2. Disclaimer
This presentation is not a solicitation or offer to buy or sell any security or
any interest in SponsorsOne. (the “Company”) and cannot be relied upon
for making an investment decision. This presentation is prepared and
circulated for informational purposes only and is not intended to provide
investment, legal, accounting or tax advice or recommendations to any
recipient and should not be considered a recommendation to purchase
or sell any particular security, or to implement (or not implement) any
particular investment strategy. You should consult your tax or legal advi-
sor about the information contained in this presentation. This presenta-
tion does not constitute an offering memorandum of the Company under
applicable Canadian securities laws and does not attempt to describe
all material facts or material information regarding the Company or its
business. Persons receiving or reviewing this presentation should not
rely upon it as a complete overview of the business of the Company and
should rely on their own investigation and due diligence.
Securities of the Company may only be offered or sold in those juris-
dictions and to those persons where and to whom they may be lawfully
offered for sale, and therein only by persons permitted to sell the interests.
The Company has not filed a prospectus with any securities commission or
similar authority in Canada in respect of the interests and, accordingly, the
interests will not be qualified for sale in Canada and may not be offered or
sold directly or indirectly in Canada, except pursuant to an exemption from
the prospectus and registration requirements of Canadian securities laws.
Investment in the Company will involve significant risks, including loss of
the entire investment. No securities commission or similar authority in
Canada has reviewed or in any way passed upon the merits of an invest-
ment in the Company, and any representation to the contrary is an of-
fense. All of the information contained in this presentation are for prelim-
inary discussion purposes only. Final terms and conditions may change
without notice and are subject to further discussion and negotiations.
This presentation may contain certain forward-looking statements, projec-
tions, opinions and information that are based on the beliefs of the Com-
pany as well as assumptions made by and information currently available
to the Company with respect to future events and are subject to certain
risks, uncertainties and assumptions. Should one or more of these risks
or uncertainties materialize, or should underlying opinions or assumptions
prove incorrect, actual results may vary materially from those described
herein. The value of investments and any income generated may go
down as well as up and is not guaranteed. An investor may not get back
the amount originally invested. Past performance is not necessarily a
guide to future performance.
The Company and its directors and officers cannot be held responsible
for any direct or incidental loss incurred by applying any of the information
in this presentation. The statements and opinions expressed are subject
to change without notice based on market and other conditions and may
differ from opinions expressed in the Company’s other businesses and
activities. Descriptions of the Company’s processes and strategies are
based on its general practice and the Company may make exceptions
in specific cases. While the information contained in this presentation
was developed from sources believed to be reliable, no representation,
warranty or undertaking, express or limited, is given as to the accuracy or
completeness of the information or opinions contained in this presentation
by the Company or any of its directors, officers or employees and no liabil-
ity is accepted by such persons for the accuracy or completeness of any
such information or opinions. As such, no reliance may be placed for any
purpose on the information and opinions contained in this presentation.
This presentation should be considered confidential and no information con-
tained herein either in whole or in part may be reproduced or redistributed
without the express written consent of the Company. Any reproduction or
redistribution of this presentation without such consent is unauthorized.
3. Overview
2006
TRACKSIDE SPONSORSHIP
EXTREME SPORTS
SOCIAL SPONSORSHIP
2007 2008 2009 2010 2011 2012 2013 2014
timeline
2006 Sponsorship company launched in extreme sports
2011 $400,000 raised seed capital
2012 Receives grant from University of Waterloo
> Enters Accelerator Centre
2013 $1.25M raised, RTO, trading on CSE
2014 SponsorsOne launched
> Tech team in Waterloo
> Sales/marketing team in Toronto
> Target acquisitions LA, NYC, Toronto,
Seattle and Stockholm
CSE Symbol: SPO
