ArtistWorks is the creator of twice-patented Video Exchange eLearning ®. Our concept and platform are used to teach music online with 36 world-renowned musicians. Our current $1.6M raise is to build and promote the ArtistWorks School of Music Certificate Program and to add more remarkable musicians to our roster. The evolution of our idea and platform will lead us to launch a multi-vertical marketplace for any visually taught subject some time in 2019.
1. Patricia Butler, CEO, Cofounder
68 Coombs Street, Napa CA 94559
pbutler@artistworks.com
Office: 707-255-1840
Cell: 707-225-7227
Where MastersCometoTeach
2. PROBLEMS with online and traditional learning
1:1 teaching not scalable
No feedback or evaluation
Privileged few get access to subject-matter-experts
Unstructured learning .•. abandoned hopes
Fragmented industry
3. •Multi-style learning with Video Exchange®
•Ongoing learning conversations
•Democratizes access
•Centralized destination
•Scales 1:1 teaching
ArtistWorks.com – experts in online music instruction
4. We have an industry-unique, unfair advantage: Video Exchange Learning
https://www.youtube.com/watch?v=tFcGZQRr8bM&feature=youtu.be
5. • Online skill instruction taught by subject masters
• Industry-unique, protected technology
• Executed a scalable teaching method & proven our
concept with music
• Next: execute deeper penetration & higher margins
NEW Certification Program (Sept 2018)
•$250, 12-week program
•Guided pathway to mastery
•Inspires 60M music makers
Most comprehensive
music education destination
6. Total e-Learning Market
Self-paced Vocational Corporate Music- Hobbyists Music- Academic
$190bn
$25bn
$30bn
$1bn
$1.5bn
60M “Music Makers” world-wide seek instruction
7M US high
school
players
13M US
adult
players
7. Business Model
•Adult hobbyist & serious amateur, 20-65 yrs old
•Seek expert instruction, guidance & validation
Auto-renew subscription Certification Program:
1,3 & 12 month 12-week courses, 3 levels
$39, $99, $279 $250
Average 55% gross profit Average 80% gross profit
NEW
8. Go To Market/Distribution
•Bigger digital marketing budgets are key
•Organic search/Search Engine Optimization (SEO)
•Conversion Rate optimization
•Extensive Digital Marketing
•Content &Program distribution (public & cyber schools)
•Customer Retention: Certification Program, Collaboration
Features, Curating Tools
Life Time Value: $310
CPA: $58
9. COMPETITIVE Advantages & Analysis:
Proprietary&protected“VideoExchange”technology
Proven Business & Financial Models
Ageless Music Content: 5700 hours
Certificate of Achievement Program (Accredited)
Video Exchange® NO NO NO NO YES!
Certificate/ Accred College NO NO NO YES!
Curated teachers Yes NO NO NO YES!
Social platform NO NO NO Yes YES!
10. Our Executive Team
David Butler, Chairman & Cofounder
AOL VP of Strategy Technology, pioneering technologist (‘88-
’99) of original AOL platform. Inventor of core ArtistWorks
technology of “Video Exchange”, original patent holder.
(guitar)
Patricia Butler, CEO & Cofounder
Former President ArtistWorks, Former AVP Merrill Lynch Private
Wealth. Creator of ArtistWorks business and financial model,
led the patent process and academic accreditation with WASC.
(flute, piano)
Marc Verissimo, Business Strategy
Former Interim CFO, Chief Strategy Officer, Chief Risk
Officer at Silicon Valley Bank, Avid Bank board member,
Lighter Capital board member
Advisors:
Montage Capital
Tom Armstrong (Ion)
We are open to actively involved investors & their expertise
12. FUNDINGHistory
•Founders bootstrapped $5M
Seed Round: $1.6M+ (Preferred Equity Units, $100K/unit)
•First Closing $400K complete
•$7.0M pre-money
UOF: Mobile, marketing/sales, tech scale, wages, content
production, certificate program buildout, roster build out
Extension of the model: (2019)
Multi-vertical subjects taught on Video Exchange marketplace
online with subject matter experts teaching many topics.
Hinweis der Redaktion
The online teaching and evaluation market is broken.
The video sites most often accessed are one-sided conversations, so players get stuck when they need help the most.
The solution is ArtistWorks.com, for both music and any visually taught subject that is learned online.
First, we’ve been in the online music instruction since 2009. We’re experts. We’ve succeeded where others have failed. Now it’s a matter of full execution. We’ve not only survived, but thrived by learning from missteps and allowing our students and renowned teachers refine our concept and offering.
Second, we’ve proven the model, the willingness to pay for this style of learning (so we’ve monetized it) and we enjoy a strong position and reputation in a field awash in confusion and decentralization of resources.
•Teachers and players regularly engage in Video Exchanges (virtual master classes) to keep their learning on course and with meaningful, valuable guidance specific to their needs. The learning conversations continue so the players progress continues on the right path. They get help when they need it the most.
•Affordable access to today’s musical masters and their life’s teaching at ArtistWorks - Teach the World Music
•The lessons, study materials, social features and tools for every kind of learner, from adults to high schoolers are all in one central destination that establishes high quality standards for all.
•Teachers’ time is leveraged because Video Exchanges are visible to everyone in the course who can apply the instruction to their own playing, but also because we’ve optimized the content for online learning. Short lesson videos mean short submissions which = easy and short but meaningful responses.
This is our unfair advantage: Video Exchange Learning. This demonstration is for music instruction.
Click image to play video in PowerPoint SLIDE SHOW MODE…..
https://www.youtube.com/watch?v=tFcGZQRr8bM&feature=youtu.be
20M in the US, 13M of them adults/our target audience for B2C
14.5M students without lessons (B2E)
7M of them in high school without lessons
$190bn elearning market is relevant as ArtistWorks evolves and extends its patented technology and learning concept to non-music verticals in 2019
Certification Course (Accreditation Program pre-cursor)
Difference in gross profit is the revenue share with the artists.
Our already robust digital marketing program will catalyze demand for the new Certificate Program, an add-on course of study.
Dual purpose structured program: high schools student can earn course credit and hobbyists get a certificate of achievement or completion. Rigorous, meaningful course of study so their skills and knowledge are challenged, whether or not they are in school.
*Our area of providing high quality, personal instruction that reaches many learners within a proprietary platform is a model that helps protect us from big competitors.
As CEO, Patricia has built the business and financial models, led the patent process as well as the academic accreditation completion and directs all corporate development and growth acceleration for the company and its proprietary technology and teaching concept.
David is a pioneering technologist with keen vision for the user experience. His technology work at AOL included building the important platform groundwork that made AOL a household name that led to a historical exit. He’s the creator and original patent holder of Video Exchange Learning that was born out of his drive to learn jazz guitar.
Marc Verissimo brings his formidable career at SVB in risk and financial management to our strategic team. His insights inform and influence the short and long term trajectory of the company
Our ADVISORS, who are helping us to accelerate our growth include Montage Capital, our lender, which is a team of former SVB execs.
Over time, as the certificate and accredited programs gain momentum and becomes a larger portion of our revenues, you can see gross profit margins and EBITDA increasing.
By 2021 the certificate and accredited program represents about 30% of revenues at a higher gross profit margin (78-80%)
Unlike many other entrepreneurs, we bootstrapped ArtistWorks with $5M, so we funded it well. We are “all in” and not going to fold. Failure is not an option for us.
Defendable technology took money and time and risk, so we built the foundation for others to gain from: teachers, students and investors.
