Venture Lab 2012 | Technology Entrepreneurship | STARK Team | Urban Agenda OEP

URBAN AGENDAENJOY YOUR CITY

STARK TEAMAlfonso Tienda Braulio

Computer ScienceEngineer

Pedro Olivares Sánchez

Computer ScienceEngineer

Rubén Salvador Edo

Telecommunications& Electronic Engineer

Victor Benkovsky

ArchitectUrban Planner

Paula Salvador Edo

ArchitectUrban Planner

Our concept is based on the idea that, on the

one hand any business needs advertising, be

seen and attract customers. On the other hand,

customers need quick information about events

occurring in the city: the current era requires

platforms that allow users to make quick

decisions at every moment and in any place.

If all this is focused on the entertainment industry,

we get "Urban Agenda App", the mobile

application that allows you to enjoy the city to

the fullest. Taking performance to the

environment, is to take performance to life.

THE CONCEPT

• INTRODUCTIONPROBLEM/SOLUTION

PRODUCT

INITIAL BUSINESS MODEL

• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

INTRODUCTION - PROBLEM /SOLUTION

PROBLEM

A lack of a smart and useful

platform of information about the

events in the city

+

Business needs advertising

SOLUTION

URBAN AGENDA APP

• INTRODUCTIONPROBLEM-SOLUTION

PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

INTRODUCTION - PRODUCT


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING



PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING



PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING



PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING



PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING


What's special about Urban Agenda?

We focused on functionality demanded by our

potential customers and not available in other

solutions

We have designed a modern and comfortable

interface


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

INTRODUCTION – INITIAL CANVAS MODEL


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

MARKETING

MARKETING EXPERIMENTS

According to our potential customer survey, 86%

of them find their cultural information speaking

with friends and using social networks, so we

create a Facebook page and a Twitter

account.

They obtained dozens of followers in less than 12

hours (7 "Like it" and 83 followers).

We consider them potential customers, with no

acquisition cost.


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

MARKETING

MARKETING EXPERIMENTS

From our partner survey, we know that most of

them (35 %) are pubs with pop/rock concerts.

So in our web we advertised two musical events

in pubs (see http://stark.coolpage.biz/index.html)

After the concert, we asked the audience if they

knew about the concert from our web page.

20% did, and we brought this information back to

the pubs. One of them will consider paying for

highlighting his events.


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

SALES

Urban Agenda is a service that operates as an

intermediary. This is why sales operate between

two sides:

SALES TO PARTNERS

1) We sell the service through different rates,

depending on the visibility that the Partner

wants to have within Urban Agenda App.

2) By Ticket Service, Urban Agenda retains a

percentage.

SALES TO CUSTOMERS

We sell the “premium version”, which includes

service Augmented Reality capability. The

application is available for free with “freemium

version”.

Yes, if it

brings

more

customers

72%

No

28%


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

SALES – TO PARTNERS

PARTNERS SURVEY: PAYMENT FOR UA SERVICES

Advertising is a potential income channel. Our lo-fi

prototype got good acceptance from our

partners.


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

SALES – TO CUSTOMERS

CUSTOMERS SURVEY: PAYMENT APP

Yes

27%

No

73%

“Freemium” model can be applied by adding

extra value.


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

PARTNERSHIPS

• The network of partners and content suppliers

play a critical role in our business model.

• These strategic alliances composed of museums,

art galleries, cafes, clubs, cinemas will provide

Urban Agenda with valuable contents and events

for our customers.

• Face to face interviews with many customers

were scheduled.

• Very positive feedback and worthy inputs were

provided by our customers


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

DISTRIBUTION

• Urban Agenda will be downloaded at the

most popular online app stores:

Google Play

Apple's App Store

• QR codes for quick access to the downloadwebpage will be available at strategic

locations as tourist info offices, train stations,

cinemas, theaters. cafes, etc.

• The app will also be reached from ourpartners webpages and facebook profiles

(pubs, theaters, concert halls, museums, etc).


