Final class project presentation, Postgraduate Business Management at UCR-Extension.

1. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 :::The semantic social portal. The 'SSP' technology:: A presentation by: The Postgraduate Management Students UCR-Extension

2. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Intro Clip “Our Nova”

4. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 The “Entrepreneurs” Fabian (COO) Hoang Anh (CMO) Johannes (CFO) Luu (CEO) Sebastian Yeonzoo Natalia Olivia Alex Benjamin Will JJ Nikei Eike Linh Hoang Grace Mia

5. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Circle of Summary Customers: Convenience + Functionality Breakthrough Technology Competitors: Web 2.0 vs 3.0

9. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Answers instead of Results!

11. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 COO - Department

15. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Enterprise Value Standalone Value = $ 64 Million Net Present Value is calculated with the DCF-Modell Year 2011 2012 2013 FV NetCash 1.150.000 7.249.560 16.889.787 84.448.933,26 CoC=20 % 1,20 1,44 1,73 PV 958.333,33 5.034.416,81 9.774.182,09 48.870.910,45 NPV 64.637.842,68

17. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Ideal place chosen

18. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 MARKETING DEPARTMENT Hoang Anh (CMO) Alex Benjamin Will JJ Nikei

20. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Market Analysis

22. Market analysis: Oversupply of social networks

23. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Competitor Analysis

25. Competitor Analysis: A brief comparison Friend feed Zbang.it Yoono Flock URL http://friendfeed.com/ http://zbang.it/ http://yoono.com http://flock.com/ Type Website (sign-in) Download (stand-alone program) Download (browser plugin) Social web browser Multiple languages Yes No No Yes Social Networks Brightkite Facebook identi.ca Jaiku Plurk Twitter Facebook Twitter Facebook FriendFeed Linkedin Twitter My Space Myspace, Facebook, Twitter; Other important features Flickr Fotolog Photobucket Picasa SmugMug Zooomr Gmail/Google Talk Flickr Facebook Picasa Flickr You Tube MSM AIM Yahoo Messenger Google talk Flickr Fotolog Photobucket Picasa SmugMug Zooomr Youtube, Flickr, Gmail, Yahoo!Mail No. of users … … 3,700,000 3,000,000

26. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Customer Analysis

29. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Our Product

32. sign up log in Hello,

33. Hello Michael, sign up logged in What is Luu doing this weekend?

34. Integration + + - - Features

35. Unique Selling Proposition I use cuonline.com instead of Yoono because cuonline.com is very simple to use but still includes everything I need. In short: Cuonline = Convenience + Functionality

36. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Costs & Revenues

37. Revenue Streams Three steps evolution Start-Up: Simple third party advertisments (req: none) Intermediate: Exclusive games (req: critical mass) Established: Data-mining for individualized marketing (req: trust/brand status

38. Revenue Implementation Prerequisites Simple third party advertisements: Requires building internal advertising program (negligible cost to code but will require a min 3 full time employees to maintain.). Exclusive games: Contact Zynga, Playdom (Establish relationship then ask for critical mass of users for which they would consider developing software for us). Data-mining for individualized marketing: Brand status will be considered achieved at: 60% brand recognition & 95% favorable user experience.

39. User Revenue Estimates We use Facebook (2009) as a benchmark to estimate potential revenue of social media site: 200 million users. $125 million from brand ads. = 0.625$/user $150 million from Facebook’s ad deal with Microsoft. = 0.75$/user $200 million from self-service ads. = 1$/user $75 million from virtual goods. = 0.375$/user Total: $550 Million. = 2.75$/user

42. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Organization & Timeframe

43. Organization Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 CEO COO CMO CFO Accounting HR R&D / Infrastructure Marketing Sales Processmgt. Controlling Customer Service

44. Project Start Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Customer Survey 1 Define customer needs and develope our product 2 Organizational Structure/Employees 4 Finance 3 Provide infrastructure/Rent an office/buy and install equipments 5

45. One year plan Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 3 month 12 month 9 month 6 month 40 Servers = 50,000 Visits 80 Servers = 100,000 Visits 200 Servers = 500,000 Visits 750,000 Customers 4,500,000 Customers 20,250,000 Customers 22,800,000 Customers

49. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Employees

52. Wages of Employees Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Department Employees Money per person /p.a. Total CEO 1 75,000 75,000 COO, CMO, CFO 3 60,000 180,000 Process Management 2 40,000 80,000 Human Resource 2 35,000 70,000 R & D / Infrastructure 2 35,000 70,000 Marketing 2 40,000 80,000 Sales 1 35,000 35,000 Customer Service 1 30,000 30,000 Accounting 2 40,000 80,000 Controlling 1 40,000 40,000 Total before gov. exp. 17 Ø 43,000 740,000 Government expenses 11% 81,400 Total 821,400

54. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Equipment & Infrastructure

56. Furniture Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Quantity Cost Office Cubicles 4 $ 700 * 4 = $ 2,800 Desk Sets 17 $ 75 * 17 = $ 1,275 Files & Storage (Fire proof) 3 $ 695 * 3 = $ 2,085 Chairs & Seating (for the office and the conference room) 17 20 $ 150 * 17 = $ 2,550 $ 100 * 20 = $ 2,000 Conference Tables 5 $ 500 * 5 = $ 2,500 Office suppliers (a white board, a book case, presentation screen, projector ) White board = 1 presentation screen (LCD) =1 Book cases = 2 projector = 1 $ 200 $ 800 $ 175 * 2 = $ 350 $ 700

