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EpiFiction EpiFiction is an innovative Reading Program it is also… Fiction Publishing with a data analytics core 1 https://www.youtube.com/watch?v=Qtk-b9n9z2U

EpiFiction BAA Deck 11-9-15 (1)

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Page 1: EpiFiction BAA Deck 11-9-15 (1)

EpiFiction

EpiFiction is an innovative Reading Programit is also…Fiction Publishing with a data analytics core

1

https://www.youtube.com/watch?v=Qtk-b9n9z2U

Page 2: EpiFiction BAA Deck 11-9-15 (1)

MARKET PROBLEM AND SIZEProblem

2

OpportunityMarket Cap

$670 B $320 M

$4.4 T $1.7 B

EDUCATION

1992

2009

FICTION

$61B $61B2012

2006

- 50,000 100,000 150,000 200,000 250,000

235,00

0

82,000

Page 3: EpiFiction BAA Deck 11-9-15 (1)

CUSTOMER SEGMENTS

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K-12 Schools Reading Comprehension Tech Friendly Funded US: 110,000+ Int’l: 1M+

Parents Involved Education is Priority US: 20-30M Int’l: 400-600M

Fiction Readers “Young Adult” Genre Early Adopters US: 135M Int’l: 1.2B

Education

Fiction

Page 4: EpiFiction BAA Deck 11-9-15 (1)

VALUE PROPOSITION & CHANNELS

Education

4

Literacy Key Focus Participatory Method Well Proven

Publishing 3x Volume Increase Migration

Audience, Feedback, Insights

Self-Evident

Pain Point Pertinence Differentiation Substantiation

Channels:Education - Digital Marketing, Enterprise Sales, Trials, Expos, MailersAuthors - Digital Marketing, Craft Forums, Expos

K-12

Authors

Page 5: EpiFiction BAA Deck 11-9-15 (1)

REVENUE STREAMSPrimary: SubscriptionsSecondary: Publishing

5

Year 1 Year 2 Year 3 Year 4 Year 5 $-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

Primary/Secondary Revenue

PRSR

$.70 per student per month 12 month duration Parents: $5/mo

20%-50% royalties $2-5 avg. book price Transition when data matures

Subscriptions Publishing

Page 6: EpiFiction BAA Deck 11-9-15 (1)

COMPETITION

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Function EpiFiction Fiction Express Kindle Direct

Participatory

Open Author

In US Market

Game/Social

Data Analytics* N/A

Internal Market

Author Coaching

(Direct) (Indirect)

BarriersFiction Express – UK/Germany MarketKindle Direct – Author Offers; Publishing Process

Page 7: EpiFiction BAA Deck 11-9-15 (1)

IP/COMPETITIVE ADVANTAGE

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DirectOpen Authorship: vsGame/Social

IndirectFor Authors: Better Deal; Better CoachingFor Crowd: Better Data Analytics

Competitive Advantage1st Mover AdvantagePatentable Algorithms

Page 8: EpiFiction BAA Deck 11-9-15 (1)

CURRENT TRACTIONResponse from Educators

Sales & Adoption 100% conversion of cold-call/beta participation 1 Idaho district purchased 2016 subscription already

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38

Page 9: EpiFiction BAA Deck 11-9-15 (1)

TEAM

Tom Patchin - Managing PrincipleBA – College of Idaho, Business

Fortune 500 BackgroundProject Mgmt, Finance

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Michael Sutton - AdvisorPhD – McGill U, Knowledge Mgmt

Associate Prof. at Westminster CollegeEd Theory, Ed Market, Gamification

David Mark Brown - PrincipleBA – U of Montana, Elementary Ed

Author of 19 Titles, 2nd Grade TeacherPublishing, K-12 Education

Derek Leavitt - PrincipleMBA – Oxford University, SBS

Startup to Exit ExperienceCrowdsourcing, Digital Marketing, Systems

Page 10: EpiFiction BAA Deck 11-9-15 (1)

EXIT STRATEGYBuyout Advantage: Data Analytics & Network

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#publishingdata #educationtech #trendaggregation

Page 11: EpiFiction BAA Deck 11-9-15 (1)

OFFERING AND VALUATION

Seed RoundTarget Valuation: $1.75M pre-moneyEquity Offering: Up to 20%Add’l Terms: Pro-Rata Rights

Valuation RationaleComparable OffersInvestment InterestRapid Growth Potential

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