Upfeed

Company Presentation, November 2015

By Joakim William Hauge

1- UPFEED

2- THE MARKET

3- SUMMARY

4- GOALS

5- UPFEED.COM 6- DISTRIBUTION

7- NATIVE ADVERTISEMENT

8- OVERVIEW

9- WORK BENCH

10- ALGORITHM

11- DEEP LEARNING

12- MEDIA CENTER

13- CAMPAIGN

BROKERAGE

14- UPFEED ENVIROMENT

15- THIRD PARTY CONTENT

16- THE COMPETITION 17- STRATEGY

18- PARTNERSHIPS

19- SUCCESS FACTORS

20- LEGAL

21- THE FOUNDER

22- CORPORATE

23- SUMMARY

CONTENT

Always up feed,

never fed up

WHAT? User-generated content aggregate.

HOW?

Provide a news service, which organizes user-generated

content, remove the noise and

making it more accessible.

1.1 – THE IDEA

Create a 100% independent, fully automated, user-generated

publisher, aggregator and media broker For this to work we

would need to solve the following:

Independent producers/publishers may have their product reviewed by our content providers

Content providers need quality feedback/analytics on their content to stay competitive

Need to QA -quality assure that content providers will increase their no of readers

Facilitate an advertisement platform, where advertisers and content providers may negotiate,

agree, execute and monitor campaigns efficiently.

1.2 – MARKET

Global: More than 250M bloggers and freelance writers

3.3 M new blog posts every day

The largest blog site in the US is Blogger with more than 46 M unique visitors each month

Norway: Blogg.no Norways largest blogg network has more than 1.2 M registered blogs.

For our feasibility test we selected 25 blogs, for which we downloaded 7208 articles with more than

100 new articles published every day.

1.2.1 – MARKET

CXENSE a Norwegian startup, has gone global by providing a service, which optimizes

audience data in order to make user experience more personalized.

CXENSE offers this service to news sites and ecommerce for a monthly licence fee.

More than 6000 sites globally now use their service.

UPFEED will offer the same or better service for free and enable it to be used by anyone.

Our flexible business model does not depend on collecting licence fees

◘ User-generated content in abundance

◘ Banner ads will be offered, but they are not the main revenue-driver.

◘ Business opportunities in aggregation of user-generated content.

◘ Able to classify text in order to locate and optimize the audience for the content.

◘ Global market opportunies.

1.3 – ASSUMPTIONS

•Become a global market leader within distribution of user-generated web

•content on all platforms:

•News (text)

•Video

•Voice

•Support more than a 100 languages

1.3.1 – UPFEED’s GOAL

Current status: Confirmed the required assumptions

Funded NOK 0.3M to define Upfeed as a concept

Develop a PoC (Proof of Concept)

1.3.2 – UPFEED REQUIREMENTS

Short term: Raise NOK 4.5M to finalize a production ready platform

Launch in two countries Norway and England.

Extend the PoC to include running a business in a

multinational production enviroment.

Categories

1.3.3 – UPFEED.COM

News, Economy, Tech, Entertainment, Lifestyle, Travel and Fashion.

About Upfeed

Extensive library of help guides, best use practices and content optimization.

Explanations of our methods for ranking content will be made

available in order to improve transparency.

Primary objectives:

Build and maintain a close and longterm relationship with our content

suppliers.

Aggregate the content by understanding the content and finding the right

audience for the right content.

1.3.4 – UPFEED.COM

•Upfeed offers a wide range of tailored content distribution packages for

online

businesses of any size.

•Our Excecutive Content Partnership Agreement with the content providers

allow

us to take part as the licencor in the Upfeed Content License Agreement with

the licencee.

•All parties manage their accounts through our two control panels:

•Upfeed Work Bench (content provider)

•Upfeed Media Center (licencee)

1.4 – MEDIA DISTRIBUTION

•Upfeed gives advertisers an efficient way to target audiences through

native advertisement.

•The campaigns are funded utilising pay-per-click on sponsored content. The

transaction

is governed by the Upfeed Native Marketing Agreement.

