Wigwamm July 2013 Pitch draft

Transcript

1. Wigwamm Local auctions to automate lettings @WigwammHQ rayhan@wigwamm.com
2. Wigwamm is…
3. How £750bn rental property is let by agents Read: How agents ruin their collective reputation Note: ONS (UK) estimates 3.6m private residential tenancies x £1,400pcm average rent = c.£50bn pa UK rent
4. Agents represent landlords, yet spend 95% time on tenant enquiries Landlords = revenue; tenants = cost
5. Wigwamm automates the Xs Our software solutions rayhan@wigwamm.com @WigwammHQ
6. Agents subscribe to list on portals they are members of Landlords pay-as-you-go similar to Upad.co.uk List property from your phone So simple, my 2 year old niece can create a professional looking listing rayhan@wigwamm.com @WigwammHQ
7. Market homes beautifully White-label sites, for agents to replace their current, unusable/ugly ‘hosted web solutions’
8. Agents have clear control without the time overhead
9. Tenants self-serve online all the questions tenants ask, answered up-front; saving everyone time
10. Until all the Xs are automated
11. …including the transaction
12. All tenants referenced prior to auction night @WigwammHQ rayhan@wigwamm.com Weekly rental property auctions Pre-referenced tenants bid on all local property at 7pm on Monday
13. Path to growth/Business model • Target 15,000 UK agents; use their marketing footprint to scale • Generate some revenue, while critical mass built for auction 1. Control primary data: Listing App for agents - £50pm 2. Convert to using our platform as their website - £150pm 3. Critical mass achieved in an area, agents turn on auction • 1% of transaction value to Wigwamm (from weekly auction) – Average rent (£1400pcm) x Contract value (12 months) x 1% fee = £168 per property – UK auction revenue potential of £350m @WigwammHQ rayhan@wigwamm.com Note: Wigwamm 1% fee of annual rent on transactions. Average tenancy 18 months. Revenue potential = £750bn x 7% average rental yield x 1% fee x 2/3 = £350m
14. Market Wigwamm cash flow projection 3 Developers, 1 designer 10 new customers a week onto trial of app Chase PR for hockey stick growth £,000s Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Sep-14 Oct-14 Nov-14 Apr-15 Total Cost Projection £11k £15k £15k £15k £15k £15k £15k £15k £20k £28k £28k £31k £34k £34k £49k Revenue projection (monthly) £360 £720 £1,240 £2,480 £3,155 £3,530 £3,905 £4,280 £9,343 £14,213 £19,355 £30,437 £34,493 £38,549 £74,576 Month Profit/Loss -£10,630 -£14,710 -£14,190 -£12,950 -£12,275 -£11,900 -£11,525 -£11,150 -£10,417 -£13,317 -£8,175 -£423 £303 £4,359 £25,956 Cash Balance £139k £125k £110k £98k £85k £73k £62k £51k £40k £27k £19k £9k £9k £13k £111k Notes Seed (£150k) Series A Auctions begin Breakeven Test rate of sign up - 100 calls, should lead to 10 signups, should lead to 1 subscription Upsell subscribers to website (25% conversion rate), then turn on auction when critical mass (10+ agents) in one area Calculate cost of acquisition Financials
15. What makes us different? 1. Value proposition: phone book 2. UK property portals revenue £150m 1. Value proposition: e-commerce/one-stop-shop 2. Wigwamm UK revenue potential £333m** • If Amazon rarely had available stock, it would be a tiny player in a huge market. That’s Rightmove (and its clone, Zoopla). • We want to be the Amazon for £50bn of UK lettings*. • Listings = noise, frustration, fragmented market – portals – Rightmove, Zoopla, Gumtree, Craigslist – aggregators – Adzuna, Zillow, Trulia – start-ups – Zumper, Lovely • Websites = outdated – 3rd parties – Property Jungle, Homeflow, Estates IT, Expert Agent • Start-ups = trying to be agents – Rentify, OpenRent, Rentlord, AdvanceToGo rayhan@wigwamm.com @WigwammHQ
16. Team Founder Sales Tech Design Rayhan Nathan Caroline <vacant> 12 years overseeing family property business 4 years travelling world opening investment banking offices Failed Computer Scientist Seeking business focused co- founder Famous designer behind Comic Sans Criminal Both full stack devs Caroline an expert on auction mechanisms Nathan also a talented designer Matt rayhan@wigwamm.com @WigwammHQ
17. Achievements to date • Customer development – spoken to over 1,200 agents, to test market fit of auction – 80% of pitched to agents sign up for beta trial – have interacted with many tenants to help shape user experience – customers want the Listing App first • Product demos – Listing App: http://wigwamm.co.uk – Auction: http://old.wigwamm.com (use keyboard arrow keys) rayhan@wigwamm.com @WigwammHQ