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Investor PresentationJuly 2015
Table of Contents
• Our Mission to Enhance the Status Quo• Vacation Rental Industry Overview• Trends in the Market• Rent Liaison Offering• Approach & Strategy• Competitive Landscape• Financial Projections• The Team
Rent Liaison Mission
Travelers…1) Spend hours searching for vacation rentals across an average of seven sites 2) Need to confirm availability, cost, and amenities resulting in numerous futile dialogues with
homeowners and property managers 3) Can set filters on listing sites, but still receive thousands of options, which can be
overwhelming (“Where to Begin?” Effect)
Homeowners and Property Managers…4) Don’t have the means to proactively reach out to a large and potentially unattended client
base5) Pay high listing fees to passively market their properties6) Have no way to segment inquiries based on probability of rental execution, ultimately
causing inefficiencies in the process
The Process to Rent a Vacation Home is Inefficient and Time Consuming
Mission Statement: Reinventing Vacation Renting
Rent Liaison offers a more efficient and effective
approach for homeowners and travelers to connect by
enabling homeowners to Proactively find and
contact potentially interested travelers
Vacation Rental Industry Overview
The Benefits of Renting a Vacation Property Are Clear
These are just some of the reasons why more people are choosing vacation rentals over hotels
“Access to full kitchen and/or laundry room"
“More Living Space”
“Access to outdoor living space”
“Low prices versus hotels” “Feels like
home”“More family
friendly”
“Better locations versus hotels” “Traveling with a
large group”
“Amenities such as hot tub, kids play
room, private pool and Wi-Fi”
Source: RBC Capital Markets
Vacation Rental Adoption Continues to Grow…
2008 - 201216%
CAGR
• Consumer Awareness and Interest are increasing: According to Discover Vacation Homes, “47% of leisure travelers are interested in staying in a vacation home over the next 12 months.”
• An Alternative That is Here to Stay: According to PhocusWright, “Among the people who stayed in a vacation rental over the past two years, 89% said that they would rent one again within the next three years.”
Source: Discover Vacation Homes
11%14%
20%
24%
2008 2009 2010 2012
% of travelers that have stayed in a vacation home during the past 24 months
…Largely Due to the Network Effect
More Vacation
Rental Travelers
More Bookings
More Vacation
Rental Listings
Greater Selection and
Availability
As the demand for vacation properties continues to grow, more homeowners make their properties available to travelers, which leads to more travelers,
and so on…
Total Addressable Market: 24 Million Vacation Homes
6 million
6 million
12 million
# of Vacation Properties in the World
U.S. & Europe ROW 2nd homes not utilized
$32 bn
$38 bn
Size of U.S. & Europe Market in 2018
U.S. Europe
$23 bn
$27 bn
Size of U.S. & Europe Market in 2012
U.S. Europe
$50bnMarket
$70bnMarket
6% CAGR
Only 50% of second homes are used as vacation rentals implying huge potential for future growth
Source: BMO, UBS, and RBC Equity Research
Trends in the Market
Who Manages Vacation Rentals’ Online Presence?
Individual OwnersProfessional
Property Managers
60% 40%
And Where Do They Do It?
