Joanne Chen | Michael DOrazio | Victor Ho | Alan Rutledge

April 20, 2007

Mint: Save Time & Money

Transactions
List of detailed transactions grouped my
category
All assets
All debt
Current net worth
Tags, to customize transactions into folders
Line graph plotting spending over time

Goals
List of goals
Current net worth allocated to goals
How much of goal is achieved
All assets
All debt
Current net worth
Notes

Team & Advisors

Aaron Patzer

Lead Architect, Nascentric (chip simulation software)

CEO & Founder

Founder, GetAWebsite (search engine optimization)

David Michaels

Director of Technology, ShockMarket Corporation

VP Engineering

Director of Engineering, PGP (security software)

Dave McClure

Director of Marketing, PayPal (micro-payments)

Director Marketing

Director of Marketing, Simply Hired (job search)

Jason Putorti
Lead Designer

CTO & Founder, Novaroura (acquired by FittingGroup)

Co-Founder, Six Madison (anti-fraud SAS)

Investors & Advisors

First Round Capital, Felicis Ventures, Ron Conway, Scott Cook (Intuit Founder & CEO)
3

Market Size - US
49 Million People

31 Million Prospective Mint Users

22 to 35 age range

64% of target demographic use online banking

Referrals (CPA)

Advertising (CPC)

$8 RPU per year w/ 14% CAGR

$4.50 RPU per year w/ 22% CAGR

Conversion

CPA

Referral

Data to Leverage

0.75%

$50.00

Savings Accounts

Zip Code (feasibly: School or Workplace)

1.00%

$75.00

Internet

Age (feasibly: Gender)

0.50%

$75.00

Credit Cards

Income (propensity to spend)

0.25%

$50.00

Cell Phone

Where and when you shop

0.10%

$200.00

Bank Accounts

What brands you buy

$388 Million Total Addressable Market Opportunity w/ 16% CAGR

4

Competitors
Key Competitor: Wesabe

Potential Entrants

No revenue model Freemium

Develop simple, easy-to-

Community based - limited

source of information from
wisdom of the crowds

use, free personal finance

online application to cater
to mainstream

Poor traction

Acquire Wesabe or
similar online application

Unspecific suggestions

Mints Comp. Advantages

Mints Defensibility

User-specific saving opportunities

High service switching costs

Compelling AI-based auto-sorting

3 non-pending technology patents

Easy and intuitive user interface

Integration partnerships (TurboTax)

