circlebuilder presentation at the ny venture summit june 17, 2009

CircleBuilder Software, LLCCircleBuilder Software, LLCConnect. Engage. Grow. Prosper.

© 2009, CircleBuilder Software, LLC | Proprietary & Confidential | 6/9/2009


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CircleBuilderCircleBuilder’’s Business Models Business Model

• We provide Software as a Service (SaaS) for faith-based organizations (first market) – private online communities engagement engine and outreach management

• Multiple revenue sources with built in distribution channels– FREE service (Private FaceBook & Evite meets Google and Yahoo groups for faith)– SUBSCRIPTION (brand & db integration, online giving, podcast, texting)– Value-add Revenue Services (e-commerce, affiliate, group buying, local ads)

• Free service launched in November 2008 and gaining adoption. Subscription service launched April 2009

(we own over to 1000 faith based URL’s for every major religion, denomination and many ethnic groups,plus other markets health, education, entertainment, sports)

– CircleBuilder.com, CatholicBuilder.com, ChristianBuilder.com, MissionaryBuilder.com, JewishBuilder.com



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Success Building Faith CommunitiesSuccess Building Faith Communities

1. Eight years of progressive growth2. Cash flow positive as a nonprofit3. 3,600+ orgs across North America 4. 150K+ events annually5. 10K+ volunteer matched annually

CircleBuilder.comPlanitJewish.com

1. Exec Team has IPO, faith & tech experience

2. Four virtual offices3. Ruby on Rails code / mySQL 4. Advisors – “blessed introductions”


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Faith = Huge & Untapped Online MarketFaith = Huge & Untapped Online Market

• $8.6 billion in religious products1

• 1,800,000 nonprofits according to the IRS2

– 3.6 million churches worldwide over 500,000 in the USA

– 125,000 churches 100 – 999 members3

– 5,000 new churches “planted” annually

• 50 million US Evangelicals4

– Fastest growing religious movement

Sources:

1 Packaged Facts, 2003 2 irs.gov 3 InfoUSA 4 University of Akron, OH


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US Churches: Struggling but RelevantUS Churches: Struggling but Relevant

•• ““Americans are more likely to fully trust people from their Americans are more likely to fully trust people from their place of worshipplace of worship”” than anywhere elsethan anywhere else1

•• 89.2% have faith89.2% have faith--based tiesbased ties2

•• 33% are 33% are ““unchurchedunchurched””3

•• 1 in 4 Protestant youth leave the church1 in 4 Protestant youth leave the church4

•• Donations are down 30% due to the economyDonations are down 30% due to the economy

•• 52.4% are members of religious organizations52.4% are members of religious organizations5

• More people turning to houses of worship in bad times6

Sources:

1 “The Social Capital Community Benchmark Study,” Kennedy School of Government at Harvard University

2 Association of Statisticians of American Religious Bodies, 2000

3 Barna Research

4 “American Piety in the 21st Century,” Baylor Institute for Studies of Religion, 2006

5 Lifeway Research, Summer 2007

6 Wall Street Journal “Bad Times Draw Bigger Crowds to Church” 12-14-08



Intersection of Online and Religion

Online LifeOnline Life

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Religious LifeReligious Life


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CircleBuilderCircleBuilder’’s Advantagess Advantages

Customer controls own social network that can connect to

other networks

Personalizedby member, small groups and events

Integrationto existing sites

and services

Analyticsand

Reporting

Outreach and Branding


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Competitive Advantages

Free or Subscription

Integrates to Existing

WebsiteWebsite Builder

Analytics and

ReportingOnline

DonationsRevenue Sharing

Moderated Content

Connects with Other Networks

Broad Spiritual

Tools

CircleBuilder Both ��

Member Mgmt Subscription ��

Church Mgmt Subscription ��

Social Networking Both ��

• CircleBuilder is complimentary to each sector and company

• Seamless transactions move data between CB and 3rd parties

• ChMS companies could become sales and distribution partners


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Distribution and Go-To-Market Strategy

Customers & Resellers

• Assemblies of God(12,500 US churches)

• Externally Focused Network (7000+ churches)

• Gospel Music Channel(150K+ subscribers)

• Youth with a Mission (50K worldwide missionaries)

• Q Place (formerly Neighborhood

Bible Study) (10K/wk home bible study groups)

• Liturgical Publications(3500 Catholic churches)

• First revenue Q4 ’08


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A Branded Experience for Users

Sign inSign in

• Integrated “mash up” with existing site

• No confusion (“Is this our church’s site?”)

• Single sign-on for subscribing churches

www.welovecentral.com


Maximizing Your Touch Points

Interactive RSVPs,

Feedback & surveys

Interactive RSVPs,

Feedback & surveys

Event & Volunteer

Matching

Event & Volunteer

MatchingCustom weekly emailCustom weekly email

Audio and Video

Podcasting

Audio and Video

Podcasting

Cell phone

text messaging

Cell phone

text messaging

Viral Marketing

“tell 2 friends”

Viral Marketing

“tell 2 friends”

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First Year = 500+ Organizations & Growing12


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Income Statement / Sales ProjectionsIncome Statement / Sales Projections

Projections ($M) 2009 2010 2011 2012 2013Free Package 1,250 6,020 15,691 30,409 51,141Subscribers (average asp $300/ month) 99% 285 1,476 3,852 7,416 14,841

Custom 1% 3 15 39 75 150

Revenues $0.12 $1.5 $4.9 $10.9 $21.4

Cost of Sales $0.06 $0.4 $1.2 $2.5 $5.1

Gross Margin $0.06 $1.1 $3.7 $8.3 $16.3

Operating Exp $0.6 $1.4 $2.4 $3.4 $4.1

Net Income (+ int income less taxes) ($0.5) ($0.3) $1.3 $4.0 $9.2


CircleBuilder’s Next Steps

1. RAISE $$$• Bridge of $500K (Closed May 22, 2009)

• $2.5 - $5MM Preferred Series A in Q4 2009 to Q1 2010

2. PUSH ADOPTION• Convert free to subscription

3. CAREFUL USE OF $$$• Marketing via targeted ads,

conferences and grassroots PR

• Code / API Development

• Key hires (CTO, Biz Dev, QA, Support)

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CircleBuilder Software, LLCCircleBuilder Software, LLCHoward S. Brown

Cofounder and CEO

[email protected]

248-770-3191© 2009, CircleBuilder Software, LLC | Proprietary & Confidential | 6/9/2009

circlebuilder presentation at the ny venture summit june 17, 2009

Documents

circlebuilder software

llc proprietary confidential

us churches

new churches

faithbased organizations

faith tech2

faithbased ties2

subscription service