Increased Migration to Online Search, But Bookings Are Lagging
Of the $50bn vacation rental market in the U.S. and Europe…
only 68% of travelers search for vacation properties
online…
and only 24% of those travelers
end up booking
online
Online adoption is in its infancy as almost a third of travelers still use offline channels to find vacation rentals and ¾ of travelers choose to book offline
Source: PhocusWright
The Market is Fragmented
No single vacation rental site lists more than 9% of all vacation properties, meaning travelers only see a fraction of available options when searching on each site
1,035
700 650
215 9%
6% 5%2%
0%
10%
20%
30%
40%
50%
0
200
400
600
800
1,000
1,200
Homeaway Airbnb Trip Advisor Booking.com
% M
arke
t Pen
etra
tion
NU
mbe
r of L
istin
gs
Top Vacation Rental Listing Sites
On average, travelers visit
7 different websites before
choosing a destination for their vacation
Source: HomeAway 10-K, Trip Advisor 10-K, RBC Equity Research
The Network Effect Can Be Just as Detrimental as it is Beneficial
Homeowners need to be more proactive to increase revenue and maintain margins
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2011 2012 2013 2014 2015E
# of Listings
Away Airbnb TripAdvisor
As the number of online listings continues to grow, the visibility of a singular property
continues to fall…
…As such, homeowners attempt to maintain exposure by increasing marketing costs through account upgrades and listing
on multiple sites
Source: HomeAway 10-K
2010 2011 2012 2013 2014$200
$250
$300
$350
$400
$450
$500
0%
5%
10%
15%
20%
25%
30%
$311 $321
$349
$377
$479
3%
9% 8%
27%
Average Revenue Per Listing on Homeaway
Average Cost / Listing on Homeaway Growth
Aver
age
Reve
nue
/ Listi
ng
Grow
th
Key Takeaways
1. Listing sites’ main objective is to increase online adoption, for both search and bookings
2. Travelers desire a unified marketplace for vacation rentals with more validated options at their disposal
3. In an increasingly competitive environment, homeowners need to do more to be seen by potential travelers
Rent Liaison Offering
Product Offering – Steps (Abbreviated)
1. Traveler visits Rentliaison.com
2. Traveler completes a
“Rental Request”*
3. The Rental Request is
submitted and logged into the “Rent Liaison Database”*
4. Homeowner logs into Rent
Liaison Database to view all Rental
Requests
5. Homeowner filters through
Rental Requests and selects travelers to
contact*
6. Homeowner sends traveler a
“Property Profile” via email*
7. Traveler responds to homeowner
through the Rent Liaison platform*
8. Booking occurs offline or at a
partner website like Homeaway or
TripAdvisor*
*See following page for more detail
The Product – Steps (Detailed)
1. Traveler visits Rentliaison.com
2. Traveler completes a “Rental Request”• A “Rental Request” is a form that collects information about the traveler, his/her group and features of the desired
property
3. The Rental Request is submitted and logged into the “Rent Liaison Database”• The Rent Liaison Database is a digital dashboard that stores and displays all Rental Requests
4. Homeowner logs into the Rent Liaison Database to view all Rental Requests
5. Homeowner filters through Rental Requests and selects travelers to contact• The homeowner can search for certain Rental Requests by filtering criteria such as dates, budget, number of people, etc.• For example, the homeowner can search for groups interested in traveling Memorial Day Weekend, that have 12 people or
less and are looking for a place in Montauk
6. Homeowner sends traveler a “Property Profile” via email• A “Property Profile” is a pre-formatted listing that provides an overview of the property, including a description, photos,
location, reviews, an offer (optional), the homeowner’s name and contact information, and if applicable, links to listings on rental websites
7. Traveler responds to homeowner through the Rent Liaison platform• Traveler responds to the homeowner by replying to the email
8. Booking occurs offline or at a partner website like Homeaway or TripAdvisor• Rent Liaison will help increase online bookings by driving qualified leads to partner vacation rental listing sites
What Information is Completed in a “Rental Request”?
Personal Group Property
• Destination(s)o East Hampton, Montauk,
etc.• Location Type
o In town, on the water, etc.
• Property Typeo House, condo,
apartment, etc.• # Bedrooms (Min, Max)• # of People it Sleeps (Min,
Max)• Budget (Min, Max)
o Per person or total amount
• Featureso Pool, hottub, tennis,
WiFi, etc.
Traveler fills out information about the property that he/she desires. This includes:
• Arrival Date• Departure Date• Whether or not the dates are
flexible• # of People
o # Childreno # Adults
• Age Range (Min, Max)• Occasion
o Birthday, wedding, bachelor party, prom, etc.
• Additional comments about the group
Traveler fills out information about his/her group. This includes:
• First and Last Name• Date of Birth• Current Residence
• City, State• Occupation• Email Address• Phone #
Traveler fills out information about himself/herself. This includes:
Once submitted, this information is displayed in the “Rent Liaison Database”
What is a “Property Profile”?
