Making life easier
Finding things to BUY is HARD!
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The web has grown up.
Big business and amalgamators dominate.
Massive amounts of irrelevant choices.
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Daunting – too many places to look.
o Time-consuming.
o Frustrating – failed enquiries.
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Incomplete –
o No humans, too much automation.
o Some sellers can’t afford to be found.
o Some put off completely.
Total Market
Found
Missed
Advertise what YOU’RE BUYING.
Be FOUND by all the market
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Buyers advertise what they want to buy.
We Match to sellers stock/profile using algorithms, & inform matching sellers.
Buyers choose from their responses – no obligation.
Total Market
Web site
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Buyers get more real choice. Greater reach.
Very little effort, making the market work.
Process is controlled & secure.
Approach
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Phase 1
a. Prove model in one category - UK Cars.
b. Prove model can transfer - UK Holiday Accommodation.
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Phase 2
Profits in UK Car sector.
Exploit the model in sectors other than cars.
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1.5 years of R&D – £200k invested by founder.
This model did not exist. A lot of trial and error.
Successful 10 month trial in UK Car market.
Buyers
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Free.
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Source.
TRIAL RESULTS
Pay Per Click- for matches.
Partnerships for traffic – in talks now.
Social media & Apps.
Car buyers
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Where we fit.
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Funnel conversion
6%
Buyer Recruitment cost
£5
They tell us what they want to buy.
Additional service - works differently
They may search too.
47% Female, 20% New Cars.
UK Car Buyer market
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Total buyers.
FY breakeven.
8m p.a. (2m new)
55,000 p.a.
18,000
Results robust over all 10 months.
Six times better than expected.
Reflects popularity of service.
Sellers - Dealers
£30 subscription per month.
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Low churn.
Low cost barrier for more buyer choice.
Barrier to emulators.
TRIAL RESULTS
3,000
Recruitment.
Dealers recruited
on a free basis.
Direct.
Telesales.
Dealers paying
1,400
Where we fit.
or agreeing to pay in 6 weeks at end
of trial.
Current marketing – for inbound sales.
When no inbound calls – FindsYou for
outbound sales.
“Using FindsYou is a no brainer”
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Allen Scott – Marketing Director Inchcape
The seller market.
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Total dealers.
Breakeven.
15,000
4,000
Phase 2: UK Cars – Key Metrics
Car Dealers Costs
£30
Monthly Subscription Cost.
•Spend average £2,000 p.m on Classifieds.
•Lead cost a fraction of lead gen services.
£1 - £2
Cost per Lead.
ROI is off the scale..
£5
FindsYou Profitability
• 75% gross margin, and will improve.
• 6 times better than expected.
Cost of Acquiring a Buyer.
Proven, robust & will trend downwards.
£20
Gross Revenue
Proven demand, Will trend upwards.
Gross Revenue based on metrics for buyers needed for average dealer subscription.
Competition
Classified Advertising
• Autotrader
• eBay Motors
• Motors
350k cars. Leader. Monopoly pricing.
200k cars.
160k cars.
• We’re different for both dealers and buyers.
• No copying - they’d lose existing revenue as
users migrate.
Lead generation
Numerous small to medium players.
• We offer choice – Lead Gen does not.
• We offer better selling opportunities for dealers.
• Advantage over Lead Gen in any market.
New Entrants
• Consumer insight
• Owned IP & algorithms
• First mover.
= Big barrier.
= Barrier.
We are a new and unique activity for buyers and sellers.
Phase 2 UK Cars: Forecast
Using only proven metrics
£000
Year One
Year Two
Year Three
Total Revenues
710
2,058
2,978
Total Costs
911
1,398
1,622
EBITDA
-201
660
1,355
Downside risk.
• Dealers join slower than expected.
Upside Potential.
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Dealers join quicker than expected.
Private sellers.
Site performance increases.
Alliance deals and natural traffic.
Phase 2: Next Steps
Partnerships
UK Cars
Jobs
Tradesmen
Hyper Local
Others
Related UK
Sectors:
Non UK Cars
Other areas in car
sector:
After sales
Classics
Commercials
Motorbikes
Trade Only.
Europe
America
Asia
Mid East
Russia
New Sectors
New sectors say:
Social
Causes
Accommodation.
Domestic
property
Commercial
property
Venue Hire.
Other
Opportunities
Licensing/Franchising
Students
Health
Others
Flex – Private Sellers and Dealers
Year 3 EBITDA
Private sellers per month
Dealers
15,000 per month is 6% of private sellers p.a.
12,200 dealers is 80% of total dealers.
Ignores all other variables.
Current Web Sites
UK cars
UK Accommodation
Team
Guy Walker – CEO
CFO/COO
CFO/COO
Price Waterhouse, Yule Catto plc – Audit and Corp Finance.
Marketing & Media businesses. Turnarounds and building by acquisition
and organic growth.
Initiative Media Inc. Re-engineer for profits - $125m p.a. positive swing.
Matt Seaman – COO
Dixons Retail, BSkyB, ITV. Sales and management.
Director
Virgin, Freeview; Management of business units.
COO
Top Up. Exec team that made £60m+ for backers.
Nick O’Connor –Sales/Promotion/Digital
TeleWest, ITV Digital, Head of Trade marketing. Gained 70% market share.
MD
Kizoom. Managed for growth and exit.
Director
Caboodle – All marketing and development.
Jim Lee – Sales & Motors Management
Sales within and media sales to the motor trade.
Founder member Motors.co.uk – classified ad company.
Publisher
WhatCar.
Media Sales
Haymarket Motors Division.
Funding - Use of Funds
Seeking £300k out of £500k
EIS Pre-approved.
Lead investor in place.
£200k Committed.
Use of Funds
Sales to Dealers
Sales to Buyers
Overhead and Tech
Exit
Trade sale in 3-5 years.
To struggling media business with weak
digital model. Many such businesses exist.
Valuation on Exit
10 X EBITDA should be easily achievable.
45%
30%
25%
Where what you’re looking for
1. Very popular & proven model for buyers and sellers.
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Makes life easier – people use things like this.
How the web should work
2. First mover, ready to move.
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Unique position in all markets.
Immune from giants – barriers against emulators.
3. High potential returns.
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Scalable and Applies to many markets and geographies.
Network effect. Ideal for mobile applications.
Profitable model.