Dream On Demand Marketplace
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Widget Direct is an online marketplace that aims to disrupt the offline widget brokerage industry by connecting suppliers directly with purchasers. It offers an end-to-end delivery solution that is more convenient, cheaper and liquid than traditional options by cutting out middlemen. The company has achieved $1.2 million in annual run rate with 31% monthly growth and plans to raise $5 million in Series A funding to launch in new markets and reach a $10 million run rate within 18 months.
Dream On Demand Marketplace
- 1. ? 2014 Redpoint Ventures. Proprietary and confidential. Do not copy or distribute without permission. Widget Direct P r e p a r e d f o r R e d p o i n t F e b 2 0 1 5
- 2. 2? 2014 Redpoint Ventures. Convenient anticipatory widget marketplace with end-to-end delivery Cheap cutting out widget middlemen generates savings for both sides Liquid largest online market for fragmented widget suppliers in launched markets Widget Direct brings widgets on demand
- 3. 3? 2014 Redpoint Ventures. Expensive Brokered Slow Manual Fragmented No National Brand Buying widgets today is painful
- 4. 4? 2014 Redpoint Ventures. Supplier Supplier Wholesale Broker Purchaser Purchaser Purchaser Supplier Today Tomorrow Widget Direct Supplier Supplier Supplier PurchaserPurchaser Disrupting offline brokerages with an online end-to-end marketplace 30% 50%
- 5. ? 2014 Redpoint Ventures. Widget Direct Demo
- 6. 6? 2014 Redpoint Ventures. Currently a XX B market growing YY% a year1 $WIDG- public widget listing based marketplace accounts for only 5% of all transactions $ZB TEV - $XB revenue – 10% take rate Tens of thousands of offline suppliers2 top 20 account for <10% of all transactions Widgets are a huge fragmented market 1. Gartner 2. WIDG S1
- 7. 7? 2014 Redpoint Ventures. Unit Economics – break even today very profitable tomorrow 1. For comparison UPS avg is ~12-15. http://www.wired.com/2013/06/ups-astronomical-math/ Today Tomorrow Future Impr. Impr. Avg Price $17.00 $19.00 12% $22.00 29% Coupons $(0.85) 5% $(0.85) 4% $(0.85) 4% CC processing $(0.51) 3% $(0.57) 3% $(0.66) 3% Opex $(0.68) 4% $(0.76) 4% $(0.88) 4% Driver Hourly Wage $17 $17 $17 Deliveries Per Hour 2.5 3 20% 41 60% Driver $(6.80) 40% $(5.67) -17% 30% $(4.25) -38% 19% COGS $(8.50) 50% $(8.50) 45% $(8.50) 39% Margin -$0.34 -2% $2.65 14% $6.86 31%
- 8. 8? 2014 Redpoint Ventures. Traction – $1.2M annual run rate 31% MoM Growth
- 9. 9? 2014 Redpoint Ventures. Go To Market – favorable acquisition dynamics Customer Driver Transactions / Week 0.5 Hours / Week 20 Transactions / Week 60 Margin / Transaction $2.65 Margin / Transaction $2.65 Churn / Week 8% Churn / Week 4% Lifetime 12.5 weeks Lifetime 25 weeks CM / Transaction $2.65 CM / Transaction $2.65 LTV $16.58 LTV $3,998 CAC $10.00 CAC $1,000 LTV / CAC 1.7 LTV / CAC 4.0
- 10. 10? 2014 Redpoint Ventures. Competition – only end-to-end marketplace Quality Speed Widget Direct WidgGoogle Manual Brokerage
- 11. 11? 2014 Redpoint Ventures. Jane Doe – CEO 15 years widget industry experience Martha Smith – CTO leading ads eng teams at Google Mary Wu – COO lead ops for Tesla 6 Eng – 3 Business - Team – Strong industry experience married to technology
- 12. 12? 2014 Redpoint Ventures. We’ve raised 2M seed from angels and great seed funds and hit > 1M annual run rate Raising 5M Series A to launch 3 markets and hit 10M run rate in 18 months Financing
- 13. ? 2014 Redpoint Ventures. Appendix 13
- 14. 14? 2014 Redpoint Ventures. Powered by 1. App w/ aggregated demand 2. Centralized access to supply 3. Standardized product 4. Smart phone routing Value 1. Solves information asymmetry in offline markets 2. Better economics by removing middlemen 3. Social validation of suppliers Widget Direct solution
- 15. 15? 2014 Redpoint Ventures. Customer Cohorts
Editor's Notes
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