Charity Storm AB

Charity Storm enables people to start their own fundraiser

online in a simple, fun and engaging way

Executive Summary

Introduction

Company

Market

Strategy

Risks

Financial Outlook

Valuation & Funding Sought

• Charity Storm AB offers two payment platforms enabling individuals, fans, members, associations or other stakeholders to start a fundraiser in favour of:

― Charities (Charitystorm.org) (CS)

― Associations (Foreningsinsamling.se) (FI)

• Both plattforms enable non-profits to realise and accelarate their money raising initiatives, by utilizing smart payment solutions and innovative social

media integration built upon proprietary software developed by Charity Storm AB

Business

description

Strategy

Product &

Company

• Charity storm AB aim at providing both economic and social returns to investors. The vision is to become the preferred donation based payment platform

for non-profits in Europe

• To penetrate the market rapidly, the strategy set fourth aim at initially targeting Giant and Large associations by own sales initiatives and marketing

efforts (Push). This is expected to increase awareness and lead to a Pull-effect whereby associations come to foreningsinsamling.se and not the other

way around. For the CS platform emphasis will be on establishing relationships with large Charities (White label/ley account)

• To sustain a reliable stream of income Charity Storm AB will have a diversified income approach where three different revenue sources have been

identified and launched: 1. Recurring business through premium SMS subscriptions, 2. Fixed revenues through white label solut ions, 3. Event/Campaign

driven revenue

• In distinction to its competitors Charity Storm AB offers a toolbox with a range of services that aims to increase the reach and conversion of each

fundraiser by enabling smart, fun and efficient payment infrastructure and social media integration

• The toolbox include: Crowdfunding functionality with personal fundraising and campaign page, Customized text messages, Automatic facebook updates,

Hashtags and automatic instagram picture generation, Offline gifts, Premium SMS subscriptions, Team functionality and much more

• SEK 2.6 mn has been realised in gross donations since inception in April 2013. Majority of revenues realized in 2014 when co-founder quit his day job,

CEO was hired and toolbox expanded. Current business and topline have historically been fluctuating dependent on campaign activity but is hencefourth

expected to stabilize due to different types of revenue streams

• 100 charities have already signed up on CS platfform where key accounts include: Hjärt- och Lungfonden, Läkare utan gränser PLAN, FN-Förbundet etc.

Several of Sweden’s largest associations such as Hammarby, Djurgården and AIK have signed up on FI

• Competent and diversified team with multifacetted background and functional experience within software development, payments marketing, M&A and

finance, web-design, sales, SEO and advertizing etc. Board with proven track-record of entreprenuerial excellence with management experience from

Tradedoubler, Skandia, Sturebadet and the Non-violance project

Market

Risks

Business

case

Valuation &

Funding

sought

• Online donations as a percentage of total donations from the public is significantly lower in Sweden (c. 0.3%) than compared to the global average (7%).

This difference will be mitigated by increased social media utilisation and represent an untapped potential

• The average amount donated per charity (c. 39 SEK mn) is significantly larger than the comparative figure for associations (c. SEK 140 000).

However, fans, members, sponsors and similar would be willing to financially support their favourite team or local association. This gap can be viewed as

white space as there are few (to none) platforms targeting the association segment

• In Sweden alone, their are 130 000 associations and c. 50% of all sport clubs are underfunded or in economic trouble. Total gifts to charities has grown

with 6% CAGR during 2003-2012, and the donation based crowdfunding industry has in recent years grown with c. 40% annually

• There are few competitors active in the nordic region. Main competitior with respect to the CS-platform is BetterNow Worldwide Aps. Foreningsinsamling.se

is targeting a white space market with close to no competition

• The main risk facing Charity Storm AB is badwill that might occur due to being for profit. Charity Storm AB will address this issue by being transparent,

cost-efficient and reliable. According to ”Svensk Insamlingskontroll” the average fundraising cost of charities is 13%. This number should be compared to

the 8% (incl. Transaction costs) figure on donated amount that CS charge fundraisers

• The total funding sought amounts to roughly SEK 5.5 mn and is expected to cover the funding gap until Dec 2016 as well as marketing investments

aiming at increasing awareness of charitystorm.org and foreningsinsamling.se

• Charity storm AB have few operating expenses other than employee salaries which are expected to constitute the majority of the cost base going

forward

• A base case valuation of Charity Storm AB (Swedish stand-alone entity) arrives at a pre-money valuation of c. SEK 33 mn, assuming a discount rate of

15% and net revenue growth of 10% per annum in-between 2017-2024 (post-base case growth). An indicative valuation including international expansion

to geographically neighbouring markets is estimated at c. SEK 232 mn.