Shares Outstanding: 13.4 M
Fully Diluted: 26.6 M
Market Cap: 12.51 M
Directors/Officers own
64.5% undiluted
Recent Share Price: $0.90
52 week hi: $1.00
52 week low: $0.90
4. $491B Global Advertising
Size of Market $38B in Social/Mobile/Video (2014)
+$11B
in 2014
WILL OWN
THIS
DIGITAL MARKETING
$88B
$27B
$376B
Search/Banners
Social/Mobile/Video
Traditional 0%
growth
13%
growth
41%
growth
Source: Magna Global, MediaPost, WARC 2013
(TV, Radio, Print)
TRADITIONAL
MARKETING
5. Problem – Brands Not Satisfied
Digital
marketing
®
Banners
Social Video
Search
Mobile
B
Brands Consumers
No one-to-one
connection
No visibility
on true
influencers
Campaigns
don’t scale
Low ROI CURRENT METHODS Total lack of engagement
7. The Engine of the Social Economy
®B
Brands Enthusiasts
Social sponsorship Engage with the brands they love
Social commerce Get paid with real currency
8. Defining the Social Economy
B
Social sponsorship
Social commerce
Influencers
Enthusiasts
xCredits
Treasury
Central bank
Social networks
Brands
9. Roles within Social Sponsorship
®
®
Cloud
brands enthusiast
social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksymbol
sponsors bank
®B
Brands buys xCredits to
reward enthusiasts for
authentic engagement
®
®
ud
enthusiast
etworks niche social networks
oud wordmark
xChange
sponsors xChange wordmark
sponsors bank
B
Enthusiasts receive
currency rewards for
promoting the Brand
®
®
Cloud
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksponsors cloud symbol
sponsors ba
®B
Social networks – where
social sponsorship
happens
C
x-credit
elite influencer socia
sposponsors cloud symbol
Influencers are the
catalysts for long-term
sponsorship
10. A Brand’s Sponsorship Levels
10%
off
25%
off
50%
off
10%
off
25%
off
50%
off
Enthusiast
Advocate
Ambassador
Influencer
25,000 xCredits
75,000 xCredits
Consumers increase sponsorship through authentic engagement
11. Social Sponsorship in Action
Getting sponsored
• He’s a fan of pro player, Mr. J
• Mr. J is an influencer for Brand X
• He’s passionate about Mr. J’s Brand X shoes
• Visits Mr. J’s Facebook fan page
• Clicks on SponsorOne’s “Get Sponsored” button
• Billy now has xCredit account, SponsorsCloud
connects to all his social media sites
• Billy selects Brand X among Mr. J’s multiple Brands
• Billy receives 50 xCredits in account from Brand X
for engaging
12. Social Sponsorship in Action
Earning xCredits
Billy posts pic on FB of himself in
Brand X store with shoes on
• Gets lots of likes and shares
• Sees xCredits balance go up +25
Tweets about the store experience
• Friends retweet it
• Sees xCredits balance go up +4
Mr. J’s xCredit balance goes up too +5
®
®
Cloud
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B
®
®
Cloud
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B
®
®
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B
13. Social Sponsorship in Action
Achieving new sponsorship levels
Billy gets sponsored by clothing
Brand Y and skateboard Brand Z
• Keeps the authentic engagement going
• xCredits balances keep going up
Moves up 2 levels with Brand X
®
®
Cloud
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B
10%
off
25%
off
50%
off
Enthusiast
Advocate
14. Social Commerce in Action
Converting to real dollars
• Billy has earned enough xCredits from Brands X, Y, Z
• Can now exchange for $200 Brand X shoes
• Billy receives his 25% off code worth $50 coupon
• Exchanges xCredits for cash coupon
• Brand X bids “80 cents on dollar” based on Billy’s
Impact Score
• Score driven by quality of brands, xCredits earned,
type of engagement
• Exchanges 1500 xCredits for $120 coupon
• He buys shoes for $30
15. Social Commerce in Action
Converting to real dollars
Brand wins – buys xCredits at 20% discount, has a rewarded fan
Billy wins – buys $200 shoes for $30
Mr. J wins – receives 150 xCredits from Brand (10%)
SPO wins – 150 xCredits returned to central bank (10%)
The Social Currency value is based on
• the Impact Score of the enthusiast
• the monetary value – every user has their own Social Commerce value
16. How SponsorsOne Makes Money
xCredits Sales
Sale of xCredits
to brands
Partnering with
Influencers and social
networks
Global Creative
Agency
Fees for digital
marketing services
to brands
Acquire digital
boutique agencies
Acquisitions
Social
networks
Big Data Analytics
Access fees to brands,
agencies for Social
Economy analytics
17. How SponsorsOne Makes Money
Sale of xCredits
®
®
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B
REVENUE SHARE
®
®
Cloud
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B
80-90%
10-20%
1,000,000
®
®
brands enthusiast
social media networks niche social networks
sponsors cloud wordmark sponsors xChange wordmarksymbol
sponsors bank
®B ®
®
x-credit brands enthusiast
e influencer social media networks niche social networks
