We buy things as groups all the time…

Travel• School trips• Group vacations

Gifts• Baby showers• Office gifts

Events• Shared meals• Parties

… but it can be painful

Juggling payments

Chasing people down

Managing contributions ?

We provide an easy way for groups of

friends to collect money

online.

The Splitzee Solution

Setup

Share

Collect

Purchase

SetupCreate a custom Collection Page for a product, service or cash.

ShareInvite friends to contribute via email & social networks

CollectFriends contribute online via PayPal, credit or debit card

PurchaseUse the collected funds to buy the product directly from a retailer

How Splitzee works

1

2

3

4

Customers love it

“I’ve never seen a service like this. It makes total sense and I will definitely be using it in the future.”

– Customer Marchelle Lien, February 2013

500%Compared to a solo customer

Purchasing power of a group:

via seamless integrationsAPIs/web services/widgets/buttons

The Splitzee Mission:

Bring the power of group purchasingto online retailers

Online retail market potential

Online retail marketplace

$231 billion

Online registries

$14 billion

Online retailers over$100K annual sales

21,000Source: referralcandy.com

Online retailers withgroup-buying potential

5,000

“If I were to guess, I’d say the next thing to blow up would be social commerce.”

- Mark Zuckerberg

Online wedding registriesOnline baby giftsOnline group travel

$7 billion$4 billion$3 billion

Revenue Sources

5%

15%

10%

20%

Contribution Fees: 3.5%

TargetedIndividual

Promotions

5-15%

Cashout to Cash

1.5%

Cashout to Purchase

(Partner-originated)

10%

Cashout to Purchase

(Splitzee-originated)

15%

BONUSAccruing interest

on general fund

Per collection

Solid customer acquisition results to dateAs of April 30 2013

• Users 544– CTA (cost to acquire) $22– ARPU (average revenue per user/year) $73.50– User LTV (lifetime value) $220

• Contributors 1105– Average contribution: $56– Contributors/collection: 11

• Collections (since Nov 2012): 947– Average collection size: $358.34– Invitees/contributors creating collections: 14%– Users with multiple collections: 21%

Online retailer interest2Q 2013

Related social commerce solutions

Social shopping Cost sharing Group giftingCrowdfunding

Brands

Issues • Focused on product selection, not purchases

• No direct transactions

• No integration capabilities

• No direct transactions

• Narrow gift focus

• Limited integration capabilities

• Focused on projects, not purchases

• No direct transactions

Social Money:: Where value, exchange, and obligationsare measured in the context of groups –

not from the perspective of the individual.

Every approach moving gradually towards a significant paradigm shift:

Milestones

Product: Website soft launchFinancing: friends-and-family round

Product: Mobile soft launchAcquisition: Organic marketing trialsUsers: 200

Product: online retailer buttons & widgetsUsers: 400

Online retailer outreachUsers: 600

Financing: Seed RoundPublic launch

November

December

January

March-April

May

Financial Summary

Collections

2013: 8,000

2014: 53,000

2017: 92,000

Dollars collected (Revenue)

2013: $2.8M

2014: $19.5M

2017: $33.6M

Cashflow positive in 2Q 2014

Key assumptions

• Estimated collectionsper user per year: 3

• Estimated customer lifespan (years): 3• Average revenue per collection:$24.50• Estimated customer LTV: $220

Users

2013: 71,000

2014: 340,000

2017: 590,000

Fees and commissions (Gross Margin)

2013: $191K

2014: $1.7M

2017: $3.7M

Users

2013 2014 2015 2016 2017

CollectionsDollars Collected

Gross Margin

The Team

Michael SattlerCEO - Product + technologyEndurance International, Cauzoom

Luke PetersonBusiness developmentFirst Republic Bank

Wendy SavageSupport and general counselGoodwin Procter, Liberty Mutual

Patricia SulickOperationsDynasil, MIT Sloan

Tim KilroyMarketing advisorKarmaloop, Wayfair

Rinus StrydomMarketing advisorHubwoo

Daryan DehghanpishehBusiness advisorNYSE Euronext, Intel

Nathan WoodmanAdvertising – Retargeting Digilant, Havas, Google

• Thanks for your time!

splitzee.com

info@splitzee.com

facebook.com/splitzee

@gosplitzee

Organic

Retailer partnerships

Existing user base

Pay-Per-Click

SEO

Partnerintegrations

Promotions bypartners

Promotions bySplitzee

to partners’customers

Bloggerreferrals

PR

Repeatusage

Extensions(contributors creating their

own collections)

Onsitepromotions

Internal Marketing

Where Splitzee’s users and collections come from

Proven Growing Future

Product roadmap

B2B

B2C

Splitzee.com

SplitzeeMobile

SplitzeeButton

RegistrySolutions

Abandoned CartSolutions

DirectPromotions

PredictiveAnalytics

CollectionIntegrations

Market Drivers• People increasingly manage their social lives online• Coveted gifts are increasingly expensive• We all rely more and more on cash-less commerce

Market Stats

• 2012 E-Retail sales: $231B• 48% growth in online gifting sales

• 5% average sales boost for retailers using social commerce

• 8/10 people have pooled funds to buy a gift or service

• 46% of companies believe social media drives revenue

• Only 25% of companies are satisfied with their social media

ROI

The rise of group gifting

Product 1Group purchasing on registries and wish lists

Why retailers like it:Splitzee lets a retailer solve a social problem for its customers, preserves the customer relationship, and dramatically increases average order sizes

• Splitzee widget integrated with partner commerce platforms on registry sections

• Registry owners ask friends to fund SHARES of items… without ever leaving the retailer’s site.

Online retailers with gift registries

Online retailers are searching for ways to increase gift registry sales

22%

Retailers satisfied withgift registryperformance

One reason:… big-ticket items are too expensive for individual purchase

Product 2Group purchasing on product pages

Why retailers like it:Retailers can capture bouncing customers, reduce shopping cart abandonment, and increase sales

• Splitzee button integrated into product listings

• Shoppers choose to purchase items with friends

• Splitzee returns the shopper to the partner site with funds in hand

Product page views

Splitzee finds buyers from within existing B2B platforms who want a product but don’t have the money to buy it alone.

Conversions (before Splitzee)

5/day

Conversions (after Splitzee)

6/day

Sales increase:

20%

Online retailers are searching for ways to reduce bounce rates and abandoned carts

A defined niche in the social commerce landscape

Focused on group purchasemanagement

Focused on product selection

Standalonewebsites

Embeddedintegrations