Interior Define Overview

INVESTOR PRESENTATION

STRICTLY CONFIDENTIAL 2

Interior Define is an e-commerce home furnishings

brand reshaping how customers think about

quality, customized furniture at a superior price


$4,459

$29,387 $31,164 $33,529

$52,003 $51,080

$71,548

$81,363

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Jan Feb Mar Apr May Jun Jul Aug

AVERAGING C. 25%

SEQUENTIAL GROWTH

SINCE LAUNCH

OUR REVENUE RAMP HAS BEEN RAPID…


The US e-commerce home furnishing

market is only 7% penetrated

In contrast, the current US e-

commerce penetration in apparel and

consumer electronics is 15% and 54%,

respectively

15% e-commerce penetration equates

to a $45 billion market opportunity in

2023, implying a greater than 10%

CAGR

… REFLECTING AN ENORMOUS,

UNDERPENETRATED

E-COMMERCE MARKET OPPORTUNITY

Online

Brick and Mortar

Asher

2013: $223

Billion

Source: Euromonitor

THE FURNITURE MARKET IS MISSING A

VERTICALLY INTEGRATED, E-COMMERCE

BUSINESS

5

EYEWEAR

APPAREL

JEWELRY

MATTRESSES

MEN’S SHAVING

Taylor STRICTLY CONFIDENTIAL


Splurge

$$$

Aspire

$$$$$Save & Settle

$

Best Current Option

$$

ID Prices ID Design & Quality

FEW OPTIONS EXIST FOR PRICE AND DESIGN CONSCIOUS

CONSUMERS WHO STRIVE FOR PERSONALIZED, UNIQUE

FURNITURE


INTERIOR DEFINE HAS DESIGNED A SUPPLY CHAIN TO DELIVER

CONSUMERS WHAT THEY ARE WANT

We produce items made-

to-order per consumer

specifications with

carefully selected

manufacturing partners

Our experienced

overseas team carefully

quality controls and

packages every item

We ship directly to

consumers in the US;

in competitive lead

times for made-to-

order furniture


Upholstery

Size & Configuration

Leg Styles

Cushion

Fill

Sloan

OVER TWO-THIRD OF OUR CUSTOMERS ARE

CUSTOMIZING THEIR PIECES, DEEPENING

THEIR RELATIONSHIP WITH THE BRAND AND

GETTING EXACTLY WHAT THEY WANT


Easton $2,700

Kelley $1,800

COMBINED WITH PRICES ~30% BELOW RELEVANT BENCHMARKS

– CUSTOMERS ARE SAYING “YES!”

Henry $2,548

Axis II $2,698

106” Length 106” length

Wood frame (unspecified) Kiln-dried hardwood frame

Spring and down seating High-resilience foam & goose-down seating

Thin arms Extra padding on arms and frame

Woven polyester fabric Woven polyester fabric

Half chaise arm Unique, full-chaise arm

Plastic legs Hardwood legs

MADE-TO-ORDER, E-COMMERCE FIRST BUSINESS MODEL

DERIVES MANY TANGIBLE BENEFITS


$2,700

Retail Ops:

$512 (19%)

Other SG&A:

$728 (27%)

Cost of goods:

$1,268 (47%)

Profit:

$192 (7%)

Cost of goods:

$1,130 (63%)

Profit:

$270 (15%)

$1,800

Advantages to Interior Define’s Model

Made to Order E-commerce first

No inventory / holding

costs

Limited retail footprint

Highly limited

promotional activity

Low occupancy cost

Favorable working

capital dynamic

Aligned with emerging

shopping preference Retail Ops:

$80 (4%)

Other SG&A:

$320 (18%)

