Dream On Demand Marketplace

© 2014 Redpoint Ventures. Proprietary and confidential. Do not copy or distribute without permission.

Widget DirectP r e p a r e d f o r R e d p o i n t F e b 2 0 1 5

2© 2014 Redpoint Ventures.

Convenient

anticipatory widget marketplace with end-to-end delivery

Cheap

cutting out widget middlemen generates savings for both sides

Liquid

largest online market for fragmented widget suppliers in launched markets

Widget Di rect br ings

widgets on demand


Expensive

Brokered

Slow

Manual

Fragmented

No National Brand

Buying widgets today i s painfu l


Supplier Supplier

Wholesale

Broker

Purchaser Purchaser Purchaser

Supplier

Today Tomor row

Widget Direct

Supplier Supplier Supplier

PurchaserPurchaser

Disrupt ing off l ine brokerages wi th an

onl ine end-to-end marketplace

30%

50%

© 2014 Redpoint Ventures.

Widget Direct Demo


Currently a XX B market growing YY% a year1

$WIDG- public widget listing based marketplace accounts for only 5% of all transactions

$ZB TEV - $XB revenue – 10% take rate

Tens of thousands of offline suppliers2

top 20 account for <10% of all transactions

Widgets are a huge f ragmented

market

1. Gartner

2. WIDG S1


Unit Economics – break even today

very prof i table tomorrow

1. For comparison UPS avg is ~12-15. http://www.wired.com/2013/06/ups-astronomical-math/

Today Tomorrow Future

Impr. Impr.

Avg Price $17.00 $19.00 12% $22.00 29%

Coupons $(0.85) 5% $(0.85) 4% $(0.85) 4%

CC processing $(0.51) 3% $(0.57) 3% $(0.66) 3%

Opex $(0.68) 4% $(0.76) 4% $(0.88) 4%

Driver Hourly Wage $17 $17 $17

Deliveries Per Hour 2.5 3 20% 41 60%

Driver $(6.80) 40% $(5.67) -17% 30% $(4.25) -38% 19%

COGS $(8.50) 50% $(8.50) 45% $(8.50) 39%

Margin -$0.34 -2% $2.65 14% $6.86 31%


Tract ion – $1.2M annual run rate

31% MoM Growth


Go To Market – favorable acquis i t ion

dynamics

Customer Driver

Transactions / Week 0.5 Hours / Week 20

Transactions / Week 60

Margin / Transaction $2.65 Margin / Transaction $2.65

Churn / Week 8% Churn / Week 4%

Lifetime 12.5 weeks Lifetime 25 weeks

CM / Transaction $2.65 CM / Transaction $2.65

LTV $16.58 LTV $3,998

CAC $10.00 CAC $1,000

LTV / CAC 1.7 LTV / CAC 4.0


Competi t ion – only end-to-end

marketplace

Quality

Speed

Widget Direct

WidgGoogle

Manual Brokerage


Jane Doe – CEO 15 years widget industry experience

Martha Smith – CTO leading ads eng teams at Google

Mary Wu – COO lead ops for Tesla

6 Eng – 3 Business -

Team – Strong industry exper ience

marr ied to technology


We’ve raised 2M seed from angels and great seed funds and hit > 1M annual run rate

Raising 5M Series A to launch 3 markets and hit 10M run rate in 18 months

F inancing

© 2014 Redpoint Ventures.

Appendix

13


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1. App w/ aggregated demand

2. Centralized access to supply

3. Standardized product

4. Smart phone routing

Value

1. Solves information asymmetry in offline markets

2. Better economics by removing middlemen

3. Social validation of suppliers

Widget Di rect so lut ion


Customer Cohorts

Internet

Dream On Demand Marketplace