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Get connected.

Patrick Esch, Welles Harris, Andrew Persaud, Dean Schwartz, Philip Smart

December 6, 2016

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We’re a bunch of undergrads.

The number one reason you may be hesitant to invest in CircleUp is because you’re investing in a bunch of undergrads. But, as a bunch of undergrads starting our first semester, we encountered a problem. Every time we joined a new student group or worked on a group project, step one was always passing around phones to start a groupchat, followed by everyone having to send their information in that new group chat. Right now, to share just a single contact. You have to go to the contacts app on your iphone, find that contact, click share contact, and then type in the recipient’s name. So we thought, what if there was a way to instantly share every group members contact information with each other? What if you didn’t have to waste time trying to figure out everyone phone number? What if you could create a circle, where everyone can import group members phone numbers and emails into their contacts app, allowing for easy communication? So we made a solution: CircleUp.

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Executive Summary

The vision: allow users to efficiently share multiple contacts with a single click

Approach firms and universities
Amass a user-base
Infiltrate the social media market
Annual growth rate of 15%

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Agenda

What is CircleUp? The innovations and implementations of the software

Where will it fit in? Analyzing our market and amassing our user-base

How much will it succeed? Projecting our growth and selling our service

The Team

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Dean Schwartz, CTO

• Contact Data Bases

• Programming

Patrick Esch, PSMT

• Policy Research

• Government Affairs

Andrew Persaud, CMO

• Marketing Strategies

• Define Target Market

Welles Harris, CFO

• Accounting

• Financial Projections

Philip Smart, CEO

• Start-up Experience

• Graphic Design

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Private Circles

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But this summer, Ramses is doing an internship at iCompany in Durham. He wants to contact his future coworkers, but doesn’t have any of their phone numbers or emails. Here’s where CircleUp comes into play. After given a password from his boss, Ramses could access the iCompany circle. In private circles, phone numbers and emails associated with the company’s login is shared between employees. So, Ramses can click into directory, where he could import his coworkers’ information right into the contact app on his iPhone (2^nd image). Now, he could call or email any of his coworkers without awkwardly asking them for their numbers or timely searching through a database. Also under the info section, private circles have a discussion board, where here we see his boss posted a waiver for the upcoming company outing.

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Public Circles

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Aside from private circles, public circles are what make CircleUp special as they provide a social media aspect of the app. Let’s say Ramses is bored, hungry, or wanting to connect with others in Chapel Hill. All he would have to do is look at his nearby circles (1^st image) without having to share any unwanted information. For example, this weekend he’s staying at the Carolina Inn with his family for Parents’ Weekend. If he were to click on directory (2^nd image), he’d see phone numbers for concierge, the front desk, room service, etc. Under the info section (2^nd image), he’d see the fitness center’s hours and even information on the band playing at the inn that Saturday night. Also, there is a chat feature in public circles. Here (3^rd image), Ramses entered a UNC v. Duke Watching Party circle. Now he could do all the Tar Heel trash talk he wants.

Phil — One important note is how public circles will generate a majority of our revenue. We will display banner ads on our public circles maps of promoted businesses who will pay to be advertised. Also, in the list you see on the bottom of the first photograph, businesses would pay to appear higher on this list. Now Partick will discuss market analysis

ALSO — talk about GPS + revenue from restaurants / places in the public circle paying to be promoted on that list.

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Market Analysis

Growth:

- SMS Messaging is a $120 billion dollar industry.

- mobile messaging is the new disruptive technology

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Competitors

Why are they successful?

Culture: Competitors create their own unique brand/culture and offer unique platforms.

- Slack Business

- KakaoTalk Anime Integration

- GroupMe Informal Group Chats

Retention/Engagement: Users continue using mobile messaging apps because they are invested in a brand/culture.

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What makes CircleUp Unique?

Contact Sharing:

One of the most popular used features on a mobile device
No mobile messaging app offers maximum contact sharing functionality

CircleUp Culture:

CircleUp will create a culture/brand that revolves around social circles.
Offering location based social interaction to a platform with Slack/GroupMe features.

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While it may not seem like contact sharing is a desirable feature, 42% of respondents in a B2B International survey admitted to sharing contact details through a connected device (Kaspersky Lab). This survey found that the only more popular type of information shared through a connected device was a photo of oneself.

Contact sharing is one of the most popular uses of mobile devices, yet no mobile messaging apps prioritizes and integrates contact sharing into their platform.

This is how CircleUp will create a unique brand amongst its other mobile messaging competitors. CircleUp is an app that revolves around social circles. Apps like GroupMe or Slack offer group interaction, but they are restricted and isolated. CircleUp will offer a true social media experience by offering location based interaction with public groups. With CircleUp, users can become engaged with nearby groups and circles.

Additonally, other apps like GroupMe largely are only used for closed group chats, and apps like Slack are restricted to business applications. CircleUp will offer the best of both worlds: an app that allows both businesses and social groups to experience full contact sharing functionality.

