Got a Great Idea for an iphone app?

kizmet mobile

Just got my hands on this, document outlining the new release for a mobile app Kizmet Mobile, it looks pretty cool and has some huge backers behind it. It was originally in PDF form so the formatting is skewed,

The Mobile Engine of Opportunity

CONFIDENTIAL EXECUTIVE SUMMARY March 2011

A great business introduction is priceless. A new contact can put your company on another level, solve a

business problem, or transform your career. In fact, one new connection can make your year, send your

kids to college, even change your life. Everyone in business is searching for those connections.

What if – instead of searching – the best contacts you could ever meet started coming to you…?

KIZMET does for business people what a great dating service does for singles, only more efficiently and on

their medium of choice: Mobile. KIZMET is a powerful ally that works 24/7 like an agent in your pocket to

bring the best business connections to you. We aggregate the right members, profile their skills, current bids

or offers, resources, needs and interests, identify the match and connect the parties. And we do it for 1/100th

of what a qualified lead usually costs. You get the new contact and take it from there - that’s KIZMET.

The Problem

You can do the work and look on your own, online or offline, for whomever you want to find and whatever

you need to buy or sell, but it WILL cost significant time and money, and might never produce. Online, the

best match can easily be missed by a manual search, and things change constantly, so a search one minute

will miss a posting that goes up only moments later. Further, so many gates separate parties who meet

online from connecting in reality, that often they never do.

Offline searching is even less efficient – thousands are spent by individuals and millions by companies on

trade shows, club memberships, association dues, advertising and marketing services to find the buyers,

sellers, vendors, talent or other resources they need, always with mixed results. In particular, with so many

people using the same services and channels, pricing is high, clutter is extreme and competition is fierce.

The Market: In context, we note that the world is increasingly turning to the smart-phone to fulfill its needs:

• Mobile commerce was up 300% in 2010’s Holiday season over 2009.

• Smartphone sales now outpace sales of desktops & laptops - by over 8 million units in 2010.

• Email use is increasing on smart-phones while declining on computers.

• Smartphone users check dating profiles 4x more via Mobile than via Websites.

• By 2011, over 50% of Americans will have smart-phones.

• In less than 5 years Mobile will surpass the Web in application usage.

Meanwhile - there is no widely-used new application that is uniquely Mobile. The only ubiquitous Mobile

applications are repurposed services that were originally developed for the Web: Email, Web Browsing,

Maps and more recently, Facebook. Yet, we know that with every new platform that has emerged in the

last Century, NEW BRANDS ALWAYS LEAD AND THEN DOMINATE, by creating products or services that are

born to leverage the unique advantages of the new technology. Furthermore - the real needs of business

people have so far seemed an afterthought as the Social Media revolution swept the world…

The Solution is KIZMET – The Mobile Engine of Opportunity.™

KIZMET’s mission is to enable a new hardcore business purpose for smart-phones that will become as

essential to the Mobile experience as text or email. KIZMET is a mobile technology platform for iPhone,

Android, Blackberry and Mobile Web that works non-stop in the background to bring businesspeople new

contacts, new opportunities and a powerful new way to connect and transact.

KIZMET goes to work 24/7 for every member and automatically notifies each user on their Mobile device

when a person who precisely matches his or her immediate needs or offers, business interests or social

profile is found, at whatever desired distance - whether in the room, on the tradeshow floor, on the block, in

town, or anywhere within the entire membership, nationally or worldwide. KIZMET then provides a secure

means to introduce the parties while protecting their personal information until they are ready to share

more, forging new business relationships, supporting REAL socializing and making new transactions happen.

Every match is saved in your KIZMET Cabinet to be reviewed at your convenience from any media - Web,

Tablet, etc. so you never miss another opportunity. KIZMET delivers precisely-matched product, destination

and event opportunities as well, to enhance its daily utility to members and increase frequency of use.

KIZMET builds a deep understanding of each member from existing and new profiles, and follows their latest

needs as they arise. Signing up is as easy as importing your LinkedIn profile with one click. You can then

update your profile in seconds, or even use Twitter to “tweet” about anyone you want to find, whatever you

have to offer or anything you need. KIZMET instantly starts searching, 24/7, while you get back to business.

KIZMET leverages the power of the smart-phone as the primary platform, and its broad utility including text,

phone, email, Web functionality and location awareness, all integrated in one application. KIZMET

stimulates REAL-WORLD socializing, and supports transacting IN-PERSON and ON IMPULSE when desired.

KIZMET updates by the second in real-time, as both your needs and the available opportunities around you,

and in the world at large, change. Unlike a manual search, you can focus on other business, knowing you

will always be notified the second a new opportunity becomes available. By connecting matched users

and providing instant information, KIZMET effectively creates new trading markets for any good or service.

KIZMET’s engine continues multiple searches at once for anyone or anything the user is seeking, to become

users’ primary “engine of opportunity”, whether the need or offer is immediate, location-based, or desired

anywhere a match can be found. KIZMET will keep searching and bringing users new matches 24/7.

