Graphita Social Shirts

ENABLING THE THE VIRAL SHIRT:LiveStudio is an application that anyone can master to create

or edit a unique shirt... then when they share the design, their friends can make their own versions of the new design.

I N D E X

C O N F I D E N T I A L A N D P R O P R I E T A R Y* * * D O N O T D I S T R I B U T E * * *

License Value Proposition ...................page 2

Consumer Value Proposition .............page 3

SHARING: A GOOD IDEA ......................page 4

TRAFFIC from Widgets..........................page 5

Connections - Bridges ..........................page 6

Systems Architecture ............................page 7

Server Architecture ...............................page 8

Shirt Market ............................................page 9

Shirt Examples ......................................page 10 -14

Notes ..........................................................page 15

Team ..................................................................page 16

Team ..................................................................page 17

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* * * C O N F I D E N T I A L A N D P R O P R I E T A R Y D O N O T D I S T R I B U T E * * *

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Because Live Studio is as easy to use as a point-and-click camera, it can drive sales of personalized merchandise

VIRAL SHIRTS -every shirt has a unique URL, when the shirt is shared, it can be edited by the recipient from anywhere on the web... when the second user shares the design, a new URL is generated for that design.

The layers of a design remain live - any aspect of a design can be changed, shared and changed again.

Our Value


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We make high resolution creative self expression instant and easy for everyone

C O N S U M E R V A L U E P R O P O S I T I O N

The millions of people who have made a Myspace page or any of the numerous other types of user-generated content on the web today have proven that there is demand for creative self- expression. Live Studio simply delivers point-and-click ease of use for graphical effects on merchandise. • No learning curve or tutorials required • Broad range of unique, fun and entertaining artwork and effects • VIRAL: Image effects remain “live” and edit-able, forever...• Supports posting of live and click-able images on blogs and social

network pages as well as e-mailing editable images to friends.• No real language barrier (convert FAQ and simple Tabs)

Personalization that adds an emotional connection. On this

design, anyone can change the words in the vision test.


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Effects on shared images remain live and editableThis makes sharing fun and expressive.

D R I V I N G D E M A N D F O R P R I N T

Graphita offers the ability to create expressive graphical images live on the web and share them broadly as low resolution images while maintaining the integrity of the high resolution print file. Effects remain live and editable. There are many business opportunities around this application; from building

market share with viral images to increasing the amount of print orders business generated by existing customers.

shared e-mail

landing page

widget image of shirtor Share-key from sleeve of shirt

Make your own version

Welcome to Live Studio

Edit Print Email Save Upload

You can do a lot of fun things with this picture...

Edit this picture -its fun...

this picture -click Print


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Driving Traffic with Promotional Widgets

N E W M A R K E T S A N D C U S T O M E R S

We have been using Flash based widgets to drive interest in personalized merchandise based on specific themes and content. The example above is obviously political. We currently have a dozen concepts for widgets which we are

testing on several social network sites and look forward to launching a number of them in the very near term.

Visit this Widget: http://www.widgetbox.com/widget/politicalpie


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Graphita plays a pivotal role in connecting the worlds of online social communities and the print world

C A P A B I L I T I E S a n d C O M M U N I T I E S

We use proxy images to keep high resolution images on the server side. Essentially, we allow the right resolution of image to be at the right place for the right task.; Screen resolution for web, print resolution for reproduction. This allows our application to potentially support multiple channels - bridging the gap between massive online social communities and the expressive

possibilities of sharing in the real world.

DESKTOP PRINTINGCompanies that profit from consumers making prints can bundle our application to drive consumer inter-est and demand for print consumables.

On-pack benefit of creativity could help beat com-moditization and secure brand preferences.

ONLINE PRINT ORDERSTrends internationally are towards people preferring things that are personal and personalized.

The Hallmark card and merchandise serving the sole purpose of delivering a corporate logo is quite possibly headed the way of the Dodo.

E-MAIL SHARINGWe make it possible to share images that

can be opened and interacted with -the ap-plication retains the editable layers making

it possible for all the recipients to make their own expression on a picture.

SOCIAL NETWORKSSustained exponential growth is fueling a fundamental change in where advertising

budgets are spent. We are integrating our ap-plication with the online community leaders;

MySpace, Facebook, Bebo etc.

PHOTO SHARINGCOMMUNITIES

LiveStudio’s flex based web services structure makes it possible for it to reside on partner sites. We can also function as a conduit from photo

sharing sites, to social networks and the desktop.