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Sizing the 2016 Contact Sharing Market

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Breaking down the numbers — TAM: 90.1M individuals; SAM: 56.8M individuals;

Target Market: 26.1M individuals

Total Population 16 and over —

(~243M individuals)

Total Available Market (TAM):

iPhone owners —

(~90.1M individuals)

Serviceable Available Market (SAM):

Firm Employees, College Students, and High School Students —

(~56.8M individuals)

Target Market:

Firm Employees — 15.3M individuals

College Students — 10.8M individuals

Total Target Universe — American Population (~318.9M individuals)

To determine our Target Market, we first start broadly with our Target Universe. Ideally, our Target Universe is the American population which is currently at about 318.9 million individuals.

Next, we narrow our number demographically by only looking at the Labor Force population in America which are those that are of age 16 years or older: that is currently about 243 million individuals.

We can then limit that number again to only those who have iPhones since our app will only run on iOS in order to determine our Total Available Market. This number is roughly 90.1 million individuals.

Of that 90.1 million, approximately 63% are employees that work in a small or large firm, college students, or high school students. That is how we determine our Serviceable Available Market of 56.8 million individuals.

Lastly, in the first two years of operation, we are focused on acquiring only Firm Employees and College Students and that is how we end up with our final Target Market of 26.1 million individuals.

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Marketing & Sales

• Year One: developing our app and ensuring that contact information amongst consumers is encrypted.

• Year Two: our team will focus on acquiring at least 50 firms within the Raleigh-Durham area and the 3 major universities.

• Years Three & Four: expand to 200 firms and be implemented into the school programs of half of the high schools in North Carolina.

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CircleUp aims to directly target high school and college students, while also targeting individual firms.

The first year that our company begins operating will be devoted to developing our app and ensuring that contact information amongst consumers is encrypted. This goal is in place so that we can guarantee protection from strangers gaining access to consumers’ contact lists.

After year one, we aim to have advertisements on the campuses of the three major colleges in our Raleigh-Durham area: UNC-CH, Duke University, and NC State. We also hope to have the endorsements of the chancellors from each school.

In year two, our team will focus on acquiring at least 50 firms within the Raleigh-Durham area before expanding across the state of North Carolina. After the first year, following the launch of CircleUp, we hope to have secured these 50 firms.

After two more years, we hope to have expanded to about 200 firms and have been implemented into the school programs of half of the high schools within North Carolina (that is approximately 500 high schools).

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Marketing Strategies

• We intend to seek the support from a well-known firm such as one of the Big 4 Banks.

• Once we have the support of a major firm, our app will receive advertisement in the form of professional application reviews and news articles

• Our marketing strategy for acquiring the independent firms within the Raleigh-Durham area will include in-person meetings and cold-calling.

• Our website will be designed in house by our Chief Technology Officer, Dean Schwartz to minimize advertising costs.

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We intend to seek the support from a well-known firm such as one of the Big 4 Banks — Bank of America, Chase, Citi or Wells Fargo.

This firm will advocate our app to other independent firms as an efficient way to save time and allow for greater communication among employees.

Once we have the support of a major firm, our app will receive advertisement in the form of professional application reviews and news articles. We would hope that TechCrunch is specifically the publication to review our app.

TechCrunch and its network of websites currently reach over 12 million unique visitors and draw more than 37 million page views per month and that is the exposure that CircleUp would need to establish a consumer base around the country.

Our marketing strategy for acquiring the independent firms within the Raleigh-Durham area will include in-person meetings with the officers of the various firms and, in some cases, cold-calling.

Thus, our initial marketing cost for firms will be relatively low.

To minimize advertising costs even further, our website will be designed in house by our Chief Technology Officer, Dean Schwartz.

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Financial Projections

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1: See Appendix A

Projected Revenue¹
Year 1	--
Year 2	95,000
Year 3	109,250
Year 4	125,638
Year 5	144,483
Total	$474,371

GroupMe and Slack have 9.3 million monthly users
Capturing 2% of our competitors users would generate $90,000 in annual advertising revenue
We aim to increase revenue by 15% annually by growing our user base through the advertising methods discussed earlier

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Funding Request

CircleUp is requesting $110,000 from investors for a 23% share of our company

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Expenses
App Development	80,000
Website and API	15,000
Security, Storage, and Maintenance	15,000
Total	110,00

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Review

The vision: allow users to easily connect and efficiently share multiple contacts with a single click

Approach firms and universities
Amass a user-base
Infiltrate the social media market
Annual growth rate of 15%

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Philip Smart, CEO

Welles Harris, CFO

Andrew Persaud, CMO

Patrick Esch, PSMT

Dean Schwartz, CTO

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Appendix A

Revenue Projections:

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	Advertising	Contact Sharing	Total
Year 1	--	--	--
Year 2	90,000	5,000	95,000
Year 3	103,500	5,750	109,250
Year 4	119,025	6,613	125,638
Year 5	136,879	7,604	144,483
Total	449,404	24,967	$474,371

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Appendix B

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