• The fundamental driver of Charity Storm AB’s business is the number of associations and charities using the platform. The number of customers

multiplied by the average amount raised each year are the main inputs in the business case that spans untill dec 2016, where it is expected that the

number of customer associations (according to base case) categorized by size will amount to:

― 20 Giant associations corresponding to a 35% market share

― 144 Large associations corresponding to a 35% market share

― 1 885 Medium/small associations corresponding to a 35% market share

― 12 000 Youth teams corresponding to a 20% market share (c. 10 teams per association)

• Expected gross (net) annual revenue of c. SEK 89.4 (7.4) mn at the end of 2016:

― Mainly driven by FI plattform

Executive Summary

Introduction

Company

Market

Strategy

Risks

Financial Outlook


• Two donation based payment platforms targeted

toward the non-profit sector

― Charitystorm.org (CS)

― Föreningsinsamling.se (FI)

• Enable non-profits to realise and accelarate their

money raising initiatives, by utilizing smart payment

solutions and innovative social media integration

• In-house developed plattform tailored for scalability

• SEK 2.6 mn realised turnover since inception in

April 2013 (main part realised since April 2014)

• Strong team with functional experiences from

payments, marketing, design, sales, corporate

finance, programming and event planning

Legal Entity:

Charity Storm AB

Individuals can start

their own fundraiser in

favor of charities

Individuals, can start

their own fundraiser in

favor of associations

Charitystorm.org Föreningsinsamling.se

Sources: Svensk insamlingskontroll, Massolution, Sveriges radio

• Low utilization of social media and efficient

payment solutions in the non-profit sector

― Only a handful of charities offer personal fundraisers on

their websites, and the ones who do are usually not very

sophisticated

• People have a need for self esteem and

self actualization

― As people we need to engage ourselves to gain

recognition and participate in activities that give

us a sense of contribution and self-value

• Donated amounts to the non-profit sector are

increasing steadily

― 6% CAGR between 2003-2012

• Personal fundraisers and the crowdfunding

industry is experiencing rapid growth

― Forecasted growth of 88% in 2012 - 2013

• Sport clubs and associations are seeking

alternative income sources as more than 50% of

clubs are underfunded or in economic trouble

• Demand for transparency is increasing in the

light of previous charity scandals

• People want to know exactly how their money

is being spent

• Demand for ease of payment is increasing

― Fundraisers with BG/PG account as only payment

alternative reach a narrow audience and complicates

administration

― Conversion and reach increase with efficient payment

alternatives such as premium SMS subscriptions

• CSR activities are becoming increasingly

important among corporations and

associations

Vision

Be the best payment platform for non-profits in Europe

Social mission

Make non-profits a part of everyone’s everyday life

Economic mission

Enable non-profits to excel in their money raising efforts by offering excellent

web, social media tools and payment alternatives

Charity Storm is all about challenging yourself and others to

contribute to the causes or local communities that you are

passionate about.

It is also about providing a toolbox to individuals, fans,

members, clubs and associations to help them excel in their

daily money raising efforts. In it’s simplest form the process

can be divided into three distinct steps:

