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LX Ventures November Investor Presentation
- 1. TSXV: LXV |NOV 2013 INNOVATION STARTS HERE LX Ventures acquires & integrates SaaS-based technology companies that are at revenue lxventures.com
- 2. DISCLAIMER Certain statements containedin this document constitute “forward looking statements”. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “propose”, “anticipate”, “believe”, “forecast”, “estimate”, “expect” and similar expressions as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the Company’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company does not intend, and does not assume any obligation, to update any such factors or to publicly announce the result of any revisions to any of the forward- looking statements contained herein to reflect future results, events or developments except as required by law. 2
- 3. IMBALANCE IN CANADIANCAPITAL MARKETS TSX Weighting $1.3B raised for tech Vs. 56.6B raised in total for all sectors in 2012 Tech makes up less than 3% of TSX 172 Tech Companies listed Vs. 2055 Resource Companies Tech was best performing sector on TSX in 2012 (share price appreciation) Over 30% of the technology companies on TSX are graduates of TSXV 3 3
- 4. About LX Ventures + LX Ventures is a publicly traded accelerator that acquires and integrates SaaS-based technology companies that are at the revenue stage Management and Advisors Exits: $2 Billion + + We identify exceptional products and teams that require expertise in scaling revenues + 3 Wholly-Owned Subsidiaries…all at revenue: 4 4
- 5. EXPERIENCED MANAGEMENT Mike Edwards, CEO,Director Mark Binns, Managing Director + + + + 20 years of startup technology experience Recent exits to Google, Twitter and Marchex Startup and marketing guru Built and sold 2 marketing companies Ray Walia, COO, Director Patrick Audley, Managing Director + + Serial entrepreneur, 2 successful exits Bernd Petak, President + Experienced entrepreneur, executive, consultant and advisor. Former Deloitte Consulting Partner. Seasoned technologist with 18 years experience Kevin Rathbun, CFO + + + CA, CFA, Capital markets Dozens of M&A transactions Realm Energy & Newstrike 5
- 6. WORLD CLASS ADVISORYBOARD Alison Lawton, Advisor David Baxby, Advisor + + Social Venture Philanthropist Reza Kazemipour, Advisor + Silicon Valley and Canadian start-up Board advisor Co-CEO of Virgin Group Lance Tracey, Advisor + Co-founder of PEER 1. Sold for $526MM. 6
- 7. BOARD OF DIRECTORS JeffDurno, Chairman and Director + + Managing partner of ASKD Law LLP Chairman of Emprise Capital Corp., a Vancouver based merchant banking co. Derek Lew, Director + + Active technology angel investor Corporate, commercial and real estate law Keir Reynolds, Director and IR + + Seasoned capital markets executive $200MM in equity raised Mike Edwards, CEO, Director Ray Walia, COO, Director 7
- 8. HOW WE SELECTOUR TARGETS + Within our market focus: HealthTech, AdTech and FinTech + At revenue generation stage …There is a complete product + Solving a big problem in a large and consolidating sector …NO WINNER TAKE ALL + Emphasis on B2B markets …not as fickle as the fractured consumer markets + Suitable for M&A or Spin Out within 12 to 24 months …typical acquisition is 2 to 3 years in its lifecycle + High margin, reoccurring revenues …Not one time sales 8
- 9. OUR INVESTMENT MODEL Acquire Accelerate Exit + Acquire high-growth + Scale revenues + Utilize our class-leading + Within 18 to 24 months + Additional Funding by + Technology project tech companies + Integrate talent and control business + Greater than 51% ownership biz dev and sales talent VC’s, outside of public markets seek to monetize subsidiary generator + IPO, RTO, Spin Co., Acquisition or M&A 9
- 10. SUMMARY OF COMPANIES Wholly-OwnedSubs Sector 2014 Valuation Goal HeathTech Current Market Cap: $18.5M @ $0.38 FinTech Share price at $100M = $1.35 includes 25M shares of dilution $100.0M CDN + + Acquisitions AdTech ~350% & Poten ,al& Upsid e& $100.0M CDN 10
- 11. MOBIO TECHNOLOGIES INC. Monetizessocial media followers 100% owned subsidiary company of LXV Acquired in May for $600K all stock deal Connects brands to their desired audiences Highly disruptive ad tech (achieves 35% ad unit consumption versus 0.05% display ad average) Has attracted influencers as big as Ke$ha (30M followers) MANAGEMENT TEAM Mark Binns President Serial entrepreneur in the marketing and technology space with 2 exits Patrick Audley VP Technology Seasoned technologist with more than 18 years of startup experience 11
