URBAN AGENDA

ENJOY YOUR CITY

Alfonso Tienda Braulio Computer Science Engineer

STARK TEAM

Rubn Salvador Edo Telecommunications & Electronic Engineer

Pedro Olivares Snchez Computer Science Engineer

Victor Benkovsky Architect Urban Planner

Paula Salvador Edo Architect Urban Planner

THE CONCEPT Our concept is based on the idea that, on the one hand any business needs advertising, be seen and attract customers. On the other hand, customers need quick information about events occurring in the city: the current era requires platforms that allow users to make quick decisions at every moment and in any place. If all this is focused on the entertainment industry, we get "Urban Agenda App", the mobile application that allows you to enjoy the city to the fullest. Taking performance to the environment, is to take performance to life.

INTRODUCTION - PROBLEM /SOLUTION

INTRODUCTION

PROBLEM/SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

PROBLEM A lack of a smart and useful platform of information about the events in the city + Business needs advertising

SOLUTION URBAN AGENDA APP

INTRODUCTION - PRODUCT

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

INTRODUCTION - PRODUCT

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

INTRODUCTION - PRODUCT

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

INTRODUCTION - PRODUCT

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

INTRODUCTION - PRODUCT

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

INTRODUCTION - PRODUCT

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

What's special about Urban Agenda?

We focused on functionality demanded by our potential customers and not available in other solutions We have designed a modern and comfortable interface

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

INTRODUCTION INITIAL CANVAS MODEL

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

MARKETING

INTRODUCTION

MARKETING EXPERIMENTS According to our potential customer survey, 86% of them find their cultural information speaking with friends and using social networks, so we create a Facebook page and a Twitter account. They obtained dozens of followers in less than 12 hours (7 "Like it" and 83 followers). We consider them potential customers, with no acquisition cost.

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

MARKETING

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING EXPERIMENTS From our partner survey, we know that most of them (35 %) are pubs with pop/rock concerts. So in our web we advertised two musical events in pubs (see http://stark.coolpage.biz/index.html) After the concert, we asked the audience if they knew about the concert from our web page. 20% did, and we brought this information back to the pubs. One of them will consider paying for highlighting his events.

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

SALES

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

Urban Agenda is a service that operates as an intermediary. This is why sales operate between two sides: SALES TO PARTNERS 1) We sell the service through different rates, depending on the visibility that the Partner wants to have within Urban Agenda App. 2) By Ticket Service, Urban Agenda retains a percentage. SALES TO CUSTOMERS We sell the premium version, which includes service Augmented Reality capability. The application is available for free with freemium version.

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

SALES TO PARTNERS

PARTNERS SURVEY: PAYMENT FOR UA SERVICES

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

No 28%

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING

Yes, if it brings more customers 72% Advertising is a potential income channel. Our lo-fi prototype got good acceptance from our partners.

SALES TO CUSTOMERS

CUSTOMERS SURVEY: PAYMENT APP

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

Yes 27%

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

No 73%

Freemium model can be applied by adding extra value.

PARTNERSHIPS

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

The network of partners and content suppliers play a critical role in our business model. These strategic alliances composed of museums, art galleries, cafes, clubs, cinemas will provide Urban Agenda with valuable contents and events for our customers. Face to face interviews with many customers were scheduled. Very positive feedback and worthy inputs were provided by our customers

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

DISTRIBUTION

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

Urban Agenda will be downloaded at the most popular online app stores: Google Play Apple's App Store QR codes for quick access to the download webpage will be available at strategic locations as tourist info offices, train stations, cinemas, theaters. cafes, etc. The app will also be reached from our partners webpages and facebook profiles (pubs, theaters, concert halls, museums, etc).

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

COST STRUCTURE
Year 1 Year 2 171.200 26.250 26.250 33.600 145.000 47.250 34.500 103.950 57.750 5.250 Year 3 183.184 28.875 28.875 36.960 270.000 51.975 39.675 308.732 63.525 5.775 Year 4 196.007 33.206 33.206 42.504 270.000 119.543 45.626 Salaries and employee benefits Occupancy fees Equipment Data processing App development Sales Team Consulting Firm Marketing Specialized AR Firm Other

COSTS Year 5 209.727 39.848 39.848 51.005 350.000 143.451 52.470

INTRODUCTION

160.000 25.000 25.000 32.000 78.000 45.000 30.000 35.000 55.000 5.000

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

916.933 2.723.290 73.054 6.641 87.665 7.970

Personnel costs and the cost of implementation is estimated by correlating data from companies in the same target market. The incremental cost of marketing is due to the expansion of the project. Other costs included in Risks sections

REVENUE MODEL

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

FREE

CONSUMERS

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

PREMIUM VERSION PROFITS

ADVERTISING

%$

PARTNERS
TICKETS SALE %$

RISKS

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

Technology Risks

Team Risks

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

Market Risks

Capital Risks

RISKS

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

Id

Risk Probability Impact Class The team has no previous experience in the entertainment industry 10 8 Team Debt crisis in Europe Economic Crisis in Europe Lack of knowledge about the laws in other countries Changes and progress in augmented reality Emergence of new unsupported platforms Delays in capital contribution Changing trends in ticket sales Expected App acceptance lower than initial estimation Partners not ready to automate their ticket sales
8 8 8 6 7 3 6 6 Capital Market Team Technology

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

2 3 4 5

6
7 8 9 10

4
3 2 6 8

6
7 6 10 7

Technology
Capital Market Market Market

RISKS

Evaluation
10

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

8

1 7 6 5 4 5 2 10

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

0 0 5 10

We will take actions to the risks of the upper right quadrant. They are the most important.

