پیچ دک استارتاپ square

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Square pitchdeck حورل كسد 

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Square” The Smpkes Way to Make Money Elizabeth Cheng | JingJingli| twinlu | Jessica Lukrich 

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investment 

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Successfully Managing Linked in) MIRA, مسس تتا ‎Google slide‏ Other Key Advisors Gideon Yu Roelof Botha Ryan Gilbert ‘Alyssa Milano Greg Kidd Andrew Ra sie] Management Team © The team has the background, proven track record and vision to succeed ‏سح‎ Jack Dorsey - Co-Founder, CEO =Co-Founder, Chairman of Twitter *Advisorat Ustream Keith Rabois: *VP of Strategy & Business Development for Slide *VP of Business & Corporate Development at Linkedin ۰۵/۴ ۵ Business Development and Policy for PayPal Bob Lee - C10 * Founder at Twubble = Software Engineer at Google Jim McKelvey - Co-Founder *Ownerat Mira "Co-founderat Third Degree Glass Factory 

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The Market 8 8 Mobile payments is a massive, rapidly growing but underpenetrated industry مد = سر $200 $119 $150 $81 $100 $46 لم $16 كو لا لا — 50 2015 2014 2013 2012 201 2010 Dollar Amount of Mobile Paymentsin The US. (billions)* = Dificuttforsmalibusness | | = NFC tech adoption but ownersto use car services || crdltcard usage prevails + Altemative onine services | | + Capturing a loyal userbase are expensive hashuge revenue potential *Source: Alte Group 2 

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The Product © Square satisfies buyers and vendors through an easy-to-adopt platform Consumer Desires Use credit cards, Swipe and go Vendor Desires sAcceptcreditcands + Save on processing fees + Simple and intutive with finger on-screen interface completed ‘The Technology Tansaction Magnetic reader that plugsinto headphone jack of smartphone Data Conversion Once card & swiped, data isconverted into an audio sgnal Information Processing Processors route signal to Square software application ‘Fansmission Encrypted data sent through WiFi or 3G to back-end servers, ‘Communication No info stored on devices, auto-communication with payment network 

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لع Value to User © Square offers the simplest and most compelling way to accept credit cards ‘Online Card Processing Ted to computer, Manual input of card information Up to 3.5%variable rate +304 flat rate Cheaperthan traditional; Only requirescomputerand intemet Traditional Card Processing Fims Requires some training: Problemsrequire technician Expensive reader, Up to 5% variable +30¢ flat ra Expensive update and ‘maintenance fees Familiar to user, Technical support 

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Customer Acquisition ‏كت‎ © Through wide exposure, Square targets anyone that seeks easy payment = Small businesses independent workers individuals selling goods = Market: anyone who accepts payments = Square’s Cost: gaining customerawareness +free card reader Selling Points Advertisement “Easy convenient || «ocialmedia and ugh everyday usage intemet advertising || online registration No surprise fees 9 and Apple stores “Adaptable across || mediumswith max || + Followsrazorblade multiple devices. exposure/min cost || retail model 

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Competition and Defensbility © & /tsestablished presence and niche market give Square a competitive edge Direct Competitors: + Similartechnology + Established clientele GoPayment, PAYware application asfirt mover *higherfeesand rates *No credit check for certain options = No monthly fees “Intuit or VeriFone * Device compatibility service support * Apple partnership * Built-in hardware for =POSexperience phones Compatible across Potentially eliminate differing hardware use of credit cards = Unique market focus *Crossinteraction with =Can integrate NFC otherphone apps technoiogy اج کت ییات یت اس 

