Investor
Presentation
www.closetfox.com
Mission Statement - To leverage technology and the global apparel appetite
for the enhancement of community and the improvement of human wellbeing.
- Robert Friskney
Safe Harbor Statement
This Presentation contains certain information regarding the current and planned operations and business of ClosetFox, LLC. (Or
the “Company”), including information regarding the projected financial performance of the Company. This Presentation has
been provided to the recipient solely for the purpose of assisting the recipient in deciding whether to proceed with an in-depth
investigation of the Company in accordance with procedures established by the Company.
By reviewing this Presentation, the recipient hereby agrees, among other things, to keep the information contained
herein and the existence of this Presentation and associates Business Plan confidential and to restrict the use of any information contained
herein to those people within the recipient’s organization or its designated representatives who have been informed of the confidential
nature of such information and who need to have such information in connection with the organization’s evaluation of the Company.
This Presentation has been prepared by ClosetFox, LLC. and affiliated persons based on internally developed information, as well
as information from public and private sources, including trade and statistical sources commonly used in the industry. Neither this
Presentation or the Business Plan does not purport to contain all of the information that may be required to evaluate all of the factors that
could be relevant to a recipient in considering a transaction with the Company.
The Company makes no warranty or representation, expressed or implied, as to the accuracy or completeness of either the material
contained herein or any other written or oral information provided by the Company to the recipient, and no liability shall attach thereto.
Nothing contained in this Presentation or Business Plan is, or should be relied on as, a promise or representation as to the future.
The projected financial information contained herein was prepared expressly for use herein and is based upon the stated
assumptions and the Company’s analysis of information available at the time that this Business Plan was prepared. There is no
presentation, warranty, or other assurance that any of the projections set forth herein will be realized. This Business Plan does not purport to
contain all of the information that may be required to evaluate the Company and any recipient hereof should conduct its own independent
investigation and analysis of the business described herein.
Leadership
•
•
•
•
•
•
Robert Friskney, Founder & CEO
– Former CMO, StoryBoardIT, COO, Global WiFi, 20 year industry professional.
Orlando Fernandez, CFO
– Former Senior Tax Auditor, Florida Department of Revenue
– BS Accounting, BA Business Management
Pablo Tola, CTO
– Former CTO, MyOnlineToolbox.com (Forbes top 20, 2009)
– BS Computer Science
R. Stacy Sneeden, Technical Advisor
– North Carolina State University
• Physics & Mathematics
Robert Wright, Director
– MBA in Finance from Columbia University
Melissa Friskney, Vice President
Company Profile
• ClosetFox is the first global aggregator of buyers and
sellers in the $450 billion apparel market built on
community intelligence
• Over 35 years of combined internet business intelligence
and web development capabilities
• Brought to market three new software and internet
business solutions
• Established track record for managing organizational
units
• ClosetFox is Visionary and intellectually sound
The Opportunity
• On average, children between the ages 0 and 18 need a new wardrobe 3
times a year. This comes out to approximately $30,000 spent per child
over this time period
• The economy is forcing malls and smaller clothing shops to close, leaving
designers with fewer outlets to show and market their designs
• Families have few options to turn gently used clothing items into much
needed cash for buying new clothing or paying bills
• Each year, over 10 billion pounds of clothing is discarded in landfills
• The average consumer purchased 48 new pieces of clothing in 2008.
Rates of consumer discard, meanwhile, rose by 10 percent throughout the
1990s, according to Goodwill
Solution
• Create a unique online platform that aggregates a global
community of apparel buyers and sellers
• Create a site that allows members to create unique profiles for
themselves and others and share these profiles with members
outside of the primary account
• Allow apparel designers and sellers to be able to market new; over
stock apparel and accessories to members with pin-point accuracy
• Construct a built-in email campaign generator targeting the exact
demographic that meets the specific criteria for the items to be sold
Business Model
• ClosetFox is an Internet-based platform that enables consumers to
take more control of their overall shopping experience in the
apparel industry.
• ClosetFox represents a paradigm shift in e-commerce by allowing
subscribers to create community-based stores targeted specifically
to individual customers.
• The application maintains a member database, allows subscribers
to create direct marketing campaigns, builds a community based
upon common interests, and provides an unparalleled personal
shopping experience.
Market Size
• Over 307 million people in the U.S. and 6.7 billion worldwide
consume over $450 billion in apparel each year. The Company
expects that .001% of the global population will create an
account on closetfox.com.
• Tweens - $24 billion buying power
• Adaptive Apparel Market - $33 billion market
– Big and Tall
– Dwarfism
– Health Care and Nursing Home Residents
– Special Needs Adults and Children
Revenue Model
• Free Membership (selling items - Amazon type
experience) only $1.00 per transaction
• 4 Subscriber types
– SMB (boutiques and small retail) $29.95 / mo +
– Not-for-profit (Goodwill) $79.95 / mo +
– Industry Professional (designers) $39.95/ mo +
– Retail (GAP, Macy’s) $499 / mo +
• Direct Marketing Portal ($.05 per recipient)
• Advertising (Ad placement / Pay-per-click)
• Data Mining (based on required data)
5 Year Revenue Projections
•Target +$550M recurring revs
•1.5* Revs  $825M valuation
Revenue
$ 547,717m
$ 368,173m
Projections based on subscriber fees
and commissions earned from site sales
$ 216,376m
$ 129,782m
$ 52,156m
*
Year 1
*
Year 2
*
*
•Accelerated Organic Growth
•Accretive Viral Acquisitions
Year 3
Year 4
Year 5
Marketing Strategy
• Social Media Marketing: (SMM)
– Blogger, Facebook, Twitter, Linkedin /closetfox
(already established)
• Email Advertising
• Education Seminars with Partners and
Sponsoring Trade Organizations
• Trade Shows
• Magazine Advertising
Exit Strategy
• ClosetFox is positioning to be sold to an online
behemoth like Amazon, Microsoft, or Google
• Current NDA is already in place with Amazon
• We anticipate the sale of ClosetFox or IPO
before the end of the 5th year
Investment
• $300,000 owner inventment
• Optional Investor Benefits
• Preferred Stock
• Seeking $2.1 million
• Liquidation preference
– Installment one $700,000
• Board and information rights
• Development
• Anti-dilution
• Marketing
• Participation rights
– Installment two $1.4 million
• further market development
• Promotion
• Extend working capital
Nut Shell
•
•
•
•
1,668,870,408 internet users (most wear clothes)
10,000 US apparel manufactures
Unparalleled market opportunity
The only internet platform designed specifically to
aggregate apparel buyers and sellers…globally
• A management team with experience to succeed
• ClosetFox is already drawing interest from prospects
• Relatively small investment for huge ROI