OfferSavvy Pitch Deck Oct 2014

A Social Commerce MarketplaceDiscover. Collect. Socialize. Shop & Earn.

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CCCooonnntents PPPrriiivvattee && Cooonfifiddeenttiiaal – Social RRReewwarrddddss NNeeettwwoorkk,, Inc., 22001333///114

This presentation is being furnished to you on a confidential basis and may not be reproduced or distributed without the prior written consent of Social Rewards Network, Inc.

This presentation includes plans that the founders and management of Social Rewards Network, Inc. (the “Company”) have created to develop the business and technology of the Company over the next several years. The Company cannot and does not represent or warrant that its plans, future technology, sales or profits as discussed and projected in this presentation or our business plan will develop or occur as projected here. As with any business plan, ours is a work in progress and is subject to revision at any time, without notice to anyone viewing this presentation, based on market conditions, changes in technology, the actions of competitors, vendors and customers and numerous other events and conditions, many of which are outside the control of the Company and its management.

This presentation is not an offer to sell or a solicitation of an offer to buy any securities of the Company.

Disrupting current ecommerce & emarketing models with data, economics and "social" innovation

Strong and experienced team in place

Initial seed funding bootstrapped in excess of $800,000 for concept/platform development & launch

$1T+ addressable market with growing demand

Forecast to achieve profitability 2015

Peak incremental funding needs estimated at $3.250MM

Multiple potential exit strategies

Apps / Tools / Services

On-SiteEnables social engagement where shopping is occurring

Retain consumer attention

Potential to influence final purchase

Leverage fan base

On-Site tools developed to create merchant direct channel that will both drive marketplace success and accelerate path to revenues & value

Parallel efforts to speed time to revenue and ability to innovate with market requirements

Marketplace

Off-SiteEnables shopping where social engagement is occurring

Attract consumer attention

Influence product discovery process & ZMOT b4 purchase

Leverage fan base

Off-Site social marketplace to create product discovery communities for engagement and customer acquisition channel for merchants

E-commerce 1.0: The web storeDigital analog of the strip mall:

ImpersonalIsolatedFragmentedUtilitarianMerchant-driven experience

E-commerce 3.0: The OfferSavvy MarketplaceDigital analog of festivals and markets:

SocialConnectedCo-createdPersonalizedEnergizingConsumer-driven experience

634 million est. websites worldwide

Consumers spend $1.1 trillion worldwide

Advertisers spend $62 billion in the US alone connecting the dots

and $330 billion in the US alone

2.4 billion online worldwide

1.7 billion people active in social networks

Content

Social

Commerce Advertising

Socially engaging… Relevant to your needs… Fun to do… and Personalized

The OfferSavvy Opportunity

Private, Invitation Only and Public Circles & Collections

Consumers:

Holiday Wish Lists

Special Events

Shopping with Friends

Big Date Ideas

Big Trip

Favorite Hobbies

Merchants:

Flash Sales

Special Offer Collections

Customer Engagement

Differentiated Loyalty Sales

“Productize” embed technology to offer app services on hosted ecommerce platformsStrong market validation for product demand

Social media curation

Product feed to OfferSavvy

Social threads

On-site product collectionsShopify, Wix & Magento all support app marketplaces

TintUp running at 500 downloads per day on Wix w/$290k monthly billing

CouponPop promotion tool has 50k installs in Shopify w/$500k monthly billing

Mutually reinforcing model for providing both on-site tools and off-site marketplaceEnhance depth and breadth of catalog

Promote merchant engagement

Improve visibility to consumers and merchants alike

Utilizing technology investment for multiple potential revenue streams

“Competition generally designed as “digital closets” and wish lists, with true social interactivity, and frequently commerce, as an after thought.”

OfferSavvy is creating a wildly social discovery & shopping experience with our customers’ collections and social activity at the center of the experience

Company

OfferSavvy

Wish

Fab

Wanelo

Fancy

OpenSky

Pinterest

Centricity

Social, Style & Shopping Collections

Style Shopping

Style Shopping

Style Shopping

Style Shopping

Style Shopping

Personal Style Boards

Collections

Dynamic Collections

Static “Wish Lists”

Static “Lists”

Static “Collections”

Static “Fancy Lists”

Follow Product “Feeds”

Dynamic Collections

Social

Internal, Integrated & Post

Reviews & “Wish”

Post & “Like”

Comment, Save & Post

Comment, “Fancy” & Post

Comment, “Love” & Post

Comment, “Pin” & Like

Ecommerce

Central Catalog, Integrated Stores & Bookmarklets

Central catalog

Central catalog & stores

Affiliate & Bookmarklets

Central catalog w/bookmarklets

Central catalog & stores

Affiliate

Value Estimate

$1.5 million

Unknown

$1 billion

$100 million

$600 million

Unknown

$3.8 billion

Kevin Raison — Chief Technology OfficerMaster computer scientist, architecting systems, networks, and artificial intelligence platforms. An early engineer at Amazon.com and Zillow, DARPA-sponsored AI projects, and recently published on novel methods for designing recommender and information retrieval systems.