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Financial Modeland Projections .~ © Square will make for a lucrative investment even with conservative projections By Year End 20118 20128 20128 20146 20156 Payments Processed Per Day ($mm) 11 7.7 23.1 416 49.5 Growth Rate 3000% 600% 200% 80% 16 ‘Annual Revenue $ 1059 $ 7411 $ 22234 $ 400.21 $ 476.25 ‏مداد‎ 053452001 aka 5238 EBIDA Margin 5% 6% 9% 11% 11% 2 0.32 296 B34 28.01 33.34 EBITMargin 3% 4% 6% 1% 1% $120 $100 sae Stake: 20% $60 Hurdle Rate: 15% $40 $20 1 2011۴ 2012۴ 20138 20148 56 700 Bet —=Base —=Worst 2015 Revenue 

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Why Invest Now ‏كك‎ © Additional investment will generate outsize returns due to ‏سس‎ prospects © Additional resources & Potential for growth will needed to maintain allow new investors to first mover advantage see an outsized retum © Competitive pressures © Customer adoption will increasing scale up exponentially @ Expected spend in The key to success wil advertising and be in locking ina loyal customeracquistion customer base early + acd $275 ‏تسس‎ ‎$20.0 Setuoa and oe ‏ی 0 اا‎ ‎١‏ ۳55 ها مه ‎ ‎ ‎ ‎ ‎ 

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Exit Strategies 8 © Square will have multiple exit opportunities that will result in a high RO! ۳۳۳۳۲77۳7375757555۳۳ ۳۳۳ ۱ {PO Considerations ۰ 0۵0۵9۵500 user base expansion successand consideration of M&A + High standalone potential ۱ ۱ ۱ ۱ ۱ ۱ ۱ ۱ ۱ —— ۱ ۱ ۱ 1 559 ۱ ۱ ۱ ۱ ۱ ۱ ۱ ۱ ۱ ۱ + Multiple buyess possble > competitive bidding *Valuable user base with recurring revenue stream * Clear into product portfolios fev | $700mm-$1. abn ‎Ho‏ صا ‏سس ‎۱ ‎ ‎ ‎ ‎ ‎ ‎ 

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Appendix ‏كك‎ & Index of Presentation and Appendix Slides Presentation Slides Appendix Slides 1. The Square Propostion + Financial Assumptions 2, Management Team + Financial Model 3. The Market + Assumptions from 4, The Product Comparables S Valleto lier + Future Valuation Perspective 6. Customer Acquisition + Concemsand Responses 7. Competition and + Partnerships Defensbility ٠ Company Vision 8. Financial Model and + Market Analysis Projections po 9. Why invest Now 10. Ext Strategies & Square عات ] 

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Financial Assumptions 3 Growth expected to scale exponentially and valuation will increase Growth Assumptions = pected to process $40 milion in transactions in Q1 of 2011 = Currently sgning up 100,000 merchants per month + Compare to 30,000 monthly signupslast Fal *$1 milion in paymentsperday Processing a few millon in mobile transactions perweekasof last fall ۳ ۳ 0 6 5 Valuation Assumptions + Valued at $240m after last ound of funding in J anuary 2011 ($27.5m) + Valued at $40m at frst round of funding in December 2009 ($10.0) 5 5 - > ۳ 72 ما Sources * DealBook, TechCrunch, Wall Street Joural, VentureBeat, Capital IQ 

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Financial Model By YearEnd 201364 20126 20126 20146 2015# Payments Proc axed Per Day (Smm) 11 77 291 416 495 Growth Rate 100% 600% 200% 80% 19% ‘Anmal Revenue $ 1059 $ 7411 $ 22234 $ 40021 $ 47625 ESTA 0530 ‏2ممه مود كمه‎ (52.39 ESIDA Margin 5% 6% 9% «11% . # en ‏وه‎ 2961334 ag 33.34 EBTMargin 3 4% 6% 1% Th Growh Azaumptions oe owe ‏علد‎ oe se Bes case 100096 2006 400% 100% Ke Bae Case 100% = 60% ©2004 ‏و‎ 2 Wort case 100% 200% = 100K 6 ES ear mE eee Best S02 $ 33 § 2859 5 6956 5 ‏مق‎ fae 5 02 $ 2595 BM 5 2922 5 07 Worst Ss 02 $ 1 $ 38 ‏مق 5 556 و‎ NPV &IRRCalcuaton QE 20 EEE Sa 5 600 ‏96ه_35‎ 5 09 5 26 5 5# 5 68 ٩ 17 NPV @15% $79.95 IRR 55%] * represents aresiake 

