1. The Equity Marketplace
Where startups can use their
equity to hire talent, buy
products and services, and raise
funds from equitylancers

2. Investment Thesis
What is EquityLancer? An equity
marketplace made up of startups and
equitylancers (those that accept equity
as a form of compensation)
Why is it valuable? Our network of
equitylancers provides a unique option
to startups who lack capital and need
resources to develop their business
ideas
How is this different? Unlike on
LinkedIn, AngelList, or other means,
equitylancers are eager to forego cash in
lieu of equity and in the EquityLancer
marketplace startups can use equity as a
form of payment
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Valuable properties will be built off
equitylancer networks using APIs
that connect to our database
Diversity of the equitylancer
database allows for multiple
targeted APIs
Great businesses can be built off
the equitylancer network, starting
with matching equitylancers and
opportunities containing equity
It’s a network effects business,
which means it has inherent
defensibility with a network
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3. Problem and Solution
There is no effective method for finding
and collaborating with people and/or
businesses that accept or provide equity
as a form of compensation:
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Using equity as a form of
compensation to acquire talent from
job boards and professional social
networks fails
Using equity to acquire products and
services from marketplaces fails
Paying with equity online fails
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The term ‘equitylancer’ was coined to identify those people
and businesses that accept equity in full or partial
compensation. Equitylancers and startups can interact with
each other for free in our Equicenter. The Equicenter is a
community-controlled resource center in which members
can find tools and build up their reputation by submitting
articles, questions, answers and comments.
We created an equity marketplace so that startups can
promote their opportunities (e.g. jobs, startup investments,
provider services and products, etc.) that contain an equity
component and equitylancers can advertise their products
and services that they’re willing to sell in exchange for
equity. As a result, members can search for products,
services, and opportunities, as well as equitylancers and
company profiles. Startups can contact equitylancers or
inquire about their product or service, and equitylancers
can contact startups or apply to or inquire about their
opportunities. All of which requires little to no cash. With
our equity payment processor, paying with equity will be
easy and the management of the company’s stock will be
able to take place online, in one area.
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4. Marketplace Mockup
The marketplace is made up of
opportunities posted by startups,
and products and services
advertised by equitylancers.
Equitylancers can apply to an
opportunity if they meet the
opportunity’s requirements.
Startups can inquire about a
product or service if they meet the
provider’s requirements.
Members can search opportunities,
products, and services by location,
relevant skills and interests,
availability, equitylancer type,
reputation, number of followers and
connections, latest activity, and
signup date.
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5. The Equitylancer Network
The equitylancer network
is made up of job seekers
who want to work at a
startup as a co-founder,
early-stage employee,
advisor, consultant,
board member, or
student. In addition to
talent, equitylancers also
include investors and
providers of products and
services. Thus, the
equitylancer network
consists of people and
businesses that provide
resources such as talents,
products, services, and
funds in exchange for
equity.
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Co-Founders
Job seekers who want
to join a new startup
Employees
Job seekers who want to
join an existing startup
Advisors
Professionals who offer
guidance to startups
Consultants
Short-term job seekers who
accept equity compensation
Board Members
People that want to join the
board of an existing startup
Students
Non-professionals who seek
internships at startups
Investors
Accredited and nonaccredited investors
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Providers
Businesses that accept equity
for their products and services
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6. Competitive Analysis
Competition
• Job boards and professional
social networks such as
LinkedIn and Co-Founders
Lab
• Funding platforms such as
AngelList
• Marketplaces such as
Craigslist
Advantages
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Differential: Startups can search through our
unique network of equitylancers (the only
database of equity-minded individuals in the
world); startups can pay for resources in the
marketplace, as well as premium features and
subscriptions, with their equity; equitylancers
can sell their resources for equity
Technology: We will invent our own process for
exchanging equity online (payment processing
tool like PayPal, but for equity), and potentially
enable other websites to use our technology
Low Price: We can offer low, competitive cash
prices on products for which we accept equity
payment
Freemium: Members can access a majority of
the site for free, including communication
features, and they can add on as little or as
many features as they desire at any given time
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7. Equitylancer Market
Who are equitylancers?