Ed Raison — Lead ProgrammerLead technologist with ZoomCulture.com, built workflow systems and a technology platform delivery of streaming video. UI engineer and JavaScript programmer for Thrillist.com, Elle.com, and Caranddriver.com -- a site that now produces over $30k in weekly advertising revenue.

Troy Martz — Product Manager & UI/UXBest-in-class UI designer, pushing open standard technologies, such as HTML5, CSS3, and JavaScript. He has spearheaded efforts with Red Lobster, Sprint PCS, Dominos Pizza, and many others. Designed telephony system which now logs over 6 billion minutes every month...

Justin Boggs — Co-FounderStarted Papa Santi's pizza shops while in college. Founded Bridge Capital Partners - a FORBES Finalist for America's Most Promising Companies 2011 with over $100 million of annualized client volume on the platform. Bizdom U Entrepreneur.

Alex Danzberger — Chief Executive OfficerNumerous global executive leadership roles in finance and operations, most notably as strategist and M&A executive for market leading SaaS e-commerce platform Digital River that drove greater than 50% of 8x revenue growth to $400 million through 20 acquisitions over 5 years.

Scott Giovanini — Marketing & Business DevelopmentA Decade of experience creating and managing high end campaigns in such competitive markets as entertainment, professional sports, and retail. His work has been featured on ESPN, FOX Sports, and the first ever Super Bowl player sponsored digital sweepstakes.

Tim Marusich — Advisor & InvestorEntrepreneur, leader/owner in a variety of businesses, trainer and speaker. After years at Microsoft, he co-founded BlueHornet.com and became its CEO. After it was acquired by Digital River, Tim stayed on as VP to oversee the transition and growth for an additional 4 years.

Taner Halicioglu — AdvisorRenowned technologist, entrepreneur and investor, first non-founder hired at The Facebook and also major contributor at eBay and Blizzard Entertainment with an expertise in technology innovation, scalability and performance.

Deep complimentary knowledge and business experience across ecommerce and emarketing technology spectrum

API

Graph Database

Collections

Social Feeds

Bookmarklets

Mobile

Advertising

Rewards

E-Commerce

Recommender

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Built to scale and for rapid development

Architecture:API-based for rapid development & operational flexibility

Search friendly – Every product & collection has a unique URL

Socially viral feature set

Go to Market:Two-way integration with leading social platforms

Grass roots activity

Bookmarklet launch – motivates merchants to participate

Search benefit of back-links

“Claim” store & social presence to engage with consumers

“App” services launch Q3/Q4 2014

Paid marketing activities building in 2015

Performance Metrics:Core profitability 2015

6,000 paid monthly subscriptions for tools @ $7.5/month

Marketplace critical mass mid-2016

1.3 million average monthly users @ 16 pages per month

$381 thousand monthly revenues vs. $327 thousand operating expenses

E-CommerceSuccessful creation of a social marketplace and community platform will create a ready market in which merchants can and will congregate to reach our consumers

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Social WebSuccessful creation of a social marketplace and community platform will create a commerce specific marketplace through which social platforms can further monetize their user base

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Payment ProcessingSuccessful creation of a social marketplace and community platform will provide an interesting supplemental service for payment processors to offer their merchants for growing sales

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Independent RouteReaching critical mass as a social marketplace and community platform will yield strong, demonstrable cash flow and growth characteristics that would allow for leveraging through a private transaction to accelerate further growth and potentially roll-up complimentary platforms/products in advance of an IPO

Multi-billion dollar market opportunity to disrupt current “traditional” social engagement, marketing and e-commerce models to make the experience more purposeful, targeted and rewarding for both consumers and merchants

OfferSavvy will make shopping fun and more engaging and rewarding for our users and merchants through the full social commerce funnel, from discovery through purchase

Seeking to raise up to $500,000 of new money on a $3,101,899 pre-money valuation

Initial seed investors converted $555,988 into Series A Preferred

Keshif Ventures invested $300,000 in Series A Preferred

Proceeds applied to approximately:

