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Offering Summary
Raise Amount:
Security Type:
Use of Proceeds:
Current Investors:
$5 million
Series B Preferred
Software Development,Sales Force and BusinessDevelopment expansion.
Chris Chase, CEOTed Wiggins, CTOEric Loberg, NewSeed Capital
MobileCord Profile
Location:
Founded:
Business:
Current Customers:
Employees:
Fairfax, VA
December, 2001
Development of software platform for unified mobile delivery ofemail, voice mail, and messaging.
Standish Brokerage, Hemlin Manufacturing, Storagehardware.
25
Motivation for Capital Raise
• Sales Force expansion (opening west coast office).
• Greater marketing presence.
• Add to strength in R&D team.
• Bring on CFO to help manage growth.
• Strengthen strategic ties.
Investment Thesis
• Many device, multi-platform mobile enterprise requires common solution for enterprise communication.
• Software successfully in production with enterprise users.
• Enterprise users demanding mobile access to enterprise communication tools.
• Low cash burn.
• Recurring Revenue Model.
• Experienced Management Team.
02,0004,0006,0008,000
10,00012,00014,00016,00018,00020,000
2001 2002 2003 2004
Year
Un
its
Sh
ipp
ed
Worldwide Handheld Shipments (in millions)
Source: IDC
33% CAGR
Market Opportunity
Mobile UsersCommunication Channels
Messaging
Voice Mail
The Enterprise Dilemma
Mobile UsersCommunication Channels
Messaging
Voice Mail
MobileCord’s flagship product, MobileCord 1.0, is the common
platform between a user’s communication channels & the major mobile devices.
The MobileCord Solution: MobileCord 1.0
The email Solution
emailvoice mail
instant messages
Chris Chase MobileCord info
Jim Purcell Design Question
Amy Shaffer Meeting tomorrow
Jim Purcell Client meeting
Name Title
Jay Spoto FWD: Phone call
Users may select theirmost recent emails theywish to read.
Users may respond,forward, or composenew messages as if theywere at their desks.
MobileCord 1.0 interfaces between your email system & the mobile device to deliver up to date information to the user.
emailvoice mail
instant messages
Jim Purcell 703-987-1234
Angie Palmer 212-123-7890
Unknown 312-789-1234
Name Phone Number
Frank Marino 212-234-56789
Barb Emory 703-398-4321
Select for exact dateand time of call.
The Voice Mail Solution
The voice mail featureis useful to check if important contacts havetried to get in touch withyou.
MobileCord 1.0 connects the users mobile device with theenterprise voice mail system to help the user prioritize tasks.
emailvoice mail
instant messages
Bill Burslem Burslem1234
Name User Name
We need to make a decision on the new software contract.
Users may use instantmessaging in real time.
The Instant Messaging Solution
MobileCord 1.0 enables the user to read instant messages when the user has a real time wireless connection.
Future Functionality
MobileCord will be releasing MobileCord 2.0 in Q1 of 2005 to include support for:
• New versions of email, voice mail & instant messaging platforms.
• Support for Convergent Devices with telephony and PDA capability.
• Support for Short Message Service (SMS) as the standard continues to be adopted by US Wireless carriers.
Customers
MobileCord plans to sell to a broad number of verticals and has already penetrated the Consulting, Financial, Manufacturing,and Technology equipment verticals.
ConsultingMallaber Consulting
FinancialNeenan InsuranceStandish Brokerage
ManufacturingHemlin ManufacturingMankins Equipment
Technology EquipmentGerdin SystemsStoragehardware
Competition
Many Channels ofCommunication
ABC Logic
Wireless emailer
Vortal Messaging Inc.
Easy to useSolution
Difficult to use
Few CommunicationChannels
Case Study
Standish Brokerage
Challenge:Account Executives needed access to their communicationchannels while outside of the office. Standish IT staff alsoneeded a mobile delivery solution of these communication channels that was easy to manage.
MobileCord solution:After a successful pilot trial, Standish implemented MobileCord 1.0in a matter of days allowing account executives to see theircommunication channels to use their time away from the officemore effectively.
Partners
Planned Partnerships:MobileCord plans to partner with IT Service firms,Wireless Providers and Device Manufactures.
Current Partnerships:MobileCord has a partnership with Mallaber Consultingto sell a complete Mobile solution from implementation to maintenance. Both firms will also cross-sell productsAnd solutions into each other’s customer base.