- 12. MOBIO TECHNOLOGIES INC. MarketSize: $38.4 billion (US) Exits At 1% Market Share: $384M in revenues • • • Peer Comparables • • • Platform for fans of film and sports celebs $19.3 million in VC funding Greylock, Comcast Ventures Monetizes brands social networks $14.1 million in VC funding Acquired by Google in July 2012 for $350 million • Social media marketing software for small and medium-sized businesses $1.45M million in VC funding Acquired by Infusionsoft in January 2013 for $25 million • • 12
- 13. MOBIO TECHNOLOGIES INC. Milestones Achieve500K platform users by Q1 2014 Reach 20 influencers with scale 1M+ by March 2014 Ad Revenue Per Unit target of $0.25 by Sept. 2014 13
- 14. SOSIDO NETWORKS INC. Onlineknowledge exchange community for healthcare professionals (HCP’s: 4M+ in North America) HealthTech Market Vertical 100% wholly-owned subsidiary of LXV 100% of members are monetized Sponsorship deal with MANAGEMENT TEAM Tanis Steward Co-Founder & CEO Malachite Management, StemCell Technologies Experienced leader in healthcare industry Has led numerous healthcare associations such as CANO, CBMTG, ISCT. 14
- 15. SOSIDO NETWORKS INC. Peer Comparables MarketSize: $400M annually At 10% Market Share: $40M annually in reoccurring revenues • • • • • Professional network for scientists and researchers to make their research visible. $35 million in VC funding Bill Gates, Tenaya Capital Professional network for physicians to connect, get noticed and earn honoraria. $28 million in VC funding 15
- 16. SOSIDO NETWORKS INC. Milestones Sign5 Medical Associations by Dec 2013 Secure first US Association by Q1 2014 Sign 6 Pharma funding deals in the next 12 months 20,000 users @ $100/user by Dec 2014 16
- 17. FODIO TECHNOLOGIES (+FinTech) Cloud CFO – to service, scale and monetize the cloud accounting industry 100% owned subsidiary company of LXV Service and SAAS model – High Margins Targeting small businesses globally Growth phase of business, revenues began in Q2 2013 MANAGEMENT TEAM Gary Boddington Chief Executive Officer Accomplished and driven entrepreneur and executive Deep expertise in business intelligence solutions Last exit: Alchemex, acquired by Sage Group in 2011 17
- 18. FODIO TECHNOLOGIES Peer Comparables MarketSize: $3 billion annually (North America) At 5% Market Share: $150M annually in reoccurring revenues Market Positioning • • • • • • HR, finance and accounting in the cloud $9 million in VC funding Google Ventures Cloud Accounting Traditional Bookkeeping Modern bookkeeping for small business $7.5M in seed funding Acquired in 2012 by GoDaddy 18
- 19. FinTech (Fodio +Acquisitions) Milestones Fodio SaaS implementation by Q1 2014 2 new acquisitions by March 2014 6 FinTech integrated companies by Dec 2014 19
- 20. HOW WE GENERATERETURNS 20
- 21. EXITS AND MONETIZATION ComingWave - We are incubating tech companies for the coming wave of new money flowing in from sector rotation Multiple Exits - We offer multiple exit strategies: IPO, RTO, Spinout, "Acqui-Hire" and M&A Dividends - LXV shareholders will receive special dividends of cash or shares on exits Near Term - We focus on acquiring companies that grow our consolidated revenues 21
- 22. CAPITALIZATION – Nov2013 Issued: 48.9M shares Options: 4.9M @ $0.16 to $0.32 Fully Diluted: 71.1M shares Warrants: 11.1M (@ $0.30) Cash: $1.5M Fully Diluted Cash: $7.1M Mgmt & Insiders: 24% Debt: $0 Market Cap: $18.5M Recent Price: $0.38 Avg Daily Volume (3m): 1,057,000 Previous Financings: $2.2M @ $0.10 6.2M (@ $0.22) $800k @ $0.20 $1.6M @ $0.15 22
- 23. WHY INVEST INLXV? Positioned - Get positioned for the anticipated sector rotation Deal Flow - We collaborate with some of the world's leading VC's Management - Expert management team with more than $2B worth of technology company exits Multiple Exits - Exposure to our wholly owned subs offering multiple exit strategies First Mover - First entity to truly bridge Silicon Valley-style technology companies with the TSX Venture 23
- 24. CONTACT US Web: lxventures.com Address: Suite 300– 128 West Hastings Street Vancouver, BC, Canada Investor Inquiries Media Inquiries Keir Reynolds Tel: 778-998-9242 Email: keir@lxventures.com Mark Binns Tel: 778-628-7427 Email: mbinns@lxventures.com 24