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

COSTSCOST STRUCTURE

Year 1 Year 2 Year 3 Year 4 Year 5

Salaries and employeebenefits €160.000 171.200 183.184 196.007 209.727

Occupancy fees 25.000 26.250 28.875 33.206 39.848

Equipment 25.000 26.250 28.875 33.206 39.848

Data processing 32.000 33.600 36.960 42.504 51.005

App development 78.000 145.000 270.000 270.000 350.000

Sales Team 45.000 47.250 51.975 119.543 143.451

Consulting Firm 30.000 34.500 39.675 45.626 52.470

Marketing 35.000 103.950 308.732 916.933 2.723.290

Specialized AR Firm 55.000 57.750 63.525 73.054 87.665

Other 5.000 5.250 5.775 6.641 7.970

Personnel costs and the cost of implementation is

estimated by correlating data from companies in the

same target market. The incremental cost of

marketing is due to the expansion of the project.

Other costs included in „Risks‟ sections


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

REVENUE MODEL

FREE

PREMIUM

VERSION

ADVERTISING

TICKETS SALE

PROFITS

$

% $

% $

CONSUMERS

PARTNERS


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

RISKS

Team Risks

Capital Risks

Market Risks

TechnologyRisks


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

RISKS

Id Risk Probability Impact Class

1

The team has no previous experience in the entertainment industry 10 8 Team

2 Debt crisis in Europe 8 7 Capital

3 Economic Crisis in Europe 8 3 Market

4

Lack of knowledge about the laws in other countries 8 6 Team

5

Changes and progress in augmented reality 6 6 Technology

6

Emergence of new unsupported platforms 4 6 Technology

7 Delays in capital contribution 3 7 Capital

8 Changing trends in ticket sales 2 6 Market

9

Expected App acceptance lower than initial estimation 6 10 Market

10

Partners not ready to automate their ticket sales 8 7 Market


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

RISKS

1

2

3

4

56

7

8

9

10

0

5

10

0 5 10

Evaluation

We will take actions to the risks of the upper right

quadrant. They are the most important.


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

RISKS

Actions

RISK ACTIONTYPE

ACTION

1. Team has no previousexperience in entertainment

Mitigate Hiring an experiencedsalesperson in the field. Cost45k€/y

2. Debt crisis in Europe(No bank loans)

Avoid Find funding in VC firms

4. Lack of knowledge in laws in other countries

Avoid Engage the services of aconsulting company specializedin technology startups. Cost30k€/y

5. Changes and progress in augmented reality

Mitigate Partnership with specializedsoftware firm. Extra cost55k€/y

9. Expected App acceptance lower than expected

Mitigate Perform short developmentcycles to quickly adapt to theneeds and requirements of ourcustomers.


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

FUNDING

TYPE DATE AMOUNT

Equity Capital /FFF Month 0 60.000 €

Business Angel Month 6 100.000 €

Venture Capital –Round 1

Month 20 350,000 €

Venture Capital –Round 2

Month 48 2.000.000 €

IPO Year 7 ???

The table shows the funding sources for the project,

indicating the due date and the required amount

of money. The reason for these funding sources and

shareholder dilution are reflected in the cash flow

on the next point.


