Applican The “common app” for jobs

Alchemist Deck 3/29/13

Market The annual value of the talent acquisition market is $130B,1 a figure that includes internal staff salaries, advertising, tools and services.  We believe our total addressable market is $13B 2 for university recruiting and experienced hires.

Years to Monetization | Total Value of Acquisitions in Last 5 Years | 3 Billion Dollar+ Acquisitions 15.7 3 $10.29B 4 Last 15 Months 5

Key Metrics

1) Bersin & associates research report: http://www.pinstripetalent.com/Portals/100395/docs/reportbersininvestementsinrecruiting.pdf 2) $130B Total Market * 10% = $13B Assumption is that 90% is allocated to things that aren’t tools and services 3) Figure derived from random sample of 50 acquired companies between 2008-2012 from 451 research 4) Figure from total acquisition value 2008-2012 from 451 research in enterprise workforce management 5) Taleo, Kenexa, SuccessFactors 6) Figure from total acquisition value 2008-2012 from 451 research in enterprise workforce management

0

2000

4000

6000

2008 2009 2010 2011 2012

Millions

M&A Activity Last 5 Years 6

Problem + Solution Workflow with Applican Current Recruiter Workflow

Bloated Manual data entry = wasted time

Need for additional staff

Inconsistencies and lost data.

Difficult data collection + analysis

Hypothesis-driven decisions

Obsolete channels for marketing + branding

Automation One-click applying

Increase the amount of potential hires

Automated sorting = quicker + higher quality hires

Robust metrics = data-driven decisions

Streamlining + Savings Automation incurs minimal marginal costs Allows for dramatic cost and time savings

Outdated

Recruiting Processes Comparison

Outdated Tech

Job Portals Universities

Networking Referrals

Applican Mobile

HR

Job Portals

Universities

Networking

Referrals

HR Old Model

Our Model

ATS

ATS

Our Product

Recruiting progression over time

Applican Version 1 – Paper Version 2 – ATS systems Version 3 – Web 2.0

Examples

SaaS apps are replacing outdated enterprise installations across every major industry vertical

Competitors

Jibe1 Mobile recruiting app with ATS and CRM integration. Raised

$16.9M over 3 years with funding from known investors

InternMatch6 Web service connecting

undergraduates internship opportunities in

tech and nonprofits

Workable4 Cloud based applicant

tracking system based in Greece

AfterCollege5 Job board targeting

recent college graduates. Similar to NaceLink

solutions

iMomentus2 White label recruiting app, CareerConnect, allows for one-click applications, job search and ATS integration

ReadyForce3 Consumer facing web service

helping college students interact with startups. Raised $12.2M

from tier 1 investors

All screenshots taken on 3/12/2013 1) http://www.jibe.com 2) http://www.imomentous.com 3) http://www.readyforce.com 4) http://www.workablehr.com 5) http://www.aftercollege.com 6) http://www.internmatch.com

Team Rich Rines Mike Wellington Matt Keemon

Developer Product Sales Former founder of Applied Power Innovations and currently operating App Creatr, a mobile application consultancy. Background in mobile project management, design, development, and implementation for clients like LVMH. Will complete B.S. in MIS and Economics in May ‘13.

4+ years of development experience working for 3 startups across the nation. Currently working with Summer @ Highland alum Jebbit as backend software engineer. Will complete B.S. in Computer Science in May ‘13.

Background in closing sales for Highland portfolio company LevelUp, at one point 1:5 sales came through him before they publicly released the product. Will complete B.S. in MIS and Finance in May ‘13.

Appendices Answers to top questions

Why Alchemist? The team at Alchemist has an expertise and track record of success in enterprise software that would definitely prove to be a huge value add. The opportunity to engage in this program would allow us to meet the incredible mentors and alumni of the program whom would be invaluable going forward with our entrepreneurial pursuits. Being in the Valley is also hugely important to us as we see ourselves there for the foreseeable future.

What are our goals for Alchemist? Our primary goal for the Alchemist program is to form one major sales contract with a firm who participates in nationwide university recruiting. We believe that engaging in one of these contracts will have a domino effect within their vertical allowing us to close several follow-on deals in a shorter time frame. We plan on leveraging existing relationships to start as well as proactively engaging in active lead generation activities. Our secondary goal is to develop a fully functional cross-platform MVP. We have the experience and capabilities to execute on this goal.