Actions
RISK ACTION TYPE Mitigate ACTION

RISKS

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

1. Team has no previous experience in entertainment 2. Debt crisis in Europe (No bank loans) 4. Lack of knowledge in laws in other countries

Hiring an experienced salesperson in the field. Cost 45k/y Find funding in VC firms Engage the services of a consulting company specialized in technology startups. Cost 30k/y Partnership with specialized software firm. Extra cost 55k/y Perform short development cycles to quickly adapt to the needs and requirements of our customers.

Avoid Avoid

5. Changes and progress in augmented reality 9. Expected App acceptance lower than expected

Mitigate

Mitigate

FUNDING

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

The table shows the funding sources for the project, indicating the due date and the required amount of money. The reason for these funding sources and shareholder dilution are reflected in the cash flow on the next point.
TYPE DATE AMOUNT

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

Equity Capital /FFF

Business Angel Venture Capital Round 1

Month 0
Month 6 Month 20

60.000
100.000 350,000

Venture Capital Round 2

IPO

Month 48

2.000.000

Year 7

???

Profit and Loss Projections

Income In-App advertisement and positioning

COST & 5 YEAR FORECASTING

Year 1 Year 2 Year 3 Year 4 Year 5

40.000
28.000 198.000 266.000

42.000
49.840 267.300 359.140

46.200
88.715 697.653

53.130
157.913 1.820.874

63.756
281.085 4.752.482

INTRODUCTION

Pro App Tickets revenue Total Noninterest Income Expense Salaries and employee benefits Occupancy fees Equipment Data processing App development Sales Team Consulting Firm Marketing Specialized AR Firm Other Total Expense Income before taxes on income Taxes on income Net Income or Loss 30%

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

832.568 2.031.917 5.097.323

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

160.000 25.000 25.000 32.000 78.000 45.000 30.000 35.000 55.000 5.000 490.000

171.200 26.250 26.250 33.600 145.000 47.250 34.500 103.950 57.750 5.250

183.184 28.875 28.875 36.960 270.000 51.975 39.675 308.732 63.525 5.775

196.007 33.206 33.206 42.504 270.000 119.543 45.626 916.933 73.054 6.641

209.727 39.848 39.848 51.005 350.000 143.451 52.470 2.723.290 87.665 7.970

651.000 1.017.576 1.736.720 3.705.272 295.198 1.392.051 88.559 206.638 417.615 974.436

(224.000) (291.860) (185.007) -67.200 -87.558 -55.502

(156.800) (204.302) (129.505)

Profit and Loss Projections

INTRODUCTION

COST & 5 YEAR FORECASTING

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

- Revenues are based on the market share that we believe we can achieve in each period.
1,200,000

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

1,000,000

800,000

600,000

400,000

200,000

0 1 (200,000) 2 3 4 5

(400,000)

COST & 5 YEAR FORECASTING

INTRODUCTION

Cash Flow Projections

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

Year 1

Year 2

Year 3

Year 4

Year 5

Total

Net income
Cash from external funding Total Operating Activities

(156.800)

(204.302)

(129.505) 206.638

974.436

690.467

100.000

350.000

2.000.000

(56.800)

145.698

(129.505) 206.638

2.974.436 3.140.467

Begginning Cash Balance Ending Cash Balance

60.000

3.200

148.898

19.393

226.031

3.200

148.898

19.393 226.031

3.200.467

Cash Flow Projections

COST & 5 YEAR FORECASTING

INTRODUCTION

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

- Second VC funding is to get worldwide market on year six, to achieve the IPO in year 7-10.
3,500,000

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0 1 2 3 4 5

Funding Projections by year

INTRODUCTION

COST & 5 YEAR FORECASTING

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

5

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

500,000

1,000,000

1,500,000

2,000,000

Shareholder Dilution

COST & 5 YEAR FORECASTING

INTRODUCTION

Initial Partner #1 Partner #2 Partner #3 Partner #4 Partner #5 Business Angel VC - 1st round VC - 2nd round Company value (PER based)

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

Share Value Year 1 Year 2 Year 3 Year 4 Year 5 year 5 20% 16,67% 15% 15% 15% 13,9% 2.174.063,81 20% 16,67% 15% 15% 15% 13,9% 2.174.063,81 20% 16,67% 15% 15% 15% 13,9% 2.174.063,81 20% 16,67% 15% 15% 15% 13,9% 2.174.063,81 20% 16,67% 15% 15% 15% 13,9% 2.174.063,81 0% 16,67% 15% 15% 15% 13,9% 2.174.063,81 0% 0% 10% 10% 10% 9,3% 1.449.375,87 0% 0% 7,5% 1.175.169,63 $ $ $ - $ -$ - 3.322.745 15.668.928

Shareholder dilution - 1st round dilution is based in Risk Interest 65% and PE Ratio 16,08 - 2nd round is estimated.

Shareholder Dilution
INTRODUCTION
20% 18%

COST & 5 YEAR FORECASTING

PROBLEM-SOLUTION PRODUCT INITIAL BUSINESS MODEL

16%
14% 12% 10% 8% 6% 4% 2% 0% Initial Year 1 Year 2 Year 3 Year 4 Year 5

MARKETING SALES PARTNERSHIPS DISTRIBUTION COSTS REVENUE MODEL RISKS FUNDING COST & 5 YEAR FORECASTING

Partner #1 Partner #2 Partner #3 Partner #4 Partner #5

Business Angel

VC - 1st round

VC - 2nd round

THANKS FOR WATCHING

www.stark.coolpage.biz