#1mint Outline: Learn Sequentially • Phase 1: Garage (<$100k) • Business goal • Expenses • Phase 2: Seed (<$1m) • Business goal • Expenses Projecting Revenue Phase 3: Funded (>$1m) • Business goal ▪ Expenses • Budgeting & growth model vatornews#2mint Mint.com is the #1 personal finance web application ... Helps users gain control over and do more with their money . . + See all accounts in one place Understand & categorge spending Track investments Find savings (Ways to Save) Educational blog contant Accessible on the go (iPhone) and across the web (Yahoo!) vatornews#3mint Aaron = Geek... with accounting skills Duke: EE / Comp. Sci. Princeton: PhD Dropout Financial + Managerial Accounting vatornews#4Garage: Goal = Prototype Prototype development Idea • Market Research • Business Plan Pre-revenue Valuation: +$500k/ engineer -$250k/ business guy vatornews#5Founders [living expenses) Engineering First Hires (low salary, high equity 1-5%) Office (by the cube) Expenses Tech (laptops+ couple of servers + dev software) Legal Corporate setup) 2 founders + 1 engineer/contractor (Assumes I technical + 1 business founder) $30k / yr $30-50k/yr Minimum Cost $400/ cube / mo $10k Deferred payment for 0.50 -0.75% of co. = $150k/ year burn → Raise Seed money within 9 mo. vatornews#6mint Seed: Goal Alpha Launch • Usable, but not polished or scalable product Headcount: 5-6 • 3-4 engineers • 1 product/frontend • 1 business generalist MINT <-9910 $4,200 $3,750 $450 vatornews#7MINT Moony Intellige Cash Accounts Wells Fargo-Checking BOA-Savings Capital One Platinum MBNA Princeton Gold 10/07 Coupe Cafe 1000 Extern 10/05 Fax Com 10/00 Country Farm $10,934 -41,290 Income $4,200 Income: Viages 10312006 wages 10310006 13312000 Capite Gas 10052006 Wages 13312006 Other - Expenses $3,750 = Savings $450 History: Des Merchant $1,976 Mit Savings Beat Boy RETPUR 3 mo avg $4,100 $4,200 $40.00 vatornews#8mint Seed: Revenue Projections You have a revenue model, right? • Your absolute revenue projections will be bullshit (see below) • Everyone's look like a hockey stick • Per use / per client revenue is more important And a huge market opportunity Let's see how Mint did it... 2003 $1m $10m $50m 2010 vatornews#9MINT Competition: Quicken Money Quicken & LowerMy Bills LOMANIA 4 of 5 quit with US UserBase Original Mint late 2006 side Difficult to use . Costs money: 530-70 Does not save or make user money Mini-Money intelligence money, but... Manually search for deals No insight into your finances vatornews#10MINT Lead-Gen & CPA Opportunity: $30+/user/yr Goal Rev Category Credit Score Credit Cards Check/Save Daily Savings Fig Mortgage Ref Home improve Edu & 529 WTS WTS WTS Center WTS WTS WTS WTS Goals $36 560 530 $300 $300 1610 $15 550 550 $200 5300 Of Action 2 yr 3.5 yr 2 yr 2 yr Once Once User Adoption 10% 10% 10% 10% 10% SN $1.60 ide SES $1.40 50.60 $1.60 $2.00 -5.30 vatornews#11MINT Business Model: Lead-Gen Billion (SUS) • 7% of $168 online ad market • Fastest growing ad 2014 to '05 Original Mint late 2006 side 2.1 2005 Referrals & Lead Generation 20-65 M User base 6.0 X $30 Rev/user/yr $1.08 in mortgage lead-gen, to triple by 2008 $0.6 1.8 B Mint Opportunity vatornews#12mint Funded=Launch & Lead Goal: Launch a real product & grow a profitable business "Hidden" Expenses: Legal: patents, trademarks, contracts, financing, employment, immigration • Consultants: SEO, SEM, design, logos, DB tuning, etc. vatornews#13mint Funded: Expenses Expenses Salaries + Overhead (Salaries at market taxes benefits + facilities) COGS (customer service, SMS, bandwidth, servers to scale) Legal (contracts, patents, employment scale up with headcount) Total burn (30 person team) Cast $200k/ yr Widely varying $10-50k/mo → Profitable with 2 years = $6.0m/ yr vatornews#14mint Build a Model Show user grow, retention, COGS, revenue per sale/user, profit • Accumulated loss lets you know when to raise • Back fit with actuals Revenue vs. Expenses <-COGs -Revenue -Opex vatornews#15Revenue vs. Expenses COGS Revenue -Opex vatornews#16mint Acquired: More than $$$ Nerd → CEO Creating something from nothing... the source of all wealth in the world. • Self-confidence vatornews