Technology

• Proven Technology: The engine was developed by the former VP, Engineering of eHarmony (see

Management), has been fully tested and is on its third version. Zero Development Risk. Beta will

be released to the market in February 2011.

• Superior Web 3.0 Engine: Combines Artificial Intelligence, The Semantic Web, Natural Language

Processing, Domain Ontologies and multiple knowledge bases into one patent-pending system.

• Precise Matching of User Needs and Interests, In Real-Time: Between two people, as well

between each user and the specific products, places and events they are looking for.

• Integrated with Cutting-Edge Location Technologies: (GPS, Cell-Tower and WIFI-triangulation) -

performs equally well indoors and outdoors.

• “Pushed” (i.e. Automatic) Notification: Always-on media Increases time-spent & frequency.

• Proprietary, Secure Messaging Platform: Provides total privacy control to users.

Adoption & Distribution

Most consumer-facing Mobile apps are launched in geographic regions, and marketed with PR, promotions

and viral. Distribution is through “App Markets” – Apple iTunes (iPhone), RIM AppStore (Blackberry), and

Google’s Android Market. The problem? These services acquire customers one by one.

The Catch-22 arises as early adopters gain little from initial trials, since reach is low - and you only get one

chance to make a great first impression. Once they turn the application off, a user may never turn it on again.

KIZMET is different. KIZMET’s strategy is designed to achieve INSTANT CRITICAL MASS from, and deliver

REAL VALUE to, ENTIRE GROUPS AT ONCE, FROM DAY ONE.

KIZMET IMPORTS ENTIRE THIRD-PARTY MEMBERSHIPS EN MASSE – solving the critical mass equation –

and in turn enabling KIZMET to deliver value to each user from the first match made.

KIZMET offers a Mobile solution to multiple distribution partners within each targeted Industry that creates

a new revenue stream for them, while giving their members a powerful networking tool - AND access to

new customer bases - to enhance their careers and boost their businesses. This model creates immediate

value to users whether the group has 300 members, or 300,000.

KIZMET offers its application AND matching service FOR FREE to every major Association, Corporation,

Union, Community, Network and other party with an existing membership in each targeted vertical. The

Value Proposition is simple:

• PROVIDE YOUR MEMBERS A POWERFUL NEW NETWORKING TOOL - that operates 24/7,

everywhere they go, to expand their contacts and drive new business.

• OPENS NEW CUSTOMER BASES for YOUR MEMBERS, EMPLOYEES or CLIENTS – Each group added

brings new customers to every other group – e.g. Investors, brokers, lenders, lawyers, managers,

entrepreneurs, dealers, vendors, agencies … each a prime customer or supplier base for the others.

• MONETIZE YOUR MAILING LIST: KIZMET is initially free to use, then after a trial period users pay

per qualified lead, or per month, at their option. Generates an estimated $5-$20/member monthly.

KIZMET shares 50% of this Revenue in Year 1, and 20% in perpetuity thereafter, with partners.

• ESTABLISH A NEW CHANNEL OF COMMUNICATION WITH YOUR MEMBERS on the device that’s

always in their pocket - a mobile solution that saves the expense of developing own application.

Revenue Model

Pay-Per-Lead: KIZMET prices leads and responses at $1 each (one time only per match when one party

contacts the other AND the other responds). In contrast, at average lead (not sale) conversion, Google

PPC costs $100 per qualified inquiry, and Broadcast TV costs are similar, estimated at $75 per lead. A

Google click alone costs $2 - $20+, and less than 2% ever become leads. Management projects average PPL

Revenue of $5-$20/month, depending on the vertical, from each KIZMET user.

Monthly Recurring: The PPL model provides a strong rationale for many users to convert to a fixed

monthly fee, payable via one-year memberships of as little as $5/month for some communities, to as much

as $50/month for others. Recurring fees enable the Company to book revenues up to one year in advance.

Other Revenues: Include Listing fees from Mobile Commerce, Direct Marketing Services (to opt-in only

customers for their specific needs), Bounty and Download fees.

Launching May 2011 – Targeted Verticals

Carrier & OEM Partners: Strong interest confirmed from LG, Motorola and HTC to embed KIZMET on

every smart-phone shipped worldwide. (Management have strong relationships in these markets.)

Exclusive - Luxury - High Net Worth Market: e.g. Interest confirmed at Bloomberg, A Small World,

Prudential Douglas Elliman, Keiretsu Forum, Tiger 21 and other exclusive organizations.

Finance / Venture Capital / Private Equity: Great value is created when the right investors, lenders or

brokers & businesses or entrepreneurs are introduced. Also supports brand-building for KIZMET itself.

Film & Entertainment: Among the most networking-intensive of all industries. Large and growing.

Projects require hundreds to thousands of independents with highly specific skill-sets to complete.

Management have strong relationships in the Industry.

Real Estate: Luxury Real Estate fits with HNW target. Large brokerages reach millions of clients each.

Media & Advertising: Great number of categories and highly specific needs. Also supports brandbuilding

for KIZMET and introduction of KIZMET Direct Marketing services to Brands.

The Music Industry: Large number of independents. Personal networking is key to success. Among

the most viral of any industry. Labels and bands leverage KIZMET into a promotional channel as well.