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Assumptions from Comparables ) Margin projections derived from median of comparable companies EM Total Revenues, 1¥r Growth % 49% 210% 339% a2 86% 76% 30.4% 24.3% 108.0% 17.0% EM Total Revenues, 1 YF Growth % 108.0% 2% 255% 19.0% ماو ‎Income‏ ‎Margin %‏ 19.7% 0% 46% )83%( 33.3% 13% 19% 13% )86.5%( 37.0% umnet Income Margin % 370% (26.5%) 11% 3.3% iM esr Margin % 27% 29% 82% 6.4% 50.79% 1.6% (2.0%) 11.3% (67.8%) 36.8% Mer Margin % 56.09% (67.85) 9.2% 7.3% مايه نت ‎Margin %‏ 31.0% 45% 140% 83% 53.3% 27% 98 1286 (64.2% 60.0% Meena, Margin% 60.0% (64.2%) 12.5% 112% عوهت ‎Margin%‏ 72.0% 30.7% 309% 43.5% 100.0% 26.1% 37.3% 37 0.8% 34.4% LM Gross Margin% 100.0% 26.1% 523% 40.6% ‘Company Name Ebay ine. Gerber Scientific Inc. {ton inc. Iteris nc. ‘Mastercard incorporated PARTechnology Comp. Perceptroninc. VeriFone Systems inc. Veritec Inc. Visa inc oporated ‘Summary Satisics High ‘Mean Median 

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15x 9x 165x 13.0x 15x Bm 373 29 153x NIM Foran! PE 373 Box 21.0% 165x Future Valuation Perspective © Square's valuation would price at premium to multiples due to early stage "EV Forward ‘tal Revenue 33x 5x 9 12 49x 03x 05x 40x 55x "EV Forward ‘etal Revenue 55x 03x 23x 127 + تا كك الك 0۱ ‎TEV/EBNOA‏ اهاط ۳1 ‎FevermestIM-‏ aes 909 1077 1734 15.66% = latest Latest ‏سود سود‎ 0.49% 10.95« onx 55x cer ‏و‎ ‎5.6 1023 0.29% 10.73 053% 67.08% 4.40% 202% 4.03% 1۳ 6.1% ‏اس‎ ‎3. ‏اس مصه /15 اهاط‎ = latest Latest 6.12 67.08% 020% ‏و‎ ‎27x 1B.75« 251% 10.73 Company Name رت ‎GerberSclentife inc.‏ ‎ton rc.‏ عابس Mastercard Incoporated PARTechnology Corp. Perception inc. ‘VeriFone Systems nc. Vert inc. Visa Incomorated ‘Summary Satisies High tow Mean ‘Median 

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Concemsand Responses ۱ Concem Response NFC wilovertake credit ‏ب‎ ‎card use Large companies will leverage ability to provide at lower prices Consumerconcemsover security on a newly introduced platfom Square will face execution tisks 4 Flexibility of the industry | No defining industry standard 

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Partnerships © There are a multitude of partnership opportunities for Square Present 7 wo i ۲/5۸ ۶ > ‏کر‎ ‎VIVIENNE TAM “22 ۱۱۱۱۰ Cc cisco eC ‏رب‎ PMorgan craigslist 

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Company Vision 8 G Square: 0 to $60 in under 10 seconds Pay with ©) Square ‏نهم د هو‎ 

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Market Analysis a) 293 Strong market growth and advantageous company postion Large Competitors @ le. Google, Apple © Not focused enou drive Square out o' niche market Small Competitors le. VeriFone, Intuit Lack first mover advantage و 8 i