Startup Research March 5, 2013

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Presenter: Eric R. Broughton
• President and COO of Yield Technologies, Inc. • Founder and Visionary behind RentSentinel, YieldVision and RentSocial products • Current President of the Chicago Oracle Users Group • Former global solutions manager and architect of big data platforms for ArcaEx (NYSE), M&M Mars and Northern Trust
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Yield Technologies, Inc
• History
– Founded in 2007 – Headquartered in Chicago

• • • • • •
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Technology solutions for Real Estate Products: RentSentinel, YieldVision and RentSocial Over 4,500 communities nationwide on our platform 97% client retention rate 8 of 10 largest Property Managers use our products More than 1.5 million apartment units on platforms

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Metrics from Ideation to Investor
• Verified Ideation
– Create prototype and get it in your customers hands – Begin your journey of measuring everything

• Founding Team: you are the first investor
– Don’t fool yourself – Experience and past success – Team’s experience and past success

• Marketplace: What is the size of the current/future market
– Don’t lose the investor with ludicrous numbers – Do demonstrate your industry/product/sector knowledge – Know your competition
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Convergence of Social & Rental Communities
Social Rental Paradigm
Rental Real Estate is at a transformative inflection point
• Multi-family real estate has a predominance of people using the Internet to find rentals • Ratings and reviews are increasingly important and expected. • Social connections benefit both the renter and property management.

Online Trends
The percentage of 18 – 29 year olds using the internet for transactions increased from 70% in 2000 to 97% in 2011. Mobile is similarly exploding.

Convergence
The wholesale move to online interaction, growth of social media and the increase of renters aged 20 – 35 has created an unprecedented opportunity. The percentage of US home ownership topped out at 69.2% in 2007 and has dropped to 65.4% in Q2 2012.

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Why is Social Media relevant to renting?
• General Stats:
• More people own mobile phones than toothbrushes • 20% of all web views are from Facebook • 175 million Twitter tweets per day • 12 million unique Pinterest visitors per month

• 100 million renters in the United States* • 53 million renters are 30 and under* • 57% of Americans don’t know their neighbors* • 69% of prospective renters use online reviews* • 74% consumers trust peer to peer reviews
* Statistics from the National Multi Housing Council, Pew Research Study and Forrester Research

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Experienced Leadership
President / COO – Eric Broughton BSEE, MBA, PMP with 16 years of Tech Leadership Former Global Solutions Manager and President of COUG CTO / VP of Product – Andy Hamilton 15 years of Technology Experience Former Director of IT for CGFNS CFO – Brian Burke BS Finance, MBA Former Director of Finance at Playboy Enterprises VP of Innovation and Design– Kevin Koperski 15 years of Technology Experience AT&T Circle of Excellence Award Winner
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How big is the market?
Growth Potential
Multifamily Industry Only

17 MILLION
apartment units nationwide 10 MILLION
apartment units In communities with more than 50 units

1.25 MILLION
apartment units on RentSentinel today

Growing market share and revenue per property
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Paths to Market Adoption
Events
Tour to Strategic clients
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Partnerships

Media

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Who is the competition?

Ability to Execute
Completeness of Vision
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Completeness of Vision

Who is the competition
• • • • Rent.com Apartments.com Zillow Craigslist
Listing Sites Portals

• Property Solutions • Active Building • Building Link

Social Networks

Ratings/Reviews

• Facebook • Active Building

• ApartmentRatings • Yelp

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rentsocial Revenue Model
Apartment Community Subscriptions
Options: Pay per Lease ($250), Pay per Lead ($15), or a Flat Monthly Rate ($250).

Pay per Listing
$1+ per transaction (5 day listing) for user created listings in a variety of categories.

Pay per Application
$25 per application. Includes screening fee, security deposit, application fee.

Rent Payments
$1 per transaction for payments made via RentSocial.

Advertising
Advertising platform and model to be determined.

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Competitive Advantage First to Market
RentSocial launched in April 2012 with a feature set unlike any competitor.

Industry Knowledge
Yield Technologies has been working with multifamily content and clients for years.

Social Foundation
RentSocial takes advantage of the latest social media concepts to build traffic and value.

Design and Brand
RentSocial’s design and branding is aimed at the younger, hipper, tech-savvy apartment renter.

Diverse Revenue Model
Many avenues and potential revenue streams from both users, advertisers, and property management companies.
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Startup Metrics for Pirates
• • • • • Acquisition: users come to site from various channels Activation: users enjoy 1st visit: “happy” experience Retention: users come back, visit site multiple times Referral: users like product enough to refer others Revenue: users conduct some monetization behavior

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*Startup Metrics for Pirates: Dave McClure (Nov 2012)

Example Conversion Metrics

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*Startup Metrics for Pirates: Dave McClure (Nov 2012)

Startup Metric Resources
Startup Metrics for Pirates
Dave McClure from 500 Startups presentation

The Lean Startup
Great book that cuts through the clutter and gets to the point

We Need to Have a Word
Book by founder and mentor John R. Dallas, Jr. Weekly sanity check for the re-alignment of thought and actions

For Entrepreneurs
Blog for expertise, wisdom and resources for startups and entrepreneurs http://www.ForEntrepreneurs.com

Jack Sparrow (feat. Michael Bolton)
5 minutes of mindless fun: http://www.youtube.com/watch?v=GI6CfKcMhjY
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Q&R

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