Professional Documents
Culture Documents
Goals
List of goals Current net worth allocated to goals How much of goal is achieved All assets All debt Current net worth Notes
David Michaels
VP Engineering
Dave McClure
Director Marketing
Jason Putorti
Lead Designer
Market Size - US
49 Million People
22 to 35 age range
Referrals (CPA)
$8 RPU per year w/ 14% CAGR
Conversion 0.75% 1.00% 0.50% 0.25% 0.10% CPA $50.00 $75.00 $75.00 $50.00 $200.00 Referral Savings Accounts Internet Credit Cards Cell Phone Bank Accounts
Advertising (CPC)
$4.50 RPU per year w/ 22% CAGR
Data to Leverage Zip Code (feasibly: School or Workplace) Age (feasibly: Gender) Income (propensity to spend) Where and when you shop What brands you buy
Competitors
Key Competitor: Wesabe
No revenue model Freemium Community based - limited source of information from wisdom of the crowds Poor traction Unspecific suggestions
Potential Entrants
Develop simple, easy-to-
use, free personal finance online application to cater to mainstream Acquire Wesabe or similar online application
Mints Defensibility
High service switching costs 3 non-pending technology patents Integration partnerships (TurboTax)
Value to User
Finance Software Ease of Use
Easily tracks and logs data from multiple sites
Steep learning curve; UI cluttered with excessive features
Online Banking
Inconsistent layout; difficult to aggregate other sites
Costs
Benefits
Mint offers the most compelling and easy way to manage your personal finances.
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Value to Partners
Prospective Partner
Wamu Comcast Capital One Cingular Wells Fargo E-Trade Blue Cross Bank of America
Product or Service
Savings Accounts Internet Credit Cards Cell Phone Bank Accounts Brokerage Accounts Insurance Mortgage
Mint Referral
$50.00 $75.00 $75.00 $50.00 $125.00 $100.00 $100.00 $325.00
Value Proposition
$150.00 $125.00 $75.00 $275.00 $50.00 $375.00 $125.00 $225.00
User Acquisition
Launch Growth Maturity
Word of mouth & viral, Blogosphere referral badges, sharable website tags
Direct email
Targeted opt-in email lists College list serves Symposium & events Personal finance lists
Distribution partners
Affiliate networks Mutual linking sites
Internet advertising
Overture + Adwords
PR
Buzz marketing
SEO
Organic search Optimized page markup
Business Model
User Acquisition Gather User Information Intelligent Suggestions User Switches = Referral Fee
From
Advertising E-mail Viral Marketing Distribution Partners
Includes
Account Types Spending Patterns Credit History Demographics and Preferences
Based On
History Usage Spending Habits Current Market Deals/Rates
Fee Types
Bank Account Credit Card Cell Phone Carrier ISP Loan
Mint makes money when users make money rather than relying on creating value through added services Future Potential: Advertising
Large expected user base
Financials
2007 Total Users Referrals Credit Cards Savings Accounts Bank Accounts Internet Service Provider Cell Phone Targeted Advertising Total Revenue Sales and Marketing Expense General and Administrative Expense Research and Development Expense EBIT
Expected Earnings
$5.0 5.0 4.5 $4.0 4.0
Projected Year Ending December 31, 2008 2009 2010 180.0 $111.4 101.3 62.1 193.1 33.3 1,012.5 $1,513.6 302.7 544.0 340.6 $326.3 309.6 $210.7 195.9 122.8 365.3 60.4 1,959.2 $2,914.3 291.4 942.7 590.1 $1,090.1 510.2 $382.0 363.2 232.8 662.1 104.6 3,632.3 $5,377.1 268.9 1,565.3 980.0 $2,562.9
