2

This post-PC era presents us with a unique opportunity to understand people in a more complete context

Yet we continue to design for yesterday’s destination web rather than today’s

contextual web

4

And we remain obsessed with technology itself, rather than exploring how to make it valuable for people. . .

Less than 1/3 provide integration with GPS and native mapping software

less than 5% utilize the gyroscope

Of the top 100 apps published by brands...

Only 17% include iOS notifications

16% incorporate the camera

When was the last time you tapped on one of these?

7

How many photo sharing apps do we need?

8

We can do better

Digital media has been marginalized. It now falls within two distinct and independent domains

Programmatic

Innovation

Prev

alen

ce

Value

1) What we can easily buy, sell and measure

2) What we can’t

10

We must start thinking about technology as a cultural practice...

And start designing for the everyday — thinking about the situations and scenarios where consumers welcome us, so long as we’re meaningful. . .

go #mustangs

Intent: increase productivity and decrease costs. Necessary and valuable, however impossible to sustain.

Historically, each innovation sought to collapse the supply chain in some way. Goal: under-price the cost structure of the previous retail innovation.

The future of the productivity loop is limited. Industry leaders will be forced to look for new sources of innovation.

Supply chain innovation PROBLEM

To genuinely be consumer-centric, brands and agencies must begin to shift the focus of innovation away from the supply chain

The new operating model for consumer-centric retailers will be knowledge driven. Operational execution will have to be organized around the consumer

We must embrace...

SOLUTION

1. demand chain innovation 2. openness

15

PurposeWhat? Create new market space, bespoke solutions to the business challenges faced by our clients, and valuable/scarce experiences for our clients’ customers

How? Strategic partnerships, co-creation and business model innovation

Guiding principles

Embrace disruption.

Go beyond the traditional advertising and media ecosystem.

Develop strategic partnerships.

Co-create and co-operate.

Start over.

Key success factor synergies among brands, agencies and technology companies from day zero

Desired outcome valuable, exclusive and scarce branded media experiences powered by technology and collaborative ingenuity

18

Insight Entrepreneurs can have a substantial impact on our clients’ businesses if we

align with them as business partners and scaffold them with appropriate resources

Action Empower a cooperatively designed, cross-functional

team the opportunity to create exceptional

experiences that enrich the relationships between brands and consumers

through media

19

Platform

20

Opportunity The vast majority of startup accelerators and incubators are created and managed by venture capitalists, investors, technology companies, and even brands in some cases.

They abound in Silicon Valley (SF) and Alley (NYC). The application and qualification process is incredibly competitive and the companies behind these programs take an equity position in the startup in exchange for an intense 6-8 weeks of mentorship and seed funding.

Although agency holding companies have each made investments in seed and growth stage technology companies through their own venture funds…

…there remains a huge gap between adTech companies and the agencies who ultimately become their clients. This is our opportunity.

22

What is it?

The Accelerator is a 12-week program that unites brand, agency and startups to create new value for consumers in a disrupted and fragmented marketplace.

Through a competitive process, DAN agencies and their brand clients invite 2-3 companies to join them in addressing the most significant business challenges facing brands today.

What does each startup receive?

Each startup receives: • Active mentorship from applicable DAN agency and brand client • Product feedback and deployment of proofs-of-concept/prototypes • Manhattan workspace at a DAN agency • Membership into an exclusive Entrepreneurship & Fellows Network

What activities advance the agenda?

Brand and consumer-centered workshops and panel discussions on issues relevant to adTech startups, such as procurement, proofs-of-concept, technology architecture, agency and brand culture and protocol, and broader industry trends.

At the conclusion of the program, the combined team presents a market-ready prototype at a Demo Day, where all stakeholders convene to watch as the client-bespoke Accelerator team presents 3-5 prototypes designed to specifically solve for the challenge provided to them at the onset of the process.

23

What does it do?

Combines the power of technology, culture and breakthrough ideas for market launch, and in doing so bridges the gap between scarcity and scalability.

How does it work?

Startups are selected on a “best fit” basis — meaning, alignment of brand challenge with startup core attributes and relevant value in solving for each brand’s problem.

Each startup is vetted to preserve the pedigree of the talent pool, then advanced through a short-term gestation program.

The DAN Venture Capital Council plays a key role throughout this process, with each VC Partner screening their portfolio of investments to identify and nominate the most eligible startups, given the brand’s unique challenge.

Who is eligible?

Early and growth-stage startups, their investors, a community of cultural influencers, and the largest brands and agencies in the world.

The backbone of the majority of companies within the program will be technology and software.

Eligible startups may have a core or combined focus on Digital, Mobile, Local, E/M-com, Media, Ad Tech, SaaS, Payments, Fashion Tech, and Data.

