BackLive Pitch Deck
- 1. Commercializing Software-Based Financial Trading
- 2. Opportunity Product Marketing Financials Management Summary Software-Based Strategy Testing And Trading Today Pricing & Technicals Only High frequency trading Coding User-unfriendly Proprietary Limited Optionality
- 3. Opportunity Product Marketing Financials Management Summary BackLive: The Future Of Tech-Based Financial Strategies Easy-To-Use Affordable Predictive Abundant In Data Shouldn’t everyone be able to build, test & trade any strategy?
- 4. Opportunity Product Marketing Financials Management Summary BackLive: The Bigger Vision Product Ready Today Custom Builds For Any Financial Website Sports Betting & Other Builds All Asset Classes The standard in financial strategy testing & execution
- 5. Opportunity Product Marketing Financials Management Summary https://backlive.io: Home
- 6. Opportunity Product Marketing Financials Management Summary https://backlive.io: Research – Build Any Customer Indicator
- 7. Opportunity Product Marketing Financials Management Summary https://backlive.io: Research - Fundamental Comparative Charting
- 8. Opportunity Product Marketing Financials Management Summary https://backlive.io: Strategy – Build Any Strategy With A Point And Click
- 9. Opportunity Product Marketing Financials Management Summary https://backlive.io: Strategy – Instant Detailed, Comparative Results
- 10. Opportunity Product Marketing Financials Management Summary https://backlive.io: Strategy – Numerous Built-In Analytics
- 11. Opportunity Product Marketing Financials Management Summary https://backlive.io: Execution – Execute Strategy Directly Into Brokerage
- 12. Opportunity Product Marketing Financials Management Summary Standard metrics are built into every website section, but users can also create any new or custom Indicators with BackLive’s proprietary tool. The Strategy section offers a user-friendly platform to build, backtest, screen and compare any trading strategy in minutes, utilizing 12-year detailed financial, economic and pricing data. Review detailed results, analyses and stock recommendations. Users can execute trades directly from BackLive into Interactive Brokers. Soon, users can automate trades according to strategies and selected rules, and execute into multiple other brokerages. Import your portfolio, edit positions, and analyze detailed standard and custom performance metrics. Chart comparisons on any custom or standard financial metrics across stocks & funds. Add technicals, regimes and
- 13. Who is our customer? Sophisticated Retail Investors 20’s 30’s 40’s Small-to-mid sized fund manager Primarily male Opportunity Product Marketing Financials Management Summary The BackLive Customer BackLive’s core retail customer is an avid investor who is passionate to look past pricing trends into the fundamentals of a company when assessing investments. He likely has a degree in finance and a substantial portfolio. The biggest market opportunity for BackLive is on the professional side. Thousands of funds and asset managers need an agile system to test and trade strategies. BackLive’s customer yearns for statistical and quantitative answers, and values scientific method and testing.
- 14. Opportunity Product Marketing Financials Management Summary Online Marketing Launch Approach Display Affiliate financial networks SEM and Social Media, with focus on Google, Facebook SEO centered on a small set of keywords Engage Free trial, no hassle-sign up Key PR and Blog Outreach LinkedIn Outreach
- 15. Opportunity Product Marketing Financials Management Summary Sales Approach Sales Rep Structure: Base salary $2,000 per month Sales commission $50 per seat sold (uncapped) Desired Return On Employee Op Ex 300% Expected lifetime value of user $540 Sensitivity Analysis Low Mid High Termination* Seats Per Week 5 10 40 <5 Annual incremental revenue $129,600 $259,200 $1,036,800 Annual income for salesman $36,000 $48,000 $120,000 Annual gross return 260% 440% 764% Meets Expected Return No Yes Yes *Failure to meet minimum performance expectations as outlined in Offer of Employment
- 16. Opportunity Product Marketing Financials Management Summary Limited Direct Competition Item BackLive Portfolio123 Zack’s IRW VectorVest Quantopian Stock Backtesting .c, .c, .c, .c, .c, Macro-Economic Testing .c, .c, Fundamental Testing Custom Indicators .c, Trade Execution .c, .c, Automated Trading .c, Intuitive Commercial Website .c, .c, Price $20-200 $99-199 $150-250 $59-129 $0
