eProf.com Investor Deck [Full - April 2014]

INVESTOR DECK

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© 2014 EPROF EDUCATION INC.

The eProf Edu-Commerce Platform helps education businesses embrace online delivery of their services and content, adding new revenue streams without the technological challenges.

With eProf, users create online teaching websites, powered by a built-in e-commerce engine and tools to help them manage their business.

Company Overview | Elevator Pitch

Overview

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Federally incorporated - July 13th, 2012

Based out of MaRS Discovery District - Toronto, Canada

5 Full-Time Employees - 1 Founder, 1 Marketer, 3 Engineers

$220,000 funding to date - JOLT Accelerator + government grants + founder’s investment

Early Stages of Revenue - 40 Paying Clients, 350+ Business Accounts, $1k MRR

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Company Overview | Dates & Statistics

Overview

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Target Market | The Education Mid-Market

Opportunity

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Key challenges faced by traditional education businesses

Revenues are down as online services create pricing pressure and steal students away from traditional brick-and-mortar learning.

Growth is limited as client base is restricted by geography, and local competition for students and instructors is fierce.

Customer Problems | The Mid-Market is Struggling

Opportunity

Edu-Businesses have been left out of the EdTech Revolution. But now is their time!

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Market Opportunity | Room for Improvement

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There are two solutions that exist for education businesses to bring their services online today.

Rely on a marketplace business to allow you to be discovered in a directory of your competitors. Minimal opportunity to differentiate.

Integrate eCommerce tools into your website, manage multiple software subscriptions, face tech challenges alone, create a distraction from your existing offline business.

Join a marketplace Do it yourself

Opportunity

There has tobe a better way!

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Our Solution | What eProf Provides

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A completely turnkey platform to run an education business online

Solution

Branded Website

eCommerce Engine

World-Class Teaching Tools

Tiered User Architecture

Logistics Management

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Dashboard to oversee and manage all aspects of their business

Online Course and Class creation (capabilities for asynchronous and synchronous)

Scheduling, registration, reminders and requests infrastructure

eCommerce engine (payment processing, discount codes, student shopping cart)

Built-in communication tools for teachers and students, including virtual classrooms

Our clients get…

User Perspectives | Educators & Businesses

Solution

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End users see…

A branded & responsive website they can browse from their phone, tablet, or PC

Storefront showcasing educational services available for sale

Instructor profiles, ability to send messages and make requests

Online classes and courses, downloadable files and materials, discussion boards

Solution

User Perspectives | Students / Parents

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Break down geographical barriers that limit student acquisition.

Ownership of their online presence and ability to run their business and deliver content on their own terms.

The best technology in one unified solution, rather than a number of disjointed pieces of software. Fully automated e-commerce engine for sales, instead of manual processes.

Meet student/parent expectations of convenience while maintaining the brand recognition and personal touch that sets their business apart.

Customer Benefits | Why Our Clients Love eProf

Solution

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25-45 years old

Business owner with goals to grow revenues and reach more students online

Limited technical expertise

Has an existing website that is inefficient, outdated, difficult to manage

Has looked into online teaching but hasn’t found a platform that works for him

Customers

“eProf has been instrumental in the organization and delivery of our online tutoring sessions.  The tools provided in the back-end help organize and track the delivery of our online tutoring.  They accomplish this while also delivering a front end product experience that has been hugely effective for both our students and instructors.  All said, eProf makes it easier to run my business and deliver a great service. “

Taylor Christie - Cognition Prep

Eric EducatorTutoring Business Owner, Entrepreneur

Customer Profile | Our Typical User

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Basic$0 upfront fee

ProfessionalStarting at $49/month

Basic plan users have accessto eProf ’s core features

for free. They get a custom, co-branded website, all

scheduling, curriculum planning, and payment tools built in.

eProf takes a 20% commission on all classes/courses they run

(industry standard revenue split).

Pro users have access to core and premium features for a base $49/month + $29 per additional

instructor. Their website is completely white labeled, and they have access to premium

features and themes.

eProf takes a 5% commission on all classes/courses they run.

Business Model | Freemium Software-as-a-Service

Model

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Outbound sales calls and online demos, custom pricing (including training + design costs), focus on annual contracts with upfront payment.

Customers

Inbound marketing techniques lead to a self-serve product with automated on-boarding, engagement emails and resources for success.

Customer Acquisition | Conversion Methods

Solo Educators, Tutors + Small-Medium Businesses

Large Businesses + Enterprises

eProf uses a combination of inbound and outbound tactics to acquire new customers

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Customers

250 accounts active in Jan&Feb + 3000 businesses in sales pipeline

Total in North America

InstructorsPer Account

Average Cost of Pro Monthly Subscription

Sales Cycle to Pro Conversion CAC

Individual Educators / Tutors 2M+ 1 $49

Automated onboarding, 1 hour personal touch

points$0 - $100

Independent SMBs 120K 2-10 $165

Automated onboarding, 2-4 hours personal

touch points~$250

Large Businesses /Enterprises 75 20-1500 $1K+

Custom onboarding, 1-6 month pilot to start, 5-10

hours personal touch points~$1K

Sales Pipeline | Key Figures

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How We’re Different…

Competition

eProf is the only company that brings together ALL of the following elements that are essential for running an online education business:

Competitive Landscape |

Intuitive, user-friendly interface

Focus on e-commerce and generating new revenues through selling of education content, both synchronous and asynchronous

Customized / white-labeled website for clients that clients can use to attract students and showcase their services

Open architecture allowing for use of multiple online teaching venues, catering to different teaching styles and subject matter

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Feature# of Online Teaching

Venues 1 1 0 1 5

Max # of Live Video Streams 6 6 0 8 20

Curriculum Building

Scheduling System

eCommerce Focus

Account Branding

Intuitive, User-Friendly Design

Education-FocusedFeatures & Development

Free pricing option?