1. Start fundraiser

― In a matter of seconds a fundraising page can be created

where the user have the opportunity to set her own text

message code for contributions, upload videos and

pictures and create their own story

2. Engage people and market the fundraiser

― Automatic facebook integrations and instantly generated

Instagram pictures help the user utilise the most efficient

social media channels to maximise reach and increase

conversion

3. Recieve gifts and contribute to a better world

― Charity Storm keeps the money on a trustee account with

monthly disbursements to the non-profit organisations

specified by the fundraiser

Executive Summary

Introduction

Company

Market

Strategy

Risks

Financial Outlook


Facebook

integration

Recurring

SMSCustomized

SMS

Own

campaigns

Personal

fundraisers

Teams

Twitter &

Instagram

• Charity Storm’s business idea is to provide non-

profits and individuals with a toolbox that enable

them to excel in their money-raising efforts

• This is done by offering excellent web, social

media tools and payment alternatives that

enables reach and a higher conversion

• Reach x Conversion = volume of social gifts

the absolute amount of gifts will increase

Current reach of charities

and associations

Reach with Charity Storm’s

toolbox

Toolbox• Customized widgets based on standard

formats

• Easily integrated into charity/association

website

Widget

• Automatic notification to all members of

facebook event when fundraiser receives

money

• Increases the reach of fundraiser

• Can be started on fundraiser page

Automatic FB-event

• Unique link to online form accesible through text

message

• Enable SMS donors to register their contact info

Giver contact info

• Premium SMS subscription, e.g, text: ”BIDRA 200X12 HOCKEYCLUB” to 72672 to give

SEK 200/month for one year

• Payment through SMS, e.g, text: ”GE 100 CHARITY” to 72672 to give SEK 100

SMS

• Upload pictures and videos to make fundraiser

engaging

Media

• Add several hastags, e.g. #FOOTBALL CLUB

• Visulize hashtags on personal fundraiser page

Twitter

• Connect fundraisers to eachother to reach a common goal

• Compete against other regional charities or associations, e.g.

Hammarby vs. Djurgården fundraiser

Teams

• Automatically created Instagram picture

customized with self-selected picture

• Highlight SMS-code

• Easily spread on Instagram

Automatic Instagram picture

• Upload amount of funds raised through other

channels

• Free of charge

Direct gifts

• Individual fundraiser page for every user

Fundraiser page

• Aggregate fundraisers under a specific campaign, e.g.

Midnattsloppet, Vårruset, 25 year jubilee or similar

Campaign page

Toolbox

Official CS launch

apr may jun jul aug jan feb mar apr maj jun jul aug sep oct nov dec

2013 2014

SMS payment

Automatic Facebook integrationRecurring SMS

Offline gifts

Teams

Hashtags

Campaigns

FundraiserOfficial FI launch

Giver contact info

Automatic Instagram picture

Recurring Card

Invoice

autogiro

Widget tool

RSS stream

Statistic

portalPaypal

Launched To be Launched

• Continuous expansion of toolbox with frequent launches of new functionality and

improvements

• One-stop-shop for fundraiser payment solutions by the end of 2015

• Innovative R&D with respect to social media

• Large backlog of tools aiming at increasing conversion and reach of fundraiser

Comments Backlog

• Widget tool: Live update of funds raised displayed on the customer’s own website

• Recurring Card: Monthly subscriptions through card payments

• Invoice: Larger gifts. Targeted toward corporations and individuals

• Automatic Instagram picture: Automatic generated picture that can easily be spread on Instagram

• Autogiro: Monthly automatic withdrawals from bank account

• RSS stream: Displayed on customer’s website

• Paypal: Everyone can start a fundraiser connected to paypal account, i.e. no need for BG/PG account

• Statistic portal: Customers can log in and view transaction and donation history, as well as access contact information on donors

Card payments

Recurring business

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Illustrative

• FI will generate stable revenues as a

majority of donations will stem from

premium SMS subscriptions

• Premium SMS subscriptions and card

subscriptions will be the tools enabling this

service

• Mainly applicable to associations looking for

a way to attract new members and fans

• Successful Pilot already launched with

Djurgården Hockey (SEK 500’ in 10 days)

White label/Key account


Illustrative

• Some larger charities will want to use CS,

but branded in their own name and

potentially also integrated to their own

CRM system with an own domain

• A license will be sold to these

organisations which typically will be the

larger charities in need of customization

• A new white label contract will have

significant topline impact

• Pilot to be launched with one of the largest

charities in Sweden

Event driven business


Illustrative

• Associations and especially charities

usually initiate fundraisers over a short

period which leads to a fluctuating top line

― Descriptive of Charity Storm AB’s

business so far

― Campaign driven

• Applicable to crisis fundraisers such as

recent flooding in Bosnia

― Diversification benefits as crisis events

are uncorrelated to general economy

• Mainly applicable to CS

Key target groups

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Year 1 Year 2

Premium subscriptions ChurnOne-time revenue realised, e.g, non-recurring

• As several donors will choose the Premium SMS and/or card subscription alternative there will be a gradual build up of

future revenues not necessarily realized during the lifetime of the fundraiser (in this case 3 months)

