groopify pitch plug & play spain selection
TRANSCRIPT
An offline social club that sets up get-togethers between 2 groups of friends that don’t know each
other (but should!) over a round of drinks
3 girls, 3 guys, 1 unique spot
Pablo Viguera (CEO, Co-Founder)
Miguel García-Santesmases (CTO, Co-Founder)
Alejandro Coca (Biz Dev, Co-Founder)
Launched 10 December
(little over a month ago)
And what’s
happened since then?
+1000 users
3 cities
+25 groopifys organised
(+150 people)
(with Christmas holidays in the middle of it all…)
Buzz generated all over
… As well as dozens of blogs
+ 2000 followers across social
media
But above all…
Spreading good vibes and our
users us
Would you recommend groopify to a friend?
Would you go on another groopify?
Very relevant “repeat factor” in just over 4 weeks
8.7/10
100%
Awesome! We had a tonne of fun and will definitely be meeting up another day!!
Hi Patricia! It was amazing! Look at the time… 3am! We’ll be back for sure! Thanks!!!
A great night out! And we all LOVED the bar too!
First groopify DONE! We’ll be back very soon. It was fun!!
Boom! The girls were super nice. We’re already planning another night out with groopify. You guys rock!
PICK US!
Appendix
• To complement core team
• Full-time Lead Developer
• VP of Marketing
• Improve matching algorithm
• Loyalty program
• Mobile application
• Launch 3 more cities
• Zaragoza, Sevilla and Málaga
Where to next? Q
1-Q
2 2
01
4
Strategic Hires
Product Development
Geographic Expansion
Customer Acquisition
• Referrals
• Ambassadors
Recovery of the hospitality sector with improvement in
economic cycle (4% p.a.)
Growth in online dating in Spain and convergence of
spending per capita to European levels (7% p.a.)
€2.0bn €2.1bn
€2.2bn €2.4bn
€2.5bn €2.6bn
2013E 2014E 2015E 2016E 2017E 2018EOnline dating
€38.5m
€54bn
* Week days * 19h-22h
€5.4bn
Entertainment/Nightlife
Nota: Based on 2011 data from Federación Española de Hostelería and Metaflake Nota 2: Only considers Spain
What about the market?
What about the market? A little more…
$0
$10
$20
$30
$40
2012A 2013E 2014E 2015E 2016E 2017E
BIG DATA known pretty well…
But now gone PERSONAL
$6bn
$34bn
Note: Based on data from MIT Technology Review (2013) and Transparency Market Research (2012)
Predictive Apps
DATA MINING
Market size ($bn)
Cahsflows per groopify LTV vs. CAC(**)
€45 +
6 people x €10 pre paid (cocktail version)
6 people x €5 pre paid (caña and tapa version)
€60
€30
(€18)
6 people x €4 “profit sharing” (cocktail version)
6 people x €2 “profit sharing” (caña and tapa version)
€24
€12
Average Cashflow: +€27
€36.0
€12.5
0.0
10.0
20.0
30.0
40.0
LTV CAC
Social Media Marketing
Online Marketing
Press 2.0 / Blogs
LTV – CAC = €23.5 (65.3% margin)
-
(*) Goal is for it to convergence to €0 as user base grows and potentially even monetise our relationship with venues (**) LTV estimate. CAC: Period 10 Dec 2013 (Launch) – 13 Jan 2014. Based en paying subs
(*)
Revenue Model and Unit Economics
Online Dating Platforms
Characteristics groopify advantage
• International footprint • Subscription and paid services • Time requirement to create own
profile and view those of others • High opportunity cost, from time,
economic and emotional standpoint
• Pay-as-you-go and low opportunity cost (“off nights”, with friends)
• Total privacy (no public profiles) • Ease of use (Facebook integration, no
need to create profile)
• EXIT
• Great variety of plans offered • Variable size of groups and without
mixed-gender/coed groups • Organisation based on specific
interests rather on just the intent of having a fun night out
• Oriented towards having a good time at a bar
• 3 vs. 3 in every case • “Best of both worlds” (old + new friends) • Made for meeting new people and
places
• Y Combinator backed • Expertise obtained in the last 12
months (have organised over 250,000 get-togethers)
• Presence is 20+ cities in the US (+
London)
• 100% focused on Spain (Madrid, Barcelona and Valencia) – great knowledge of the national market
• Spain “not top of the list” in terms of
international expansion • EXIT
Services geared towards
organising meetups (with
friends)
Direct Competitors
Competition and Differentiation
Customer Acquisition Strategy
They are looking for us • Partner venues (word of mouth, social media
coverage) • Various partners (internations.org, student
associations, couchsurfing, Spanish language schools, etc.)
• Sponsored events • Merchandising (to be primarily used during launch
parties)
ONLINE
OFFLINE
Channel Partners
Online Marketing
Social Media
2.0 Press and Blogs
Launch parties
• SEM (although limited) • Facebook ads • Retargeting (AdRoll, GDN, etc.)
• Marketing and engagement via Facebook (mainly), Twitter and Instagram
• Coverage in entrepreneurship and other more mainstream media (todostartups, elEconomista, Cadena Cope, El Mundo, club-mba, etc.)
• Blogger network (focused on entertainment, event recommendations, etc.)
• Evangelising early adopters • Especially for younger age brackets (university
students, etc.) Ambassadors
Growth Hacking
• Referral / loyalty program (e.g. inviting friends via Facebook message after purchase made, etc.)
Unique and interesting venue
• We take care of finding users
• We connect both groups of friends (6 people in total)
• They all prepay for their first round of drinks
• We tell users to meet up at their venue
• We book a table for 6 people
• Easy coordination (via phone and/or email)
• From first drink €3 on average per person(*) (€18 per group)
• Keep the whole margin on subsequent rounds
• Venue goers and revenue on “slower” days
• Zero subscription costs
What do we offer our partner venues?
(*) c. €2 for caña and tapa and c. €4 for cocktail although objective is for this to contract to €0
ENG
AG
EMEN
T /
PAR
TNER
SHIP
Sourcing
Logistical Coordination
Upside and zero cost
Detailed financial information
Net Revenue(*) EBIT
(*) Net refers to post “profit sharing” with partner venues (**) Q4 2013E annualised
'13E '14E '15E '16E '17E '18E
Downside 2 277 1,430 3,093 4,248 5,469
Base 3 1,047 6,435 11,341 13,805 16,406
Upside 5 1,818 10,009 17,527 21,238 25,157
€0
€6,000
€12,000
€18,000
€24,000
€30,000
(In 000s)
(**) '13E '14E '15E '16E '17E '18E
Downside (60) 3 703 2,008 2,915 3,679
Base (59) 646 4,984 9,455 11,771 13,835
Upside (57) 1,289 8,047 15,046 18,663 21,964
(€1,000)
€3,000
€7,000
€11,000
€15,000
€19,000
€23,000
(In 000s)
(**)
% Margin Base Case
n.m.
62%
78%
83%
85%
85%
Monetisation from day 1; Breakeven expected in ‘14E; Operating margin of +75% expected from ‘15E