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Startup Research

March 5, 2013

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Presenter: Eric R. Broughton

• President and COO of YieldTechnologies, Inc.

• Founder and Visionary behind

,

RentSocial products

• Current President of the Chicago

Oracle Users Group

• Former global solutions manager and architect of big data platforms

for ArcaEx (NYSE), M&M Mars

and Northern Trust2

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Yield Technologies, Inc

• History – Founded in 2007

 – Headquartered in Chicago

 

• Products: RentSentinel, YieldVision and RentSocial

• Over 4,500 communities nationwide on our platform

• 97% client retention rate

• 8 of 10 largest Property Managers use our products

• More than 1.5 million apartment units on platforms

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Metrics from Ideation to Investor

• Verified Ideation – Create prototype and get it in your customers hands

 – Begin your journey of measuring everything

 

 – Don’t fool yourself 

 – Experience and past success

 – Team’s experience and past success

• Marketplace: What is the size of the current/future market – Don’t lose the investor with ludicrous numbers

 – Do demonstrate your industry/product/sector knowledge

 – Know your competition

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Convergence of Social & Rental Communities

Social Rental ParadigmRental Real Estate is at a transformative inflectionpoint

• Multi-family real estate has a predominance of people using the Internet to find rentals

• Ratings and reviews are increasingly importantand expected.

• Social connections benefit both the renter andproperty management.

 Online TrendsThe percentage of 18 – 29 year olds using theinternet for transactions increased from 70% in2000 to 97% in 2011. Mobile is similarly exploding.

ConvergenceThe wholesale move to online interaction, growthof social media and the increase of renters aged 20

 – 35 has created an unprecedented opportunity.

The percentage of US home ownership topped outat 69.2% in 2007 and has dropped to 65.4% in Q22012.

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Why is Social Media relevant to renting?

• General Stats:

• More people own mobile phones than toothbrushes• 20% of all web views are from Facebook

• 175 million Twitter tweets per day

• 12 million unique Pinterest visitors per month 

• 100 million renters in the United States*• 53 million renters are 30 and under*

• 57% of Americans don’t know their neighbors*

• 69% of prospective renters use online reviews*

• 74% consumers trust peer to peer reviews

* Statistics from the National Multi Housing Council, Pew Research Study and Forrester Research

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Experienced Leadership

CTO / VP of Product – Andy Hamilton

 

President / COO – Eric Broughton

BSEE, MBA, PMP with 16 years of Tech LeadershipFormer Global Solutions Manager and President of COUG

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Former Director of IT for CGFNS

CFO – Brian Burke

BS Finance, MBA

Former Director of Finance at Playboy Enterprises

VP of Innovation and Design– Kevin Koperski

15 years of Technology Experience

 AT&T Circle of Excellence Award Winner 

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How big is the market?

 

Growth PotentialMultifamily Industry Only

17 MILLIONapartment units

nationwide 10 MILLIONapartment units

In communities

with more than

50 units

1.25 MILLIONapartment units

on RentSentinel today

9Growing market share and revenue per property

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Paths to Market Adoption

EventsTour to Strategic clients

+

Partnerships Media

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Who is the competition?

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Completeness of Vision

   A    b   i    l   i   t   y

   t   o

   E   x   e   c   u   t   e

Completeness of Vision

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Who is the competition

•Property Solutions•Active Building

•Building Link

• Rent.com• Apartments.com

• Zillow

• Craigslist

 

• ApartmentRatings

• Yelp

• Facebook

• Active Building

 

Ratings/ReviewsRatings/ReviewsSocial NetworksSocial Networks

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Apartment Community SubscriptionsOptions: Pay per Lease ($250), Pay per Lead ($15), or a Flat Monthly Rate ($250).

Pay per Listing$1+ per transaction (5 day listing) for user created listings in a variety of categories.

 

rentsocial Revenue Model

Pay per App ication$25 per application. Includes screening fee, security deposit, application fee.

Rent Payments$1 per transaction for payments made via RentSocial.

AdvertisingAdvertising platform and model to be determined.

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Competitive Advantage

First to MarketRentSocial launched in April 2012 with a feature set unlike any competitor.

Industry KnowledgeYield Technologies has been working with multifamily content and clients for years.

Social FoundationRentSocial takes advantage of the latest social media concepts to build traffic and value.

Design and BrandRentSocial’s design and branding is aimed at the younger, hipper, tech-savvy apartment renter.

Diverse Revenue ModelMany avenues and potential revenue streams from both users, advertisers, and property management

companies.

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Startup Metrics for Pirates

• Acquisition: users come to site from various channels• Activation: users enjoy 1st visit: “happy” experience

• Retention: users come back, visit site multiple times

 • Referral: users like product enough to refer others• Revenue: users conduct some monetization behavior 

*Startup Metrics for Pirates: Dave McClure (Nov 2012)15

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Example Conversion Metrics

*Startup Metrics for Pirates: Dave McClure (Nov 2012)16

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Startup Metric Resources

Startup Metrics for PiratesDave McClure from 500 Startups presentation

The Lean StartupGreat book that cuts through the clutter and gets to the point

 Book by founder and mentor John R. Dallas, Jr.

Weekly sanity check for the re-alignment of thought and actions

For EntrepreneursBlog for expertise, wisdom and resources for startups and entrepreneurs

http://www.ForEntrepreneurs.com

Jack Sparrow (feat. Michael Bolton)5 minutes of mindless fun: http://www.youtube.com/watch?v=GI6CfKcMhjY

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Q & R