Our Vision 1 Year

Have expanded to become the common app for every recruiting vertical. In five years, we will be the first stop for anyone looking for a job.

5 Years

Have dominated the university recruiting vertical; preparing to expand to experienced hires.

Assumptions

Assumptions for the financial model: Revenue is recurring annually Contract duration: 3 years Average contract value of $200,000 per year, paid in January Average implementation revenue of $125,000 5% churn

Quantified Revenue Model

Applican Financial ModelSensitivity Analysis

Implementation Revenue: 125000 Percent of Renewed Contracts 95%Avg. Annual Recurring Contract Revenue: 225000

Bookings defined as total outstanding value of agreed contracts

Part 3: Revenue Model0 1 2 3 4 5 6 7

Total Bookings: $675,000 $4,038,750 $9,371,250 $26,763,750 $61,425,000 - - -

Total Annual Contract Revenue: $0 $850,000 $2,350,000 $6,400,000 $15,488,750 - - -

Total Number of Outstanding Contracts: 1 6 14 40 92 - - -

Total New Contracts: 0 0 0 0 0 - - -

Annual Bookings Growth 498% 132% 186% 130%Annual Revenue Growth - 176% 172% 142%

$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000

1 2 3 4 5

Total Annual Contract Revenue: Total Bookings:

1) Download model here: http://bit.ly/11KVtB5

Example system wireframe

Login Company Overview

Job, Event, Team Listings Detailed Views

Data  Processing  

 

ATS  System  

What are the possible approaches? 1) Single applican application with internal branding for each employer

integrated with existing ATS systems. - Seek out employers in university recruiting initially then move to experienced hires - Sold via enterprise SaaS model with 3-5 year contracts

2) White-label individual branded enterprise applications

- Create market for proprietary branded applications that integrate existing ATS deployments. - Once scale is hit in university recruiting vertical move to common app approach with pre-seeded jobs from previous employers as well as moving into experienced hires - Switch will be beneficial due to network effects in new system and existing apps will be phased out over time - Sold via enterprise SaaS model with 3-5 year contracts

Why do we understand this market? We understand this market because we have seen the gross inefficiency first hand applying and working for large corporate entities. In addition we have also engaged in discussions with recruiters and professionals in our target market.

What is the total addressable user base? Our total addressable user base is everyone that has a LinkedIn account and is searching for a job. We believe traditional application systems are archaic and that using LinkedIn offers a frictionless experience on both ends as well as seamless integration. There are currently 200M+ users 1, 76M+ of which are in the US 2, and its growing rapidly at over 2 users/second. 3 55% of all job seekers 4 are going to social media outlets to find jobs, of which LinkedIn drives 9x 5 the applications of its closet competitors. 43% 6 of employers are already utilizing this platform and we believe this trend will continue long into the future.

1)  http://blog.linkedin.com/2013/01/09/linkedin-200-million/ 2)  http://www.socialbakers.com/linkedin-statistics/ 3)  http://blog.linkedin.com/2013/01/09/linkedin-200-million/ 4)  http://www.cokesolutions.com/BusinessSolutions/Studies/Untangling%20the%20Social%20Web_Part%205%20Hi%20Res.pdf 5)  http://www.bullhornreach.com/cmsites/default/files/BullhornReach_2012ActivityReport_v5.pdf 6)  http://factbrowser.com/facts/5744/

Who is our target market? Our target market is the Fortune 1000. We will enter the market by initially offering a solution for their on-campus university recruiting efforts, and will expand in time to include more experienced hires. We anticipate that the vast majority of our clients will already have an ATS system in place, on top of which our software will sit. However, it is not required that clients have an ATS to use Applican, which allows us the opportunity to trickle down into the SME market.

Are there any privacy concerns? There are no major privacy concerns with Applican. Our system operates on an opt-in basis, and applicants will be made aware of this when they agree to our Terms of Service before using the app. All of a candidate’s information on LinkedIn is given voluntarily, as well.