50% current requirements

30% staff expansion

10% marketing and operating expenses

10% capital expenditures

Alex Danzberger — Chief Executive Officer

[email protected](952) 212-9373

Justin Boggs — Founder

[email protected](724) 968-8512

Traditional  Product  Sales  Funnel  

Middle  of  Funnel  “Inspire  &  Engage”  

“AcAvate”  

“Transact”  

Top  of  Funnel  “Product  Awareness”  

Traditional  View  Ends  at  Sale  

Stage  

Consumer  is  aware  (or  made  aware)  of  a  “need”  and  begins  the  journey  to  find  the  soluAon  

Consumer  acAvely  researching  products  to  saAsfy  a  need  

Consumer  finds  the  desired  product  or  sAmulated  by  environmental  factors  to  act  

Consumer  enters  into  purchase  cycle  to  buy  the  product,  though  sAll  prone  to  final  influence  on  purchase  decision  

Behavior  

OfferSavvy  Functionality  Map  

Middle  of  Funnel  “Inspire  &  Engage”  

“AcAvate”  

“Transact”  

Offer  Wall,  CollecAons,  Social  PromoAon,  InvitaAons,  TransacAonal  Circles  (Cause  Campaigns),  “Wish  List”  Circles,  #Tags,  RecommendaAon,  AdverAsing  

CollecAons,  InvitaAons,  Social  PromoAon,  3rd  Party  Content,  Item  Sharing,  Role  Ranking  (Discoverer,  Creator,  Collector),  CollecAon  Forums/Discussions,  gamificaAon  

Merchandising,  RetargeAng,  AdverAsing,  Cash  Rewards,  Social  Bonuses  

Affiliate  Links,  3rd  Party  e-­‐Commerce,  Integrated  e-­‐Commerce  

Top  of  Funnel  “Product  Awareness”  

Engagement  InVluences  Buyer  

Consumer  Behavior   OfferSavvy  Features  

Loyalty  

Engagement  Doesn’t  End  at  the  Purchase  

Consider   Purchase  

The  “Funnel”  Paradigm  is  Dead  

Transact  

Social  Engagement  

Influence   Experience  

•   Purchase  Process  •   Fulfillment  •   Product  Experience  •   Customer  Support  •   Customer  Service  

•   Social  •   Feature  Alignment  •   Popularity  •   MarkeAng  Collateral  •   Sales  Support  

TRUST    

TradiAonal  “Funnel”  focused  through  the  transacAon  

VALUE  PROPOSITION  

COST  STRUCTURE  

CUSTOMER  RELATIONSHIP  

TARGET  CUSTOMER  (s)  

DISTRIBUTION  CHANNEL  VALUE  

CONFIGURATION  

CORE  CAPABILITIES  

PARTNER  NETWORK  

REVENUE  STREAMS  

•   Mutual  &  Targeted  Discovery  •   Shopping  convenience    •   Reduced  Discovery  Cost  •   Social  Feedback  •   Savings  &  Rewards  •   CommuniAes  of  Interest  •   Fun  &  engaging  user  experience  to  achieve  necessary  ends  

•   Natural  merchant  concentraAon  points  •     Social  pla6orms  •     Payment  processors  

•   For  consumers,  the  social  web  depends  upon  open  connecAvity  which  we  plan  to  leverage  for  both  originaAng  users  and  allowing  them  to  broadcast.  •     For  merchants,  we  will  provide  a  toolset  for  easy  catalogue  integraAon  from  their  commerce  system  of  choice  as  well  as  ulAmately  offer  our  own  when  needed.  

•     Consumers  access  and  build  personal  “collecAons”  of  interest.  •     Merchants  are  able  to  have  visibility  into  consumer  desires  and  engage  directly  through  the  pla6orm  •     Consumers  receive  variable  rewards  for  their  acAvity  

 Establish  an  “habitual”  relaAonship  with  consumers  desiring  to  stay  current  with  their  communiAes  and  related  products  and  also  benefit  from  rewards  

•   High  operaAng  leverage  •   Self  service  w/minimal  necessary  support  •   Low  customer  acquisiAon  cost  •   Low  overhead  •   Scalable  infrastructure  

•   Revenue  share  on  sales  •   Various  adverAsing  models  •   Sponsored  content  •   Merchant  access  fees  •   Technology  services  •   TransacAon  processing  •   Data  moneAzaAon  

 Community  &  collecAon  architecture  relevant  for  micro-­‐  markets  across  demographics  as  well  as  offering  highly  effecAve  adverAsing  across  merchants  

•   Proven  development  team  •     Lean    model  •   Proprietary  technology  elements  

INFRASTRUCTURE   CUSTOMER  OFFER  

FINANCE  

OfferSavvy  Platform  Business  Model