The alternative to all cash payment
People or businesses that are willing to exchange their
talents, products, services, or funds for equity such as
co-founders, programmers wanting an ownership stake,
independent contractors, executives and managers over
the age of 50, employed individuals who seek a parttime role in a potentially viable startup, providers of
products and services that desire a stake in their client’s
success, students, and investors who seek to fund earlystage startups made up of equitylancers that put their
skin in the game.
As the structure of the management employment market
continues to change and the ranks of younger managers
and unemployed business school and college graduates
grow, they will represent an additional fertile market for
equity opportunities requiring their specific talents.
While many of these managers will not have
entrepreneurial experience, they will be drawn to these
equity opportunities by disposition as well as necessity.
The successful development of this market segment will
require substantial guidance and education for potential
equitylancers.
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The biggest gain in self-employment has occurred in
the age group of those 55 and older, but 55% of
self-employed are over 40
Quite impressive is the fact that over 20% of new
businesses in the US are being created by this age
group, more than double the percentage from just
10 years earlier
Older managers represent a significant market
opportunity, since they have few traditional
employment alternatives but do possess the
experience and knowledge to start their own
businesses
The growth of workers classified as independent
contractors, freelancers, 1099s, and temporary
workers might represent close to 50% of the U.S.
workforce in less than 20 years. As they compete
for work, many will be open to performing services
for equity as a way to gain new clients and help
secure their futures as equity owners in the clients
they serve
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8. Startup Market
Dire need for resources
Huge growth potential
Roughly 600,000 start-ups are launched
annually in the United States and are the
primary drivers of employment, creating
over 65% of net new jobs. Many of these
new businesses are starved for human
and financial capital as well as products
and services and many more would be
created if these resources were more
readily available. Less than 60,000 new
businesses are funded by VC’s and
Angels annually while small business
loans continue to fall.
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400M+ startups throughout the world
that want to create a startup
100,000 startups created daily
throughout the world
Less than 10% have the capital to build
their business and are in dire need of
resources
Rapid increase in business incubators,
accelerators and entrepreneurial
business programs has spurred even
greater startup growth; 1/3 of business
incubators in the U.S. are operated by
universities
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9. Disruptions
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Equitylancers
– Rapidly growing number of equitylancers and entrepreneurs in a weakened economy due to
material changes in structure and dynamics of the employment market leading to permanent
oversupply of managers, consultants and most other talent
– Younger managers; frustrated by a difficult market are pursuing new lifestyles, accepting lower
direct compensation with equity ownership and some control over their future
– Consultants displaced from the corporate world and ready to help start-ups in their area of
expertise because permanency has been lost in managerial employment as more and more
work becomes project oriented
– Baby boomers are being rejected at age 50; no desire to retire, or can’t afford that result;
many have lost a material portion of their nest eggs, but still have their human capital to
contribute
Startups
– Material changes in startup financing such as the evolution of funding from VCs then to angels
to seed funds, then accelerators and incubators to crowdfunding, and now equity-driven
– An examination of capital raised through VCs from 1995 – 2010 reveals that of the
approximately 10M startups launched during that period less than 1% (0.62%) ever received
VC funding
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10. How It Works
For Startups
Concept Stage
Visit EquityLancer.com
Message Equitylancers
Offer Deal
Search for equitylancers and list an Contact the equitylancers directly or
Negotiate an equity arrangement
opportunity in the marketplace inquire about their products or services
and generate a contract
For Equitylancers
Visit EquityLancer.com
Message Startups
Negotiate Deal
Provider
Search for opportunities and list a
product or service in the marketplace
Contact the startups directly or
apply to their opportunities
Accept the equity arrangement and
electronically sign the contract
