Set meup company presentation v8 present

Private and confidential

World's Most Trusted Source For Dating:

Your Friends

Trust Stigma Chemistry Time

Social accountability dating

Did you know….

63% of married couples found their mate through a friend (versus 20% found online)

Online dating is the third most popular on the Internet, followed by music and gaming; 40 mil people in the U.S. use online dating sites

64% of people say common interests are the most important factors

71% of those suffering from pre-date doubts use Facebook as a major source of information

Facebook applications are used to flirt with other people (e.g., 44% use Word with Friends to flirt with people)

The SetMeUp platform allows you to meet your friends of friends, allowing you to build relationships through people you

trust and have common interests

The market opportunity is attractive

$239/year Average amount a customer

spends on a dating site per year

$5.5 billion Global market size for online/mobile

dating industry

$7 billion Virtual goods through social media

40 million People in the United States who

have tried online dating

54 million Total number of single people

in the United States

Source: Reuters; Herald News; PC World; Washington Post

42 months Average length of courtship for

marriages that met offline

64% Believe common interests are the

most important factor in beginning a relationship

18.5 months Average length of courtship for

marriages that met online

Get inside the minds of our target market…

Pain Type Pain Points Pain Killers

Stigma • people who use online dating are desperate

• leverage your own social circles to build relationships

Trust • people can’t be trusted on online dating sites

• you’re on Facebook, not an online dating site

Chemistry

• computers don’t set people up…friends do

• you can only be set up through your friends

Time

• messaging back & forth is a waste of time

• post-connection lets you get face-to-face quicker

Our web app Our mobile app

How we acquire customers

•Target age is 18 to 26 (20 mil college students, 4 mil graduate students)

•Can not remember a time before cell phones and the Internet

•Hungry for ways to connect to people

•College students are active on Facebook – check-ins, tags, likes, etc (45 min daily use on Facebook)

Our target market

•College/university focus (soft launch in UGA), then top 20 college roll-out

•States such as Florida, Georgia, Mass, New York, Texas, and Illinois/Ohio

•Nationwide college/university rollout

Go to market strategy

Phase 1 (within first year)

•Begin entry into non-college ecosystems like companies

•Large company ecosystems like GE, Citigroup, Verizon, AT&T, BofA, JPM, Wells Fargo, Coke, Pepsi, HP, EDS, Disney, Accenture, Starbucks, etc.

Phase 2 (year two and beyond)

Our test market was a huge success

A good user traction… …and manageable marketing spend…

…has led to a low COCA

Our approach has been the key driver for success

285 396

662

8 34

$4,529 $4.48

• Recruited 12 interns (300 applicants) and one strategy manager (stipend)

• Attended Student Organization Events • Presented at two career fairs, 12

classes, and 5 sororities/fraternities • Led weekly intern competitions

• Advertised on Facebook • Intern competition • Launch party (incl. corporate sponsors) • Published in school newspaper after

only 4 days of being on campus (targets 40k students)

$0.42 CPC 0.21% CTR

FB Mkting Campaign

801 912

1,014

18-26 26-40

Social accountability dating

Customer Age

Generic players

Com

pany

type

Our key advantage lies in our approach and target market

Over 40+

Our key differentiators…

1

2

3

4

Focus on the college market clusters; Under 26 age crowd

Utilize friends’ recommendations (recos) to drive connections

User interface mirrors the experience on Facebook

Post connection enhances user dating experience

Our revenue model is driven by premium subscription fees and in-app purchases

Revenue drivers

Key assumptions Year 1 Year 2 Year 3 Year 4 Year 5

Total users Facebook user base College & graduation student population

20K 200K 750K 3 mil 7.5 mil

Premium subscription fees

$7/month 4% free-to-paid conversion rate

0 $64K $504K $4.7 mil $15.9 mil

Date search suggestions

$.40-$0.80 per referral 4-5% monthly usage

0 $20K $190K $1.7 mil $5.7 mil

In-app purchases

$2 per purchase 2-3% virtual good conversion rate

0 $30K $201K $1.4 mil $4.2 mil

Total 0 $115K $895K $7.8 mil $25.8 mil

3

1

2

Date suggestions revenue stream is the key to a viral revenue growth path

Post connection referral Revenue arrangement Our key select partners

Driving users to post connections will enhance our viral revenue growth path

10-12% commission on local deals (Avg ~$65 per deal, yields $6-7/deal) 8-10% commission on local deals

Book a date; buy gifts

Book a date; buy gifts

40 cents per dinner date booked Book a dinner date

4-10% on all purchases Book a picnic date; buy gift items

10 cents per movie date booked Book a movie date

10% commission on items booked Buy “after date” gift

A staged approach leads to fast earnings growth

Key Business Levers and Drivers Total users Free-to-paid conversion rate Revenue per paid user per month

Click-through rate Cost-per-click (Average) Average number of connections

Milestone #1: Product development complete; 20K users; $2K revenue bookings

Milestone #4: Reach profitability; begin process to scale business; 3 million users

Milestone #5: 7.5 million users on System M $

M $

Milestone #2: Lock-in early adopters; 200K users; focus on nationwide college students

Milestone #3: Breaks over $1.3 million sales with 750K users and begin targeting non-college student market

$25.8M

$11.7M

$14.1M

$7.8M

$4.2M

$3.5M

$3.2M

$0.9M

($2.0M)

$0.9M $0.1M

($0.8M)

Revenue

Profit

Expenses

Key assumptions 4% free-to-paid conversion rate Premium membership - $5-10 / month 19 average connections per user Over 7 million users 2-3% virtual goods conversion

If successful we’ll be of interest to the following acquirers

Exit timing: 4-5 years

Online dating companies

Facebook platform

Why buy? Gain competitive advantage and take out threat

Why buy? Extend product and/or service offerings

Mobile companies

Why buy? Owning a larger “share of wallet” of customers

Exit valuations have been attractive

Date Amount ($ mil) Purchaser Acquiree

Value per user

Dec 2010 $90 mil* $25.7 / user 3

6

1

4

July 2005 $29 mil Not disclosed

Sept 2012 $10 mil* $21 / user

*Includes earn out and deferred compensation **Company estimates

July 2009 $80 mil $20 / user

2

5

Oct 2011 $190 mil (sold stake)

Not disclosed

Feb 2007 <$10 mil ~$20 / user

Exit value, etc

In five years, we can expect to sell for over $200 million in market value

~$200-$250 mill

Key assumptions 7.5 million accounts 4% free-to-paid conversion Avg $7 per month (premium

membership) $2 avg price for virtual goods 3% conversion rate for virtual

goods sales $.40-$0.80 per date referral; 4-

5% monthly usage

We will need $400K in Seed B capital

Seed B Capital: $400K

Marketing

Technology development

G&A

Private and confidential

Trust Stigma Chemistry Time

Social accountability dating

World's Most Trusted Source For Dating:

Your Friends

Our team has the unique combination of relationship psychology, technology, and online marketing experience

Jay Wadhwani Co-founder & CEO

Abhishek Jain Co-founder &

Director

Francis Cruz Outreach/Recruit

Ty Hill Operations

Kelby Barbosa Graphic

Designer

Elliot Volkman Social Media

Monica Ohara Online marketing

Maranda Donato Blogger / PR

Our Indian outsourced team developed the online and mobile applications