EmotionIPRO354FinalPresentationSp09 - Share.iit

eMotion™
Connecting people wirelessly
“Tween”
Best Friends Forever
“BFF”
Problem
Talking
On
to
computer
thisyour
person?
Do
youthe
think
child
is safe at home….
Problem
Solution
Solution
Solution
Solution
Link
Sync
. . . BFFs Added!
Send/Receive and more…
…
GirlTalk
Agata’s
Gemz
BFF Shout-outs
Jessica’s
Gemz
:::
Shop BFF<3
Sara’s
Gemz
Send/Receive and more…
…
GirlTalk
Agata’s
Gemz
•Profile
•Chat
•Customize
messages
BFF Shout-outs
Jessica’s
Gemz
:::
Shop BFF<3
Sara’s
Gemz
Current Status
eMotion’s
Tween Council
Team eMotion
Startup
Resources
Advisors
Avelo Roy
Ed Suda
Product
Development
Operations
Marketing
Prof. Jim Braband Prof. Vida Winans Dr. David Pistrui Dr. Dennis Roberson Nik Rokop
Prof. John Stoner Louise Howson
Angel Investor &
Faculty Advisor
Managing Director, Ex CTO, Motorola
Executive
President & CEO Legal Advisor
Accumen Dynamics, LLC
nLake
Technology
Partners
(Technical)
Faculty Advisor
Liz Claiborne
Associate Provost,
(Business)
Illinois Institute of Technology
Rick Mazursky
Amy Francetic
Serial CEO
Entrepreneur & VC
Future CEO
Alexis
Johannes
Laurence Morath
Max
Whitney
Graziano Horn
Alex
Segre
Shannon
Ludden
Zak
Estrada
Dan
Votipka
Anica
Jovanova
Market
Analyst
Mfg liaison Market
Analyst
Technical
Manager
Electrical
Engineer
Software
Developer
Software
Developer
Web Project
Manager
Market
researcher
Nirali Patel
Web
Designer
Daddy, I need to borrow
$30,000,000,000.00
+
= 60%
MarketResearch.com, Inc., The U.S. Tweens and Young Teens Market, 9th ed. 2008.
Belonging
Fun
Independence
LAW OF FEW
10% INFLUENCE PURCHASING
BEHAVIOR OF OTHER 90%
22
Traditional Media
Viral Marketing
CREATING
BUZZ
eMotion’s
Tween Council
Distribution Channel
Chicago-area Specialty Stores
Tween Market
Competitors
Age
Why eMotion?
Fundraising
R&D
Recruiting
Web
Financials
Year 1
Year 2
Year 3
Units Sold
Necklace Units
Faceplates
BFF Notes
Premium Web
Revenue
Necklace Units
Faceplates
BFF Notes
Premium Web
Gross Profit
Net Income
2K
3K
22 K
0 K
69 K
295 K
98 K
9K
267 K
1,665 K
154 K
86 K
$117 K
$3,312 K
$18,960 K
$54 K
$16.5 K
$48 K
$0 K
$1,511 K
$1,574 K
$187 K
$79 K
$7,144 K
$11,088 K
$339 K
$777 K
$78 K
-$62.5 K
$2,757 K
$1,432 K
$16,280 K
$9,946 K
Investment
Investment Year 1: $800,000
Website
Development
$90,000
Manufacturing
$280,000
Marketing,
$180,000
Operating
costs,
$250,000
Investment Year 2: $1,500,000
Website
Development
$160,000
Marketing,
$510,000
Manufacturing
$420,000
Operating
costs,
$410,000
Estimated Pre-money
Valuation: Phase 1
$1,200,000
+$800 k investment
Phase 2
+$1,500 k investment
5 year exit: Acquisition
Spring ‘09
What a girl wants…
Tech Obstacles & Mitigations
Obstacle
Mitigation
RF Protocol
CSMA Protocol Implemented
Synchronize Protocol
3 Stage Secure Sync
Desktop Connection
USB Connection established
PCB Design
5th Revision Completed
Tech Team (Hardware)
Microcontroller
•USB
•Security
•Battery Charging
Antenna Design
Coin Motor
Silicone keypad
Tech Team (Hardware cnt’d)
PCB
•Design
•Single board
•I/O on one side