• It is estimated that some donors will choose to terminate their subscription before 12 month has past, however this

churn is likely to be small

• After 12 month a renewal SMS will be sent out to the donor asking him if he wants to continue to support his favourite

association and/or charity. At this point a larger churn is expected

• The continuous build up of subscribers will lead to reliable and gradually increasing revenue generation. As primarily

associations are looking for easy accessible alternative sources of income, the demand for this service is high

Revenue pattern from one fundraiserFigure is illustrative

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Year 1 Year 2

Contract 1

Contract 2

Contract 3

Contract 4

• Charity Storm AB will provide a fixed cost customized white label solution to larger charities that demand CRM

integration and specific requests

• Based on estimates of future volumes by Charity Storms first key account contract, the monthly fixed fee that will be

charged is estimated at SEK 20 000 per contract

― Large charities are gradually realizing the importance and emergence of providing online fundraising alternatives available for

their donors and network

― Although a fundraising platform can be built, maintained and developed in-house, the platform is likely to be obsolete and not up-

to speed on the latest tools enabling greater reach and conversion if developed in-house

― By outsourcing the development and maintenance to Charity Storm AB, charities will be “on-top” of the latest development with

regards to social media and payment infrastructure

• Gross revenues since inception until end of may 2014 amount to SEK 1.93 mn (2.6 mn in mid june)

• Historically, revenues have been campaign-driven but this is expected to change going forward due to different types

of revenue streams

― Premium SMS subscriptions will build a stock of recurring revenue

― Fixed revenue model expected to significantly increase topline. Similar arrangements with other key accounts expected

going forward

-1 0

0

10

20

30

40

50

60

70

0

50

100

150

200

250

300

350

400

450

500

apr may jun jul aug sep oct nov dec jan feb mar apr may

2013 2014

CS

FI

No. of fundraisers

Campaign -

MidnattsloppetLaunch

Fundraiser –

PLAN for philppinne

typhoon

Campaign –

Alla hjärtebarns dag

Fundraisers –

• APU Network - #HJALPBOSNIEN

• Djeci djeci - #BARNTILLBARN

• Huddinge Hockey - #NUSKADETSKE

Campaign & fundraisers –

• Hammarby stödjer fotboll mot cancer

• New hope 25 years

• Barndiabetesfonden 25 years

1 200

Fundraisers –

• Järnkaminerna - #ALDRIGMER

• Syrianska FC

Gross revenues since inceptionFigures in thousand SEK

8

120

18 5

69

2215 9

159

88

35 31

206

Adam Hasslert, Co-founder

• Double-degree, MBA and a Bachelor in Computer

science from Lund University

• Wywallet, Tele2, P&G

• Organisation, Product, Overview

Truls Stattin, CEO

• Master in Finance, Stockholm School of

Economics

• Procuritas, Lazard, Arkwright

• Sales, Finance, Investor relations

Armin Osmancevi, Head of Design

• Masters degree in Crafts and Design, Konstfack

• Thinkable, Acne, BBDO

• Design, Creative development

Carl-Johan Tessmar, Co-founder

• Double Degree, Bachelor in computer science and

Bachelor in BA

• Google

• SEO, Research, Data management

Tome Cvitan, CTO

• Bachelor in Computer Science from Jönköping

University

• Lifesum, Ericsson

• Programming, Project management

Neven Mundar, Developer

• DobarKod (Croatia)

