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Executive Summary


  • The Company


    • Distriba is a leading provider of online business community software.  Distriba’s software, delivered to customers through hosted, on-demand services, offers an easier and more flexible way to create and manage online, business community marketplaces without the costly investments in IT infrastructure.

      Distriba has the experience, the knowledge, and the product needed to capitalize on the expanding Online Community Market space.  Distriba has proven the necessary technology and established successful financial, web, sales, and service systems to ensure success.  Distriba is seeking capital to accelerate customer acquisition efforts and continuing development efforts in this rapidly expanding marketplace.

      Distriba’s software, which it hosts and delivers to its customers on-demand, enables customers to collaborate and communicate efficiently online in a web based business community environment.  The Distriba Business Community Marketplace is a tightly integrated suite of web based business tools, web site replication tools, communication tools, training tools, and recruiting tools that will help our clients improve business efficiencies and achieve accelerated success.  In addition, Distriba offers a range of professional services that complement its online services, including software and web development, SEO (search engine optimization), custom implementations, best practices, consulting, customer support, graphic design, video design and user training.



  • The Market and Industry

    • Distriba’s Community marketplace platform is designed to work for any company looking to help a large number of people cooperate with each other and collaborate to transform ideas, documents, data and discussions into processes, products and knowledge.   Three particular industries we have identified and began selling into are:

      Online Business and Service Providers

      These are businesses that provide products and services online to customers and have a need to support and maintain their customer base.  These customers use our software to provide a support community where users can communicate and collaborate with the company and each other in a secure and easy to use environment.  The company has tools to train and support users while growing their customer base. Our Value proposition to this market is customer loyalty, informed clients and lower training and support costs.

      Network Marketing Companies

      There are over 1,500 network marketing companies with sales upwards of $100 billion annually.  Worldwide, there are more than 55 million distributors in the network marketing/direct sales industry worldwide with over 13.5 million in the United States.  Traditionally, these companies have been slow to embrace new technology, relying upon their traditional model of face to face meetings to recruit new distributors.  Within the last 5 years, MLM companies have begun to launch replicating website services to benefit their distributors.  Most companies rely upon corporate software solutions built in the 1980’s upon an, aging pre-Internet “legacy” platform. Churn for distributors in this industry are commonly over 85%. Our value proposition to this market focuses on the ability to recruit, train and retain profitable distributors.

      Associations

      There are thousands of associations in the US and Canada that support a wide variety of professional industries and marketplaces.  Associations are ever increasingly turning to the web to grow and maintain their organizations.  The difficulty they face is creating an environment where members can interact and communicate in an effective manner.  The Distriba Association Marketplace provides the platform for associations to manage, maintain, and provide the right environment for their members. Our value proposition for associations is similar to that of the network marketing industry with the added benefit of lowering the cost to manage the overall membership IT infrastructure. 


  • Business Model/ Strategy


    • Distriba’s business model focuses on growing the customer base, community members, as fast as possible while maintaining a high quality of service.  As the customer base grows, so will the number of users actively involved in chat, video chat, instant messaging, forums, email, web casting and other services offered within the community.  All else being equal, it is the value of the network that will help retain individual customers as more competition enters the market.  Distriba will use three major approaches for acquiring new customers: 1.) Direct and online sales,  2.) Strategic Alliances, 3.) Channel Sales.


  • Product and Services


    • Distriba has built the most Robust and Advanced Community Marketplace available anywhere. The Community Marketplace provides the Platform for Organizations to collaborate and communicate efficiently in today’s Web 2.0 world.  Community Marketplace is a tightly integrated suite of web based business tools, web site tools, communication tools, training tools, and recruiting tools that will help your organization improve business efficiencies and achieve unlimited success.

      Distriba’s Community Marketplace reaches a level of interactivity and communication unheard of in the industry. While the Marketplace sports all of the latest technology in terms of online prospecting, reporting, training, business building, and group communication and management, it elevates itself to a whole new level with its innovative features. With real time presentations, multiple online community features, interactive group management features and more, an organization will finally be able to do what other’s have promised but have been unable to deliver – to truly build your business/community using tools delivered through the World Wide Web.


