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1 FANTASTIC The fan funding platform for studio-backed entertainment

Fantastic Pitch Materials

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Page 1: Fantastic Pitch Materials

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FANTASTICThe fan funding platform for studio-backed entertainment

Page 2: Fantastic Pitch Materials

Fantastic is a community platform where entertainment companies pre-sell

content to engage fans and fandoms.

FANTASTIC1

Page 3: Fantastic Pitch Materials

“Fans want more. There is an unmet need. There is a desire to engage at a different level than what they have.”

“70% of consumers want loyalty or rewards programs based on engagement. 60% want access to exclusive content.”

PivotconBarara Zack

Chief Analytics Officer, Nielson

FANTASTIC

TestimonialsFans want to be more involved with their content

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Wayne Lim 21-Year Old Male, Batman Super-fan

“Behind the scenes, making of, bloopers, all are part of the experience to fully appreciate the masterpiece!”

“I’d like the creators to know how the fans feel and their preferences.”

Mohamed Al-Hamly 19-Year Old Male, Whedon Super-fan

“Developing our fan bases and fan communities is a vital part of our process and in a large part is

what allows us to stay competitive”

Independent Comic Book company

“Engaging our fans, especially our super fans, has shown us the immense power that is waiting to be

tapped out there.”

Large Independent Record Label

“We have actively been looking into Kickstarter and other crowdsourcing methods to incorporate

into our business ”

Hollywood Film Producer

Page 4: Fantastic Pitch Materials

FANTASTIC

Market Opportunity

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In 2013, U.S. consumers spent $1.5 B on film and TV

special/exclusive features.

In 2013, the film and TV industries lost $500 M by

not selling digital versions of special/exclusive features.

The Crowdfunding industry has a 90% YoY growth rate. It is expected to reach a size of

$100 B in 10 years.

Approx. 50% of all crowd funding project are entertainment projects.

Sources: Wall Street Journal, Deadline, World Bank, Digital Entertainment Group, Kickstarter, Indiegogo

Page 5: Fantastic Pitch Materials

FANTASTIC

Fandoms

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4.6 Million Social Followers

4 large active online

communities

51 Million Social Followers

8 large active online

communities Lady Gaga

83 Million Social Followers

3 large active online

communities

Example Initial

Content

Example Target

Content

6 years after the show ended fans brought it back as

a movie

Fans saved the show from being cancelled twice

Fans enticed the studio to make a movie after the

show was cancelled in the first season

Fantastic is ideal for an IP with an active and vocal fan base looking for more content and a better way to experience it

Page 6: Fantastic Pitch Materials

Fans

Connect with the community and creators to rally together for desired content

Pre-Sell

Engage Galvanize fans to market on your behalf and analyze fan data

Get great, immediate rewards while campaigning for more content

Generate a new revenue stream early in development

Creators

Users of Fantastic

The consumers that contribute to a campaign.

FansThe studios & artists producing the

content.

Creators

Benefits of Fantastic

FANTASTIC5

Page 7: Fantastic Pitch Materials

How It Works - Creators

Create a campaign and appeal to fans

Define unlock- able content

Determine reward items

Aggregate online fan community

Types of unlock-ables Types of rewards

Shorts

Early-Access to Soundtrack Stream

Unlock-ables are extra-content funded by the fan base Rewards are the Pre-sale items and packages

Universe Expansion

Digital Storyboards & Graphic Novel

“Making-of”

Digital Downloads

Exclusive Merchandise

Pre-order DVD/Tickets

Exclusive Collectables

FANTASTIC6

Theater Experiences

Page 8: Fantastic Pitch Materials

Base Fan (Free)

Digital Campaign Badges

Interact with Creators and other Fans

Premium Fan

1 2 3 +Funded Unlock-ables

Production Blog Digital Download Digital Storyboard & Level 1

DVD Pre-order Exclusive T-Shirt & Level 2

How It Works - Fans

Minimum $1 Minimum $15 Minimum $30

Fans contribute to help unlock more content. Based on the amount a fan contributes to improving the overall fan experience, they receive a rewards package. Fans receive their rewards regardless of the success of the campaign.

Every contributing fan also receives all the funded unlock-ables

FANTASTIC7

If a fan does not want to contribute monetarily to the campaign, they can still show their support for free.

Page 9: Fantastic Pitch Materials

8.8M unique monthly$211M raised for entertainment

3.5M unique monthly$32M raised for entertainment

Veronica Mars

Important Crowdfunding Platforms

Junction High-budget films

Others

Benchmark Projects

Targets high-net worth individuals

We The Kings Star Citizen91K backers$5.7M raised

2.3K backers$149K raised

$72M raised

Film Music Video Games

kickstarter Indiegogo

kickstarter & Independent

FANTASTIC8

(Acquired by Seedrs)

Page 10: Fantastic Pitch Materials

Vision

Redefine interactivity in traditional media to: Empower fans to take stake in their favorite content.

