Social A.I. that funds humanity. SMRC/Conscience Pitch Deck.
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Transcript of Social A.I. that funds humanity. SMRC/Conscience Pitch Deck.
Table of Contents
I. Market Problems -- Slide 3
II. Market Solutions – Slide 4 – 7
III. Revenue Model – Slide 8 – 10
IV. Marketing Strategy/Growth – Slide 11– 12
V. Traction – Slide 13
VI. Competitors – Slide 14 – 15
VII. Team – Slide 16 – 17
VIII. Financials – Slide 18 – 20
IX. Investment Ask – Slide 21
SMRC Inc/Conscience LLC
Generating philanthropy and protecting individuals by architecting
the digital conscience.
Market Problem(s)• Social identity theft (source: Barracuda Networks).
Phishing – effects 54% of people.
Account Sent Spam – 17% of people.
Hijacked Account – 13% of people.
• Social authentication. 36-50% of web activity is fake (source: IAB).
71% of Lady Gaga’s followers are fake (source: USAToday).
70% of Obama’s followers are fake (source: USAToday).
This creates muddied market data.
• Abysmally low ad conversions.
0.1% average conversion rate (source: DoubleClick).
More likely to complete SEAL training (source: Solve Media).
The Solution?• The Persona
• A trusted, self learning, personal A.I. app; consisting of your social media likes, dislikes, relationships, events, environments, and favorite causes.
A digital personification of you.
Your companion, guardian, guide & conscience.
• Protects your identity.
• Finds you new, personalized content.
• Monetizes your content for yourself and your causes.
The Solution/Persona cont.
• Feature: Protects your identity.• Biometric authentication.
Electronic Signature Lock (typing & gait patterning).
Eliminates passwords.
• Understands your interaction patterns.Notifies you if pattern changes; signaling fraud.
• We can’t even access people’s contact info.
Feature solves: Social theft, user authentication, recurring app use, fake/"muddied" data, and trust in advertising.
The Solution/Persona cont.
• Feature: Finds you new, personalized content
• Autonomously “searches” your interests across all media, not just one.
• Understands relationships. Best friends = common interests/content.
• Social doppelgangers (similar profiles) Similar profiles = similar content.
Feature solves: 100% personalized content and ads, recurring app use, content monetization.
The Solution/Persona cont.
• Feature: Monetizes content for yourself and causes. 92% of revenues go to people & their causes, equally.
Gives value to people’s voice (content) at a minimum of $.60/day.
• $.60/day x 206 million active North American Facebookusers = $123 MILLION/DAY to causes from Facebook alone.
$5-10/hour supplementary income for paying attention to ads & responding to research.
Creates real value in the service; rather than just a free service. See Jaron Lanier.
Feature solves: Recurring app use, lack of funding for causes, low conversions. http://bit.ly/smrcp-mflyer
Revenue Model
• Selling 100% qualified ads leads for $0.06-0.10
• Advertising to leads through:
Persona app.
Ad publishers (think AdSense).
• Incentivizing 10 minutes of attention to ads. Gamified:
• Where’s Waldo/Trivial Pursuit-like.
• Quizzes on trivial detail in ads.
• Minimum 29% increase in engagement (source: Gigya).
Correct response = donations + $$convertible$$ benefits.
Pays out $1-2/game; $5-10/hour.
Revenue Model Cont.
• Build MASSIVE brand loyalty through 100% personalized Cause Marketing (source: Cone Inc.).
All our promotions are co-branded with audience’s cause.
80% switch brands.
61% try a new product.
Would you go to an inferior restaurant because it supported your kid’s activities?
• Post-Purchase Testimonials and Research Facilitated through cause related incentives.
• 92% of revenue goes to people & causes.
8% to SMRC.
Revenue Model cont.• Summary & Advantages.
100% personalized ads/digital lead generation.
• 1/250th the cost of traditional B2C lead gen (source: Hubspot).
Incentivized conversions to ads, research & purchases.
Behavioral research embedded in every ad.
100% personalized Cause Marketing.
Vehicle & incentives for gathering post-purchase research.
Problems solved: High expense/low conversion, lack of brand loyalty & research in promotions. http://bit.ly/smrcp-sflyer
• Startup Strategy: 2 call centers to register 500-750 sponsors/hosts in 3
months.
• Hosts – anyone with a network. Hosts invite followers.
• Incentive: Host receives 4% of follower’s monetization.
• Can invite other hosts to receive 4% of their value.
• Creates direct network monetization w/o ads.
