October 2014

EurekaSpark

October 2014CONFIDENTIAL

What Is It?

EurekaSpark is a website that gives educators advanced but easy to use tools to post classroom material online; and helps

students access, review and share that material in a unique way.

• Helps students learn more efficiently and teachers teach more effectively

• Connects teachers with students and students with each other, in a broader way than any current substitutes

• Changes the way people teach and learn

EurekaSpark!EurekaSpark!

The $1Billion Question

71,000,000 U.S. students 1,000,000,000

3,000,000 U.S. educators International students

100,000 Public & private schools

34,000 Degree-granting schools

EurekaSpark!

What happens when you provide easy-to-use online tools to the world’s education population and connect them in a single place?

EurekaSpark has the potential to be a game-changer.

Why We Started This Company

EurekaSpark!EurekaSpark!

We want to bring positive impact and opportunity to educational communities around the world through the power of online posting and sharing of content.

Education today depends entirely on the educator’s competency and style of teaching, with very

little regard for each individual student. There is incredible potential for innovation here, and frankly it’s overdue.

Market opportunity is enormous and constantly growing as the student and teacher

population increases.

Movement towards online content saves time, energy, effort and money.

Social Trend of “network” learning, community of peers, media sharing and online/digital content.

EurekaSpark!

What Sets Us Apart

EurekaSpark is the only website that offers all “methods” of learning. We combine the features of video hosting, a blog, a forum and a community of users to create a

comprehensive educational site that allows professors to post their classroom content online through a variety of ways.

Students have access to class material through this broad spectrum of methods, allowing them to choose the approach that appeals to them most.

EurekaSpark is network-powered education

EurekaSpark!

Our Keys To Success

Deeply Committed Team – We’ve got the right people to make it happen

Unique Idea & Design – There’s nothing quite like this out there

Rapid Growth Rate – Easy for users to sign up

Enormous Partnership Potential – Large opportunity for lateral expansion

Low Overhead – Simple startup plan and low cost of needs

Scalability – Easily adapted to meet needs of users and take advantage of opportunities

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Digital TrendIntense momentum toward bringing capabilities to digital media and devices

Online LecturesEducational materials and content are being posted online already and increasingly becoming standard practice to do so

Network Based CommunityContinually easier to share and expand through social media networks

We Are Riding 3 Massive Movements

EurekaSpark!

Problem Current “Solution” Old Effect EurekaSpark New EffectStudents learn at different speeds

Students must listen to auniform lecture speed and review notes they take themselves

Students don’t absorb info because pace is too slow or too fast for them or they miss key points

Students can access lecture online and review content as necessary at their own pace

All students are brought up to speed for next lecture

Students learn best through various different methods

Students must listen to teacher talk and read standard textbooks

Huge gap between what is taught and what is actually learned

All methods of learning available for students in one place

Students select which method works best for them

Not enough time in class to cover necessary material

Student required to review material themselves and “figure out” what’s important

High probability of readingirrelevant info, wasting time on wrong material and missing important concepts

Professor can already have it in online lecture/add it afterwards for students to review

Students have relevant, important material ready more efficiently

Professor doesn’t have time to answer questions in class

Questions go unansweredand prevents students from progressing

Students fall behind andcan’t catch up due to lack of understanding

Students can confer with each other online or post questions to professor

Professor can post Q&A online with students helping each other in forums

No time in class to identify areas class or individual struggles with

Students must rely on themselves to learn topics they’re unclear on, often inefficiently

Gap between students passing and failing systematically increases

Students have immediate contact with each other and professor to isolate areas of need

Students gain group support and direct attention to topics they need extra help with

Students don’t know how to find additional material on subject

Students are limited to what is presented in class or what professor suggests

Learning curve is narrow, diminished interest in class and lower grades on whole

Professor has additional material available and other students can contribute content they’ve found

Students have a wide scope of material to access and select that is relevant to current class subjects

Educators teach in uniform ways causing lack of synergy with students

Wasted time, energy and effort absorbing and teaching information inefficiently

Waste of resources that costs students, teachers and institutions money

“All” methods of learning available. Students choose primary method of learning that appeals most to them

Students absorb info rapidly and efficiently, saving time and money for teachers and institutions

The Big Problems

Primary users are professors and students who utilize the site many times daily. Revenue is generated primarily through advertisements. Access to the site is completely free in order to encourage growth. “Freemium” approach also considered for advanced features or premium content.

EurekaSpark!

Marketing & Growth Strategy

To encourage growth of users, we highly prefer a free access site, especially in the initial stages of the website.

EurekaSpark is projected to generate income during its first year in operation, and a positive revenue stream in its second year.

“…100,000 visitors a day and they read 5 pages per visit, you get 500,000 page impressions a day and make about $43,500 per month.”*

That is the equivalent of about 4 colleges and a return on complete investment in 7 months

Once the website is active, operational costs are low and profit margin is high.

EurekaSpark is well positioned in an essential, consistently expanding market.

*references in Appendix

EurekaSpark!

Financials

Our main focuses are creating a premium quality website and building a large user base.

EurekaSpark’s most important asset is to have the very best website possible so that the quality retains current users and draws more in.

Our first users will come from currently interested professors and institutions, with users expanding from word of mouth and promotion at other schools.

There is enormous partnership potential with the site. Offering unique features through partnerships can dramatically increase users AND profits. Opportunities include:• Hosting videos through YouTube instead of through EurekaSpark’s servers• Purchasing textbooks through Amazon, Ebay or with PayPal• Sharing content through Facebook or recommending to friends through other social media • Audio clips available through Audible or iTunes• Educational or media content linked through Wikipedia or Kahn Academy• Google-based community of users or sharing via Twitter• Offering EurekaSpark app already downloaded through purchasing devices through student discount

EurekaSpark!

Revenue Model

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Potential Partnerships

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And plenty more…

EurekaSpark’s competition are schools that are currently posting lectures online in some way or another.

These institutions do pose a moderate threat because they are already implementing some strategy towards offering online resources.

We believe EurekaSpark can do it better and attract more users. The website is designed to be unique, magnetic and draw users in with superior user interface, attractive and easy to use features, combined with a high degree of functionality.

Our desire is for EurekaSpark to become the “standard” through which educational material is viewed and accessed.

EurekaSpark!

Competition

EurekaSpark needs $300,000 in seed funding to get going.

We believe a seed investment of $300k will be sufficient to cover three years worth of expenses, so once initial capital has been raised there likely won’t be additional opportunities to become an investor. We project the site’s revenue to cover costs from year three onward.

Expected revenue in one year’s time, cost-effective in two and profit in three.

We don’t want to convince any skeptics, we want to find the true believers in the value of the idea.

Use of proceeds:• Site development• Service support• Site, domain and hosting costs• Founder salaries• New hires

EurekaSpark!

Investment

Appendix

Complete business plan available at request.

YouTube video:https://www.youtube.com/watch?v=bGGwqoN7hS0&list=UUdhE9p-W7llgKlRsA4Msh0Q

Visit our demo site @ www.eurekaspark.com

Statistical information:Financials - http://webkew.blogspot.com/2005/04/lesson-3-how-much-money-can-you-make.htmlStudent numbers - http://nces.ed.gov/fastfacts/display.asp?id=372

EurekaSpark!