Live Radio Broadcasting for Everyone

About Spreaker

• Live Audio Broadcasting service

• Ad-Supported

• Combines Live Audio with Social Media

Revenue streams

• Pre-roll audio ads

• In-stream audio ads

• Display ads

• Community ads

• Premium subscriptions

Target Market Trends

• Online Audio Ads ($0.8Bn - $1.6Bn) USA

• Display advertising 2-digit growth

• Mobile + In-Car open new opportunities

Listen Advanced Discovery Share Create Broadcast

Competitive Landscape

Fast Growth

0

20,000

40,000

60,000

80,000

9 october 18 January 17 April

IAG investment

Doubling every 3 months

Registered Users

People

Francesco Baschieri - CEOCEO, Waymedia (Mobile Marketing)Operations Director, Sirea

Marco Pracucci - CTOCTO, Tonight.eu (Social Media)Lead developer, Waymedia

Daniele Cremonini - CMRegional Manager, GE EmbeddedProduct Line Manager, Alstom Transport

Fabrizio CapobiancoCEO & Founder, Funambol,Mobile Software, San Francisco CA

Mark RamseyMarkramseymesdiaRadio Business, San Diego CA

Management Advisory Board

PR

Hal Bringman . NVPRPR firm for mp3.com, Napster, Zingy

Forecast

-1,500

3,875

9,250

14,625

20,000

2011 2012 2013 2014

18,006

6,627

1,669

49

USD

x 1

.000

Revenues Costs EBITDA

ThankYou

Appendix

Product

Features

• Spreaker combines Radio with Social Media.

• availability:

• PC (home&office)

• Smartphone (on the move)

• WiFi Radio (home)

• Internet Car Stereo

Platform

Core

ContentCreation

ContentDistribution

Social FeaturesAds

management

API layer

• mobile• web app• toolbar• direct input

• mobile• web• consumer

electronics• 3rd parties

• relationships• notifications• messaging

• self-service ad system

Product Roadmap 2011

• May-June: mobile recording apps, social interaction, improve usability.

• July-August: Focus on User experience and ease of use.

• September-October: Self-service Ads platform. Show scheduling platform

Market

This is the future. We won't be buying files, moving files, and listening to files. We'll be

streaming audio from the cloud onto our connected devices in our homes and offices,

and onto our mobile devices at the gym, on the bike, in the car, etc. And I think mobile

streaming audio is going to be huge.

- Fred Wilson, January 2011

“

Internet Audio 2011

• Cloud music service launched by Amazon.com

• Pandora IPO ($100M raise)

• Spotify launch in US ($100M funding)

• RDIO additional $17.5M funding

• Slacker raised $3M additional funding

• Clearchannel acquired Thumbplay

• Soundcloud raised $10M

• Targetspot raised $8M

on a VC perspective

Market Opportunities

• Growth: new listening occasions (work, mobile/smartphones, in-car)

• FM licenses used to be a barrier. With Internet in the car, play-field is open to new services (i.e. Pandora investing aggressively). But they are focused mainly on music.

• Clear opportunity for UGC + Community in this space (see what Youtube has done with TV screen producers)

Business Model

Problem

• Creating and distributing Live audio is not easy

• It is hard to get an audience

• Monetizing audio (live or podcasts) is hard

Solutions

• Make it really simple to create & share live audio

• Create a ‘reference site’ for UGC audio on the internet

• Revenue sharing with content producers

Strategy

• Enter the market thanks to demand for Long Tail content (not feasible on traditional channels)

• Monetize towards the head of the curve (eg. YouTube: 30% videos make 99% of views)

Revenue model

Metrics

•200,000 Unique Listeners

•160,000 Unique site visitors

•1,600,000 Page views

•40,000 Audio broadcasts

Last Month

More than 92,000 registered users and growing fast.

Target Growth

0

5,000

10,000

15,000

20,000

2011 2012 2013 2014

565

2,351

6,070

15,285

Monthly Active x 1.000

Revenue Streams

Type CPM Notes

AUDIOPre-roll $10

On-site + Widgetinventory fill

AUDIOIn-Stream $8

On-site + Widgetinventory fill

DISPLAY $1 On-site only

Assumptions

Avg subscription: $15/monthConversion based on actual data

Profitability - now

potential revenues / user = $0.09

subscription

display

in-stream

pre-roll

IT costs

operating costs = $0.028

to sell

Target 2011

potential revenues / user = $0.15

subscription

display

in-stream

pre-roll

IT costs

operating costs = $0.02

increaseuser engagement

Planning

Product Viability

Expand Distribution

Maximize Revenues

We are here

Timeline

Expand Distribution

• Explore different acquisition channels

• Focus on target geographical markets

• Define company organization

• Evaluate different revenue streams

USA

2 phase attack plan (2011)

Phase 1

• Start US Operations

• Hire PR Firm

• Marketing & PR

• Focus on Mobile opportunities

• Staff (Developers)

• Fund Raising for Phase 2

Phase 2

• Attract great Talent (marketing & media)

• Create Sales & Marketing Team in US

• Scale

• Start generating revenues (sell ads)

Organization

CEO

VP Product CTO

• Backend dev

• Community Manager• Community Manager • Programming manager

today

UX Agency

Organization

CEO

VP Marketing VP Product CTO

• Backend dev• Frontent dev

• Community Manager• Community Manager LATAM • Programming manager

phase 2

PR Agency

UX Agency

Organization

CEO

CFO

VP Marketing VP Product CTO Media & ops VP Sales & ads

• Backend dev• Frontent dev• Mobile dev• System admin

• UX designer• API Developers resp

• Mktg assistant • Community Manager• Community Manager LATAM • Programming manager

• Partnership marketing&integration

Series A round

Italian Team

Valuation

Valuation

• Previous deal: 1M Eur post money @ 20K registered users.

• Valuation based on registered users. Ranges $20 - $100+ / registered user.

• Round closes on July 31st

Benchmarks

• Founded: August 2007

• Launch: October 2008

• Series A: April 2009

• 100.000 registered users

• 2.5M Eur

• 6-7 MEur pre-money valuation

SoundCloud

• Series B: January 2011

• 3M registerd users

• 10M USD

Benchmarks

• Launch: March 2009

• Seed: September 2009

• 40.000 registered users

• $1.35M

• $6.5M pre money

FourSquare

• March 2010 - acquisition interest (Yahoo, Facebook) prices in the $100M range

• Series B: June 2010

• 1.8M registerd users

• $20M Round

• $95M pre-money valuation

Business OutlineSpreaker

Exit Strategy

• Acquisition / IPO.

• Acquisiton Target: Internet / Media (AOL, Amazon, Yahoo, Google, CBS, Fox)

• Valuation criteria: registered users (avg. 20-30 usd per registered user)