Executive Summary
“Community focused, globally connected e-marketplaces”
Company Contacts: Reed Brown – CEO - 801-721-4021,
David Hubbard – VP Bus Dev.801-259-6002,
Business Overview: Matchbin is an early revenue stage company that is positioned to enable small and medium sized media companies to transform their business from their traditional revenue sources to new revenue streams based on increased online presence and capabilities. Each of these companies has an existing “built-in” community with strong brand awareness and loyal subscribers/listeners which will enable them to convert their customers to their online marketplaces powered by Matchbin. The Matchbin platform combines the one dimensional capabilities of community sites (newspapers, radio stations, non-profits, alumni associations, etc.), e-commerce sites (e-Bay, craigslist, “yellow pages”, real estate listings, etc.), professional networking sites (Linked-in, Monster, etc.), and social networking sites (My Space, Face Book, etc.) into integrated community marketplaces. Matchbin connects these community marketplaces into a global network of users, buyers and sellers, information, and resources.
Market: The internet has enabled many enterprises and entities to create sites that address particular needs, whether they are interest based, commerce based, or networking based. Each requires a separate portal entry into the data and information being sought. Matchbin powers the convergence of many different needs under one platform that will be accessed through partner branded portals (community marketplaces). Since Matchbin interconnects all of these community marketplaces, community members have access to a global network of goods, services, information, and capabilities. Matchbin is focused on three vertical markets that currently have built in communities with strong brand awareness and loyalty, trust, and credibility but which are losing members to other online alternatives. These vertical markets are: 1) small to medium sized newspapers, 2) broadcast stations and networks (radio, TV and Cable companies), and 3) professional and non-profit associations.
Market Opportunity: Currently there are hundreds of millions of people accessing one dimensional platforms and websites to fill commercial, professional and personal needs. This has created a downward revenue effect on the traditional sources of information, newspapers, radio stations, and associations. These market trends are driving newspapers and broadcast stations to an online presence for advertising, promotions, etc. There are over 30,000 newspapers, broadcast stations, networks and associations in the US that are seeking the technology and marketplace advantages that Matchbin provides. By providing multi-dimensional capabilities that will attract buyers and advertisers, and by providing global search and matching capabilities that expands the potential audience, these newspapers, broadcast stations, networks and associations can re-position themselves as relevant sources of information and resources with an online presence that is the growing preferred customer medium. Currently, $17 Billion is being spent on print advertising in the US, with another $13 Billion being spent on business directory services (Yellow Pages), and $8 Billion on banner advertising programs.
Core Technology: Matchbin’s Community Marketplace technology uses the latest Web 2.0 technologies and principles. Our patents cover:
- The system and method that allows for aggregation of listing ads and handling billing across multiple publications;
- The system and method to handle internet trade between multiple parties;
- The system and method to match “Needs” and “Wants” from member lists and ads and provide e-mail notification to both parties; and
- The system and method (Active Match) to create and manage multiple profiles within the professional and social networking tool.
This enables Matchbin to create the globally connected marketplaces which provide optimal value for customers as well as advertisers.
Industry Trends: Most newspapers and radio stations are losing ad revenue to online competitors, and do not have the staff or the bandwidth to create a platform that will effectively compete as well as open up new revenue streams. Newspapers in particular are losing classified ad revenue to online sites such as craigslist and need to increase revenues through alternative forms of advertising, as well as offering online value added services to retain advertisers and attract new readers and subscribers. Professional and non-profit associations have aggregated publishing efforts (monthly magazines, trade journals, etc.), and are looking to maximize online and print advertising as well as create networking links between members and other associations.
Revenue Streams: Matchbin generates revenues in the following ways:
- 5% royalty fee for all paid advertising that is placed through the Matchbin classified ad system
- Monthly subscription fees for dynamic web based “Yellow Page” local business directory (supported by Matchbin marketing efforts)
- Fees for upgrades and enhancements to business and classified advertising (picture galleries, additional pages, highlights, etc.)
- 15% royalty fee for all banner advertising placed on Matchbin supported web pages through a strategic partnership with Adify
- Set up and monthly maintenance fees for initial web portal creation
Milestones Achieved: Matchbin has completed the following milestones:
- Launched all marketplace features based on Web 2.0 technology, including the automated online classified ad system, social networking tools, and customizable online “Yellow Pages” for business advertisers
- Completed development of new Profile system that allows for multiple profiles, audio and video, and links to other profiles
- Introduced matching capability that spans all community marketplaces to identify matches of goods, services, and opportunities for members within and between communities.
- Closed deals with 45 newspapers, radio networks, associations, and publications for the deployment of the Matchbin platform
- Signed up 5 statewide press associations (Utah, Oklahoma, Wyoming, Nevada and Georgia), with Florida and the Suburban Newspaper Association soon to close
- Closed over $2MM in angel funding
- Assembled an experienced management and engineering team to drive development of the platform, products and services, and market opportunities
Competitors: Matchbin is changing the competitive landscape for the targeted markets. We will not be seeking to become the next Google or Monster, but will be empowering our customers with the ability to connect with their local and expanded communities with a complete set of online classified ad systems, networking tools, and matching technology which will enable community members to share, trade, buy, sell, or respond to opportunities. As we look tactically at our product offerings, competitors such as Town News, Oodle and Ad Star offer methods to do online advertising, but none offer the complete end to end solution with the ability to enhance revenue streams for the enterprise. Matchbin is not aware of any competitor who provides a total solution that provides all the local and global advantages of our platform.
Post Funding Financial Projections ($000):
Year 1 Year 2 Year 3
Revenue $2,690 $14,337 $47,222
SG&A $4,988 $13,886 $37,442
Net Profit ($2,298) $452 $9,781
Capital Needs: Matchbin is seeking financing of $5MM - 10MM to fund additional product development, sales and marketing activities that will allow market penetration.
Exit Strategy: There are various companies and equity funds that are acquiring and consolidating players in the new media space. These include players in the newspaper, broadcasting, interactive media and other related industries. Management has identified several candidates as potential acquirers of Matchbin. Matchbin is seeking to be acquired as early as two years following funding, subject to market conditions.
Advisors:
Holland & Hart – Corporate, and Securities
Kunzler, McKenzie and Associates – Patent and IP Protection
Shaw & Mumford – Certified Public Accountant
Matchbin Powered Network
Site Creation and Traffic Statistics – April 2007