LEDs
Battery
Contact in China
Bfflessthan3.com
Draw a Secret
Technology
Minimal Investment
• $15,000
– Equity based on first $100k+ investment
– Drawings & Prototypes
• $50,000
– Equity based on first $100k+ investment
– Prototypes, Beta-test, Prototypes 2.0
• $100,000+
– Let’s talk
– Prototypes, Beta-test, Prototypes 2.0, 1st
Production run
Conclusion
•
•
•
•
•
•
Problem
Strong understanding of mkt & demand
Solution validated by Parents and Tweens
Solution done cost-effectively
Validated by retailers
Looking for investment
BFF<3
MatchMe
BFF<3
Teen
MatchMe
Teen
Life Buddy
Europe
Canada
Family
Autistic
Tween
BFF Notes
BFF<3
Canada
BFF<3
BFF Dragon
MatchMe
Autistic Asia
Europe
Life Buddy
Asia
Life Buddy
Teen
Lady’s Night Out
Australia
Tween
Canada
Tween
Australia
Asia
Family
Lady’s Night Out
Europe
BFF Dragon
Life Buddy
Australia
Life Buddy
Lady’s Night Out
BFF Family
Asia
Autistic
BFF Notes
Family
Canada
BFF Notes
Security
Draw a Secret
Exit Strategy Online purchase
Future Growth
Cell phone
Bfflessthan3.com
Webkinz adoption
Tween Money
They get what they want !!!
Security
•
•
•
•
•
Online friends must be added face-to-face
Color-based cryptic messages
Necklace and password needed to log in
Draw-a-secret Technology
Weekly update for parents
Draw a secret
Preselected
Background
Color
Palette
“Draw a secret”
Bfflessthan3.com
Draw a Secret
Technology
Many Kids Make Online Purchases
“According to a national survey of 8- to 14-year-olds
conducted in July 2007 by the Ringwood, New
Jersey-based market research firm Stars for Kidz,
buying online has become routine for many kids. The
survey found that 77% of kids in this age group have
completed online transactions, with 56% of kids
buying online as a way to help out their mom with
online shopping chores. The most popular payment
methods are to ask someone to complete the order for
them, use a gift card, or use their parents’ credit
cards.”
Dec-08
Oct-08
Aug-08
Jun-08
Apr-08
Feb-08
Dec-07
Oct-07
Aug-07
Jun-07
Apr-07
Feb-07
Dec-06
Oct-06
Aug-06
Jun-06
Apr-06
Feb-06
Dec-05
Oct-05
Aug-05
Jun-05
Apr-05
Thousands
Webkinz Adoption
Unique Webkinz Users
8000
7000
6000
5000
4000
Unique Webkinz Users
3000
2000
1000
0
Future of BFF<3 Necklace
• Partnering with
– Girl Scouts
– American Girl
– Build-a- Bear
•
•
•
•
Direct marketing
Product placement
Touch Screen
Draw a secret
Why Not Cell Phones
Cell phone charges can include:
•
•
•
•
Up to 45 cents a minute for additional minutes over your rate plan
About $.99 to $2.50 for a ringtone
Downloadable games for about $.99 to $3.99 each
1 cent per kilobyte for using the internet on your phone
Where do they get all that money?
They get What they want
Strategy
• Acquisition
–
–
–
–
Build-a-Bear
Facebook
MySpace
Mattel
• Sell existing stake
• Sell off technologies
Profile: Oak Park, IL
•
•
•
•
Population: 50,824
Tweens: 2,514
# of public elementary schools: 7
# of public middle schools: 2
Oak Park Ethnicity Dist.
5% 0%
4%
2%
White
African American
22%
Hispanic
69%
Native American
Asian/Pacific
Other