57. Technical Equipment Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Computers (Desk Top) Software 17 17 $ 500 * 17 = $ 8,500 $1,000 * 17 = $ 50,000 Laptops + Cell phones Software 10 10 $ 1,500 * 10 = $ 15,000 $ 1,000 * 10 = $ 10,000 Telephone Systems 1 ( for all employees) $ 1,500 Copiers 1 $ 1,000 Fax 1 $ 250 Lounge Room – Coffee maker, a micro wave, Sofa, a table, chairs, a refrigerator, and plates&cups 1 Coffee maker, 2 sofas, 1 table, 4 chairs, 1 microwave, 1 refrigerator, $100 + $ 600 + $ 300 + $200 + $150 + $ 800 + $ 300 = $ 2,450 Others (paper, pens, staples, etc.) $ 5,000/per year $ 5,000 Total : $ 108,960

58. Overview Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Start Need of 40 Server 4 month Need of 80 Server Need of 200 Server Handle ~22 million customers, 500.000 visitors at one time 1 year Need of 200 high performance server Investment in Own-Server-Room 10 month

64. Server Connection Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Fiber-to-the-Home (FTTH) Speed per Line 50 Mbps Cost per month $140 Need of 2000 Mbps Costs per month $140 x 20 = $2.800

65. Further Investments Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Investment Server – Locker $20.000 Switches, Router $100.000 Aggregate $20.000 Wiring $50.000 Misc $10.000 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total $200.000

66. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Johannes (CFO) Eike Linh Hoang Grace Mia FINANCIAL DEPARTMENT

67. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Founding CUonline Bahrain Bahamas Bermuda Cayman Islands California, USA

68. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Investment Environment

69. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Cash Flow Forecast

70. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Cash Flow Forecast

71. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Break even analysis Break even will be reached in the end of the first year starting with investments and monthly costs High risk in this time frame

72. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Enterprise Value Standalone Value = $ 64 Million Net Present Value is calculated with the DCF-Modell Year 2011 2012 2013 FV NetCash 1.150.000 7.249.560 16.889.787 84.448.933,26 CoC=20 % 1,20 1,44 1,73 PV 958.333,33 5.034.416,81 9.774.182,09 48.870.910,45 NPV 64.637.842,68

74. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Ideal place chosen

76. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Transaction freedom Bahrain Bahamas Bermuda Cayman Islands

77. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Investment Environment

82. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Bahamas

83. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Bahrain

84. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Bermuda

85. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Cayman Islands

86. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Banking Options

87. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Checking

88. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Saving

90. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Lending Options Small Business Administration Loans Business Line of Credit This Solution Offers Secured funds, backed by the Small Business Administration, to use for business start-up, working capital, business acquisition and real estate. Loan terms up to 25 years. An unsecured revolving line of credit, backed by the Small Business Administration, to use for invoices, payroll or any other short-term business need with no cash advance fees. Line of credit terms of 5 years. Ideal For New and emerging businesses. New and emerging businesses. Credit Amount $50,000 to $5,200,000 $10,000 to $200,000 Rate 6 – 7.5% 6 – 13% Collateral Bank will take a secured interest in the business assets. None — it's unsecured A signed loan contract is the banks guarantee of repayment of startup funding.

91. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Banking

92. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Current Funding Requirements Amount: $ 1.500.000 Timing: $ 750.000 in front 3 x $ 250.000 splitted over the next 3 months Type a. Equity = $ 200.000 b. Angel = $ 1.800.000

93. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Prospective Financial Data (2011) Income  Expected profit in 2011= $ 947.473

94. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Prospective Financial Data (2011) 1. Month 4. Month 5. Month 6. Month 7. Month Traffic 15.000 187.500 750.000 4.500.000 9.000.000 Growth - 150% 300% 500% 100% Closes (exp. 2,5%) 375 4.688 18.750 112.500 225.000 Revenues $ 371 $ 4.641 $ 18.563 $ 209.250 $ 418.500 Expenses $631.122 $230.672 $253.188 $284.041 $356.769 Profit/Loss $ -630.751 $ -226.031 $ -234.625 $ -74.791 $ 61.731 Main cost driver / cash cow WP devlp. & Inventory MKT & Wages MKT & Server Online ads Online ads

95. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Expected revenues in the first 8 months The high expected growth rates after the first half year are due to the marketing activities and especially word of mouth.

96. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Expected expenses in the first 8 months

97. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Expected Traffic and Revenues in 2012 (by quarter) Revenues from online ads increase due to more personalized advertisments.

98. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Expected Traffic and Revenues in 2013 (by quarter) Revenues will reach $ 20 Mio due to continuous growth in traffic.

99. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Expected Profit in 2012 Expected profit in 2012 = $ 4.134.558

100. Liability Equity Venture capitalist - $1,500,000 Asset Cash & Cash equivalence $1,500,000

101. Liability Equity Venture capitalist - $1,500,000 Asset Cash & Cash equivalence $ 293,903 Intangible asset $ 500,000 Office equipment $ 168,960 Account Receivable $ 537,137

102. $ 1,000,000 Operation Marketing $ 1,000,000

105. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Conclusion & Wrap Up!

106. Final Class Project Presentation Postgraduate Management UCR – Extension June 9, 2010 Questions & Answers