• Programming

Board

Therese Engström

SIME, Non-violence

project

Fredrik Sellgren

Tradedoubler,

Sellbranch, Result,

Spraypassagen

Per-Erik Hasslert

Sturebadet, Skandia,

Seamless, Travel

Partner, Alleato

Executive Summary

Introduction

Company

Market

Strategy

Risks

Financial Outlook


• In 2012 the general public donated SEK 5.2 bn to charity, while the total

amount donated reached SEK 15.5 bn. Growth of 6% CAGR during

2003-2012

• Although more than half of the Swedish population have Facebook

(54.4%) we estimate that only about SEK 30-40 mn is donated online in

Sweden. This corresponds to c. 0.3% of the total donated amount

• Global online fundraising amount to a comparative figure of 7%, hence

there is an untapped potential for online charitable giving that likely will

be mitigated by increased growth in social media and increased

awareness of online donation based platforms

• While overall giving has experienced modest growth, online giving grew

by about 11% in 2012 and the donation based crowdfunding industry

with c. 40% in recent years

• 130 000 non-profits are lacking a proper payment platform. BG/PG

accounts is usually the only payment alternative available

• The number of non-profit associations per capita is high in the Nordic

countries. No. of associations in:

― Sweden: 130 000, Norway: 115 000, Denmark: 100 000, Germany: 580 000

• There are about 400 charities in Sweden which can be contrasted to

the 130 000 non-profits associations, whereof roughly 50 000

associations are Sport & Culture associations

• In 2009 gifts to sport & culture associations amounted to SEK 7 bn

• The average yearly donation received by charities is hence c. SEK 39

mn (15.5 bn / 400) while the equivalent figure for sport & culture

associations is SEK 140 thousand (7 bn / 50 000)

• Föreningsinsamling.se is expected to gain market share from the

existing market, but mainly increase the size of the total market

Sources: Svensk insamlingskontroll, Massolution, KPMG, Internetworldstats.com, Blackbaud.com (Charitable giving report)

Donated amount per charity vs. associationFigures in SEK mn

39,0

0,14

Charity Association

Huge

potential

Online fundraising% of total donated amount from public

7,0%

0,3%

Global Sweden

Large

potential

Untapped

opportunity

White

space

Competitive Landscape

• Current competition is limited in the Nordic Region

• International competition is fairly high but mainly clustered to UK in Europe

― In 2011 donation based crowdfunding platforms accounted for 41% of total crowdfunding platforms worldwide

• Most competitors have a different concept, are smaller and/or lack the toolbox and proprietary software developed by Charity Storm AB

• Charity Storm’s platform targeted towards associations (föreningsinsamling.se) is unique

Key Competitors

• Betternow has a distinct focus on fundraisers in favour of charities. Their focus is on expanding geographically rather than into other business segments

― SEK 15.1 mn raised since inception

― Closest competitor to Charity Storm AB

• Inspons focus on fundraising in favour of charities in conjunction to sport events, e.g. “Help me raise 100 SEK per mile” or similar

― SEK 0.55 mn raised since inception

― Some co-founders rumoured to have left the company

• Pennybridge offer a subscription based donation directly competing with charities

• Kronan is a very small non-profit organisation spun out of Ljungskilesoccer club. They raise money in favour for sport clubs

Sources: Company websites

Offer/

Company

Associatio

n platform

Own

fundraiser

Subscrip-

tion

Automatic

FB-updates

Giver cont-

act info

International

Product Offering

Executive Summary

Introduction

Company

Market

Strategy

Risks

Financial Outlook


Diversified income streems

Event/campaign driven business Recurring business White label/Key account


Illustrative


Illustrative


Illustrative

• Associations and especially charities

usually initiate fundraisers over a short

period where there is a large inflow

one month and a smaller inflow the

next difference

― Descriptive of Charity Storm’s

business so far

― Campaign driven

• Mainly applicable to CS but also

pertains to FI to some extent

• FI will generate stable revenues as a

majority of donations will be through

monthly instalments

• Subscription text messages and

subscription card will be the tools

enabling this service

• Mainly applicable to associations

looking for a way to attract new

members

• Successful Pilot already launched with

Mora IK

• Some larger charities will want to use

CS, but branded in their own name

and potentially also integrated to their

own CRM system

• A license will be sold to these

organisations which typically will be

the larger charities in need of

customization

• A new white label contract will have

significant topline impact

• Pilot to be launched with one of the

largest charities in Sweden, Hjärt- och

Lung fonden

• Event driven

• Recurring pilot

• White label pilot

• Diversified sources of income will be crucial to

estabish a reliable topline going forward

• Untill recently, Charity Storm AB’s revenues have

been campaign driven...

