EveryLoan Investor Deck May 2014 - EveryLoan

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Investor Presentation
May 2014
Who We Are
• EveryLoan is vertically integrated online lending company focused on
prime and super-prime consumers in the United States with a fast and
efficient way to borrow money at attractive interest rates through peer-topeer (P2P) lending
• We are an information-driven, simple-to-use resource.
• We are a “one-stop-shop” for consumers to compare and apply for loans
provided by a diverse range of providers across several categories:
–
–
–
–
–
personal,
business,
home,
auto and
education.
2
Our Business
3
Why We Exist
• We are a response to the status quo in lending in a multi-trillion dollar
consumer credit market which, for borrowers is:
– Time consuming,
– Administratively challenging, and
– Functionally opaque
• We are a marketing solution for lending partners that want to drive
transactions and extend brand value proposition
• Online lenders are gaining momentum as alternative to conventional
banking
– Lending Club and Prosper (Personal)
– OnDeck Funding Circle, Kabbage (Business)
– SoFi and Common Bond (Student)
4
How it Works
5
How We Make Money
•
•
•
•
Direct Loan Origination - ~ 4% of transaction fee
Referral (Performance Marketing) - ~1% of transaction fee
Lead Sales - ~ $20 per lead (can be re-purposed)
Ad sales
As the table below shows, direct loan origination drives the most value on a
per transaction basis:
Origination
Referral
Avg. Fee (Personal Loan)
$600
$150
Avg. Fee (Business Loan)
$1,200
$300
6
Lending Partners
Additional partners pending
7
The Power of One
Each lead can potentially be directed into several lending funnels and
monetized in a variety of ways
8
Our Market
• Leading “Peer-to-Peer” lenders Lending Club and Prosper issued $2.4
billion in loans in 2013, up from $871 million in 2012.
• U.S. household consumer debt profile:
– Average credit card debt: $15,191
– Average mortgage debt: $154,365
– Average student loan debt: $33,607
• In total, American consumers owe:
–
–
–
–
$11.68 trillion in debt
$854.2 billion in credit card debt
$8.15 trillion in mortgages
$1.1 trillion in student loans
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Key Trends - Lenders
• P2P Lending is gaining momentum.
• Lending Club loans are available to borrowers in all but six states while
Prosper is available in all but three states. Investors face greater
restrictions. Investors in only 29 states plus the District of Columbia are
given access to Prosper. Investors in a slightly different set of 28 states
have access to Lending Club. If P2P lending were to become available
throughout the rest of the U.S., investment dollars and P2P borrowing
could grow substantially.
– Lending Club has issued more than $3B in loans
– Google invested $125M into Lending Club @ $1.5B valuation
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Going Mainstream
• Community banks (e.g., Titan Bank and Congressional Bank) have begun
purchasing loans through the Lending Club platform and Titan Bank
started to offer personal loans to their customers through Lending Club.
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Key Trends – Small Business
• Median loan size: $18,000 to $40,000 for larger firms
• More Difficult to procure loans from conventional banks and finance
companies due to higher level of perceived risk
– Higher failure rates
– More vulnerable to economic downturns
– Informational opacity
• Despite higher interest rates, increasingly turning to P2P lending
– Less paperwork, more efficient process
• With nearly 7,000 community banks in the US, the potential for additional
partnering with Lending Club as it expands into the small business space is
substantial
• The passage of the SEC crowdfunding rules will expand the pool of
individuals eligible to provide funding to small businesses
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Business Strategy
• Our website is at the core of our marketing strategy and fundamental to
our success
– A one-stop web destination for consumers seeking information and resources regarding
loans
– Better execution in matching consumers with lenders
• We are a marketing-centric business
– Traffic drives both Loan Origination, Lead generation and Lead conversion
• We work closely with leading agencies that specialize in digital marketing,
with proven success in the P2P and lending markets to assist us in the
development and execution of campaigns designed to drive traffic to
EveryLoan.com.
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Business Roadmap
Current
Near-Term keys to success:
- Driving unique visitors to
EveryLoan.com
- Maintaining “stickiness”
and loyalty to site by
providing value added
resources and tools,
borrower education
Mid-Term
Mid-Term:
- Maintaining marketing
velocity
Long-Term
Long-Term:
- Vertical integration of
- Additional lending products marketing platform to add
and partners
proprietary lending solutions
- Building site loyalty and
- Building site loyalty and
community
community
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KEY BUSINESS DATA
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Capitalization and Offering
Entity Type
Shares Authorized
Shares Outstanding
Current Offering
Shares Offered
Offering Price/Shares
Shares Outstanding Post Offering
Valuation (pre-offering)
Valuation (post-offering)
Use of Proceeds
Website Launch
Marketing
Operating Capital
Delaware Corp
100,000,000
3,000,000
1,000,000
1,000,000
$1.00
4,000,000
$3,000,000
$4,000,000
$100,000
$700,000
$200,000
$1,000,000
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Pro Forma Forecast*
Total Revenue
Total Direct Costs
Gross Margin
Total Operating Expenses
Operating Income (Loss)
Total Other Income
Income Taxes
Net Income (Loss)
EBITDA (Loss)
%
$
$
2014
2015
1,483,875 $ 14,295,000
50,682
507,698
1,433,193
13,787,302
1,672,434
2,986,517
(239,242)
10,800,785
2,260
19,641
3,681,167
(236,982)
7,139,259
(239,242) $ 10,800,785
-16%
76%
2016
$ 28,074,000
1,036,557
27,037,443
4,012,391
23,025,052
103,832
8,082,290
15,046,595
$ 23,025,052
82%
2017
$ 37,380,000
1,434,901
35,945,099
4,928,880
31,016,219
262,771
10,930,822
20,348,168
$ 31,016,219
83%
*Financial performance assumption is based on Company successfully completing current offering. Any delay or
failure to complete all or part of the offering will have a negative material impact on the pro forma forecast herein.
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Management
Sam Stamper – Founder and CEO
Mr. Stamper brings over 15 years’ experience in marketing, mortgage and
finance. Prior to EveryLoan, Inc., Stamper served as President of Pacific
Capital Group and Vice President at GPN. He remains an active leader in
finding innovative ways to bring loans and financing to those seeking
same. Stamper’s vast knowledge of the market and future trends put
EveryLoan’s new business model ahead of the curve. Mr. Stamper holds a BA
in Political Science and is licensed with the California Department of Real
Estate to sell Real Estate.
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For more information, contact:
Company:
Sam Stamper, CEO
Ph: 949-734-4420
E: [email protected]
Investors:
Thomas Carter, Capital Services Group
Ph: 760-845-7545
E: [email protected]
THANK YOU
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APPENDIX
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Peer-to-peer lending volume and interest rate
by Lending Club, by loan purpose and year of issue
21
Peer-to-peer lending volume and interest rate
by LendingClub.com, by loan purpose and year of issue
22
Net percent of firms reporting that credit
was harder to get compared to 3 months ago, by # of employees
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