100.0 $56.3 50.0 30.0 97.5 17.5 500.0 $751.3 225.4 300.0 187.8 $38.1
$3.0M 15% 5%
IRR: 25%
Revenue by Source
Dollars (Millions)
$3.0
Dollars (Millions)
2007 2008 2009 2010
$2.0
$1.0
$0.0
0.5 0.0
Credit Cards
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Exit Strategy
Allows Google entrance into personal finance industry by providing simple, free application More targeted advertising; increased customer lock-in
Low switching costs for current product set; desire to increase lock-in
Expand personal finance presence by bringing personal finance software to mainstream Increase product upsell; augment patented technology
Expand personal finance presence by bringing personal finance software to mainstream Integration with MS Money by providing online interface
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Q&A
Product Team Market Size Value to Users Business Model User Acquisition Financials Acquirers Risks & Precautions Product Comparisons Alternative Revenue Streams Management Expertise Potential Acquirers 5-Year Revenue Projections
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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 teams superior know-how and clear viral marketing potential to ensure growth
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Competitive Response
Microsoft
Attempts to copy MyMints website and business model
Result
Delays Microsoft market entry and increases costs User base safe, competition for new users may occur
MyMint
Enforce patent protection of proprietary technology
No advantage
Defensibility
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Financial Assumptions
User Base Adoption Rate 1 2 3 Referrals Credit Cards 1 2 3 Savings Accounts 1 2 3 Bank Accounts 1 2 3 Internet Service Provider 1 2 3 Cell Phone 1 2 3 Advertising Targeted Advertising 1 2 3 Costs Sales and Marketing Expense General and Administrative Expense Research and Development Expense 1 2 3 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%) 0.75% 0.50% 0.75% 1.00% 1.00% 0.75% 1.00% 1.25% 0.15% 0.10% 0.15% 0.20% 1.3% 1.0% 1.3% 1.6% 0.35% 0.25% 0.35% 0.45% $5.0 $5.0 $5.0 $5.0 30.0% 39.9% 25.0% 25.0% 25.0% 25.0% 0.83% 0.55% 0.83% 1.10% 1.13% 0.83% 1.13% 1.44% 0.17% 0.12% 0.17% 0.23% 1.4% 1.1% 1.4% 1.8% 0.37% 0.25% 0.37% 0.45% $5.6 $5.5 $5.6 $5.8 20.0% 35.9% 22.5% 23.8% 22.5% 21.3% 0.91% 0.61% 0.91% 1.21% 1.27% 0.91% 1.27% 1.65% 0.20% 0.13% 0.20% 0.26% 1.6% 1.2% 1.6% 1.9% 0.39% 0.25% 0.39% 0.45% $6.3 $6.1 $6.3 $6.6 10.0% 32.3% 20.3% 22.6% 20.3% 18.1% 1.00% 0.67% 1.00% 1.33% 1.42% 1.00% 1.42% 1.90% 0.23% 0.15% 0.23% 0.30% 1.7% 1.3% 1.7% 2.1% 0.41% 0.25% 0.41% 0.45% $7.1 $6.7 $7.1 $7.6 5.0% 29.1% 18.2% 21.4% 18.2% 15.4% (10.0%) Step (5.0%) (10.0%) (15.0%) Step 10.0% 10.0% 10.0% Step 10.0% 12.5% 15.0% Step 15.0% 15.0% 15.0% Step 10.0% 10.0% 10.0% Step (15.0%) (10.0%) (10.0%) Step 10.0% 12.5% 15.0%
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Exit Calculation
Multiples Analysis for MyMint
Dollars in Millions (MyMint in Thousands) Company PlanetOut.inc DealerTrack Synchronoss Technologies Ticker LGBT TRAK SNCR Enterprise Value $61.9 $940.2 $490.8 2007 Sales $76.0 $219.8 $101.8 1 2 3 4 2007 EBIT ($7.2) $57.3 $24.0 High Average Median Low EV/Sales .8x 4.3x 4.8x 4.8x 3.3x 4.3x .8x EV/EBIT N/A 16.4x 20.5x 20.5x 9.4x 16.4x N/A
3 1
$3.0M 15% 5%
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