• ...this will change as continous revenue streams will

be realised through premium SMS subscriptions and

key account acquisition

• Successfull pilot projects with Djurgården Hockey

and one of Swedens largest charities has recently

been initiated

Focus on increasing awareness

• Sales focus

• Initial traction

• Success case

• SEO

• TV – commercial

• Direct marketing

• Awareness has gradually increased through sales

efforts and SEO inititives...

• ...however there are several fundraisers active that

currently don’t use an external provider of fundraising

tools

• We believe this is due to lack of awareness, rather

than due to active choice. To ramp up awareness

capital is needed

Proof of concept

• Geographical focus

• Focus on non-profit sector

• Better to do a few things great than many things poor

• Geographic focus of Charity Storm will initially be the

Swedish market, although the model could easily be

exported to primarily neighbouring markets

• Distinct focus on the non-profit sector and

associations will work in favour of Charity Storm

compared to other donation based crowdfunding

platforms with a less distinct focus

Other associations

(100 000 +)

Youth teams

(c. 60 000)

Type: Large and small charities Type: Soccer, Ice-hockey, Floorball,

Bandy, Volleyball, Handball,

American Football, Rugby

Type: Youth teams within team

sports. Typically 10 youth teams per

elite association

Type: Culture associations, Track and

field, Gymnastics, Sailing, Climbing,

tennis, Downhill skiing etc

Strategy:

• Focus on white label/key account

business generating fixed

revenues increased

awareness more event driven

business

Strategy:

• Initial focus on large elite

associations fundraising for own

purposes Increase awareness

Strategy:

• Increase market share as

awareness increase. Stand for

majority of long-term revenue

Strategy:

• Growth through word-of-mouth.

Represent mature growth

Customer acquisition:

• Phone sales and email

• Event and education


• Phone sales and email

• Live-meetings


• Contact via elite association

clients

• SEO and word-of-mouth


• SEO and direct marketing

• Email (18 000 unique adresses)

Average fundraising size:

• 5 000 – 10 000 SEK

• Crisis related: 500 – 1 000 KSEK


• Giants (e.g. DIF): 1 000 KSEK

• Large (e.g. Mora IK): 100 KSEK

• Medium (e.g. Boden BK): 30

KSEK


• 5 000 – 10 000 SEK


• 5 000 – 10 000 SEK

YTD – End of 2016 2017 and beyond

Main focus - timeline

Elite associations - team

sports

(c. 6 000)

CS - platform

Source: Number of associations based on SCB (företagsregistret), Riksidrottsförbundet and management estimates

• To reach the base case targeted revenues in December of 2016, the number of associations that have to be reached amount to:

― 20 Giant associations corresponding to a 35% market share, (Salary salesman before social taxes c. 60 KSEK/month)

― 144 Large associations corresponding to a 35% market share, (Salary salesman before social taxes c. 45 KSEK/month)

― 1 885 Medium/small associations corresponding to a 35% market share, (Salary of salesman before social taxes c. 35 KSEK/month)

― 12 000 Youth teams corresponding to a 20% market share (c. 10 teams per association), (Salary of salesman before social taxes c. 45 KSEK/month)

― Reference: Laget.se (an administrative platform for sport clubs) have 30 000 teams and 3 000 clubs signed up

• An initial sales effort mainly targeting Giant and Large associations (Push) is expected to lead to increased awareness and a Pull-effect where associations

reach out to foreningsinsamling.se and not the other way around

• Sales effort outlined between September 2014 and December 2016 expected to motivate hiring of c. 8 sales people during the period (28 months). The

sales organisation can after the initial sales period be scaled down significantly

* 10 teams per association

** Other associations amount to c. 100 000 constituted by e.g. individual sport and culture associations. Expected to be acquired through pull effect not driving any sales costs

Corresponding to a 35% market share in Elite segment and a 20% market share in youth segment (Base case)

2014 2015 2016 2014 YTD - 2016

Segment Total 2016 target (# of associations) Push(%) Push (#) Pull (#) Push (#) Pull (#) Push (#) Pull (#) Push (#) Pull (#) TOTAL