Beautiful Villa By The Sea
5 Bed, 4 Bath, Sleeps 12
$4,500
Title
Description
Offer Price
Ph
oto
sL
oca
tion
Am
en
ities
Revie
ws
DescriptionThis Beautiful, Recently Improved Hampton Bays Vacation Home Offers A Wide Variety Of Amenities That Are Well Suited For Various Groups And Vacationers. There Are 4 Bedrooms On The Ground Floor, Each With Its Own Access To A Wraparound Porch. Upstairs, You Will Find A Newly Renovated Spacious Kitchen Area, With Brand New Stainless Steel Appliances And Backsplash Tile.
Bryan [email protected]
516-551-9741
View Listing
Homeowner
Homeowner Contact Info
Links to listings for this property on partner sites
Tabs
From the Rent Liaison
Database, the homeowner sends the
Property Profile directly to potential
travelers’ email
Messa
ges Messa
ge
Approach & Strategy
Revenue Model
SubscriptionsPay-Per-Outbound
Property ProfilePay-Per-Inbound Message
Freemium Models
YearlySemi-
Annually
Monthly
Platinum, Gold or Silver Plans
• Free to create a Property Profile
• Charges a fee for every Property Profile sent to a traveler
• Free to create a Property Profile
• Free to send a Property Profile to a traveler
• Homeowner is charged a fee to view an inbound message from a Rental Request
• Can view the message but cannot respond nor see any contact information of the traveler
1. Free for travelers to submit Rental Requests
2. Homeowners, property managers and brokers must pay for access to the Database via a subscription model or through two freemium models described below
3. Other sources of revenue are being explored, including fees for lead generation to travel related service companies (ie. Rent-a-car, airlines, local establishments, ski slopes, etc.)
3-Step Plan to Series A
Sept2015
Feb2016
Sept2016
March2017
SeriesA
Phase I – Beta Stage (Determine Efficacy)
Phase II – Small ScaleProduct Release
Phase III – Full ScaleProduct Release
• Product: Minimal Viable Product
• Market: Vermont• Partnership Strategy: Local
homeowners and property managers
• Marketing Strategy: Word-of-mouth, SEO
• Hiring Strategy: CTO• Capital Requirement: $15k-
$25k• Milestone Needed to Proceed:
• 20 Property Profiles• 200 Rental Requests• 10 Bookings
• Product: Fully Developed Product
• Market: Long Island (ie. Hamptons)
• Partnership Strategy: Local homeowners and property managers
• Marketing Strategy: SEO, Social media and Direct-to-listing
• Hiring Strategy: CMO, CFO, COO
• Capital Requirement: $125k-$150k
• Milestone Needed to Proceed:• 100 Property Profiles• 2,000 Rental Requests• 100 Bookings
• Product: Fully Developed Product
• Market: Northeast U.S.• Partnership Strategy: Listing
sites and large-scale property management companies
• Marketing Strategy: SEO, Social media, and Direct-to-listing
• Hiring Strategy: Partner Relations, Sales
• Capital Requirement: $250k-$350k
• Milestone Needed to Proceed:• 50,000 Property Profiles• 1,000,000 Rental
Requests• 25,000 Bookings
Q12017
Phase I – Beta Stage (Determine Efficacy)
• Time frame: September 2015 to February 2016• Product Strategy: Release MVP• Market: Specific focus in Vermont• Marketing Strategy:
• To Travelers – Word-of-mouth, free social media, friends & family, SEO• To Homeowners –
• Leverage existing relationships with homeowners and property managers (from previous experience) to create Property Profiles and use/test the product free of charge
• Test with approximately 20 properties
• Hiring Strategy: • CTO
• Capital Requirements: $15,000 to $25,000• Funding by Bryan Fedner
• Milestones Needed to Move to Phase II:• 20 Property Profiles, 200 Rental Requests, 10 bookings• Solicit feedback from travelers and property managers to determine efficacy – “Would use again”
above 80%
Phase II – Small Scale Product Release
• Time Frame: February 2016 to September 2016• Product Strategy: Fully developed product• Market: Expand to Long Island (Hamptons, Montauk, Fire Island, etc.)• Marketing Strategy:
• To Travelers – SEO, advertisements via social media, marketing materials (flyers in gyms)• To Homeowners –