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

COST & 5 YEAR FORECASTINGProfit and Loss Projections

Year 1 Year 2 Year 3 Year 4 Year 5

Income

In-App advertisement and positioning 40.000 42.000 46.200 53.130 63.756

Pro App 28.000 49.840 88.715 157.913 281.085

Tickets revenue 198.000 267.300 697.653 1.820.874 4.752.482

Total Noninterest Income €266.000 €359.140 €832.568 €2.031.917 €5.097.323

Expense

Salaries and employee benefits €160.000 171.200 183.184 196.007 209.727

Occupancy fees 25.000 26.250 28.875 33.206 39.848

Equipment 25.000 26.250 28.875 33.206 39.848

Data processing 32.000 33.600 36.960 42.504 51.005

App development 78.000 145.000 270.000 270.000 350.000

Sales Team 45.000 47.250 51.975 119.543 143.451

Consulting Firm 30.000 34.500 39.675 45.626 52.470

Marketing 35.000 103.950 308.732 916.933 2.723.290

Specialized AR Firm 55.000 57.750 63.525 73.054 87.665

Other 5.000 5.250 5.775 6.641 7.970

Total Expense €490.000 €651.000 €1.017.576 €1.736.720 €3.705.272

Income before taxes on income (€224.000) (€291.860) (€185.007) €295.198 €1.392.051

Taxes on income 30% -67.200 -87.558 -55.502 88.559 417.615

Net Income or Loss (€156.800) (€204.302) (€129.505) €206.638 €974.436


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

Profit and Loss Projections

- Revenues are based on the market

share that we believe we can achieve in

each period.

(€400,000)

(€200,000)

€0

€200,000

€400,000

€600,000

€800,000

€1,000,000

€1,200,000

1 2 3 4 5

COST & 5 YEAR

FORECASTING


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

Cash Flow Projections

Year 1 Year 2 Year 3 Year 4 Year 5 Total

Net income (€156.800) (€204.302) (€129.505) €206.638 €974.436 €690.467

Cash fromexternal funding €100.000 €350.000 €2.000.000

Total OperatingActivities (€56.800) €145.698 (€129.505) €206.638 €2.974.436 €3.140.467

Begginning Cash Balance €60.000 €3.200 €148.898 €19.393 €226.031

Ending Cash Balance €3.200 €148.898 €19.393 €226.031 €3.200.467

COST & 5 YEAR

FORECASTING


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

Cash Flow Projections

- Second VC funding is to get worldwide

market on year six, to achieve the IPO in

year 7-10.

€0

€500,000

€1,000,000

€1,500,000

€2,000,000

€2,500,000

€3,000,000

€3,500,000

1 2 3 4 5

COST & 5 YEAR

FORECASTING


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

Funding Projections by year

€0 €500,000 €1,000,000 €1,500,000 €2,000,000

1

2

3

4

5

COST & 5 YEAR

FORECASTING


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

Shareholder Dilution

Initial Year 1 Year 2 Year 3 Year 4 Year 5Share Value year 5

Partner #1 20% 16,67% 15% 15% 15% 13,9%€2.174.063,81

Partner #2 20% 16,67% 15% 15% 15% 13,9%€2.174.063,81

Partner #3 20% 16,67% 15% 15% 15% 13,9%€2.174.063,81

Partner #4 20% 16,67% 15% 15% 15% 13,9%€2.174.063,81

Partner #5 20% 16,67% 15% 15% 15% 13,9%€2.174.063,81

Business Angel 0% 16,67% 15% 15% 15% 13,9%€2.174.063,81

VC - 1st round 0% 0% 10% 10% 10% 9,3%€1.449.375,87

VC - 2nd round 0% 0% 7,5%€1.175.169,63

Company value (PER based) $ - $ - $ -

$ 3.322.745

$ 15.668.928

Shareholder dilution

- 1st round dilution is based in Risk

Interest 65% and PE Ratio 16,08

- 2nd round is estimated.

COST & 5 YEAR

FORECASTING


PRODUCT


• MARKETING

• SALES

• PARTNERSHIPS

• DISTRIBUTION

• COSTS

• REVENUE MODEL

• RISKS

• FUNDING

• COST & 5 YEAR

FORECASTING

COST & 5 YEAR

FORECASTINGShareholder Dilution

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Partner #1 Partner #2 Partner #3 Partner #4 Partner #5 Business Angel

VC - 1st round

VC - 2nd round

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

THANKS FOR

WATCHING

www.stark.coolpage.biz

Education

Venture Lab 2012 | Technology Entrepreneurship | STARK Team | Urban Agenda OEP