smart marketing made simple for small business.

bzzHive LLC Confidential Not to be Reproduced

the bzzHive founders team & board of advisors

dave walker, co-founder|ceo founder|ceo: geomentum, nsa media, wahlstrom, oag cmo|vp marketing toys r us, musicland, circuit city/carmax

derick thompson, co-founder|cto founder|ceo: daily digital product development: godigital media group, remotelink

rick blair board chair

tim hanlon vertere group advisor

john edwards pursuit group advisor

bzzHive LLC Confidential Not to be Reproduced

bzzHive development partners & contributors

bzzHive LLC Confidential Not to be Reproduced

small businesses spent

$82Bil
to win customers & grow sales

5 Million Buyers
spent $5000 to $500,000 with

25,000+ Sellers

bzzHive LLC Confidential Not to be Reproduced

so we asked 6500 small businesses:

are you happy with your marketing & advertising?

bzzHive LLC Confidential Not to be Reproduced

is it any wonder why?

too much new & unknown means expensive mistakes nothing is simple anymore

but the boiled-down questions are pretty simple

what works? what should I spend? how do I do it? who can I trust?

bzzHive LLC Confidential Not to be Reproduced

our solution:

smart marketing made simple for small business and the suppliers who serve them.

bzzHive LLC Confidential Not to be Reproduced

learn

budget

buy

do

the job of smart marketing simply

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typical bzzHive user experiences hivetalk anyone here done groupon?

am I paying too much?

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typical bzzHive user experiences

map tool

where are new customers?

who s best for my new site?

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what works

what to pay

how to do it

who to trust

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is a freemium model that combines expert advice

+
free

peer wisdom

bid & select

1-stop shop

$19/mo

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and our solution goes further:

smart marketing made simple for small business

and
the suppliers who serve them.

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14

reach

engage

acquire

sell

to millions of small businesses in need of help

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bzzHive helps expert suppliers sell smart to small business in a new way
personal profile
community

access

easy lead
generation

referral reviews
digital showroom & store

manage, present, distribute and transact in one place 24-7

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combines the value propositions of

24-7 audience free

virtual storefront $19/mo

lead gen & referrals lead fee

instant transact 15%

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bzzHive makes money providing needed expertise and valuable connections

fragmented demand

fragmented supply e-commerce & lead gen engine

small businesses
spending >$5K/Year

5Mil

25K+
sellers
selling >$50K/Year

$$$
via

low-cost recurring subscriptions to access plus lead gen & affiliate fees transaction fees & licensed technology & content fees
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the bzzHive landscape

Small Business Focus

General non-compete offering

Marketing or media specialization

Small Business Interest

the bzzHive business model

customer acquisition from:
social/viral sem/seo direct partner
fragmented demand meets fragmented supply

intelligent matching find/acquire:

connections just like me advice/services just for me
educate/qualify/fit the right seller with the right buyer

buy/sell/do transaction outcomes:

grow sales win customers get jobs done simple & fast
get results and build on them

upsell & cross-sell extensions:

premium & add-on services other small biz services
leverage trust to continuously expand offering

free trial
silver
subscription

lead gen fees

suppliers only

gold
subscription

transaction fees 15%

suppliers only

licensing fees
technology & content

19/mo $149/yr
$

49/mo $374/yr
$

co-marketing
affiliate, display, revenue share, etc.

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pre-money 4-Year financial projections

Pre-Money Pro-Forma
2012
Q3/Q4

2013
Q1/Q2 Q3/Q4

2014
Q1-Q4

2015
Q1-Q4

Total Basic Free Users Total Premium Paid Users Revenue (000s) Total Revenue (Prior 12-Month Period)
Annualized Run Rate

2,500 500

40,123 6,500

120,370 21,450

531,465 115,117

1,632,263 429,746

$
$

43
172

$
$

766
2,094

$
$

3,736
7,709

$
$

33,324
60,390

$
$

195,762
313,545

Expense (000s) Total Expenses (Prior 12-Month Period) G&A Development Sales & Marketing EBIT RPU CPA
(average annual) (average annual)

$ $ $ $ $
$ $

258 135 48 75 (215)

98.90 150.00

$ $ $ $ $
$ $

1,289 596 318 375 (524)

117.78 57.69

$ $ $ $ $
$ $

3,962 1,512 1,070 1,380 (225)

174.19 65.87

$ $ $ $ $
$ $

15,750 8,277 600 6,874 17,573

289.48 73.38

$ $ $ $ $
$ $

46,063 26,477 600 18,986 149,699

455.53 60.34

Revenue Highlights - 5% TAM penetration by end of 2015 - "hockey stick" user growth based on referrals - RPU growth from affiliate & lead gen fees

Expense Management Highlights - low relative headcount, concentrated in service/sales - Supplier-generated content leveraged to add value - Continuous optimization of acquisition costs

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investment thesis

serves millions of buyers and sellers

multi-tiered acquisition strategy multiple revenue streams both acquisition & platform play proprietary technology & content

highly profitable operating model

early stage investments & milestones already made

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lets get bzzy: dave walker davew@bzzhive.com 630-338-7681