• Advertisements via social media• Once a Rental Request is submitted, contact homeowners on listing sites and property management sites
regarding the potential traveler and direct them to Rent Liaison (“Direct-to-listing”)
• Hiring Strategy:• CMO, CFO, COO
• Capital Requirements: $125,000 to $150,000• Funding by friends & family
• Milestones Needed to Move to Phase III:• 100 Property Profiles, 2,000 Rental Requests (including Phase I), 50 bookings• Solicit Feedback from travelers and Property Managers to determine efficacy – “Use again”
above 80%
Phase III – Full Scale Product Release
• Time Frame: September 2016 to March 2017• Product Strategy: Enhance product based on feedback• Market: Winter Markets (Vermont, Colorado, Utah)• Partnership Strategy:
• Approach top listing sites and large property management companies to convert their listings into Property Profiles on Rent Liaison’s platform and in return, lead travelers directly to their sites to execute bookings
• Marketing Strategy:• SEO, larger-scale advertisement/branding strategy ($2,500/month)• Direct-to-listing
• Hiring Strategy:• Partner Relations Team• Sales Team
• Capital Requirements: $250,000 to $350,000• Funding by friends and family
• Milestones Needed to Series A:• 4,000 Property Profiles, 50,000 Rental Requests, 2,500 bookings
Competitive Landscape
Competitive Landscape
Listing SitesProfessional
Property ManagersBrokers
Vacation Rental Aggregators
• Platform that enables homeowners and PMs to advertise their vacation homes
• Business model is subscription based, pay-per-booking or both
• Provide property management, marketing and booking services
• Business model is an annual fee, pay-per-booking or both
• Provide brokerage services
• Business model is pay-per-booking
• Platform that aggregates vacation homes from various listing sites and generates leads for them
• (ie: Kayak for vacation rentals)
• Business model is lead generation, customers are listing sites
Competitive Landscape Partnership Landscape
“As you craft a plan to expand to adjacent markets, don’t disrupt; Avoid competition as much as possible” – Peter Thiel
Rent Liaison will add value through lead generation
Rent Liaison will add value through lead generation
Rent Liaison will add value by providing a new way for brokers to find travelers
Though early stage, Aggregators are Rent Liaison’s greatest competition
Financial Projections
Financial Projections – Phase I to Phase IIIAssumptions
Basic Version Cost / Month $15Phase II New Accounts / Month 10Phase II Free Month(s) 1Phase III New Accounts / Month 50Phase II Free Month(s) 1New Accounts at end of Phase III 4,000# Sales Reps / Destination 2# New Accounts / Rep / Month 5Sales Rep Wages $12 25 $1,200
Phase I Phase II Phase IIIAug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 Month 19 Month 20 Total
# Destinations Covered 0 0 0 0 0 0 3 3 3 3 3 3 3 3 10 10 10 10 10 10# Sales Reps 0 0 0 0 0 0 0 0 0 0 0 0 0 0 20 20 20 20 20 20# New Accounts / Rep 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5 5 5 5 5 5# New Accounts 10 5 5 0 0 0 0 10 10 10 10 10 10 10 10 100 100 100 4,000 4,000 4,000Cumulative Accounts 10 15 20 20 20 20 20 30 40 50 60 70 80 90 100 200 300 400 4,400 8,400 12,400Retention Rate 100% 100% 100% 100% 100% 100% 100% 100% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%Lost Accounts 0 0 0 0 0 0 0 0 3 4 4 5 5 6 6 7 16 24 32 429 786# Accounts Beginning 0 10 15 20 20 20 20 20 30 37 43 49 54 59 63 67 160 244 319 4,288 7,859# Accounts Ending 10 15 20 20 20 20 20 30 37 43 49 54 59 63 67 160 244 319 4,288 7,859 11,073
RevenueMRR (Basic Version) $225 $300 $300 $300 $300 $300 $450 $555 $650 $735 $811 $880 $942 $998 $2,398 $3,658 $4,792 $64,313 $117,882 $166,094 $366,882
Free Month(s) ($225) ($300) ($300) ($300) ($300) $0 ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($1,500) ($1,500) ($1,500) ($60,000) ($60,000) ($60,000) ($187,125)Churn $0 $0 $0 $0 $0 $0 $0 $0 ($45) ($56) ($65) ($73) ($81) ($88) ($94) ($100) ($240) ($366) ($479) ($6,431) ($8,118)