Giants (Elite) 20 80% 2 1 7 2 7 2 16 4 20

# of associations/salesperson/month 1 1 1

Large (Elite) 144 80% 16 4 49 12 49 12 115 29 144


Medium/small (Elite) 1885 40% 108 162 323 485 323 485 754 1 131 1 885


Teams (Youth)* 1200 20% 34 137 103 411 103 411 240 960 1 200


Other associations (non-team sports)**

TOTAL 3249 161 303 482 910 482 910 1 125 2 124 3 249

Length of period (months) 4 12 12

TOTAL No. of salespeople required 7,8 7,8 7,8

Whereof:

- Giant 0,6 0,6 0,6

- Large 1,4 1,4 1,4

- Medium 3,0 3,0 3,0

- Youth 2,9 2,9 2,9

Gross annual salary of salesforce (KSEK) 1314 3942 3942

Executive Summary

Introduction

Company

Market

Strategy

Risks

Financial Outlook


• Charity Storm AB is a for profit company

offering its services to stakeholders in the non-

profit sector

• Profit on non-profits is a controversial topic and

is one of the most important risks to address

• We aim at mitigating this risk by being

transparent, cost-efficient and reliable

― Transparent: Every fundraiser will be able to see

exactly how much has been deducted from each

supplier along the value chain

― Cost-efficient: The average cost of fundraising is 13%

for charities in Sweden, i.e. it takes SEK 13 in

marketing costs to gain a new SEK 100. Charity Storm

AB will provide a cheaper service at a better price (see

figure to the right)

― Reliable: Every time a new organisation apply for an

account the information is scrutinized and checked

through publically available sources. Constant

monitoring of fraudulent activities will be conducted 13 SEK

5 SEK

5 SEK

5 SEK

82 SEK87-88 SEK

Average

charity

Charity

Storm

88-87%of every 100

SEK goes to

the cause

82%of every 100

SEK goes to

the cause

88-87%of every 100

SEK goes to

the cause

Charity

administration

cost

Charity

Storms cost

Transaction cost

Funcraising cost

(incl.

Transaction

cost)

Charity

administration

cost

Sources: Svensk insamlingskontroll

2-3 SEK

Executive Summary

Introduction

Company

Market

Strategy

Risks

Financial Outlook


0%

20%

40%

60%

80%

100%

2016-12 target Future target

Business case Target dec 2016

0,1 0,4

1,5

7,4

0

20

40

60

80

100

0

2

4

6

8

10

Actual (YTD) 2014 2015 2016

CS - event Fixed revenue

Youth Elite

Gross

(line – gross rev.)(bars - net rev.) Foreningsinsamling.se Charitystorm.org

Market shares:

Elite associations:

35%

Youth: 20%

Fixed rev. Business:

5 contracts à 20 000

SEK/month

Event driven

business:

3 initiated

fundraisers/day

Funds raised per year

(SEK):

Giants: 1 000 000

Large: 100 000

Medium: 30 000

Youth: 7 500


(SEK):

All: 7 500

Gross and net revenue forecast per revenue source and yearFigures in KSEK

Future revenue mix (illustrative)Comments

• Expected net revenues of SEK 7.4 mn in 2016

• Base case estimation of market shares in elite segment (c. 6 000 associations) correspond to 35% in each sub-segment (Giant, Large, Medium). The number of associations utilising the platform in December 2016 correspond to:

― 20 Giant associations corresponding to a 35% market share

― 144 Large associations corresponding to a 35% market share

― 1 885 Medium/small associations corresponding to a 35% market share

― 12 000 Youth teams corresponding to a 20% market share (c. 10 teams per association)

― Reference: Laget.se (an administrative platform for sport clubs) have 30 000 teams and 3 000 clubs signed up

• Majority of revenues and profits expected to stem from a few large fundraisers initially, coupled with gradual growth in the youth segment

• Youth segment expected to grow exponentially as awareness increase. Future revenue mix forecasted to mainly stem from youth segment where the market potential is huge (c. 600 000 teams)

― Youth section expected to launch in fall 2014

*For detailed calculations (excel-spreadsheet) please contact [email protected]

