is attractive $5.5 billion $7 billion Global market size for online/mobile dating industry Virtual goods through social media 54 million 40 million Total number of single people in the United States 18.5 months People in the United States who have tried online dating 42 months Average length of courtship for marriages that met online Average length of courtship for marriages that met offline $239/year 64% Average amount a customer spends on a dating site per year Source: Reuters; Herald News; PC World; Washington Post Believe common interests are the most important factor in beginning a relationship
  • 4. Get inside the minds of our target market… Pain Type Pain Points Pain Killers Stigma • people who use online dating are desperate • leverage your own social circles to build relationships Trust • people can’t be trusted on online dating sites • you’re on Facebook, not an online dating site Chemistry • computers don’t set people up…friends do • you can only be set up through your friends Time • messaging back & forth is a waste of time • post-connection lets you get face-to-face quicker
  • 5. Our web app Our mobile app
  • 6. How we acquire customers Our target market •Target age is 18 to 26 (20 mil college students, 4 mil graduate students) •Can not remember a time before cell phones and the Internet •Hungry for ways to connect to people students are active on Facebook – check-ins, tags, likes, etc (45 min daily use on Facebook) •College Go to market strategy Phase 1 (within first year) •College/university focus (soft launch in UGA), then top 20 college roll-out •States such as Florida, Georgia, Mass, New York, Texas, and Illinois/Ohio •Nationwide college/university rollout Phase 2 (year two and beyond) •Begin entry into non-college ecosystems like companies •Large company ecosystems like GE, Citigroup, Verizon, AT&T, BofA, JPM, Wells Fargo, Coke, Pepsi, HP, EDS, Disney, Accenture, Starbucks, etc.
  • 7. Our test market was a huge success …and manageable marketing spend… A good user traction… 662 396 8 34 285 801 912 1,014 $4,529 …has led to a low COCA $4.48 FB Mkting Campaign $0.42 CPC 0.21% CTR Our approach has been the key driver for success • Recruited 12 interns (300 applicants) • Advertised on Facebook and one strategy manager (stipend) • Intern competition • Attended Student Organization Events • Launch party (incl. corporate sponsors) • Presented at two career fairs, 12 • Published in school newspaper after classes, and 5 sororities/fraternities only 4 days of being on campus (targets • Led weekly intern competitions 40k students)
  • 8. Our key advantage lies in our approach and target market Our key differentiators… 1 Company type 26-40 Customer Age 18-26 User interface mirrors the experience on Facebook 4 Over 40+ Utilize friends’ recommendations (recos) to drive connections 3 Generic players Focus on the college market clusters; Under 26 age crowd 2 Social accountability dating Post connection enhances user dating experience
  • 9. Our revenue model is driven by premium subscription fees and in-app purchases Revenue drivers Key assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Total users Facebook user base College & graduation student population 20K 200K 750K 3 mil 7.5 mil 1 Premium subscription fees $7/month 4% free-to-paid conversion rate 0 $64K $504K $4.7 mil $15.9 mil 2 Date search suggestions $.40-$0.80 per referral 4-5% monthly usage 0 $20K $190K $1.7 mil $5.7 mil 3 In-app purchases $2 per purchase 2-3% virtual good conversion rate 0 $30K $201K $1.4 mil $4.2 mil 0 $115K $895K $7.8 mil $25.8 mil Total
  • 10. Date suggestions revenue stream is the key to a viral revenue growth path Our key select partners Revenue arrangement Post connection referral 10-12% commission on local deals Book a date; buy gifts (Avg ~$65 per deal, yields $6-7/deal) 8-10% commission on local deals Book a date; buy gifts 40 cents per dinner date booked Book a dinner date 4-10% on all purchases Book a picnic date; buy gift items 10 cents per movie date booked Book a movie date 10% commission on items booked Buy “after date” gift Driving users to post connections will enhance our viral revenue growth path
  • 11. A staged approach leads to fast earnings growth $ M Key assumptions  4% free-to-paid conversion rate  Premium membership - $5-10 / month  19 average connections per user  Over 7 million users  2-3% virtual goods conversion Milestone #1: Product development complete; 20K users; $2K revenue bookings Milestone #2: Lock-in early adopters; 200K users; focus on nationwide college students Milestone #5: 7.5 million users on System Milestone #4: Reach profitability; begin process to scale business; 3 million users Milestone #3: Breaks over $1.3 million sales with 750K users and begin targeting non-college student market $11.7M Profit $3.2M $ M Key Business Levers and Drivers  Total users  Free-to-paid conversion rate  Revenue per paid user per month $14.1M Expenses $7.8M $0.9M $0.1M ($0.8M) $25.8M Revenue $0.9M $4.2M $3.5M ($2.0M)  Click-through rate  Cost-per-click (Average)  Average number of connections
  • 12. If successful we’ll be of interest to the following acquirers Online dating companies Facebook platform Mobile companies Why buy? Gain Why buy? Extend product Why buy? Owning a competitive advantage and take out threat and/or service offerings larger “share of wallet” of customers Exit timing: 4-5 years
  • 13. Exit valuations have been attractive Date Amount ($ mil) Value per user 1 Sept 2012 $10 mil* $21 / user 2 Oct 2011 $190 mil Not disclosed (sold stake) 3 Dec 2010 $90 mil* $25.7 / user 4 July 2009 $80 mil $20 / user 5 Feb 2007 <$10 mil ~$20 / user 6 July 2005 $29 mil Not disclosed Acquiree *Includes earn out and deferred compensation **Company estimates Purchaser
  • 14. Exit value, etc In five years, we can expect to sell for over $200 million in market value We will need $400K in Seed B capital Seed B Capital: $400K ~$200-$250 mill Key assumptions  7.5 million accounts  4% free-to-paid conversion  Avg $7 per month (premium membership)  $2 avg price for virtual goods  3% conversion rate for virtual goods sales  $.40-$0.80 per date referral; 45% monthly usage G&A Marketing Technology development
  • 15. World's Most Trusted Source For Dating: Your Friends Social accountability dating Trust Stigma Chemistry Time Private and confidential
  • 16. Our team has the unique combination of relationship psychology, technology, and online marketing experience Jay Wadhwani Co-founder & CEO Abhishek Jain Co-founder & Director Monica Ohara Online marketing Francis Cruz Outreach/Recruit Kelby Barbosa Graphic Designer Elliot Volkman Social Media Ty Hill Operations Maranda Donato Blogger / PR
  • 17. Our Indian outsourced team developed the online and mobile applications