SCREEN RESOLUTION PRINT RESOLUTION


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Systems Architecture

Site Interfaces FLASH 9

LiveStudio Systems PHP

Cust. DataMySQL v.5

We chose the LAMP platform for cost, scalability and broadly supported adoption with Web 2.0 applications.Adobe’s Flex is used for the application interfaces, with Flash for Graphita’s supporting website.

CustomerHigh Res FilesHASH w/ Public URL

300 dpi

AUTOMATED PROCESSING OF RGB EPS, TIFF, JPEG, PNG TO STANDARD HIGH RES. JPEG

CustomerProxy Res FilesHASH w/ Public URL

72 dpiJPEG

Image Share KeysMySQL v.5

LiveStudioContent Mgmt. PHP

ImageMagick PROPRIETARY INTERPRETATION ENGINE SCRIPTS: C / PHP / PERL

ObjectLibrary Proxy FilesFLASH / SWF and PNG

ObjectLibrary RenderFilesPNG - 300+ DPI

Shared Images and Widgets

LiveStudio Interfaces FLEX 2/3

Image Layer DataMySQL v.5

Zend AMF Remoting Framework

SYNC

SYNC


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Hosting Architecture

Firewall(s)300 Mbps Agregate / 130,000

Our current deployment hosting architecture is based on a clustered Linux, servers using Cent O/S and Apache Server

DedicatedDirect Attached

Storage3 x 300 GB RAID 5 (Primary)

3 x 300 GB RAID 5 (Mirror) with Dual/Active Controllers /Hot Spare

Fail-Over Network ConfigurationNIC Bonding / Catalyst Switches

MySQL Clustering

NOTE: Image storage could be shared with existing storage for books, as LiveStudio references the un-edited original.

Gigabit Private Network andGigabit Backup Network

Vulnerability Assessment ScanIntrusion / DDoS etc.

DBA servicesMySQL support

Transaction and Port Monitoring

SERVICES

Optional VPN Device

Managed Tape Back-up

Optional Redundant Device

Web ServerSingle Quad 2GB RAM 100GB RAID1

App. ServerDual Quad 2GB RAM 100GB RAID1

MySQL ServerSingle Quad 2GB RAM 100GB RAID1

Web ServerSingle Quad 2GB RAM 100GB RAID1

App. ServerDual Quad 2GB RAM 100GB RAID1

MySQL ServerSingle Quad 2GB RAM 100GB RAID1

Load Balancer(s)300 Mbps Agregate / 130,000


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Custom Shirt Marketplace

Community and marketplace for artists and semi-professional graphics talent. No real customization at all. No brand content.

Growing site (5x Graphita traffic) Flat clip art and type. Not taking advantage of full color Direct To Garment (DTG).

Smaller Players There are a growing number of boutique shirt sites enabled by new Direct-To-Garment printing technology. We have categorized the sites that focus on making shirts here, while sites with community that could be revenue sharing partners are on the next page.

Graphics / Editing

NONE

Create but not Edit

t-shirts.com Growing site. Flat basic clip art and type

UberPrints.com (Similar traffic to Graphita) Direct to garment technology -inexpensive shirts and rough, basic graphics engine for making custom shirts.

QOOP.com very good placement on social network sites, with very little revenue in shirts. Very weak player with good distribution.

e-custom.com small competent DTG shop. Rough design tool.

www.thattshirtsite.com small player with a decent shirt design tool.

0.3 M est.

0.2 M est.

Users/ Market

C O N F I D E N T I A L A N D P R O P R I E T A R Y S U B J E C T T O N D A * * * D O N O T D I S T R I B U T E * * *

Tech leader in custom shirts. Limited customization of pre-existing designs. Large customer driven marketplace and community. Strong deals on content.

LIMITEDnot Graphics

1.2M est.

Largest of customer driven marketplaces. Revenue sharing. Limited customization capability on main site. Acquired www.click-shirt.com -very tool-oriented.

LIMITED editing of textual elements

3.5 M est.

Growing site and compelling customization tool that is capable of creating new shirts. Not editing existing shirts. Create but not Edit 0.2 M est.

July 05, 2007By Mike Shields/Mediaweek

Social networking sites will command the biggest slice of the UGC ad pie. NEW YORK User-generated content on the Web is set to rapidly shift from a budding consumer trend to a serious business over the next five years.

