Feb. 4, 2013

Dave Hibler Tyler Galganski Mike Peterson Jordan Ward

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Company Overview

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• Mutual Interest is an online dating platform that allows users to approach individuals of interest within their own network without the fear of rejection. The MI platform works by the user anonymously indicating interest in someone they know (a coworker, classmate and/or longtime friend) with identities being unlocked only when that interest is returned. Our goal is to unlock hidden attraction and let the users take it from there as to what the attraction means and what next steps to take.

• Available for iPhone, Android, and Internet Browsers

• Founded in Tampa, FL in October 2012

Management TeamTyler Galganski Dave Hibler

Mike Peterson Jordan Ward

Co-Founder of Forever Lazy Recognized by BusinessWeek as Finalist For America's Best Young Entreprenuers in 2010 Graduated UW-Madison in

2007 with majors in Economics and Legal Studies and a minor

in Business

Co-Founder of Forever Lazy Recognized by BusinessWeek as Finalist For America's Best Young Entreprenuers in 2010 Graduated UW-Madison in

2007 with majors in Economics and Sociology and a minor in

Business

Current MBA candidate at the Michigan's Ross School

of Business Worked at SC Johnson as a Financial Analyst between

2007-2012 Graduated UW-Madison in 2007 with majors in Finance

and Risk Management

Lead Developer at Mutual Interest

Currently a Senior Software Engineer at Artisan Partners in

Milwaukee Wisconsin Graduated UW-Whitewater in

2006 with major in Management Computer

Systems Owner of Web Solutions LLC

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The Problem

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• The fear of rejection in asking out someone in your network.

• Many missed connections due to mutual approach anxiety.

• Embarrassment or damaged relationships from expressing unreciprocated interest.

- Touchy Situations: Close friends, Colleagues, Classmates, a friend's ex, etc.

I wish I knew if he liked me!

There's no way she'd be

interested...

Missed Opportunity• Misrepresentation and deception (catfishing) on traditional

dating sites is becoming more of a publicized issue. • Ie.) Manti Te'o, MTV's Catfish

• Large financial and time commitment to find matches

• Lengthy profile setup, compatibility testing and profile browsing.

Competitive Advantage

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• One of the few online platforms that facilitates the natural way people connect - within ones network

• Unlike existing platforms, parties do not need to be registered to be contacted

• Promotes viral growth

• Misrepresentation and deception are non-issues because users are only interacting with people they already know.

• Catfishing, sexual predators, etc.

• No need to waste time setting up or browsing endless profiles. • User already knows who they are looking for• Quality of users is a non issue. Interaction occurs with people you

know• No need for profiles set up or information gathering to assess

compatibility

Value Proposition

• Make Online Dating Safer• No risk of deception and/or "catfishing"

• Eliminate the Fear of Rejection Associated with Dating

• Take Advantage of Opportunities that Exist Within One's Own Network

Combine the popularity of online dating with the natural way people connect in offline, real-world situations - through their social network

• Less missed opportunities

• Friends, co-workers, classmates, etc.

• Avoid embarrassment and awkwardness

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• Potential to unlock interest amongst "in the closet" homosexuals.

Market Size• 100M+ dating website users (Zoosk, Eharmony, Match, POF)

• 96M+ single adults in the US

• $1.6B in online dating revenue (2012 est.)

• 2.8%(e) YoY online dating industry growth to 2016. -IBISWorld

• Fueled by high profit margin, low barrier to entry, and falling social stigma of online dating

• 14,427 online dating and matchmaking enterprises in the U.S. in 2011. -IBISWorld

• Very few sites focus on in-network dating / matchmaking

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Target Customer• The younger, more casual daters, ages 18-34

• Alternative to more serious dating websites that measure success by marriages

• "More 20-somethings are on online dating sites than ever, and their numbers are growing...people under 30 represent about 1/5 of customers in the entire $2.1 billion U.S. Industry" - Online Dating Insider David Evans, Feb 2012.

• Avg. Match & Eharmony user is 48

• Younger singles represent untapped revenue source

• Larger networks than their older dating counterparts

• Fear of rejection and insecurities more prevalent in this group

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Indirect CompetitionMain Industry Competitors - 250M+ worldwide users• Match and eHarmony

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• POF

• Zoosk and Badoo

- Average user's age is 48. Generally interested in a more serious relationship leading to marriage.

-Basic usage is free. - 32M members with 15M messages sent per day. (pof.com/about)

- Focus on the younger dater, as they are both heavily integrated with Facebook. - Zoosk has 60% members under 30. 90% under 40.

- Boast two of the highest monthly subscription fees relative to other competitors. - Highest brand recognition and been around the longest. - Both match based off of compatibility tests.- Combined membership of 35M as of 6/2012.

- Money is made through ad space and premium memberships.

- Incentivize interaction through gamification techniques. - Badoo has a Casual Encounters section that is similar to Tinder. - Badoo is known as more of a hookup website with a heavy International presence.

- According to CEO Bart Swanson, 80% of their members use the hookup feature.

Direct Competition• Similar Apps to Mutual Interest - "Unlock Interest"

• Tinder

• Hinge

• Bang With Friends

• Would Love 2

-"Finds out who likes you nearby, and connects you with them if you're also interested. It's all anonymous until someone you like, likes you back" - Tinder landing page-Launched Oct 2012. Currently 35 million profiles rated, 1 million matches.-High adoption in the college market. Provides little value for other demographics.-Connects strangers with strangers. Risks with dating strangers still exposed.

