Send My Kid is a personal crowd funding site, where parents can do aggressive fundraising for their kids’ tuition, from "crib-to-college".

1. Send My Kid
Changing the world through education
Craig Ellrod
June 5, 2012

2. Agenda
• Pitch • Proprietary Tech
• Problem • Competition
• Solution • Marketing Plan
• Demo • Team
• Market Size • Money / Milestones
• Business Model ($)
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3. Send My Kid
Fundraising for Tuition
• Using your close personal social network
• Day-Pre-K-12, College, University
• Combined with Gamification and Rewards Spending
Vision:
“Send all kids to the school Crib-through-College – debt
free”
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4. Problem
• There is no “Public” daycare for infants and Pre-K kids
• Public school system is failing, Budget cuts, Tuition hikes + 10% inflation
• 17.5 Million people attend College each year
• 70% of them cannot afford it (12,250,000 students)
• Tuition Inflation 10%, regular inflation is 4% - nobody can save fast enough
In 2010 College costs:
• Public University: $81,356 (4 years), at $27,967 (per year)
• Private University: $161,904 (4 years), at $40,476 (per year)
Hypothetically, by the time your child turns 18,
• Public University: $547,322 (4 years), at $188,148 (per year)
4
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Private University: $1,089,209.15 (4 years), at $272,302.29 (per year)

5. Solution
Send My Kid
• Automated fundraising (SMK v1 today)
ᵒStart young (before birth)
ᵒStart fundraising with close friends and contacts – emails with donate button
ᵒBirthdays, Xmas, Weddings, Baby Showers, other holidays as appropriate
ᵒBuild up funds – FAST! – get the money growing and put it to use
ᵒTuition will be there when your kids are ready
• Rewards Spending (SMK v2)
ᵒIntegrated “Affiliate” shopping w/ automated email system
ᵒCan get 6% - 10% from people shopping into students account
• Gamification (SMK v2)
ᵒVirtual coins (points) are rewarded just for using SMK
ᵒTuition/Scholarship giveaways/lottery monthly ($100 - $1000)
• Partnering (SMK v2)
ᵒSchools & Financial Institutions
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6. Demo
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7. Market Size
Target: Parents, Guardians of newborns.
• US Residents, Ages 0-24: 104,903,974 (Children, Potential Students)
• US Residents, Age 21-85: 221,557,036 (Adults, Potential Decision Makers)
• US Births: 4,200,000 each year
• US Total number of families with children under 18: 32,203,000
• 17.5 Million people attend college each year
• College spending market was $10.5 Billion in 2009
• Online education will grow into Trillions by 2020
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8. Market Size
• Avg transaction = $1 (1% of $100)
• 32,203,000 Families saving for education
• Avg family receives 12 donations/year
• Total market size = $1 * 32MM * 12 = $384,000,000
• 1% of total market = $3,840,000
• 5% of total market = $19,200,000
• 10% of total market = $38,400,000
• Growth:
ᵒ4 MM births every year (potential students)
ᵒ$48,000,000 potential increase every year
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9. Business Model ($)
• Low burn: 0 Inventory, 0 AR, 0 AP, all software, online
• Donation Model
• Rewards Model
• Subscription Model
• Ad Model
• Partner
• Affiliate
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10. Proprietary Tech
• Automated HTML Formatted email fundraising system
• Accelerated funding using personal fundraising combined with rewards
spending
• Matching students/parents with funds (Grants, Loans)
• Gamification
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11. Tax Implications - Gifting
• http://www.irs.gov/newsroom/article/0,,id=256009,00.html
• Send My Kid is not a 501(c)3 charitable organization
• Donor: Gift not subject to gift tax up to $13,000, lifetime $1 MM
• Donee: Doesn’t pay the tax (unless Donor fails to pay the tax)
• Do not have to file a gift tax return for gifts made by paying someone’s tuition
• Ultimately I would like the tax laws changed to support education
ᵒRemove or Raise the $13,000 and $1 MM lifetime gift limit
ᵒChange exclusion to allow for all education expenses, including books, supplies, room
and board, and other expenses
ᵒHave all education funds grow tax free (currently only 529 accounts are tax deferred)
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12. Competition
Send My Scholar Fidelity
UPromise eScrip Kickstarter IndieGoGo GiveZooks
Kid share UFund
“crib-
through-
college” P O O O O O O O
Fundraising
UX P(v2) O O O O P P P
Indv Edu
Focus P P P P O O O O
Freedom of
Investing P O O O O P P P
Rewards P(v2) O O P P O O O
Int – schools P(v2) O O O O O O O
Int - inv firms P(v2) P P O O O O O
Int - Grant
Money P(v2) O O O O O O O
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- 2012 Send
13
Loans P (v2) O O O O O O O

13. Marketing Plan
Marketing will focus on obtaining/retaining active users
• Grab as many active users as possible – focus on retaining them
• Social Media – Integration with social media platforms, Ads on social media
sites
• SEO/SEM
• PPC, Online Ads
• Blogging – SendMyKid is built on top of Wordpress, blogging is built-in
• Email – using our built-in email system
• Radio, Print
• Promotions/Contests
• Gamification – Bigdoor.com
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14. Team
Craig Ellrod (Founder, CEO)
• 25+ Years deep technical experience
• BS Computer Science, Masters in Business Administration
• $34,000 built sendmykid.com + developer in India
• http://craig.ellrod.com
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15. “Wow, I think you might be
onto something, you need to
think about it really hard.”
Tim Draper
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16. Money / Milestones / SMK v2
Send My Kid (v2)
• Marketing to get 100K users
ᵒAcquisition
ᵒ$75K
• New UI for better UX
ᵒAcquisition/Retention
ᵒ$50K
• Integration – Rewards, Schools, Financial Firms, Grant Money, Student Loans
ᵒAcquisition, Retention, Revenue
ᵒ$50K
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17. Money / Milestones / SMK v2
Milestone Benefit Spend Value
100K users * 12 =
Marketing User Acquisition $75K
$1,200,000
Retention, Revenue, Activation, Referral,
New UI for better UX $50K +revenue
Rewards
Integration – Rewards, Schools,
Financial Firms, Grant Money, Acquisition, Retention, Revenue $50K +revenue
Student Loans
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18. Financing
• $34K Self-Seeded, July ‘11 – Apr ’12
ᵒSelf funded, $34K of owner money, SendMyKid 1 (Alpha)
ᵒCompleted UI & Automated eMail fundraising system
• Seeking $?M Series A? ~or~ $?K Convertible Debt
ᵒDevelopment - Next generation web interface
ᵒMarketing – rapid user adoption
ᵒHire Staff – marketing, development
ᵒGet to 100,000 active users by end of the year
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19. Leave with…
•$1.5 Billion - 2011 Crowdfunding market
•$2.8 Billion - 2012, 91% Growth
•California Deficit $16 Billion
•More education cuts on the way
Crowdsourcing.org
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