Hosting/Publishing Ads (optional).• Pays per impression.• 100% personalized ads; no spam.• Pays 10x the ad publishing revenues.
Marketing Strategy/Growth
Marketing Strategy/Growth Cont.
• Host’s receive data on invited followers; no cost. Allows hosts to personalize content experiences.
• Hosts authenticate invited followers as being real Biometrically validated.
Data on followers 100% accurate; no “muddied” data.
Summary & Solutions: Rapid, inexpensive, inorganic growth strategy.
• One account can bring in millions of members/dozens of sponsors/dozens of hosts.
All the benefits of MLM, without any of the problems (i.e. asking for money).
Growth strategy subsequently solves social authentication problem. http://bit.ly/smrcp-hflyer
Pre-Launch Traction• 10 million members (followers) in the pipeline
from global hosts/sponsors in:
Health
Entertainment
Policy
Research
Youth organizations
• Each host has multiple celebrity connections with 1 million+ followers, who they can invite.
• Note: Hosts don’t invite followers until service is fully developed. That’s why we say pipeline.
Competitors• Social Identity Theft:
FriendGuard.
Basically untapped market.
Advantages: • Keystroke biometrics.
• FriendGuard has little market visibility.
• Social Authentication
Social Login Authenticators (i.e. sign into Twitter w/ Facebook).
Advantages: Bots can’t fake keystroke biometrics. They can fake social authenticators.
Competitors Cont.
• Advertising:
Anyone who sells advertising/offers ad publishing APIs.
Advantages: • See revenue model.
• Ad-attention research can be integrated into any ad.This makes our competitors complimentary, rather than competitive.
• Startup of 10 million profiles, with 2+ years of profiling.
Team• Chief Business Officer: Phillip Nakata
IBM CTO of Sales Transformation.
IBM Sr. Assessments Officer.
• Internet Migration Lead (SNA to IP; Proprietary to Open Source)
• Managed $5 billion in assets.
CSC Principal
• Chief Marketing Officer: J.P. D’Zahr
Entrepreneur.
Expert in Authority Websites/Content Management.
Pulled in 6 figure revenues/month from content monetization.
Built networks with over 25 million subscribers/100 business partners in under 30 days.
Previous clients include Microsoft, Boeing, and Combio.
• Chief Technology Officer: Aaron Nakata
At age 13, convinced Phil (father) to introduce Open Source to IBM through RedHat. Open Source is responsible for a significant portion of IBM’s service revenue today.
Developer of #1 World of Warcraft “hack” in the world. Blizzard had to redesign the game around it.
Managed legacy systems/tape servers for StorageTek; a Sun Microsystems spinoff.
• Director: Scott Bruce
Math teacher of 22 years.
CEO of Sesma System where he secured 2 internet software patents.
Fended off 13 office actions from IBM, Adobe and Sun Microsystems.
Co-founder of ABC4ALL; an international non-profit.
Team Cont.
Financial Assumptions• 10 million members to start; growing to 18
million by end of year 1; invited by hosts.
• 1/30 sponsors targeting a member for $.06 cents. Half goes to publisher as cash (not donations).
• We charge $.06-.10/target. 40% of potential revenues unaccounted for in targeting.
• Ad research game calculated at same rate. 1/30 play game, and get rewarded only $.06 of $1-2 avg.
• Post purchase research calculated at same rate. 1/30 purchase a product, and receive $.06. Unless average
product is $1.20; this is conservative.
STOP AND ABSORB WHAT YOU JUST
READ
Seriously; go back and read the assumptions.
Financials• Cash Flow:
$10 billion total.
$7 billion to causes.
$2.6 billion in ad publisher payouts.
$430 million in profits. (8% of total)
$10 million in operating expenses. (5% of 8%)
This all happens in the first 9 months.
Don’t believe us? Please note Growth Strategy and see http://bit.ly/smrc3yrxls.
Really don’t believe us? Apparently you didn’t stop and absorb what you just read☺.
Investment Ask• Seeking a total of $10 million
To insure a $3 million budget.
Additional $7 million insures deliverables against worst case scenario.
Minimum buy in of $75,000/1% founder’s share.
• In return (for full $10 million): 40% of total shares (common and preferred).
8.6:1 return year 1, 66:1 year 2, 500:1 year 3; paid out as profit sharing (50% of profits go to profit sharing).
Board role required.
35% dividend.
3x contribution to your causes + deductibles for 5 years
Option to become host or sponsor to monetize your networks.