Widget Inc. Board Meeting January 1, 2013 Widget Inc. HQ NYC Confidential 1.

Widget Inc. Board MeetingJanuary 1, 2013

Widget Inc. HQ NYCConfidential

1

Agenda1 Official Board Business 9:00 AM 15 min

2 December Summary 9:15 AM 30 min

3 Functional Updates (Product, Sales & BD, Team) 9:45 AM 30 min

4 Financials 10:15 AM 15 min

5 Strategic Discussions 10:30 AM 1.5 hours

6 Close / Director’s Session 12:00 PM

2

OFFICIAL BOARD BUSINESS

3

Official Board Business• Approval of

previous minutes (NYC: Dec 1st, 2012)

• Review and approve new employee stock grants

• Next meeting Feb 5th, 10am ET in NYC

Salary(range)

Options(range) Fully Diluted %

Total Pool Size -- 1,000,000 10%

Allocated to Date -- 100,000 1%

New Grants

John Smith - Developer

$90k($80k - $100k)

45k(40k - 50k)

0.45%(0.4% - 0.5%)

Sarah Brown - Designer

$110k($70k - $90k)

40k(60k – 70k)

0.4%(0.6% - 0.7%)

Total $200k 85k 0.85%

Remaining Unallocated -- 815,000 8.15%

4

December Summary

5

December SummaryProduct Sales & BD Tech Marketing

Exceeding

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Key MetricsPrev Month Curr Month Projected Next

Month Notes

Engagement

# Active Users 100,000 (30% ) 135,000 (3% ) 180,000

# Social Referrals 40,000 (4% ) 60,000 (3% ) 80,000

Product/

Tech Queries / Sec 800 (15% ) 900 (23% ) 1,000

# Users of X 33,000 (2% ) 39,000 (8% ) 45,000

Financials

Revenue $100,000 (30% ) $129,000 (5% ) $80,000

Net Burn $200,000 (5% ) $210,000 (11% ) $185,000

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UPDATES

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Product

Research initial platform to support

Enable Registration Launch User Profiles Responsive DesignIE, Chrome, FF

Mob

ile iOS BugsLandscape mode, random

crashes

Jan Feb Mar Apr

Limited AlphaDeploy app to curated list of testers, collect feedback &

iterate

Deploy iOS appRelease in app store

Build app Deploy

Web

Des

ktop

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Sales & BDExpected Timing

$ Amt Probability Expected Value

Notes

Segment 1•Google•Yahoo•Bing

•Q2•Q3•Q4

•$1m•$200k•$100k

•10%•90%•10%

• $100k• $180k• $10k

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Segment 2•Nascar•NBA

•Q4•Q2

•$200k•$100k

•60%•30%

• $120k• $30k

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Total $1.6m $440kLorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean laoreet aliquet quam.

10% - Initial Contact30% - Trial60% - Contract Sent90% - Contract in Legal Review

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Organization ChartCEO

CTO

Engineering

Engineer 1

Engineer 2

QA

VP Sales VP Marketing

Office Manager

New HireFuture Hire

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Staffing Plan (by priority)Position Status Hire By Date Target Salary Target Equity

X Sourcing ASAP $50,000 - $70,000 .1% - .2%

X Interviewing ASAP $100,000 - $130,000 .1% - .15%

X Offer out Q4 $65,000 - $72,000 .09% - .12%

X Negotiating Q4 $140,000 - $200,000 .05% - .8%

X Interviewing Q1, 2013 $120,000 - $150,000 .01% - .05%

12

STRATEGIC DISCUSSIONS

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Discussion• How do we grow our business?• What are the milestones for the next

financing round?• Should we forge a partnership with

competitor x?• Things keeping you up at night?• [Board Member Name] - What should be

our go-to-market for X?

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FINANCIALS

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FinancialsDec ‘12 Actual Dec ‘12

Projected Delta Notes

Revenue $20k $10k $10kPraesent quis dui

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Gross Profit $5k $4k $1kPraesent quis dui

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Gross Burn $100k $60k $40kPraesent quis dui

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Net Burn $80k $30k $50kPraesent quis dui

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Cash Balance $500k $600k $100kPraesent quis dui

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Cash Out Date Jun ‘14 Sep ’14 3 monthsPraesent quis dui

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ASKS

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Asks• Help with recruiting• Intro to ...

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APPENDIX

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Cash Waterfall

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Revenue Waterfall

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Op Ex Waterfall

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Conversion Funnel25,000

15%

10%

4%

Actual Target Notes

Visitors

View Product Page

Add To Cart

Purchase

35,000 Increase Adwords spend

25% A/B testing HP and other lead-in pages

15% Implement AJAX

6% Enable purchasing without registration

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Marketing FunnelAdwords, Misc CPC Direct Emails, PR Meetups, Conferences FB / Twitter TOTALS

Costs $90,000 $50,000 $3,000 $40,000 $183,000

Leads 16,000 10,000 100 3,300 29,400

Closed Deals (conversions) 2,000 800 55 89 2,944

CPL $6 $5 $30 $12 $6

CAC $45 $63 $55 $449 $62

MRR $60,000 $4,400 $300 $9,000 $73,700

Rev / Customer $30 $6 $5 $101 $25

LTV (12 mths) $360 $66 $65 $1,213 $300

LTV / CAC 8.0x 1.1x 1.2x 2.7x 4.8x

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