InvestorsAdvisors

Entrepreneurs

25

Benefits

Access to budget gate-keepers

Relationship building through direct access to brands

Mentorship from media & advertising domain experts

Access to brand data & research

Integrate feedback into ad-tech product in real-time

Rapid speed to market

Trial feasibility

StartupsCatalyst for change

Access to scarce tech talent

Custom-built solutions to business challenges

Partner pipeline for the future

IP

Competitive advantage

Trial desirability

Clients

Ignition Innovation

New Shared Value

26

RE

SUL

TS

& L

EA

RN

ING

1. Created Incremental And Ongoing Demand For Amnet; More Than $1 Million Incremental Margin Driven In First 12 Weeks After Program Launch

2. Gained Access To Staples Transactional Data Once Client Crossed Trust Chasm

3. Now Creating Evergreen Tools For Small Business Owners / New Recurring Revenue Stream

4. Amnet Now Building Staples’ Data Management Platform

5. Tore Down Artificial Walls Inside Staples Organization

6. Staples Digital & Mobile Creative Went Into Formal Review Upon Client Seeing Accelerator Prototypes

7. Proactively Solving For Client Problems Before They Ask Gives Us Permission To Play In New Sandbox And Create New Market Space

8. Simplexity: Simplifies Complexity; Demystifies Innovation

9. Accelerator Client #2: Macy’s Committed $2 Million To Program Before First 12-Week Kickoff Meeting

27

NE

XT

1. Accelerator Toolkits: Also Known As “Accelerator In A Box” Created & Distributed To Dan Regions

2. Simple Process To Initiate Accelerator Program Virtually Through Neon & Google, With Support From Central Team In New York

3. Expand Network Of Accelerator Regional Leads Under Hub, Spoke & Node Model

4. Fill Creative Technologist Gap: Recruit In-Network Technologists With Ability To Apply Ingenuity When Solving Problems With Technology

5. Grow Network Of Venture Capital Funds And The Firms Behind Them

6. Formalize Relationships With Tier 1 Venture Capital Firms In New York

7. Expand To Other Major U.S. Cities With Institutional, Private Equity, Angel Investors, Etc; Expand Globally

8. Press Release And Joint Interviews With Media & Tech Trade Publications And Blogs Week Of July 13 (Tentative)

Partners

Gil Beyada Genacast Ventures Founder & Managing Partner genacast.com

Roger Ehrenberg IA Ventures Founder & Managing Partner iaventures.com

Chris Fralic First Round Capital Partner firstround.com

Eric Hippeau Lerer Hippeau Ventures Managing Director lererventures.com

Joe Medved Softbank Capital Partner softbank.com

Karin Klein Bloomberg Beta Partner bloombergbeta.com

VC COUNCIL

Startup A 2 Team members

Ed Gorman Keri DeMarino Liz Matthews

Startup B 2 Team members

Client 2-3 Team members

Accelerator Lead Jason Newport

VCs: “filter”

Structure*

* example only; some names FPO

31

Process

Share Ideate Incubate Test Learn Optimize

Timeline (FPO content FYI

only)

JUL AUG SEPWK 4 WK 1 WK 2 WK 4WK 3 WK 1 WK 2 WK 1 WK 2 WK 4

DAN, CARAT: Send client brief to VCs for client

VCs: Respond to client briefs (please follow instructions provided in the email accompanying the brief) with two portfolio companies best equipped to solve for the brand challenge.

DAN, CARAT:: STAPLES account teams meet with CLIENT to assess submissions. Client team selects two startups to work with.

DAN: On behalf of CARAT account teams and CLIENT, DAN announces STARTUPS selected. All VCs will be contacted.

DAN, CARAT & STARTUPS: Co-creation phase begins. 3-hr kick off meeting hosted by DAN.

CLIENTS: Client leads from CLIENT meet jointly with DAN, CARAT & STARTUPS to receive progress report/status update from build teams, and to provide feedback.

WK 3

DAN, CARAT & STARTUPS: Collaboration continues.

DAN to facilitate structured joint sessions.

In addition, meetings may happen intermittently as needed.

DAN, CARAT & STARTUPS: Collaboration continues. Teams may meet as often as necessary.

CLIENTS: Client leads from CLIENT meet jointly with DAN, CARAT & STARTUPS: to provide final feedback before “Demo Day”.

WK 4 WK 3

PROTOTYPE REVEAL

DEMO DAY

34

Digital repository and expansive platform minimizes learning curve; provides step-by-step instructions throughout each phase of process

Platform is nearly 100% Google-powered and makes use of nearly every business tool available

Includes templates for all forms, questionnaires, FAQs, handbooks, promotional material , startup scorecards, performance reports, modules for real-time video conferences

Perpetually updated with each client engagement to enable build of global database of startup attribute scoring

Enables swift communication among agencies, clients, VCs and startups — eliminates need for provisioning on enterprise suites e.g. Sharepoint.