RL Presentation 7.31.15

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…1) Don’t have the means to proactively reach out to a large and potentially unattended client base2) Pay high listing fees to passively market their properties3) 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 - 2012

16% 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 P

enet

rati

on

NU

mb

er o

f Li

stin

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

$311 $321

$349

$377

$479

3%

9% 8%

27%

0%

5%

10%

15%

20%

25%

30%

$200

$250

$300

$350

$400

$450

$500

2010 2011 2012 2013 2014

Gro

wth

Ave

rage

Rev

enu

e /

List

ing

Average Revenue Per Listing on Homeaway

Average Cost / Listing on Homeaway Growth

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 Homeawayor 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 Type

o House, condo, apartment, etc.

• # Bedrooms (Min, Max)

• # of People it Sleeps (Min, Max)

• Budget (Min, Max)

o Per person or total amount

• Features

o 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 # Children

o # 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

ocatio

nA

men

itiesR

eview

s

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

Messag

es

Message

mailto:[email protected]

Approach & Strategy

Revenue Model

SubscriptionsPay-Per-Outbound

Property ProfilePay-Per-Inbound Message

Freemium Models

YearlySemi-

AnnuallyMonthly

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

Phase I – Beta Stage

(Determine Efficacy)

Phase II – Small Scale

Product Release

Phase III – Full Scale

Product 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



• 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



• 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


value through lead

generation


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 $15

Phase II New Accounts / Month 10

Phase II Free Month(s) 1

Phase III New Accounts / Month 50

Phase II Free Month(s) 1

New Accounts at end of Phase III 4,000

# Sales Reps / Destination 2

# New Accounts / Rep / Month 5

Sales Rep Wages $12 25 $1,200

Phase I Phase II Phase III

Aug-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-17

Month 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 4,000

Cumulative Accounts 10 15 20 20 20 20 20 30 40 50 60 70 80 90 100 200 300 400 4,400 8,400 12,400

Retention 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

Revenue

MRR (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 Revenues

Hosting Expenses $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $200 $200 $200 $200 $200 $200 $2,600

Equipment $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $200 $200 $200 $200 $200 $200 $2,600

Other $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 Expenses

Payroll $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 $144,000

General & 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 $6,700

Rent $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 $18,000

Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $150 $150 $150 $150 $150 $150 $900

Office Supplies $400 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $100 $100 $100 $100 $100 $100 $1,650

Legal $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 $19,000

Executive 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 $138,000

Travel $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Accounting / Tax Filings $0 $0 $0 $0 $0 $0 $250 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $250 $500

Other $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 $18,150

R&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 $114,000

Contingency $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 $33,000

Total 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.