sponsors cloud wordmark sponsors xChange wordmarkponsors cloud symbol
sponsors bank
®B
®
®
nds enthusiast
ia networks niche social networks
s cloud wordmark sponsors xChange wordmark
sponsors bank
®B
Cloud
sponsors cloud wordmarksponsors cloud symbol
®
®
Cloud
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B
®
®
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B
$100K + X%
• Central bank issues xCredits to Treasury
• Brands pay cash to Treasury
• Treasury issues xCredits to Brand
• Treasury earns X%
transaction fee
18. How SponsorsOne Makes Money
Enthusiasts earn xCredits through authentic conversations about the Brand
Authentic engagement
®
®
brands enthusiast
social media networks niche social networks sponsors bank
®B ®
®
x-credit brands enthusiast
elite influencer social media networks niche social networks sponsors bank
®B
®
®
s enthusiast
etworks niche social networks
oud wordmark sponsors xChange wordmark
sponsors bank
B
Cloud
sponsors cloud wordmark
xCh
sponsors xChsponsors cloud symbol
®
®
Cloud
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B ®
®
Cloud
x-credit brands
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChang
sponsors xChange wordmasponsors cloud symbol
®B
No fee to authenticate the engagement
19. How SponsorsOne Makes Money
Enthusiasts earn cash and discounts to buy the products and serves they love
®
®
brands enthusiast
social media networks niche social networks sponsors bank
®B ®
®
x-credit brands enthusiast
elite influencer social media networks niche social networks sponsors bank
®B
®
®
s enthusiast
etworks niche social networks
oud wordmark sponsors xChange wordmark
sponsors bank
B
®
®
Cloud
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B ®
®
Cloud
x-credit brands
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChan
sponsors xChange wsponsors cloud symbol
®B
Real rewards
Cloud
sponsors cloud wordmark
xCh
sponsors xChsponsors cloud symbol
• Brands pay discounted value
on xCredits
• Discounts based on level, Impact Score
• Treasury earns transaction fee
• % of xCredits goes to central bank
®
®
Cloud
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B
XCREDIT SHARE
®
®
Cloud
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B
60-80%
10-20%
10-20%
®
®
Cloud
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B
®
®
Cloud
x-credit brands enthusiast
elite influencer social media networks niche social networks
sponsors cloud wordmark
xChange
sponsors xChange wordmarksponsors cloud symbol
sponsors bank
®B
20. How SponsorsOne Makes Money
Managing supply and demand within the Social Economy
redeemed for products 10-20%
redeemed to “level up” 10-20%
transferred to fans by influencer 5-10%
transferred between enthusiasts 5-10%
donated to charity 0%
Reduces the number of xCredits in circulation
Brands and Influencers purchase more xCredits
Returned
to TreasuryTransactions
21. How SponsorsOne Makes Money
Growth strategy
Creative Agency acquisition
• Serving major brands and celebrities
• 10-20 person
• Firms with $3-5M revenue
• Have $20M Revenue in pipeline
Social Network acquisition
• 1-5M users
• Brings cash flow and revenue
• Proven technology
• Major brand relationships
Build the sales channel
• Recruit industry players to Advisory Team
• Joint Venture with Influencer Management Firms
24. Our CEO
Myles Bartholomew
Developed Social Sponsorship
while professional motocross
racing
Wrote and filed the patent on
Social Sponsorship in 2013
26. Investment Summary
• Digital marketing segment growing at 41% adding $11B in 2014
• Significant growth strategy
• SPO raised $1.25M, warrants to contribute $5.6M, RTO and
trading on CSE
• SPO offers Social Sponsorship supported by the Social Currency
• Revenue from transaction fees, creative services, acquisitions
• Signing industry players to Advisory Team
• Recruiting channel partners to access Influencers
• Brands and Influencers are creating the Social Economy
– SponsorsOne is the Engine
• Top performing management team with deep industry experience
27. Latest News
Mar. 5, 2014: Iconic Brand Builder Ricardo Camargo joins Advisory Team
Feb. 27, 2014: Jonathan Leong joins as CFO
Feb. 12, 2014: Music Mogul Lord Seb Webber joins SponsorsOne Advisory Team
Jan. 31, 2014: SponsorsOne announces initial agreement to acquire NFU
Jan. 30, 2014: SponsorsOne announces Warren Noronha to the Advisory Team
Jan. 8, 2014: InfoPet renamed SponsorsOne, trading under symbol CSE:SPO
Jan. 3, 2014: SponsorsOne announces Seth Brouwers as Chief Operating Officer
Dec. 17, 2013: MXM Nation completes RTO with InfoPet
Dec. 1, 2013: MXM completed $1.2M private equity financing
28. Gary Bartholomew, Exec. Chairman Jay Bedard, Investor Relations
gbartholomew@sponsorsone.com jay@envoystrategicpartners.com
T: 647.400.6927 T: 647.202.1648
