Interior Define Investor Pitch Deck - Series A ($2.7M raised to date)

May 2014 | Private & Confidential

INTERIOR DEFINE IS CHANGING THE WAY PEOPLE SHOP FOR FURNITRE.

• Multi-channel• Vertically-integrated: better pricing and

deep product personalization• Reference-generating customer service

© 2014, Interior Define, Inc. Confidential

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The $71B furniture market is highly fragmented -- and rapidly moving online

“We don’t yet know what constitutes online saturation – but there might be a clue checking out the behavior of more prosperous consumers. The most affluent customers do 63% of their furniture spending online.”

- McKinsey

2013E 2017F$0

$20,000,000,000

$40,000,000,000

$60,000,000,000

$80,000,000,000

$100,000,000,000

$62B $71B

$9B

$13B

Physical Online

“34% of customers don’t mind not touching / seeing the furniture before its bought.”

- Mintel

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Despite the market size & opportunity, there isn’t a Warby Parker or Bonobos of furniture

Low Price

High Price

Low Quality

High Quality

Gap in Furniture “The Next Big eCommerce Wave: Vertically Integrated Commerce.”

–TechCrunch

“Design interested clients are going to insist on knowing the story and the sources; they want to participate.”

– Holly Hunt

“We’re entering a new era in which customization will lead a number of consumer product categories, creating value for buyers and sellers alike.”

– Mashable4© 2014, Interior Define, Inc. Confidential

Our unique supply chain that eliminates middlemen & unnecessary markups

1. We produce items on-demand (negative working capital model) with carefully selected partners

2. Our experienced overseas team carefully inspects & packages every item

3. We ship directly to consumers in the US; in competitive lead times for made-to-order furniture 5


Which enables us to offer Room&Board quality at West Elm (and lower) prices

Kelley sofa $1,800 (including delivery)

• 106” length• Kiln-dried hardwood frame• High-resilience foam & goose-down

seating• Extra padding on arms and frame• Woven polyester fabric• Unique, full-chaise arm• Hardwood legs

Easton sofa $2,698 (before delivery)

• 106” length• Hardwood frame

(unspecified)• Spring and down seating• Thin arms• Woven polyester fabric • Half chaise arm• Plastic legs 6


Consumers are excited about our customization proposition

Sales0%

10%20%30%40%50%60%70%80%90%

100%

40%

41%

19%

Upholstery Customization

Structural Cus-tomization

Standard

ID Customization (as % of sales)Customization Options

Upholstery

Size & Configuration

Legs


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We meet customers where they want to shop

E-commerce website22%

Showroom experience52%

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Swatch Mailer26%


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2$0 K

$50 K

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427 28 33

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7896

115129

166

203

Sales Actuals and Projection ($K)

ID Actual ID Forecast Bonobos

2014 ID sales projection:

$1.06M

YTD Sales (as of 5/16):

$121K

Customer Groups %

Showroom 52%Online-Swatch assisted

26%

Online Only 22%

ID actuals

We project $1M in 2014 sales based on ramp similar to relevant, lifestyle brands (Bonobos)


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“there's a large swath of consumers who feel they have

graduated from Ikea furniture but can't afford to shop at high-end

design stores.”

“Interior Define is an upholstered furniture business

poised to disrupt the industry.”

“Things We Love: Make your home your own with

customizable high-end furniture at affordable prices.”

“Interior Define Doesn’t Just Design Chairs, They Create

Works of Art”

“you can get a sofa that looks like it cost at least $2,500 for

about $1,600.”

Consumers & media are excited about our brand proposition

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“Interior Define is here to save you from

sofa regret.”


Our Team

Steve McClearn / CEO. Former VP of home appliance eCommerce & strategy at Sears. MBA Harvard Business School. Rob Royer / Founder & Head of Brand. Former Director at Draftfcb; Director of CRM at Bonobos. MS Integrated Marketing, Northwestern Univ.

Adam Rosen / GM of China office. Former Chinese Logistics & Sourcing Analyst at Target. BS Chinese, George Washington University.Jeff Osowski / Director of Operations. Former Bain Senior AC. BS Finance, University of Notre Dame.

Andy Dunn / Founder & CEO of BonobosGary Kohler / Chief Investment Officer, Blue Clay CapitalPeterson Ventures / Founded by Joel Peterson, Chairman of Jet Blue.Brendan Wallace / Former CEO of Identified – led successful exit.

Executive Team Advisors & Investors

Key Team Members

Proudly run in Chicago by a team of design junkies, brand zealots, techies, foodies, supply-chain aficionados, reformed consultants, and champions of exceptional experiences. 11


APPENDIX

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About Us• A new, vertically integrated e-commerce furniture brand

• Raising funding through a convertible note with a $2.25 million note cap. Participants include Peterson Capital and experienced e-commerce angels

Our Unfair Advantages• A supply chain that has been tested & proven over five years

• Highly involved investors & board members with exceptional ecommerce & brand experience: – Andy Dunn, Founder & CEO of Bonobos– Clint Peterson, Peterson Capital. Fund founder Joel Peterson, CEO of

JetBlue, Stanford GSB professor, and initial investor in Bonobos– Adam Wright, hedge fund, early Bonobos investor

• Leadership team with solid operating, brand, and ecommerce experience (coming from companies like Bonobos, Sears, Target, and Bain)

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The Problem: Design-conscious consumers aren’t satisfied with the current retail furniture options.

$2,698

Retail Operations: $512 (19%)

Other SG&A: $728 (27%)

Cost of goods: $1,268 (47%)

Profit: $189 (7%)

Retail Furniture

Direct (e.g. Room&Board)

Consumers are spending more time comparison shopping and looking for value. This has led to increased use of the internet, especially on mobile devices, as not only a research tool but as a channel for purchase.

– Euromonitor 2014

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Cost of goods:$1,130 (63%)

Retail Operations: $80 (4%)

Other SG&A: $320 (18%)

Profit:$270 (15%)

$1,800


Our value proposition fills a void in the market: Room&Board design & quality at West Elm (and better) prices

Splurge

$$$

Aspire$$$$$

Save or Settle

$

Best Current Option

$$

ID Prices

ID Design & Quality

Design- and quality-conscious consumer consideration-set in the fragmented US market.

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Marketing channelsEditorial PR Design Partnership

Social Paid

• Creates awareness and credibility• Spend: $8k/month

• Credibility and traffic• Spend: Minimal (rev share)

• Houzz and Pinterest. Includes paid placements

• Spend: $8k/month

• Targeted at consumers known to be in market. SEM, Shopping engine, mailers

• Spend: $15k/month

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Proposition: Designer-quality furniture at prices (actually) within reach.

Price Friendly

• No middlemen

• e-commerce driven

• Lean operating model

Furniture Made Simple

• Curated designs

• Easy personalization

• High-touch fulfillment

People Loving

• Bonobos-like customer service

• 365-day returns

• Delivery concierge

Brand Pillars

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“Great job on the website…it reminds me of a hybrid of Restoration Hardware (the photography with the exposed commercial equipment etc.) and Design Within Reach with a twist of Ligne Roset!” -- Jay Michael, Lifestyle Developer on Bravo

-- Diana Bitting, Editor of Modern Luxury Interiors

“I want you to know how refreshing it is to find fair pricing, innovative furniture and a personable business. WOW! I'll be sure to tell all of my mommy friends about your website and philosophy. I'm so impressed.”

-- Customer email

Consumers (and influencers) love our product & brand proposition

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Small Business & Entrepreneurship

Interior Define Investor Pitch Deck - Series A ($2.7M raised to date)