Business case (SEK mn) Target dec 2016

0,1 0,4

2,0

11,8

0

20

40

60

80

100

120

140

0

2

4

6

8

10

12

14

Actual (YTD) 2014 2015 2016


Youth Elite

Gross


Market shares:

Elite associations:40%

Youth: 25%



SEK/month

Event driven business:

3 initiated fundraisers/day


(SEK):

Giants: 1 500 000

Large: 150 000

Medium: 50 000

Youth: 10 000

Funds raised per year (SEK):

All: 7 500High

Base

Low

0,1 0,41,5

7,4

0

20

40

60

80

100

120

140

0

2

4

6

8

10

12

14

Actual (YTD) 2014 2015 2016


Youth Elite

Gross


Market shares:


Youth: 20%



SEK/month




(SEK):

Giants: 1 000 000

Large: 100 000

Medium: 30 000

Youth: 7 500


All: 7 500

0,1 0,31,2

4,5

0

20

40

60

80

100

120

140

0

2

4

6

8

10

12

14

Actual (YTD) 2014 2015 2016


Youth Elite

Gross


Market shares:


Youth: 20%



SEK/month




(SEK):

Giants: 500 000

Large: 50 000

Medium: 20 000

Youth: 5 000


All: 7 500


Executive Summary

Introduction

Company

Market

Strategy

Risks

Financial Outlook


• The total funding sought amounts to roughly SEK 5.5 mn and is expected to cover the funding gap until dec 2016 as well as marketing

investments aiming at increasing awareness of charitystorm.org and foreningsinsamling.se

• Charity storm AB have few operating expenses other than employee salaries which are expected to constitute the majority of the costs going

forward. Sales organisation can be slimmed after intensive sales period

• A base case valuation of Charity Storm AB arrives at a pre-money value of c. SEK 33 mn of the Swedish stand-alone entity, assuming a

discount rate of 15% and net revenue growth of 10% per annum in-between 2017-2024

• International expansion with similar growth trajectory as expected in Sweden imply a total value of c. SEK 232 mn

• Initially, a ramp up of the sales organisation will motivate the hiring of 8 sales people as outlined in the sales strategy

•


Valuation (Figures in KSEK)

Base Case 10% net revenue annual growth assumption

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Net revenues 369 1533 7427 8170 8987 9886 10875 11962 13158 14474 15921

Personnel expenses -1694 -5082 -5082 -2541 -2795 -3075 -3382 -3720 -4092 -4502 -4952No. of employees 11 11 11 5 6 7 7 8 9 10 11Other expenses -28 -84 -84 -84 -84 -84 -84 -84 -84 -84 -84EBIT -1353 -3633 2261 5545 6108 6727 7408 8158 8982 9888 10885Deferred losses -1353 -4987 -2726 0 0 0 0 0 0 0 0Taxes 0 0 0 -742 -1606 -1769 -1948 -2145 -2362 -2601 -2863

FCF -1353 -3633 2261 4804 4502 4958 5460 6012 6619 7288 8023TV 65785FCF+TV -1353 -3633 2261 4804 4502 4958 5460 6012 6619 7288 73808

Funding Sought International expansion (Indicative)Funding GAP 4987 Country No. of associations (000) Relative Sweden Pre-money country valuation

Marketing investment 500 Sweden 130 1,0X 32600Total funding sought 5487 Germany 580 4,5X 145448

Norway 115 0,9X 28839

Denmark 100 0,8X 25077

Stand-alone SWE entity valuation TOTAL 925 231964Pre-money value (SWE) 32600

Implied 2016 EBIT-multiple 14,4X Assumptions

Investment 5487 Net revenue growth rate 2017-2024 10%Market share Elite dec 2016 35%

Post-money 38087 Terminal FCF growth rate 2,5%Market share Youth dec 2016 20%

Discount rate 15%Average funds raised per association per year (SEK)

Tax rate 26% - Giant 1000000

Monthly operating expenses (SEK) 7000 - Large 100000

Annual personell growth post 2017 10% - Medium 30000

Monthly operating expenses (SEK) Sales strategy - Youth 7500

Mail: [email protected]

Phone: 073 – 769 10 96

mailto:[email protected]