SPORTSTER.COM: ROUND ONE INVESTOR SUMMARY
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Business Summary
Sportster.com enables athletes of all ages, abilities, and disciplines to quickly and easily
capture, organize, and analyze their athletic achievements and training efforts. Powerful
statistical tools help users to effectively analyze their performance through visually appealing
charts, graphs and matrices. Unique graphic capabilities allow users to easily compare their
performance against competitors, friends and even professional athletes.
Customer Problem
Amateur athletes have very limited options to track and analyze their athletic endeavors in an
effective and efficient manner. Watches, spreadsheets, shoe-gizmos and notebooks are clunky,
expensive, time consuming, short-lived and tend to operate in a vacuum.
Business Model
Sportster is free to join and use our basic services. The active customer base will be monetized
through premium member services, targeted advertising opportunities, sports related product
sales, training & coaching information, sponsorship sales, content syndication and licensing.
Customers
Over 100 million athletes participate in organized sports in the U.S. today. Sportster’s relative
market size in the United States is over 49 million active participants.
Target Market
Committed athletes engaged in statistics relevant sports such as baseball, basketball, running
or other recreational endeavors where data is routinely collected. Sportster’s core age groups
range from 14 to 45 years old.
FINANCIAL INFORMATION
Funding Stage: Round
One
Capital Investment by
Founders: $33,000
Capital Seeking: $100,000
($10K minimum
investment)
Shares Available: 244,878
Price/Share: $.41
Equity Available: 10%
Projected Return for
Round One Investors:
93% annual rate of return
Current Shares
Outstanding: 1,000,000
Competitors Many sports statistical websites exist and the popularity of online statistics continues to
burgeon. Most competitor sites however, simply list static data of elite level athletes or compile
infinite tables of results devoid of any identifiable meaning. These sites tend to be narrowly
focused on a specific sport or age group excluding the majority of active customers.
Monthly Burn Rate:
$11,000 (for 9 months,
beginning 9/1/09 to
completion of round one
milestones)
Competitive Advantage
Sportster is unique in its application of the web as a multi-sport, long-term information
repository, it’s simple yet powerful application of statistical analysis and its ability to
simultaneously meet the goals of serious athletes and weekend warriors alike. Sportster’s open
architecture allows users to build upon a lifetime of sports, delve deeply into measurement and
performance analysis. Through its community networking and knowledge sharing applications,
Sportster helps users stay active, motivated and in-touch with their peers, competitors and the
most up-to-date sports information and techniques.
Primary Use of Capital:
Database development,
coding and launch of beta
website fully functional
with one sport.
Sales/Marketing Strategy
Sportster has developed and will continue to develop partnerships with sports and sports
related organizations to create deep and credible penetration into market segments. Direct
marketing efforts include Facebook and Twitter social network applications, mobile application,
event sponsorships, local recreation program support, Search Engine Marketing and Search
Engine Optimization.
Founded: 2008
Management Team
Sportster is supported by an exceptional management team. Relevant experiences:
Kaplan.com, BackRoads.com, SafeRent.com, Gear.com, eHow.com and others. Skills: complex
database and application framework design, leadership with the Olympic Games and other
sports organizations, consulting for Pepsi, Sony, Intel & Microsoft. Education: MBA from
University of Colorado, Westminster College and engineering from MIT.
Annual Forecast:
Financials
Revenues
Expenditures
Net Income
2009
$0
$100,000
($100,000)
2010
$40,000
$1,150,000
($1,110,000)
2011
$567,000
$1,410,000
($849,000)
2012
$2,839,000
$2,599,000
$212,000
COMPANY PROFILE
Contact:
P.O. Box 981346
Park City, UT 84098
801-718-4628
[email protected]
Management:
Chris Crowley, CEO
Jeff Kuehn, CTO
Jason Linder, CMO
Richard Fleck, COO
2013
$9,047,000
$6,305,000
$2,652,000
2014
19,173,000
$10,701,000
$8,281,000
What kind of return can you expect?
Before discussing returns, we must first warn you of the risk. There is a high probability you will receive no return on your
investment. However, this is not our expectation. In contrast, our business plan aims to create significant returns over a
five-year period. Based on this early investment stage you will be granted the greatest return potential, which future
investors will not be eligible. We take your trust and desire to invest in us seriously. We have considerable time and
money invested ourselves and have no plans to lose your money or our own.
As an example of expected returns, let’s say you decide to
invest $20,000. This would grant you:
•
•
•
48,976 shares at $.41 per share
2% ownership of the company in the form of
common stock
A return value of $683,000 (represented a 93%
year-over-year return)*
*Based on a buyout of the company in year five and the accuracy
of our financial forecasts. While considerable work has gone into
creating realistic forecasts, they are only that, a forecast of future
activity. They may in fact be higher or lower, thus representing
higher or lower returns. .
Projected Return on $20K Investment
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$‐
2009
2010
2011
2012
2013
2014
Expenditures (How will your money be spent?)
Your investment will be used primarily to develop and complete a beta version of the website. Below is a breakdown of
round one’s principal expenditures. Please note, the management team will continue to work at no cost, excluding the
development work of our CTO. Our objective is to bring Sportster to market with the absolute minimal amount of funds.
Domain name purchase (Sportster.com):
Brand development:
Website user interface design:
Outsourcing of website coding:
Site architecture development and project design:
Travel:
Office and business supplies:
Business set up fees:
Miscellaneous:
Total:
$10,000
$ 5,000
$15,000
$32,000
$14,000
$ 5,000
$ 5,000
$10,000
$ 4,000
$100,000
Milestones (What you can expect to be accomplished):
Following is a list of key activities you can expect to occur as a direct result of your investment.
•
•
•
•
•
9/30/09: Complete professional website user interface designs and “How it Works” demo video
2/28/10- Complete database architecture and coding of website
3/31/10- Agreement with a minimum of one sports organization
4/30/10- Launch of Sportster.com beta with one fully functional sport
5/31/10- Obtain 500 registered customers
What Happens After Round One? (Additional rounds, dilution or non-dilution?):
After the completion of round one funding and milestones, larger second and third rounds of funding are anticipated in
the following amounts:
•
•
Round 2: $1,400,000 ($1.3M from venture or angel funding and $100K from owner backed loans)
Round 3: $1,000,000 (from venture or angel funding)
At the time of each subsequent round, additional shares will be issued and sold. As these rounds are anticipated it is our
intention to avoid dilution of round one investors. Dilution will occur exclusively to the founders’ remaining equity. If,
however, additional rounds or capital are needed exceeding what is shown above, all investors will be diluted
accordingly.