  • Financing Requirements


    • Distriba already has two customers live with thousands of users logging into the communities.   Distriba is currently in discussion with four additional companies and two potential channel partners, in addition to other companies that have shown a high degree of interest in forming partnerships.  Initial paying customers are expected to exceed over 50 by December 31, 2012.  Distriba was live with its first customer on October 01, 2011.


  • Management


    • Distriba’s Management Team is a knowledgeable, experienced, and energetic group that knows how to execute.  CEO, Bud Legs and CTO, Jimmy Kimmel and President Mike Dudley each has over 10 years experience in the software and Internet development and marketing industries and have successfully built multi-million dollar technology companies. 


  • Sources & Use of Funds


    • Distriba is seeking $3M in equity financing.  The following graph shows the use of the proceeds during the first thirty six months as a percentage of total expense. 


Financial Data & Projections


  • Financial Data & Projections

    • Distriba would consider the following items as critical success factors to any investment offer:

      ·         Fair valuation

      ·         Synergy (Strong Board of Directors, Customers, Products / Services, Facilities, Resources)

      ·         Working Capital as defined in this document

      ·         Exit opportunity for current investors

      ·         Employee Equity

       

       

      Distriba seeks $3 million from a strategic investor(s) who understands software, and/or the technology services space.  We are carefully evaluating additional funding to grow and to develop new service offerings and to expand our sales and marketing opportunities. We are only considering “smart money,” meaning we are looking for partners that can further our ambitious goals—whether through technology sharing or through market presence. 


  • Funds Required

    • Distriba has the experience, the knowledge, and the products needed to capitalize on the expanding Online Business Community Market.  Distriba has proven the necessary technology and established successful financial, web, sales, and service systems to ensure success.  Distriba is seeking capital to accelerate customer acquisition efforts and future development efforts in this rapidly expanding marketplace.

      Our proven solutions and business model with working capital and the right market opportunity create a compelling business opportunity.  Our projections for organic and funded growth in sales are shown below.

       

      2006

      2007

      2008

      2009

      2010

      2011

      Organic Growth

      $.01MM

      $1.3MM

      $2.5MM

      $4MM

      $8MM

      $8MM

      Funded Growth

      $.01MM

      $1.4MM

      $4.0MM

      $8.1MM

      $13.4MM

      $21MM

       


  • Capital History and Requirements

    • History - Founded August 2005

                  August 2005 - Initial Investment James Endicott

                  August 2005 - Initial Investment Jonathan Oliver

                  April 2006 - Equity Investment - Angel Investor - John Pestana, Chairman and Founder Omniture

                  October 2006 – Equity Investment Mike Fahnert - President

                  Debt - None

      Requirements - Additional Equity Investment of $2 - $3 million to sustain cash flow for growth of the business through investment in sales, marketing and quality management R&D efforts. Use of Investment to accelerate sales from $.01MM to $21MM in 2011.

       


  • Benefits to the Investor and Projected Returns

    • Equity stake in Distriba Projected return of over six times the original investment by end of year three and over sixteen times investment by year five. The financial projections are estimates based on a current valuation of $5 million and valuations of $32 million and $80 million in years 2009 and 2011.


  • Board of Directors Composition

    • The Board of Directors is comprised as follows:

      ·         Chairman & CEO – James Endicott

      ·         CTO – Jonathan Oliver

      ·         Director – John Pestana, Founder Omniture

      ·         One Advisory Position (TBD)

       

      ·         Investor (one position open) 


  • Exit Mechanisms

    • Distriba will be well positioned for a pre-IPO buyout or roll-up before the end of 2009 and/or an IPO in 2012. A revenue multiple of 4 has been factored into the valuation calculations and reflects a fair rate for this industry. Recent investments in similar companies have been in the 3.5 – 5 range.



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