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11. Freemium Business Model
Freemium Features
Premium Features
• Browse marketplace
(opportunities, products, and
services), equitylancers,
startups, and Equicenter
• Search the marketplace,
startups, and Equicenter using
advanced search filters
• Submit posts such as
questions and answers to the
Equicenter and build a
reputation
• Follow, connect with, and
message other members
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Search equitylancers using advanced
search filters
List an opportunity (must contain an
equity component for compensation)
Advertise a product or service (must be
willing to accept equity as payment)
Feature a listing, posting, or submission
View the reputation of other members
Display a premium badge on your profile
View statistics and who’s viewed your
profile
Gain access to our equity calculator
Gain access to concierge services
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12. 5-Year Financial Projections
FIVE YEAR INCOME STATEMENT FOR EQUITYLANCER (FIGURES USD)
2014
Net Sales
715,096
2,823,233
Cost of Sales
291,175
Gross Income
2017
2018
7,657,583
18,434,140
44,286,595
631,556
1,092,321
2,813,675
4,366,817
423,920
Operating Expenses (SG&A)
2,191,678
6,565,261
15,620,465
39,919,778
537,772
2,211,283
4,771,282
8,555,401
14,289,218
(113,852)
Net Profit Before Taxes (Pretax Income)
2015
2016
(19,606)
1,793,979
7,065,064
25,630,560
Marketing Plan Stages
Online Marketing Spend Assumptions
Marketing Allocation
%
Pricing
$
Stage 1 (initial 3 months)
$8,083 per month
Content Dev/Distribution
17%
Standard
$10
Stage 2 (months 4-6)
$30,333 per month
Public Relations
12%
Provider
$20
Stage 3 (months 6-12)
75% of premium plan revenues
Email Campaigns
7%
Premium
$20
Stage 3 (months 13-24)
50% of premium plan revenues
Affiliate Marketing
15%
Stage 4 (months 25-36)
40% of premium plan revenues
Search Engine Marketing
9%
Stage 5 (months 36-48)
35% of premium plan revenues
Web Advertising
30%
Stage 6 (months 48-60)
30% of premium plan revenues
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13. Convertible Note
We’re seeking $250,000 in a two-year,
6% note, convertible into preferred
shares at a 30% discount from the
valuation of the Company’s initial
Series A funding of a minimum of
$1,000,000, with a $3 Million cap
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14. Use of Funds
The funds will be used
YEAR 1 EXPENSES SUMMARY
primarily for completing the
Operating Expenses
build out of our new website
Marketing, Web Advertising, etc.
and acquiring new members
Compensation
through sales and marketing.
Travel & Entertainment
The funds will be combined
Security Deposits, Misc
with the revenues generated
Consulting, Legal and Accounting
from the new website. In the
Insurance
first year, $388,767 will be
spent on Marketing and about Occupancy
Cost of Sales
$256,383 will be spent on
Compensation
compensation for product
Merchant Processing and Collections
development. A full set of
Web Development, IT Systems
financial documents are
available for serious
investment inquiries.
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Total
537,772
388,767
64,977
25,726
24,144
18,000
15,000
1,157
291,175
256,383
28,604
6,189
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15. Team
Ken Kwit – CEO
Founder and Former President,
WineSource.com
Former CEO and Chairman of the Board,
Expressions
Founder and Former CEO, Post Tools
Former CEO, President, and Chairman of the
Board, Sonoma Vineyards
Former VP and General Counsel of Norton
Simon, Inc. (then a Fortune 50 Company)
Founder and Former Managing Partner, NYC
Corporate Law Firm of Roth, Carlson, Kwit,
Spengler and Goodell
Bob Lyons – Chief of Staffing and VP of
Business Development
Former VP, Kelly Services and Interim Services
(now Randstad)
Former VP and Group Product Leader (now
Adecco)
Former Sales Executive, Ethicon
Lieutenant, U.S. Navy
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Chris Madeira – VP of Product Development
and Marketing
Founder and Former President,
Former Director, Phoenix Health Systems
Former VP, New Media Communications
Founder and Former CEO, Cydera
Former Director and Legislative Assistant,
National Defense Industrial Association
Gabe Rotman – VP of Product Design and
Online Marketing
Founder and CEO, Sharelancer
Advisor, Mapsion
Consultant, Citrix Systems
Founder and Former COO, SteadCom (sold to
eTecc Communications)
Founder and Former CEO, Ultima Online
Virtual Goods Store (sold)
Wayde Gilchrist – CTO
Former CTO, Zindigo, Bean Jar and Green Jobs
Former President and CTO, The Idea Store;
and Web Software Development
Founder, ConsumerRatings.com
Webmaster, McAfee Associates
Senior Systems Analyst, Symantec
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16. Next Steps
Get in touch with us now!
Contact: Ken Kwit, CEO
Email: ken@equitylancer.com
Phone: (561) 398-5279
Contact: Chris Madeira, VP
Email: chris@equitylancer.com
Phone: (703) 868-1451
12/26/2013
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