MobileCord plans on signing similar deals over the next 6 months.
Financial Results & ProjectionsActual Actual Actual Actual Actual Estimate
Q1-2007 Q2-2007 Q3-2007 Q4-2007 FY 2007 FY 2008Revenues
License Revenue $87,000 $141,325 $141,150 $372,725 $742,200 $2,197,559Professional Services 12,000 20,000 14,115 37,273 83,388 219,756
Total Revenue 99,000 161,325 155,265 409,998 825,588 2,417,315
Cost of RevenueCost of Licenses 870 1,413 1,412 3,727 7,422 21,976Cost of Services 64,155 64,155 64,155 64,155 256,620 367,770
Total Cost of Revenue 65,025 65,568 65,567 67,882 264,042 389,746
Gross Profit 33,975 95,757 89,699 342,115 561,546 2,027,570
Operating ExpensesSales and Marketing 208,507 281,587 278,353 285,097 1,053,544 1,710,108Research & Development 247,612 330,149 330,149 330,149 1,238,059 1,597,455General & Administrative 142,382 189,842 189,842 189,842 711,908 864,857Depreciation 14,583 14,583 14,583 14,583 58,333 75,000
Total Oper Expenses 613,083 816,162 812,928 819,671 3,061,845 4,247,419
Operating Income (579,108) (720,405) (723,229) (477,556) (2,500,299) (2,219,850)
Other income, net 16,404 11,913 6,980 2,420 37,717 72,206Income Before Taxes (562,705) (708,492) (716,249) (475,136) (2,462,582) (2,147,644)
Income Tax Provision 0 0 0 0 0 0
Net Income ($562,705) ($708,492) ($716,249) ($475,136) ($2,462,582) ($2,147,644)
5 Year ProjectionsActual Estimate Estimate Estimate Estimate
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011Revenues
License Revenue $742,200 $2,197,559 $4,065,485 $6,098,227 $9,147,341Professional Services 83,388 219,756 274,695 315,899 363,284
Total Revenue 825,588 2,417,315 4,340,180 6,414,126 9,510,625
Cost of RevenueCost of Licenses 7,422 21,976 43,402 128,283 190,212Cost of Services 256,620 367,770 260,411 320,706 475,531
Total Cost of Revenue 264,042 389,746 303,813 448,989 665,744
Gross Profit 561,546 2,027,570 4,036,367 5,965,138 8,844,881
Operating ExpensesSales and Marketing 1,053,544 1,710,108 1,953,081 2,244,944 3,328,719Research and Development 1,238,059 1,597,455 1,519,063 1,667,673 2,472,762General and Administrative 711,908 864,857 781,232 962,119 1,426,594Depreciation 58,333 75,000 75,000 75,000 75,000
Total Operating Expenses 3,061,845 4,247,419 4,328,376 4,949,736 7,303,075
Operating Income (2,500,299) (2,219,850) (292,009) 1,015,401 1,541,806
Other income, net 37,717 72,206 100,000 100,000 100,000Income Before Taxes (2,462,582) (2,147,644) (192,009) 1,115,401 1,641,806
Income Tax Provision 0 0 0 278,850 410,452
Net Income ($2,462,582) ($2,147,644) ($192,009) $836,551 $1,231,355
Pricing
MobileCord generates the majority of its revenue via license fees with the following pricing structure:
Up front License fee: $40,000Up front charge per user: $50Recurring charge per month per user: $10
MobileCord charges a recurring fee for as long as the customer uses our software.
Pricing example
Using our average user base per client of 300 users, we would charge the following:
Up front License fee: $40,000
Up front charge per user: $15,000 (300 * $50)
Recurring Charge per year: $36,000 (300 * $10 * 12 mo)
As more users are added to our platform, revenue visibility increases dramatically into future quarters.
Management Team
Executive
Chris Chase
Ted Wiggins
Stacey Francis
Eric Loberg
Title
CEO
CTO
VP of Sales
Director,MobileCord, Inc.General Partner, NewSeed Capital
Previous Experience
COO, Iroquois Software
CTO, Iroquois Software
VP of Sales, Parmelee Software
CEO, Loberg Tool & Die
Investment Highlights
• Many device, multi-platform mobile enterprise requires common solution for enterprise communication.
• Software successfully in production with enterprise users.
• Enterprise users demanding mobile access to enterprise communication tools.
• Low cash burn.
• Recurring Revenue Model.
• Experienced Management Team.