Sample Proposal
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(SAMPLE) PipeDream Pty Ltd.
81 Captain Cook Crescent
Manuka ACT 2603
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Tom Courtney
Founder & CEO
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| ph: | 02 62xx-xxxx |
| alt-ph: | 04xx-xxx-xxx |
| fax: | 02 62xx-xxxx |
| email: | Tom@Pipedream.xxx.xx |
| web: | www.PipeDream.xxx.xx |
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Industry: e-Commerce
Stage: Initial Marketing
CA Relationship:
Law Firm (John Doe), VC Firm, Consulting Firm, Friend, Investment Banker, Accounting Firm, We met at an event in Canberra.
Product or Service:
Competition between online etailers is at an all time high. However, most etailers mirror traditional brick-and-motor business models: open a store, drive traffic to it, and hope for sales, while failing to take advantage of the Web's ability to create networks of consumers through online communities, content, and partnerships. Pipedream has developed a service that will greatly improve how Internet retailers entertain, service, and retain its customers. PipeDream?s services, content, and network will enable retailers to reach new consumers in a cost effective manner. Our viral and networked approach of providing application services and content will transform online marketing in our effort of building a synergistic global community of business partners and consumers.
Business Model:
Setup Fees - Pipedream will charge a one time setup fee to our retail partners for the use of our applications, network and services.
Commissions - Pipedream will receive commissions on the sale of goods and services purchased from our retail partners.
Software Maintenance Fees - Pipedream will charge minimum monthly recurring maintenance fees that will entitle our retail partners to premium registry and application upgrades and data access.
Content / Data Syndication - Selling aggregate consumer data to retail partners.
Sponsorship and Advertising – Product manufacturers will pay for product placement in our content and advertising in exchange for access to our highly focused target audiences.
Current Status:
The Company has raised $200,000 in seed capital in January of 2000. Pipedream (Version I) was launched successfully in March of 2000, achieving its objective of singing up 5 retail partners, generating 100,000 users and averaging 1,000,000 pages views per month. Generating $50,000 in revenues.
| Management, Board of Directors
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Total Employees: 7 |
| NAME |
POSITION |
RELEVANT EXPERIENCE |
| Board of Advisors / Investor |
Steve Case |
AOL/TW CEO |
| Board of Advisors / Investor |
Tim Koogle |
Yahoo CEO |
| Chairman & Founder |
Bob Marley |
Sold best selling Albums |
| CEO & Founder |
Peter Tosh |
Great writer |
| CTO |
Tracy Chapman |
Great Melody |
| Board of Advisors / Investor |
Jeff Bezos |
Amazon.com CEO |
Key Relationships:
The Company will develop strong alliances with key organizations to help bring credibility, content and transactions through our service. The Company expects to spend little on direct consumer advertising and will rely heavily on direct sales efforts to our retail patners, viral marketing, publicity, word of mouth, and strategic alliances to drive usership and transactions. The company has entered into contracts with the following organizations.
Retail - Amazon
Resellers - PeopleLink, Commission Junction, Link Share
Consulting/Development/Support - March First, PeopleSupport
Bank - Silicon Valley Bank
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Past Year |
1st Year |
2nd Year |
3rd Year |
4th Year |
5th Year |
Revenues |
100 |
3,000 |
9,000 |
27,000 |
50,000 |
100,000 |
COGS |
500 |
3,000 |
4,000 |
7,000 |
9,000 |
12,000 |
R&D |
200 |
500 |
1,300 |
2,100 |
2,900 |
3,700 |
M&S |
200 |
1,000 |
3,000 |
7,000 |
9,000 |
12,000 |
G&A |
300 |
500 |
700 |
900 |
1,100 |
1,300 |
PBT |
-1,100 |
-2,000 |
0 |
10,000 |
27,000 |
61,000 |
Cash Flow |
700 |
3,000 |
12,000 |
39,000 |
89,000 |
189,000 |
Capital |
2,000 |
5,000 |
0 |
0 |
0 |
0 |
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| Capitalization / Ownership
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Shares |
Percent |
| Prior Investors |
20,000 |
16.67 |
| Founders |
80,000 |
66.67 |
| Employees |
0 |
0.00 |
| Employee Options |
20,000 |
16.67 |
| Other |
0 |
0.00 |
| TOTALS |
120,000 |
100.00 |
| Founders |
$ 50 |
Sought |
$ 2,000 |
Future Needs |
$ 5,000 |
| Prior Investors |
$ 150 |
Committed |
$ 1,000 |
Likely Exit |
Acquisition or IPO |
| Last Valuation |
$ 1,000 |
PreMoney |
$ 3,500 |
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Use of Funds:
To accelerate this growth, the Company is looking to secure funding via an equity placement to accomplish the following primary goals:
- Acquire 25 retail customers
- Obtain 1,000,000 registered users geneating approximately $1.00 in revenue per user
- Develope New Software Modules
- Marketing
- Add to Management
Marketing Channels:
Internet
Competitive Advantage:
Brand Identity - Our URL and brand has generated over 5,000,000 since our launch in April.
Proprietary Technology – The Pipedream Commerce and Community Engine and Database, written in Cold Fusion™.
Service marks and Domain Names – The Company has obtained the rights to “My Pipe Dream” with the preemptive rights to “PipeDream.” The Company owns PipeDream, PipeDreams, MyPipeDream, and a number of other related domain names.
Strategic Partnerships – Content syndication, data sharing and sponsorships.
High Switching Costs – Data and business practices will be linked into PipeDream, via ASP making it difficult to switch.
Patents:
Pending #
| Company |
Key Advantage Over |
Key Threat From |
| Ashford.com |
Distribution Relationship w/ Manufacturers |
Well Funded, Public Company |
| Virtual Communities |
Brand, Usability, Technology |
Technology |
| PeopleLink |
Brand, Usability, Technology |
Idealab |
| Company |
Symbol |
12 mth Rev |
12 mth PAT |
Market Cap |
Shared Out |
$/Share |
| Yahoo |
YHOO |
1,000 |
315 |
19,500 |
558 |
$36.00 |
| Inktomi |
INKT |
223 |
-9 |
4,789 |
114 |
$42.00 |
| InfoSpace |
INSP |
157 |
-107 |
4,311 |
315 |
$13.20 |
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