Risky Finance investor deck for seed funding, Nov 2017

1. “The psychology of accurate intuition involves
no magic”
- Daniel Kahneman, Thinking, Fast & Slow
Nick Dunbar, Founder & Editor
Riskyfinance.com
nick@nickdunbar.net

2. The problem
• Financial market professionals are deluged
with data from multiple sources but lack an
immediate visual overview.
• Markets and institutions are increasingly
complex, and time-consuming to analyse.
• Human skills of rapid, intuitive thinking are
underutilised.
riskyfinance.com

3. The Solution
• Visualisation technology provides an
immediate overview of complex data
• Users navigate through interactive charts until
they find an intuitive answer to their problem
• The visualisation turns data into a narrative
that empowers users to act on risks and
opportunities
riskyfinance.com

4. Some History
riskyfinance.com
1997
1999
2001
2005
2009
2011
2013
2016
Started as
editor at Risk
magazine
(10,000
readers)
Published ‘Inventing
Money’, sells 25,000
copies
Started writing
finance
commentary
for
BreakingViews
Launched Life &
Pensions
magazine ($1m
revenues)
Left Risk to write The
Devil’s Derivatives,
sells 10,000 copies
Launched
Bloomberg Risk
newsletter
(13,000 readers)
Leaves
Bloomberg to
develop Risky
Finance
Launched Risky
Finance

5. Market size
• 22,500 mutual funds and 16,500 banks
worldwide (Source: FDIC, ECB, Bloomberg)
• 600,000 individual customers of desktop
professional financial data platforms(Source: Bloomberg,
Thomson Reuters, Factset, S&P Capital IQ annual reports)
• Financial data providers earned revenues of
$14 billion in 2016, with 6.1% CAGR (Source: annual reports)
• Data visualisation providers earned revenues
of $4.1 billion in 2016 with 9% CAGR (Source: Orbis
Research)
riskyfinance.com

6. The Product – Use Case #1
Bank analyst
• Open banking tool on
desktop via secure login
• Start with bank income
comparison
• Explain result using risk
capital requirement
metric
• Identify banks with
greatest opportunity to
take more risk
riskyfinance.com

7. The Product – Use Case #2
Investment banker
• Start with overview of
corporate bond market
• Overlay with equity
market capitalisation
• Identify companies with
highest or lowest capital
utilisation
• Export hit list of
prospects for pitches
riskyfinance.com

8. The Product – Use Case #3
DCM Banker / Rating agency
• Start with overview of
sovereign bond market
• Rescale by debt-GDP
ratio
• Identify countries with
greatest refinancing
pressure
• Export list for client
pitches or ratings model
benchmarking
riskyfinance.com

9. Business Model
• Compile proprietary data
from public but hard to
find sources
• Partner with established
data providers that wish
to access new verticals
• Apply visualisation
technology and analysis
to the data
• Leverage customers with
data narratives and
intuitive insights
riskyfinance.com

10. Competitive Landscape
riskyfinance.com
Finance specialists Industry generalists
Multiple
products
Visualisation
specialist

11. Market adoption
• Articles, charts and analysis read by over 1,500 influencers
and finance professionals
• Risky Finance earned revenue in 2017 from over ten paying
subscribers (price: $1500 pa for individual login)
• They include a global ratings agency, asset manager, data firm
and think tank
• Plan to convert individual subscriptions to higher value
corporate licenses ($10k-50k pa)
riskyfinance.com
Marketing list /
free sign-ups
Individual
subscriptions
($1500/yr)
Corporate licenses
($10k+/yr)

12. Forecast financial plan
• This table shows actual revenues for Aug 2016-Aug 2017, and revenues
contingent on new funding for future years.
• 2018 revenue growth will come from conversion of individual
subscriptions to corporate licenses
riskyfinance.com
£ 2016-7 2018 2019 2020
Subscription revenues 10,000 100,000 200,000 500,000
Event revenues 0 50,000 100,000 150,000
Total revenues 10,000 150,000 300,000 650,000
Staff costs 30,000 80,000 150,000 200,000
Operating costs 18,000 36,000 54,000 72,000
Cost of sales 0 52,500 90,000 162,500
Total costs 48,000 168,500 294,000 434,500
Operating profit -38,000 -18,500 6,000 215,500
Margin 0% 0% 2% 33%

13. Business growth plan
• For years 1-2 we aim to grow
revenue by optimising and scaling
our existing product
• Key priorities include automation
of data feeds & visualisation
updates, and showing data
previews on the homepage
• Sales priorities include closing
prospects, securing demo
meetings, and converting
individual subscriptions to
corporate licences
• We plan to start dedicated events
for subscribers
• For years 1-3, profits will be
reinvested in the business
riskyfinance.com
MVP ~ 10 subscribers
End 2018 ~ 100 subscribers
2019-2020 1000+ subscribers
Automation
Sales
plan
Product
innovation
Events

14. Use of funds
• We are looking for £150k angel round financing
to reach £150k in revenues.
• 10-20% equity in Risky Finance will be offered
(assuming £800k current valuation)
• We have applied for UK Special Enterprise
Investment Scheme tax protected status.
• At 12 months, a second round of financing will be
required (using Enterprise Investment Scheme
status).
• In three years, we aim for an exit valuation of £1
million.
riskyfinance.com