Mobile Technology: Early adopters and also supports KIZMET marketing.

Online and Offline Communities: KIZMET will selectively add social, dating, cultural and other groups

that add qualified customers fitting our core demographic targets, e.g. College Fraternities, Dating

Sites, Cultural Organizations, Political Groups, etc. – all of whom are also active business users.

Management

Cort Javarone, Founder & CEO: Serial Entrepreneur. Partner, ZYNG Management (late-stage social media

investment fund with large position in Social Gaming market-leader Zynga). Former: Partner & CFO, Klean

Centers (Behavioral Health Roll-up); Partner, Foresite Management (NYC Historic Mansion Developer);

Exec. Producer, Live From the Hard Rock (#1 rated program on PBS/APT in 2006); Founder & CEO, Free

Media, DIG VIDEO (800,000 Circulation Alternative Media, Web 1.0 Video Network); VP, NatWest

Securities. M.Sc. London School of Economics, 1989.

Marcus Trevisani, Chief Technology Officer: Founder, Semantic Systems. Former CTO, Bintro; Director of

Engineering, United Future; VP Engineering, eHarmony.com (engineered eHarmony’s systems); VP

Engineering, Weider Publications; CTO, Rightspring.com; Dir of Technology, Rare Medium;

Marc Lefton, Chief Marketing Officer: Award-winning 17-year veteran advertising and marketing executive.

Top-10 agency posts, including BBDO and Ammirati Puris Lintas; Founded Adholes.com in 2004, one of the

first niche social networks and now the largest in the world for marketing professionals. Experiential

marketing and word of mouth creative director on Coke, Samsung, Haier, Royal Caribbean, Chevy and many

other top brands. Extensive experience launching and utilizing marketing-focused technologies.

Julia Jay Pierrepont III, SVP, Entertainment: Digital industry entrepreneur. Producer/Financier and

Writer/Director of feature films, documentaries, media and television. Launched two successful sister

companies, Future Medex and eClinic.net, developing high quality digital content for the Health market,

and the first consumer health and wellness site Online. Successfully sold both companies for a 10x ROI.

Dick Wingate, EVP, Media & Entertainment: Digital Music Industry pioneer. Former Pres., Nellymoser

(leading provider of rich media mobile services); SVP, Content, Liquid Audio, (IPO, 1999). SVP, Marketing,

Arista Records; SVP, A&R PolyGram Records; Director of A&R, Epic Records; Director of Product

Management, Columbia Records.

Sage Rader, Chief Communications Officer: 20 years of award-winning content creation, production and

promotion in film, publishing, TV, music. Lead of the Sundance 2000 Grand Jury Prize nominated Beyond

the Ocean. Published author: Sex Drugs and Sunday School, a multimedia graphic novel documented by BBC

TV. Co-creator of television pilots developed for MTV, Fuse, The Travel Channel and A&E.

Robert Zangrillo, Strategic Advisor: Veteran investor and executive in the social networking, consumer

Internet, eCommerce, software and mobile industries. Widely known for his talents building teams

dedicated to delivering leading industry solutions and significant financial returns. Over 20 years, Robert

has spent 11 years as a Chairman and CEO and nine years as a private equity investor, active executive

director and advisor to growth companies, including: ArcSight, Dick’s Sporting Goods, EarthLink, Facebook,

InterWorld, NorthStar, Overture, Playlist, UGO Networks, Ulta and Zynga Gaming Network.

John Lack, Strategic Advisor: Creator of MTV, The Movie Channel, Nickelodeon and ESPN2. CEO &

President of i3 Mobile; Managing Director of Telephone Italia’s STREAM; President and CEO of ACTV; Vice-

President and General Manager of CBS Radio Spot Sales and then Vice-President and General Manager of

WCBS News 88. Co-founder & CEO Firebrand.

J. Bernard Rice, Strategic Advisor: Former CFO and GP, IBM Venture Capital. Led ventures with Apple,

Blockbuster and investments in Media and VOD with Bell Atlantic and Cox Cable. Managed IBM's entry into

consumer software. CEO of Edmark, developed innovative educational software for kids. Orchestrated spinoff

of IBM's education assets into Riverdeep, the fastest-growing educational software company in the US.

Projections

YE 2011 2012 2013 2014 2015

Members 510,000 8,780,000 22,800,000 47,930,000 74,290,000

Rev/Member/Month $5-20 $5-20 $5-20 $5-20 $5-20

Active Members 9% 10.0% 15.5% 14.9% 13.8%

Revenue (@ $5/mo.) 1.1m 55.1m 212.1m 428.4m 615.2m

Expenses 2.8m 17.1m 102.1m 170.9m 210.4m

EBITDA (1.7m) 38.0m 110.0m 257.5m 404.8m

Financing

DONE: $230,000 Seed Capital invested by Management & Seed Investors.

RAISING:

• $500,000 Angel round, April 2011.

• $3-5 million Series A venture financing, 2nd – 3rd Q 2011.

Contact

Cort Javarone, Founder & CEO

m. 310.903.3538

e. cort@kizmetmobile.com