•Upfeed facilitate the deal and work as escrow for the transaction.

1.5 – NATIVE ADVERTISEMENT

Content Providers

1.3.2 – UPFEED REQUIREMENTS

Content Buyers

Advertisers

Visitors/readers

Content Providers

Campaign Distribution

Work bench

Media Center

Media Broker

Ba

ck

Offic

e

Mo

rthp

ost.c

om

•Content providers gain access through successful web-based registration.

•Content providers gain access to a wide range of account settings and control options.

•Typical content provider would be a Independent writer or blogger.

2.1 – WORK BENCH

•Content provider only have to sign up with us and Upfeed will do the rest.

•Our web scraping solution makes the registration automated, quick and painless.

2.1.1 – CONTENT SOLUTION

•At the core of the business lies a set of algorithms developed using the latest

achievements within data science, machine learning and NLP

(Natural Language Processing).

•We utilise this technology in order to understand text and optimizing the

process of bringing the right content to every audience.

2.1.2 –ALGORITHM

•Utilising semantic classification helps us to recognize content and provide some

constraints on the type of content we wish to align ourselves with.

•We promote quality, penalize weaker content and/or completely remove content

types we don’t want to be associated with.

•Upfeed believes that this kind of understanding/control over the distribution is

paramount in order to become a domain leader within user-generated

content distribution.

2.1.3 – DEEPER LEARNING

•A complete content solution tailored for all business sizes.

•Based on our sophisticated algorithms we will offer a range of content packages.

•We quality assure each and every article that goes through our system making sure

only the content that meets the requirements are let through.

2.2 – MEDIA CENTER

•Revenue management based on a unique campaign code which is imbedded into the

link that drives traffic to the advertisers landing page.

•A campaign management suit gives advertisers a wide range of options in order to

specify campaign settings

•Price is based on pay-per-click and set by supply and demand.

•You may target your audience or request lowest rate possible by allowing any

content provider to take part.

2.3 – CAMPAIGN BROKERAGE

A complete management and reporting tool for the end to end business.

Critical systems

•BI – Platform – Pentaho Business Analytics

General systems

•CRM solution - Sales Force

•API Platform – Redhat Jboss Fuse

•Rule Platform – Redhat Jboss BRMS

•Presentation Platform – Magnolia CMS

2.4 – UPFEED ENVIRONMENT

In order to increase the user experience without stealing too much focus away from the

content we will consider some third party content not limited to the list below.

•Weather report

•Financial, stocks and commodities quotes

•Classifieds

•Jobs

•Games

2.5 – THIRD PARTY CONTENT

Content Provider

Management

2.6 – UPFEED POC (PROOF OF CONCEPT)

Customer

Management

Upfeed Sales Upfeed Business

Analyst Advertiser

Content Aggregator

Content Consumer

Content

Provider

Customer

Reporting

Customer

Management Content

Distribution

Content

Presentation Campaign

Enrolment

Content

Availability

Content Production

Content Production

Traffic Analysis Consumer

Analysis

Content

Classification Content

Acquisition

Settlement

Management

Product

Management

Ranking

Management

Content

Ranking

Settlement

Consumer

Segmentation Text Analysis

Payment

Distribution

•Tradedoubler

•Schibstedt

•News360

•Zite

•Flipboard

•Huffington Post

•Google

•Facebook

•Cxense

•Tapads

3.0 – THE COMPETITION

•Be data-driven, implementing data science, analysis and predictive modeling into our

decision making process from day one.

•Building and maintaining cutting-edge solutions, by investing in research

•Core business fully automated increases entry point cost threshold, but enables rapid growth.

•Fewer hires, but only the best and brightest, everyone’s a data scientist light.

•Sponsor high-quality content providers to drive traffic to our main categories.

•Create a wide range of editorials, promoting best practice aimed at educating content

providers and optimize the content (the Upfeed way), to increase content volumes.

•Optimize marketing budgets by utilising content providers as aggregaters of our promotions.