Benefits

Costs

Ease of
Use

Value to User
Easily tracks and logs
data from multiple sites

Free to use;
Automated billing
and categorization

Saves time
Save money

Finance
Software

Online
Banking

Finance Social
Networks

Steep learning
curve; UI cluttered
with excessive
features

Inconsistent layout;
difficult to aggregate
other sites

Intuitive interfaces;
simplified features

Required initial
investment and
update fees

Integrated with bank

account and bill pay

Users must contribute

to add value

Powerful feature
set for keeping
finances organized

International presence;
strong advertiser
network, existing users

Low quality usergenerated advice

Mint offers the most compelling and easy way to manage your personal finances.
6

Value to Partners
Prospective
Partner

Product or
Service

Customer Acquisition
Cost1

Mint
Referral

Value
Proposition

Wamu

Savings Accounts

$200.00

$50.00

$150.00

Comcast

Internet

$200.00

$75.00

$125.00

Capital One

Credit Cards

$150.00

$75.00

$75.00

Cingular

Cell Phone

$325.00

$50.00

$275.00

Wells Fargo

Bank Accounts

$175.00

$125.00

$50.00

E-Trade

Brokerage Accounts

$475.00

$100.00

$375.00

Blue Cross

Insurance

$225.00

$100.00

$125.00

Bank of America

Mortgage

$550.00

$325.00

$225.00

Partners can increase revenue via cost-effect customer acquisition

1. http://www.emetrics.org/articles/acquisition.shtml

User Acquisition
Launch

Growth

Maturity

Word of mouth & viral, Blogosphere referral badges, sharable website tags

Direct email

Distribution partners

Internet advertising

Targeted opt-in email lists

Affiliate networks

Overture + Adwords

College list serves

Mutual linking sites

Symposium & events

Personal finance lists

PR
Buzz marketing

SEO

Company blog

Organic search

PR tactics

Optimized page markup

Business Model
User
Acquisition

Gather User
Information

Intelligent
Suggestions

User Switches
= Referral Fee

From

Includes

Based On

Fee Types

Advertising

Account Types

History

Bank Account

E-mail

Spending Patterns

Usage

Credit Card

Viral Marketing

Credit History

Spending Habits

Cell Phone Carrier

Distribution
Partners

Demographics
and Preferences

Current Market
Deals/Rates

ISP
Loan

Mint makes money when users make money rather than

relying on creating value through added services
Future Potential: Advertising
Large expected
user base

High quality
user data

Premium
targeted ads

High Profit
Potential
9

Financials
2007
Total Users
Referrals
Credit Cards
Savings Accounts
Bank Accounts
Internet Service Provider
Cell Phone
Targeted Advertising
Total Revenue

Assumptions
Investment
Stake
Hurdle Rate

Projected Year Ending December 31,

2008
2009
2010

100.0

180.0

309.6

510.2

$56.3
50.0
30.0
97.5
17.5
500.0
$751.3

$111.4
101.3
62.1
193.1
33.3
1,012.5
$1,513.6

$210.7
195.9
122.8
365.3
60.4
1,959.2
$2,914.3

$382.0
363.2
232.8
662.1
104.6
3,632.3
$5,377.1

Sales and Marketing Expense

225.4

302.7

291.4

268.9

General and Administrative Expense

300.0

544.0

942.7

1,565.3

Research and Development Expense

EBIT

187.8
$38.1

340.6
$326.3

590.1
$1,090.1

980.0
$2,562.9

Expected Earnings

$3.0M
15%
5%

IRR: 25%

Revenue by Source
5.0

$5.0

4.5
4.0

Dollars (Millions)

Dollars (Millions)

$4.0

$3.0

$2.0

$1.0

3.5
3.0
2.5
2.0
1.5
1.0

$0.0

0.5
2007

2008

2009

2010
0.0

($1.0)
Dow nside

Expected

Upside

2007
Targeted Advertising

2008
Savings Accounts

Credit Cards

2009
Bank Accounts

2010
Cell Phone

10

Exit Strategy

Allows Google
entrance into personal
finance industry by
providing simple, free
application

Low switching
costs for current
product set; desire
to increase lock-in

More targeted
advertising; increased
customer lock-in

Seamless integration
with Google Finance
site

Expand personal
finance presence by
bringing personal
finance software to
mainstream

Expand personal
finance presence by
bringing personal
finance software to
mainstream

More targeted
advertising; increased
customer lock-in

Increase product
upsell; augment
patented technology

Integration with MS
Money by providing
online interface

Seamless integration
with Yahoo Finance
site

Integration with
Quicken by providing
online interface

Increase product
upsell; augment
patented technology

11

Q&A
Product

Product Comparisons

Team

Alternative Revenue Streams

Market Size

Management Expertise

Value to Users

Potential Acquirers

Business Model

5-Year Revenue Projections

User Acquisition
Financials
Acquirers
Risks & Precautions

12

Risks & Precautions

Risks
Low barriers to entry; new
competitors

Lack of user commitment

Low user referral rate

Existing competitors adding similar

features

Slow initial growth

Mitigate

Precautions
Develop name brand to assure high
market penetration and growth rates;
patent proprietary technologies
Leverage high value, low time
investment proposition for users;
develop user community

Push high monetary value of utilizing

suggestions; offer multiple choices
Technology patents filed;
feature set would be difficult to
integrate with a boxed product
Utilize management teams superior
know-how and clear viral marketing
potential to ensure growth