Ad spending on Web sites that have built their traffic on user-gen staples like social networking, photo sharing and amateur video is expected to soar to $4.3 billion in 2011, according to a new report issued by eMarketer. That’s a whopping increase of 330 percent versus the $1 billion expected to be spent in the space this year—which is itself more than double the $450 million in ad revenue tracked by eMarketer in 2006.

Despite the ongoing challenges facing UGC sites to find a business model that works, and despite continued hesitancy among some major brands to even go near the explosive space, eMarketer predicts that category leaders such as YouTube, MySpace, Facebook and Photobucket will lead the charge in terms of legitimizing the medium over the next five years. “The nearly tenfold increase in user-generated content advertising spending in the U.S. reflects optimism in the ability of compa-nies like YouTube, MySpace and Facebook to continue to build and retain vast audiences,” says the report.

Plus, users have shown no indication that creating their own Web content for others to consume is a passing fad, found eMarketer. By 2011, the researcher estimates there will be 95 million Web users creating content online, up from 64 million last year.

Among the various segments that have exhibited hefty growth over the last several years, eMarketer believes that social net-working sites will command the biggest slice of the UGC ad pie—perhaps due to how much further ahead sites like News Corp.’s MySpace as well as Facebook are at monetizing their content than Google’s YouTube. Spending on social networking sites should balloon to $3.6 billion in 2011, up from the mere $445 million spent last year. By 2011, ad spending on these sites should account for nearly 7 percent of online advertising, says the report.

Yet UGC video is likely to enjoy a burst of new ad dollars as well. While online video spending in general should grow expo-nentially over the next five years to $4.1 billion (up from a measly $410 million last year), dollars allocated to user-generated video should approach a $1 billion over the same time period, according to research compiled by Screen Digest, said eMarketer. By that time, users will be streaming close to 50 million video clips a year, up from 12.4 billion in 2006, according to the report.

APPENDIX

User-Gen Space Poised for Growth


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E X E C U T I V E T E A M

David Shantz, CEOA co-founder of Graphita. David has played an integral role in the founding of more than a dozen successful start-up companies. Co-founded SRD (acquired by IBM) in 1983, at 19. In 1992, David worked with Alvy Ray Smith (co-founder of Pixar) on the launch of Altamira Composer, software that advanced digital photo editing. MPower, Encorus, Actona, Velosant, Atomic Tangerine, BambuRum etc. David has been responsible for the creative direction of the company, development of it’s products and business models, team and partnerships. Creative Director of WildOutWest, an early stage venture consulting firm with worldwide clients, since 1997. Avid photographer and professional digital retoucher. See detailed Profile on Linked-in

Andrew Lockwood, PresidentAndrew has been actively involved in the company almost since its founding. Andy is a dynamic International business executive and leader with a 20 year track record of rapidly growing and reshaping businesses, and has held a number of CEO, General Management, Strategy, Sales and Marketing roles with both small startups and larger Companies such as BT, Inktomi and Covad. This includes starting a $1B wireless operator with 2.4m customers.He is particularly focused on clear strategic thinking, building capable teams, establishing partnerships, and finding fresh new approaches to grow revenues.See detailed Profile on Linked-in

Zach Saltsberg, CTOA co-founding Partner in the company, Zach and his team developed the Live Studio application from a working prototype to our current beta testing version. Zach and David started working together over 11 years ago. Zach has managed the development team: Andy, Chris, Judah, and Sarah.


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Mary D’Agostino, Acting CFOMary has been a valuable advisor to the company since its founding. She has held senior management positions in Business Development, client Services and Marketing at Wells Fargo and Moodys KMV, including being the GFO of WellsFargo.com and CEO of a start-up funded by FirstData/ eONE Global. Stanford Business School Sloan Fellow.

Rhonda Shantz, Acting CMORhonda has been a valuable advisor to the company from the beginning. She has held senior management positions at Intel, IBM, HP and currently at Symantec, where she runs consumer communications.Rhonda has also been the Global technology lead for Public Relations firm Porter Novelli, and oversees our marketing efforts with David and Andrew.See detailed Profile on Linked-in

Nicole Witeous , Marketing PromotionsNicole brings experience with direct web marketing, media relations and sales promotion for mainstream consumer products. Previously worked with Banana Republic, Intuit, GapThis is not Nicole’s actual likeness

Michael Leifer, Principal, Guerilla PR - Board AdvisorMark Lehey, Fenwick & West - Corporate Legal CounselHolly Pranger, Pranger Law -Trademark and Copyright Counsel

Graphita Social Shirts

Art & Photos

Transcript of Graphita Social Shirts