Asher

Direct Furniture

RetailerINTERIOR DEFINE

1,269 1,134

513

72

729

324

189

270

CATEGORY EXTENSIONS WILL EXPAND LTV


Sofa

• Pillows

• Lamps

• Rugs

• Accent furniture

Bed frame

• Night stands

• Bedding

Patio Furniture

• Outdoor decor

Asher

High-touch e-commerce phone support

with extensive product knowledge

Swatch mailers with product info and

personalized sales commentary

Post-sale full-time concierge assigned

Proactive, personal outreach when

product is manufactured, arrives in US and

is delivered

Others

Call center with limited product knowledge

Mail you a piece of fabric with generic

company information

Part-time retail employee or call center

Automated tracking numbers


WE AREN’T REINVENTING CUSTOMER SERVICE BUT

WE ARE GOING AT IT RIGHT

Asher

WITH A MULTI-CHANNEL APPROACH WE CONTINUOUSLY REINFORCE

OUR BRAND POSITIONING AND VALUE PROPOSITION


Rich web experience Highly curated showroomPersonalized swatch mailer

CONTINUED POSITIVE MOMENTUM IN AUGUST


Over 13,000 unique online visitors and 100 swatch orders in August

supports continued revenue ramp in to the end of 2014

15

Launch: September 9. 2014

English roll-arm sofa & Straight-

arm sofa

CO-DESIGNED COLLABORATIONS

Launching October 9th, 2014

Launching September 4th, 2014

STRICTLY CONFIDENTIAL

Upcoming co-designed products provide

meaningful brand endorsement and

awareness aimed squarely at our target

consumer

OUR TEAM


Steve McClearn / CEO. Former VP of home

appliance eCommerce & strategy at Sears.

MBA Harvard Business School.

Rob Royer / Founder & Head of Brand.

Former Director at Draftfcb; Director of CRM

at Bonobos. MS Integrated Marketing,

Northwestern Univ.

Jordan Diab / VP of Finance. Former UBS

Investment Banker. BS Economics, Loyola

University Chicago

Adam Rosen / GM of China office. Former

Chinese Logistics & Sourcing at Target. BS

Chinese, George Washington University.

Andy Dunn / Founder & CEO of Bonobos

Gary Kohler / Chief Investment Officer, Blue

Clay Capital

Peterson Ventures / Founded by Joel

Peterson, Chairman of Jet Blue.

Brendan Wallace / Former CEO of Identified

– led successful exit (Workday).

Executive Team Advisors & Investors

Key Team Members

Proudly run in Chicago by a

team of design junkies, brand

zealots, techies, foodies,

supply-chain aficionados,

reformed consultants, and

champions of exceptional

experiences.

STATUS OF CURRENT ROUND


$1.5 million target raise

$800,000 currently committed

Final close in late September 2014

Pre-money valuation of $2.25 million

6% deferred interested convertible

note

Taylor

APPENDIX


PROJECTIONS SUMMARY


Gross margins are expected to expand from mid-20% to over 30% as

the business scales and achieves break-even profitability in 2016

800

3,162

7,139

15,407

192 837

2,121

4,867

(1,800)(1,393) (1,155)

(65)

(4,000)

(2,000)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2013 2014 2015 2016

($U

S)

Sales Gross Margin Operating Profit

PROJECTED TO END FY2014 ON ABOVE A $1MM RUN-RATE,

INLINE WITH BONOBOS, A RELEVANT BRAND WE ADMIRE


ID actuals

0

20

40

60

80

100

120

140

160

180

Mon 1 Mon 2 Mon 3 Mon 4 Mon 5 Mon 6 Mon 7 Mon 8 Mon 9 Mon 10 Mon 11

($0

00

)

Revenue Comparison - Interior Define & 1st Year Bonobos

Interior Define Bonobos

5.0x

3.0x

2.0x 2.0x

Instagram Pinterest Facebook Twitter

SOCIAL MEDIA CHANNELS ARE GAINING TRACTION


June to August Growth in Followers

1,176 381 4,301 572

Fundraise will accelerate growth and

improve the customer experience


Proceeds from ~$1.5 million round will aim to support efforts to broaden

the brands awareness and bolster our web experience

Marketing33%

Technology / Web Development

20%

Personal47%