Enable creators to continue producing high-quality entertainment.

FANTASTIC9

Facilitate collaboration between fans and creators

Page 11: Fantastic Pitch Materials

VALUE PROPOSITION

BUSINESS MODELFantastic provides detailed demographic information, financial projections, and real time marketing analytics. Tangible information studios can use to impact their bottom line

90% of funds raised from each campaign goes back to the studios 10% goes to Fantastic

Mar

ket D

evel

opm

ent Television: $30 B

Gaming: $22 BMusic: $15 BMovies: $11 BBroadway: $1.2 BComics: $850 MEntertainment Crowdfunding: $6 BSpecial Features: $1.5 B

Current Total Addressable Market: $87.5B

*The market sizes are solely domestic. We plan to also eventually expand Fantastic to international markets

Step 1:Traditional Crowdfunding Model

Phone: 914.539.1882 Email: [email protected] letsfantastic.com

Need for new Revenue: Revenue generation from traditional sources has been decreasing. U.S. Box office for example declined 20% from the previous year. Marketing budgets are also increasing, which can make up to 70% of a films gross. This is due to new markets and increasing costs of TV advertising. Despite this studios will rarely spend more than $10M on digital marketing. This along with increasing competition for content, cost of customer acquisition is at an all time high in entertainment. Problems with crowdfunding: Almost all crowdfunding services create a lot of risk for all parties involved, where success is dependent on reaching a funding goal. Thus project creators only receive the funds, purchasers only receive the goods, and the site only receives a commissions if a project is successful. We eliminate all this risk, by not having required funding goals. From the very first sale, customers receive the product, producers get the funds, and we receive a commission. Rise of fandoms and fan communities: Fandoms (fan communities) have grown in power and size, over the last 5 years. They have saved numerous TV shows from cancellation (Chuck, Community, Arrested Development) and in other instances have brought back content in new forms (Veronica Mars, Firefly). The rise of these fandoms shows that they have an immense power and can actually impact what a studio produces.

Fantastic is a community platform where entertainment companies pre-sell content to engage fans and fandoms. Internet-based fan communities are gaining influence in the entertainment industry. In recent years fan bases have organized to save TV shows from cancellation or demand more content. Almost all of these communities are fan-built and have no direct or official connection to the content's creators or producers. Producers are actively seeking new methods to leverage crowdsourcing as a unique way to market their content, generate new revenue, and mitigate some risk. These producers are missing out on the opportunity presented by these fan communities.

Our platform introduces the incentivized pre-ordering business model - a lucrative strategy used by the gaming industry for a decade - to the rest of the entertainment industry. Through our platform, fans engage with content creators by financing campaigns that support their favorite entertainment properties by pre-ordering. In return for their early support they receive exclusive value-added content (extra features, collectables etc...).

Entertainment projects account for 50% of the crowd-funding industry. This industry was valued at $12 B at the end of 2013 and is expected to grow to $100 B by 2025. The extra-features market in TV and Film alone is estimated to be $1.5 B. We estimate $500 M of potential profit was lost due to not having a digital offering.

CURRENT MARKET ENVIRONMENTADDRESSABLE MARKET

1FANTASTIC

Step 2: SaaS Model

Page 12: Fantastic Pitch Materials

Year 1 Year 2 Year 3 Year 4 Year 5 Projects 5 13 28 40 VariableDistributor Margin(10%) $230,000 $594,500 $2,356,000 $9,424,000 $25,695,802

SG&A $300,000 $835,042 $1,030,042 $1,225,042 $2,032,563Product

DevelopmentSales and

Community DevPlatform Expansion

Net Profit -$70,000 -$240,542 $1,325,958 $8,198,958 $23,663,239Monthly Burn Rate -$25,000 -$69,586.83 -$85,836.83 -$102,086.83 -$169,380

SALES STRATEGY AND PIPELINE

FINANCING MODEL - Fantastic 5 Year Projection

COMPETITION

FANTASTIC

OPERATIONAL MODEL

The first few years we will work closely with studios to develop the campaigns. Year 3 and 4 is when the platform should expand; as long as we accredit producers as IP owners, they can upload content freely. Growth should kick in by Year 4, as projects lean towards mainstream, generating increased revenues.

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Breakeven in 2.3 Years

Total Funding: $300K This will get us through the initial development and marketing phases.

Phone: 914.539.1882 Email: [email protected] letsfantastic.com