- 17. Opportunity Product Marketing Financials Management Summary We’ve developed a two-part revenue model Display ads for non-paying users Revenue Model Tiered subscription model Limited usage packages for less active traders Unlimited usage and Premium add-ons for more engaged and Professional users Multiple-seat packages for institutional investors Custom builds for corporate clients Licensing model for other websites to integrate into their offering and data set
- 18. Opportunity Product Marketing Financials Management Summary We’ve developed a two-part revenue model Revenue Model
- 19. Opportunity Product Marketing Financials Management Summary Margins poise BackLive for strong growth and timely breakeven Projected Fiscal Year FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Net Revenue $14,695 $361,792 $4,116,854 $6,832,659 $13,303,339 $23,903,831 Total COGS $2,750 $57,450 $236,000 $492,000 $828,000 $1,364,000 Gross Profit (Loss) 11,945 304,342 3,880,854 6,340,659 12,475,339 22,539,831 Gross margin (%) - 84.1% 94.3% 92.8% 93.8% 94.3% EBIT ($18,322) $55,922 $2,790,357 $4,567,267 $9,406,238 $17,728,548 EBIT margin (%) - 15.5% 67.8% 66.8% 70.7% 74.2% Net Income (Loss) ($18,322) $55,922 $1,815,491 $2,968,723 $6,114,055 $11,523,556 Revenue Growth Rate n/a 1,037.9% 66.0% 94.7% 79.7% Selling Marketing & Delivery as % of Sales 69.9% 24.6% 11.2% 10.5% 9.7% 7.9% Gen Admin & Employee Costs as % of Sales 1.361007145 44.1% 15.3% 15.4% 13.4% 12.2%
- 20. Opportunity Product Marketing Financials Management Summary BackLive’s margins and subscription fees allow the company to avoid large early negative cash flow, and to become cash flow positive in 2015 Projected Fiscal Year FY 2014 FY 2015 Net Income ($23,438) $19,153 Change in Accounts Receivable, net $221 $4,333 Change in Accounts Payable $17 $0 Total Operating Cash Flows ($23,643) $14,820 Total cash flow ($23,643) $14,050 Total cumulative cashflow $276,357 $290,407
- 21. Opportunity Product Marketing Financials Management Summary Strategic buyers provide exit opportunities Online brokers As brokers begin to differentiate themselves more aggressively with the strategic tools they offer, BackLive becomes a strong strategic purchase for large brokers Private Equity A strong growth niche and favorable industry trend, and positive recurring cash flow, make BackLive a strong potential LBO candidate
- 22. Opportunity Product Marketing Financials Management Summary A $300,000 investment will effect strong returns FY 2019 EBITDA $17,728,548 + Terminal value (11X multiple) $88,642,738 + Excess cash $10,370,411 = Total equity to be distributed $99,013,149 IRR MoM 142% 82.5x Capital Expenditure Capital used primarily for product development, sales force & Marketing, and salaries 1 2 3 Investment $300,000 in exchange for 20% preferred equity share Return
- 23. Opportunity Product Marketing Financials Management Summary Co-founders provide strongly complementary skillsets Craig Nehamen • Westlake Financial Services • Director of Marketing Operations • Manages digital and traditional Marketing for tech-based finance company • Manages sales and customer service teams • MBA in Marketing and Finance at Kellogg, Northwestern • Young & Rubicam brand strategist • Digital and social media marketing communications, including viral marketing • Quantitative and qualitative marketing research Deji Jimoh • Blueye • VP of Product Development • Leads development team • Software development specialist with expertise in big data and web-based algorithms • Don & Company • Ran development of $120 MM annual revenue e-commerce website • Bachelor’s Degree, Washington University in St. Louis
- 24. Opportunity Product Marketing Financials Managemen t Summary BackLive commercializes fundamental strategy testing & software-based trading Large market, unmet need • Direct commercial competition is limited Strong built-in revenue source • Subscriptions, customization and ads Attractive financials • Quick Breakeven, strong margins, high scalability Multiple potential buyers • Complement to online brokers and asset to funds Skilled co-founders • Highly-relevant skillsets & functional training