Download - Recurrence Investor Deck
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
RECURRENCEINC.BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
… BUSINESS STUDENTS.
… MEDICAL STUDENTS.
… POLITICAL SCIENCE STUDENTS.
… CORPORATE LEARNERS.
… AND MILLIONS OF OTHER LEARNERS.
RECURRENCE – Revolutionizing Education“Learning will be driven by interactive gaming, role playing and real
life data - we are designing the products, and the platform, to deliver those applications.”
The Signature Case by Recurrence
RECURRENCEINC.
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Introducing The 21st Century Case Study - The Signature Case
Watch the Signature Case Method in action.
RECURRENCEINC.
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RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
Sales – Our Penetration Strategy
Existing competitors sell to the institution WE
CHANGE THE GAME!
sell to the professor
collect revenue from the student
expand within the school
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
Sales – Who is buying
…and dozens more, names available upon request
UNIVERSITY OF WASHINGTON
PENN STATE UNIVERSITY
STANFORD UNIVERSITY
UNIVERSITY OF TEXAS
UNIVERSITY OF VIRGINIA
FLORIDA INTERNATIONALUNIVERSITY
UNIVERSITY OFCOLORADO
UNIVERSITY OF MINNESOTA
UNIVERSITY OF ARIZONA
CLAREMONT MCKENNA COLLEGE
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
Sales – Why Our Customers BuyStudent Professor Program
DirectorProduct 92%
Preference; Higher
Engagement.
Receive higher student
evaluations.
Perception of innovation with
students.
Service Gain leadership analysis and development
plan.
Individualized insight into
student thinking.
First ever ability to see
student performance
against global averages
Benefit A better learning
experience.
A tool to enhance their
ease & success.
Insight into future program development
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
Sales – What It Takes To Close Them84% of the professors that we demo the
product to commit to adoptWe average 2 calls to close a
professor
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
Sales – RevenueThe average annual value per
professor in the pipeline is $17,148. The value of the qualified pipeline is
>$270,000
Estimated annual revenue per sales person is $1M
(booking +$80K/mo since 1/2016)
RECURRENCEINC.
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Launch
Direct salesTargeted e-mailReferralsPR
Growth
Expand our presence in existing accountsOpen up new markets by developing new contentDevelop International marketsDevelop sales channels
Maturity
Professor referralsLeverage the data we create with DeansDevelop an app marketplaceCorporate trainingServices
Sales – Strategy
RECURRENCEINC.
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Sales - Bottom Line
In our first 3 months of cold sales, we averaged $154 of annual recurring revenue per e-mail we send!
With additional capital we can increase sales by:• Growing the sales team• Expanding our presence in existing accounts• Opening up new markets by developing new
content• Developing International markets• Developing sales channels
RECURRENCEINC.
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Market - What is the Opportunity• Global education market; $4.4 trillion with massive diversity.
• TAM for initial line is $1.4B in U.S.; Logical beachhead
• TAM for second market is $149B annually.
• Near limitless market expansion opportunity.
RECURRENCEINC.
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SIGNATURE CASE
CAPSIM GLO-BUS/BSG EVEREST V2 PAPER CASES
TEACHES BUSINESS x x x xEXPERIENTIAL & ROLE BASED xUSES REAL-WORLD DATA x xREAL-TIME FEEDBACK FOR STUDENTS x xREAL-TIME UPDATES xEASY TO USE FOR STUDENTS x x xEASY TO USE FOR INSTRUCTORS x xIMPOSSIBLE TO CHEAT ONLINE xFUN x xMODERN GAMING EXPERIENCE xPRICE $47.50 $54 $45 $40 ($15
w/discount) $5
Market – Competitive Analysis
RECURRENCEINC.
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Market - Risks & PrecautionsRisk PrecautionExisting competitors chase
A major competitor tries to copy
Slow case production
Slower growth rate
Regional, flagship partnerships.
Multiple publishers; copyright.
Double-down on sales; increase simultaneous production.
Current growth rate sufficient; If slowed, mature acquisition strategy.
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
Financials (Implement Chart)
2016 2017 2018 2019 (2,000) -
2,000 4,000 6,000 8,000
10,000 12,000 14,000 16,000 18,000
377 1,995
5,529
15,895
656 2,183
4,567
9,514
(279) (188)
962
6,381
Revenue - Expense & EBITDA Projection in USD'000
Revenue Expenses EBITDA
In USD'000 2016 2017 2018 2019
Revenue 377
1,995
5,529
15,895
Sales and Marketing Expense
165
888
2,357
5,411
General and Administrative Expense
418
1,064
1,974
3,861
Research & Development Expense
73
231
237
242
Total Expense 656
2,183
4,567
9,514
EBITDA (279)
(188)
962
6,381
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TeamBrayden Olson, Founder & Co-Inventor• Gamification pioneer in Fortune, Huffington Post, BusinessWeek, et al.• Youngest person ever admitted to Seattle’s Entrepreneur Organization• Selected Young Professional of the Year by Bellevue City Chamber
Bruce Avolio, Director & Co-Inventor• Executive Director, UW’s Foster Center for Leadership &
Strategic Thinking• Respected Voice in Academia; 11 books and 150+ articles
published
Smahil Hellal, CFO (Starting in Q3 2016)• 15+ years international experience structuring profitable software
companies• Experience in managing economic strategies and forecasts for
multinational SaaS companies
Robert Savette, COO• 20+ years growing seed through mid-stage software companies.• Experience with 4 successful exits.
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGYBUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
BoardVolker Hirsch, Director• Two decades of experience in creating and advising game and education
companies• CSO for Scoreloop; Built to 100M users; Sold for over $70M (exact price
undisclosed)David Pritchard, Director• Former European Managing Director of Apple’s Software
business Claris• Founder of OpenTable, Europe and Senior VP at OpenTable
Inc. Outcome: IPO (Nasdaq:OPEN) and subsequently bought by Priceline for ~$1.5B
Russell Braun, Director• Former director of all development - Nintendo of North America• General Manager for RealNetworks; Outcome: IPO (Nasdaq: RNWK);
Valuation $500M
Kevin Harrington, Director• The inventor of the infomercial, original Shark on Shark Tank, and Pioneer
of "As Seen On TV" • Launched over 500 products resulting in more than $5 Billion in sales
worldwide.
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
Investment - ObjectivesRaising $750K at $7M Pre-Money Valuation
Capital will:o $1 to $10.34/yr.o Customer upsell.o International licenses.o Additional Cases toward marketplace.o Organize documentation for growth or exit.
RECURRENCEINC.
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RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
Exit strategyAcquisition - we believe that with a strong financial partner we will be able to rapidly grow the company into an ideal acquisition candidate, examples would be:
•Traditional education players •Traditional gaming companies •Private equity
Acquisition StatisticsIn 2015, there were 415
M&A events in the education space worth
$18B.
Almost 20% were in the “higher ed, media &
technology” segment we fit into.
Private equity now outpacing purchases by traditional
publishers and media/technology companies
are entering the buying market.
RECURRENCEINC.
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ConclusionWe believe that Recurrence is a great investment for the following reasons:
• Six months of market validation ($500K+ in commited revenues).
• Heavy R&D.• Validated future R&D will be paid by university partners.• Strong management.• Proven product; clear ROI.• Ideal acquisition; multiple exit options.
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
RECURRENCEINC.
BUILDING THE NEXT GENERATION OF CLASSROOM TECHNOLOGY
“Tell me and I forget. Teach me and I may remember. Involve me and I learn.”
– Benjamin Franklin