Total Revenue $0 $0 $0 $0 $0 $300 $300 $405 $455 $529 $596 $657 $711 $760 $804 $2,058 $3,053 $3,947 $57,403 $99,662 $171,639
Cost of RevenuesHosting Expenses $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $200 $200 $200 $200 $200 $200 $2,600Equipment $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $200 $200 $200 $200 $200 $200 $2,600Other $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $200 $200 $200 $200 $200 $200 $2,600
Total Cost of Revenues $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $600 $600 $600 $600 $600 $600 $7,800
Operating ExpensesPayroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $144,000General & Administrative
LLC Formation / Fees $1,200 $0 $0 $0 $0 $0 $500 $500 $500 $500 $500 $500 $0 $0 $2,500 $0 $0 $0 $0 $0 $6,700Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $18,000Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $150 $150 $150 $150 $150 $150 $900Office Supplies $400 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $100 $100 $100 $100 $100 $100 $1,650Legal $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $19,000Executive Salaries $500 $500 $500 $500 $500 $500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $138,000Travel $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Accounting / Tax Filings $0 $0 $0 $0 $0 $0 $250 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $250 $500Other $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $4,000
Marketing $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $18,150R&D $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $114,000Contingency $250 $250 $250 $250 $250 $250 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $33,000Total Operating Expenses $4,600 $3,050 $3,050 $3,050 $3,050 $3,050 $18,050 $17,800 $17,800 $17,800 $17,800 $17,800 $17,300 $21,250 $57,450 $54,950 $54,950 $54,950 $54,950 $55,200 $497,900
Net Income ($4,900) ($3,350) ($3,350) ($3,350) ($3,350) ($3,050) ($18,050) ($17,695) ($17,646) ($17,571) ($17,504) ($17,443) ($16,889) ($20,790) ($57,246) ($53,492) ($52,497) ($51,603) $1,853 $43,862 ($334,061)
Break-Even Analysis
Based on the assumptions in the cash flow, the break-even point for Rent Liaison is:
4,000 Paying Accounts
The Team
Meet the Team
Bryan Fedner - Founder and CEO• Bryan graduated from Emory University with a BBA in finance and venture consulting.
• Bryan started his own vacation rental marketing company when he was 18 and has grown the company from $50,000 in revenue per year to $400,000 in revenue per year, and operated the business throughout college.
• Bryan previously worked at Bank of Montreal in their Technology Investment Banking division, with a focus in the software, IT services, and media industries.
• Bryan thrives in environments that foster creativity and innovation. He is an incredibly driven and passionate individual with a true interest in the vacation rental and technology industries, which led him to create Rent Liaison.
• If Bryan is not working on Rent Liaison, you will most likely find him playing soccer, watching ‘The Office’, reading, meeting new people, trying new restaurants or spending time with his friends and family.
Alex Sloan – Head Developer• Alex graduated from Duke University in 2012 with a degree in Computer Science and Electrical & Computer
Engineering.
• Alex previously worked as an engineer at iSocket, an advertising technology startup that pioneered the Automated Guaranteed advertising space and was acquired by The Rubicon Project in November 2014.
• Since the acquisition, Alex has remained at The Rubicon Project to continue as a core contributor to the iSocket platform (now known as Rubicon's Guaranteed Orders product), with a focus on scaling our internal tools for use by growing engineering and nontechnical teams.
• Alex enjoys working on innovative technical solutions to challenging business problems.
• When he's not at work, Alex enjoys hacking on personal projects, reading about new technologies, hiking, and traveling.