-Mobile app that shows you your most eligible friends of friends on Facebook and connects you if there is mutual interest.-Potential matches limited by friends that use the app. Yet to launch, raised $750,000.-Asks questions to utilize a personality algorithm to suggest friends of friends

-App that allows you to anonymously find friends who are down for the night. -Launched Feb 2013 by 3 anonymous college students. 30,000 downloads and 10,000 matches reported in the first week.-Users not completely anonymous - Facebook friends can see who uses the App

- Finds hidden interest amongst Facebook friends. Launched in the UK in Nov 2012.- Users must log in via Facebook and can only communicate with other members.-Minimal press and statistics released as of yet.

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Service

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• Sending and Receiving Vybes• Easy and fun way to express and

discover interest• Promotes conversation when

matches are unlocked • Attach and Request Hints to Vybe

• A clue to who is interested• Promotes unlocking and

engagement• Hints in the form of Emojis

• Send a gift (through Amazon)

Service Cont'd• All operations accessible

from Dashboard• Mutual Interest Tab

-View Unlocked Matches, Message, Send Gifts

• Vybes Sent Tab

-Expire Vybe and Request Hints

• Vybes Received Tab-Clear Vybe and Request Hint

• Add / Invite Contacts-Manually add email and phone contacts

• Select a Contact to Vybe

• Notification Center-Inbound Vybe and Mutual Interest Indicators

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Mobile Screens

Landing Page Menu Contacts• How it Works Pop-Up• Why Mutual Interest

Pop-Up• Can manually add

contacts via email or mobile number

• Imported from Phone

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Mobile Screens

Send Vybe Manage Vybes• Outline of 4 step

process

• Mutual Interest Tab

• Vybes Sent Tab

• Vybes Received Tab

-View Unlocked Matches-Messaging Allowed

-Send Gifts

- Expire Vybes- Add a Hint

- Request a Hint

- Send a Gift

- Remove Vybe

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Sales and Marketing• 20% of customers acquired through Paid Marketing Channels

• Adwords PPC, Banner Ads, Facebook PPC, Press Releases, Paid App Reviews

• 80% of customers acquired indirectly from Paid Marketing (FREE)• Word of Mouth, Direct Invites from Members, News and Press

• Rollout and beta test at the University of Michigan (Ross students)

• Incentivize Users to Invite Friends with Free Credits

• Paid User Acquisition Cost $10, Per User Acquisition Cost $2, Per User Value $7.56, Profit Margin Paid User -32.28%, Profit Margin Total User 73.54%

• Option to make usage free until desired rate of growth achieved

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Customer Acquisition

Pricing

Credit Bundles 6 10 15 20 30 50

Cost $3.25 $4.50 $6.00 $7.50 $10.75 $15.00

Cost per Credit $0.54 $0.45 $0.40 $0.38 $0.36 $0.30

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Financials Yr1Free 6 10 15 20 30 50

1 50% 10% 13% 15% 6% 4% 2%

2 75% 5% 6.5% 7.5% 3% 2% 1%

3 80% 4% 5.2% 6% 2.4% 1.6% 0.8%

4 85% 3% 3.9% 4.5% 1.8% 1.2% 0.6%

5 90% 2% 2.6% 3% 1.2% 0.8% 0.4%

6 95% 1% 1.3% 1.5% 0.6% 0.4% 0.2%

Free 6 10 15 20 30 501 $0 $81.25 $146.3 $225 $112.5 $107.5 $75

2 $0 $40.63 $73.13 $112.5 $56.25 $53.75 $37.5

3 $0 $32.5 $58.5 $90 $45 $43 $30

4 $0 $24.38 $43.88 $67.5 $33.75 $32.25 $22.5

5 $0 $16.25 $29.25 $45 $22.5 $21.5 $15

6 $0 $8.125 $14.63 $22.5 $11.25 $10.75 $7.5

Total $0 $203.1 $365.6 $562.5 $281.3 $268.8 $187.5

Credit Bundles

% Distribution

Revenue in Thousands

# O

f Tra

nsac

tions

per

Av

g. U

ser

• Assume 250,000 users

• Per user credit value $7.48

• $1,868,750 from credit sales

• Free = Inactive Users + Non-Paying Users

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# O

f Tra

nsac

tions

per

Av

g. U

ser

• Buying patterns of avg. user

Income Statement Year 2013 2014 2015 2016 2017

Users 250 1,250 2,500 4,000 6,000

Revenue $1,890 $9,448 $18,688 $29,900 $44,850

Expenses $654 $4,125 $8,083 $11,570 $16,223

Net Income After Tax $803 $3,460 $7,028 $12,131 $18,932

Operating Margin 42.5% 36.62% 37.19% 40.13% 41.75%

Numbers in Thousands

• 400% Yr 1, 100% Yr 2, 60% Yr 3, 50% Y4

• Scale Marketing and User Growth at 1:1 Ratio

User Growth

• $1M for employees in 2014 and $2M for employees in 2015, 2016, 2017

• Total NPV Valuation = $180,830,192

• $500,000 marketing spend in Yr 1

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Submit Mobile App for Review and Publishing

MI has Received $500,000 of Seed Round Financing

Launch Full Scale Marketing Initiatives

End of April '13

Mid April '13

Early April '13

Mid May '13

Action Plan and MilestonesDate

Launch Beta Prototype of MI Platform at U of Michigan for Testing and Feedback.