Starting SubscriptionPrice per Month $19 $19 $5 $49 $49

System works with Offline teaching as well?

Competition

How Do We Stack Up?Competitive Landscape |

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6 key reasons why eProf is positioned for success...

Investment Highlights

Why You Should Invest…Investment Highlights |

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eProf is perfectly positioned to capitalize on this inevitable market movement.

Education & training businesses will be coming online aggressively in the next 2-5 years. No market leader has emerged for them to flock to.

Investment Highlights

Perfect TimingInvestment Highlights |

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Ruby on Rails web application - 350,000 lines of code

2+ years of development -1000s of hours of testing

Load-balanced cloud hosting via Rackspace

Key technology partners:

Kaltura, LogMeIn, Watchitoo, WePay, OpenTok

Technology Spec

eProf is the engine that will power Edu-Commerce. We have already built that engine and are ready to scale.

Investment Highlights

Strong ProductInvestment Highlights |

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Products demo’ed

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2+100s

1000+2000+ Customer conversations

Years in EdTech sector

Online classes tested

Investment Highlights

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Market Expertise Investment Highlights |

The eProf team knows the market cold, having been immersed in the space for 2+ years. eProf has a first mover advantage in EduCommerce.

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Basic

eProf is set up to scale it’s premium product offerings:

20 Classes / Month10GB Content Storage

Unlimited Classes40GB Content StoragePhone & Email Support

Unlimited Classes80GB Content StoragePhone & Email Support

Session RecordingAnalytics & Reporting

Unlimited ClassesUnlimited Content Storage

Phone & Email SupportSession Recording

Analytics & ReportingWhite-Labeled Checkout

Investment Highlights

Pro Premium Unlimited

Current Mid-Late 2014

Exciting RoadmapInvestment Highlights |

API development in mid-2014 will enable an in-app marketplace where plugins and premium themes will be sold to clients on all subscription packages.

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eProf enables education businesses to leverage the best education & eCommerce technology to expand their reach online.

Investment Highlights

eProf Puts It All Together eProf strategically chooses what functionality should be built in-house and what should be integrated. eProf forges partnerships with world-class software providers and performs integrations to bring together the core technology that edu-businesses need to succeed, in one unified platform.

Open ArchitectureInvestment Highlights |

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TeachStreet ($3M total funding) acquired by Amazon - April 2012

Betterfly ($5M total funding) acquired by TakeLessons - Feb. 2014

Tutor-Group (ESL learning service) $100M raise - Feb. 2014

2U (Online delivery for HigherEd) $100M IPO - Feb. 2014

$1.1BRaised by EdTechCompanies in 2012

Investment Highlights

eProf is entering a red-hot market ripe with acquisitions

$169BeLearning market by 2018

Precedent TransactionsInvestment Highlights |

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International markets eProf app to be adapted for foreign languages: Significant demand already for French, Spanish, Portguese, Mandarin.

All deviceseProf can scale across platforms, offering users the ability to teach and learn through native iOS and Android applications.

© 2014 EPROF EDUCATION INC.

eProf can scale to international markets and all devices

Investment Highlights

Long Term Growth Investment Highlights |

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“Why bother building a company in/around eCommerce? That is the easiest question – the answer is… in the US alone online sales will grow about 15% increase this year and over the next four years will grow from ~$260 billion to this year to ~$370 billion in 2017.  It is very early and many new companies will play large roles in the future of eCommerce and at the same time those playing leading roles now will play even larger roles in the future.”

- Greg Bettinelli, Upfront Ventures investor

Investment Highlights

Long Term Outlook Investment Highlights |

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Organization

Evan Lewis Andrew Rains Phillip Ingram

eProf ManagementOur Team |

CEO CMO CTOIvey HBA

Web developerEdTech enthusiast

Strong leaderSkilled salesman

Queen’s BADigital marketer

Formerly:Head of Sales - Syncapse

President - 63Social Corp.

Brock BASoftware Developer

7+ Years - Ruby on RailsFormerly:TD Bank

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Organization

Krista JonesEducation Innovation LeadMaRS Discovery District

Kerri GoldenManaging PartnerJOLT Fund, LP

Joe WilsonEducation Innovation LeadMaRS Discovery District

Strong Business NetworkeProf Advisors |

David ChiltonCanadian EntrepreneurVenture Capitalist

Gerry GabonSales ProfessionalBizDev @ ExpertFile

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Contact

Evan Lewis, [email protected]

Andrew Rains, [email protected]

Contact Us |

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We’d Love To Hear From You

INVESTOR DECK

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