3.1 – STRATEGY

•Conduct, research/development

•Andy Doucette, research

•Handelsbanken, compliance/settlement

•Oliver Plummer, accounting international

•Exact Regnskap, accounting Norway

•Healys, legal international

•Sander Law, legal Norway

3.2– STRATEGIC PARTNERSHIPS

•Time – to – market, this is an opportunity that requires timing, to successfully meet this

requirement we plan to launch Q3 2016.

•Liquividity to create an efficient long term market mix.

•Establish and maintain a high-level of trust by efficient and «up-close» communication

with our customers and the market.

•Getting the content distribution up and running and not relying to much on the

campaign revenues.

•Making upfeed.com a credible news site, by promoting relevant high-quality news.

5.0 – SUCCESS FACTORS

•Tax advice

•Company structure, international

•Partnership agreements

•Online terms and agreements

•Intellectual property protection

•Disclaimers

•Corporate governance

6.0 – LEGAL

•Upfeed will be geared towards a global organisation from day one.

HQ:

•Excecutive management

•Tech, hosting and R&D

•BI, Analysis & Data Science

•Senior advisory and educational expertise

•Regional management

Local Office:

•Local management

•Teams front and back office handling research, analysis, CRM, advisory

and educational work.

6.1 – ORGANISATION

Serial entrepreneur/Investor

Age: 40

Previous projects: Watt magazine, yaTack.no, BetOnBet and iGroup.no

Education: MSc in Finance, Investment banking and

Securities from University of Wales

7.0 – THE FOUNDER

Joakim William Hauge

Shareholders:

•Joakim William Hauge (Runtime Capital Management ltd)

•Ante Bes Nilsen

Board of Directors:

•Ante Bes Nilsen

•Joakim William Hauge

8.0 - SHAREHOLDERS

Phase 1

•Norway and UK

Phase 2

•10+ European countries

•US Introduction,

Phase 3

•North American expansion

•Asia Pacific

•South America

•Middle East

•Africa

8.1 – ROLLOUT

News events:

Press release

Openings/Premiere reviews

Other events

8.2 – FUTURE RELEASES

Streaming services:

Daytime TV

Video aggregator

Live events

Revenues (NOK in 1000’s)

8.3 – FINANCE – P & L

12 months 24 months 36 months

Native ads

Banner ads

Content

Total Revenue from Operations

Operating Expenses

Fixed costs

Variable costs

Gross Profit

Overheads

Office costs

Server mng costs

Utilities

Total Overheads

Operating Income

Other income (Expenses)

Loan Interest

Earnings Before Tax

5000

500

1500

7000

1500

3000

4000

500

1500

500

2500

0

0

500

35000

7000

15000

57000

10000

25000

22000

3000

3500

2000

8500

(500)

0

12000

115000

20000

40000

175000

50000

75000

50000

5000

12000

5000

22000

(1500)

0

26500

Cashflow 2017

CASHFLOW FROM OPERATIONS:

Cash received

Cash paid

Cash generated

Dividends received

Interest received

Interest paid

Tax paid

Net cash from operations

CASH FLOW FROM INVESTING:

Office software & equipment

Server software, HW and utilities

Operations upfeed platform R1.0

Net cashflow from investing

CASH FLOW FROM FINANCING:

Proceeds from capital contributed

Proceeds from loan

Payment loan Net cash flow from financing

NET INCREASE/DECREASE IN CASH:

Cash at the start of period

Cash at the end of the period


NOK (in 1000's)

6500

4000

2500

0

0 25

100

2375

-200

-200

-1500

-1900

2500 0

0

2500

250

2975

Office equipment: 6 Mobile office packages

Office 6 work stations

Hosting: Cloud setup

R1.0 Upfeed platform:

Development and testing of a

production ready release

Total investments:


200 000

200 000

1 500 000

1 900 000

•We have defined the concept of Upfeed.

•We have created a list of assumptions necessary to create a lucrative business.

•We have conducted necessary research to conclude if concept is feasible.

•We have created a PoC in order to demonstrate our core business features and

unique approach to a multibillion USD market.

9.0 – SUMMARY