13

Competitive Response
Microsoft

Result

Attempts to copy MyMints

website and business model

Delays Microsoft
market entry and
increases costs

Leverages brand name and

market reach

User base safe,

competition for new
users may occur

MyMint
Enforce patent protection of
proprietary technology

Satisfied users have little

incentive to switch

Extensive experience and

software specialization

No advantage

Highly experienced
management team

Synergies with current

software such as Quicken

MyMint offers a
unique product

Technology extends beyond

reach of existing software

Defensibility
14

Financial Assumptions
User Base
Adoption Rate

1
2
3
Referrals
Credit Cards

80.0%
80.0%
80.0%
100.0%

72.0%
68.0%
72.0%
90.0%

64.8%
57.8%
64.8%
81.0%

Step
(15.0%)
(10.0%)
(10.0%)

1
2
3

0.75%
0.50%
0.75%
1.00%

0.83%
0.55%
0.83%
1.10%

0.91%
0.61%
0.91%
1.21%

1.00%
0.67%
1.00%
1.33%

Step
10.0%
10.0%
10.0%

1
2
3

1.00%
0.75%
1.00%
1.25%

1.13%
0.83%
1.13%
1.44%

1.27%
0.91%
1.27%
1.65%

1.42%
1.00%
1.42%
1.90%

Step
10.0%
12.5%
15.0%

1
2
3

0.15%
0.10%
0.15%
0.20%

0.17%
0.12%
0.17%
0.23%

0.20%
0.13%
0.20%
0.26%

0.23%
0.15%
0.23%
0.30%

Step
15.0%
15.0%
15.0%

1
2
3

1.3%
1.0%
1.3%
1.6%

1.4%
1.1%
1.4%
1.8%

1.6%
1.2%
1.6%
1.9%

1.7%
1.3%
1.7%
2.1%

Step
10.0%
10.0%
10.0%

1
2
3

0.35%
0.25%
0.35%
0.45%

0.37%
0.25%
0.37%
0.45%

0.39%
0.25%
0.39%
0.45%

0.41%
0.25%
0.41%
0.45%

Step
(15.0%)
(10.0%)
(10.0%)

1
2
3

$5.0
$5.0
$5.0
$5.0

$5.6
$5.5
$5.6
$5.8

$6.3
$6.1
$6.3
$6.6

$7.1
$6.7
$7.1
$7.6

30.0%

20.0%

10.0%

5.0%

39.9%

35.9%

32.3%

29.1%

(10.0%)

25.0%
25.0%
25.0%
25.0%

22.5%
23.8%
22.5%
21.3%

20.3%
22.6%
20.3%
18.1%

18.2%
21.4%
18.2%
15.4%

Step
(5.0%)
(10.0%)
(15.0%)

Savings Accounts

Bank Accounts

Internet Service Provider

Cell Phone

Advertising
Targeted Advertising

Costs
Sales and Marketing Expense
General and Administrative Expense
Research and Development Expense
1
2
3

Step
10.0%
12.5%
15.0%

15

Exit Calculation
Multiples Analysis for MyMint
Dollars in Millions (MyMint in Thousands)
Company
PlanetOut.inc
DealerTrack
Synchronoss Technologies

Ticker
LGBT
TRAK
SNCR

Enterprise Value
$61.9
$940.2
$490.8

2007 Sales
$76.0
$219.8
$101.8

2007 EBIT
($7.2)
$57.3
$24.0
1
2
3
4

MyMint
Sales
EBIT
Cash Flows
Reinvested IRR

2007
751.3
38.1
(3,000)
25%

2008
1,513.6
326.3
1
$49

2009
2,914.3
1,090.1
2
$164

2010
5,377.1
2,562.9
3
$6,259

2011
2012
9,532.4 16,278.8
4,994.7
9,223.1
4
5
$0
$0

EV/Sales
.8x
4.3x
4.8x

EV/EBIT
N/A
16.4x
20.5x

4.8x
3.3x
4.3x
.8x

20.5x
9.4x
16.4x
N/A

High
Average
Median
Low

Sales Year
Method
Assumptions
Investment
Stake
Hurdle Rate

3
1

$3.0M
15%
5%

EV
$25,914
$52,414
Average EV
$39,164

16