What if they don’t have a LinkedIn? Given the stats in the appendix listed as “What is the Total Addressable Market” this number is relatively small amongst our target audience and we believe this number will increasingly shrink at an incredible rate. There is also no loss of potential hires by using our applications because they can still apply via traditional web channels. We also are actively thinking about implementing resume parsing services when this situation occurs.

What’s the general overview of the space? There are a few mobile applications generally in our space as noted on our competitor slide, this is because: 1) No solution has established pervasive brand awareness in the space 2) No solutions are positioning themselves as a mobile first solution with complex backend reporting as traditionally seen in enterprise software. 3) No solutions are useful on a continual basis throughout the career lifecycle 4) Many are trying to implement outdated “friction-inducing” onboarding processes

Is Anyone Already Doing This?

Goldman Sachs2 Event check-in capability and information on events and the general onboarding process. No ability to apply within the app.

Pepsico1 Users have the ability to search and apply for open positions but isn’t mobile ready.

There are mobile recruiting apps available for a few firms with limited functionality

All screenshots taken on 3/12/2013 1) https://itunes.apple.com/us/app/us-possibilities/id526522890 2) https://itunes.apple.com/us/app/goldman-sachs-make-an-impact/id586657852?mt=8

What technologies will power it? The software will run within a LAMP environment utilizing Amazon Web Services for scalability purposes. The backend, powered by PHP, will perform server side operations on a MYSQL database for both the web and mobile components of the app. We will develop for native applications on the iOS and Android platforms and for traditional and mobile web using HTML5.

Are we another ATS? One point to stress with customers is that we are not attempting to replace existing ATS’s, we are simply layering on top of them in a Workday like model. This will result in minimal switching costs and will expand on the ATS feature set with an emphasis on user experience. We will plug into the existing architectures, allowing recruits to easily search and apply for positions. Recruiters will be able to manage more effectively with an administrative dashboard containing analytics and candidate profiles.

What if they don’t have a smartphone? This isn’t a concern because our mobile web applications still work on feature phones not to mention smartphone adoption rates in America is currently at 55%. 1 Tablets and traditional means of web based applying will also still be supported.

1) http://www.telecompetitor.com/report-u-s-smartphone-penetration-reaches-55/

Would companies want to be part of a common app? The most important reason we believe companies would want to join applican is for the associated network effects. Being part of our system will give them access to a greater number of applicants do to ease of applying which we believe will lead to higher quality applicants. This will also lead to lower costs per hire and time per hire as these are now distributed amongst the greater pool of employers. The metrics involved in our process will also lead them to further optimize their recruiting efforts going further which will provide cost savings in the future.

Why is this a product not a feature?

This is a separate product, as opposed to a feature because we are giving them a toolset that layers on top of their existing architecture. Their existing technologies are very powerful data aggregation tools but not adept at data processing. We allow these organizations to broaden their funnel while reducing the time to process and interact with candidates. These corporations don’t want another ATS system, they want an easy way to interact with their existing systems that they are more or less forced to use for compliance reasons.

What does our configuration process entail?

Firms will be able to configure the aesthetics for both the recruit and recruiter facing applications. The process will be automated once the client has given us the a few, simple specifications. This will promote brand image throughout the recruiting process. They will also be able to tailor the platform to integrate with their existing systems.

How long until MVP?

The first iteration of Applican will occur in two main parts: the building of the actual application, and the integration into our first client’s ATS. The application, which consists of both web and native mobile applications, will take between 2-3 months to develop. Once we have our first client, we will develop wrappers that bridge the gap between Applican and our client’s ATS. Once these wrappers are built for a particular ATS, extending the product to any client with the same system will take minimal effort.

How are we going to sell it?

Our sales process will be very high-touch. We will begin the direct field sales process by reaching out to recruiting managers. At our price point, we feel as though the decision could be made by mid-level management, without having to speak with executives at the national level. We do not feel that channel partnerships would be an effective sales strategy.

Who have we spoken with about this?

We have preformed in-depth customer validation with recruiters and their supervisors across several verticals. Through these conversations we now understand their various processes, pain points, and what they would want as a “dream feature.” With this understanding we have refined our product several times to meet specific recruiter needs. We have also spoken with the CEO of one of our leading competitors Workable HR, Nikos Moraitakis. He outlined his company's vision of becoming the BaseCamp of applicant tracking systems. Workable is targeting SME's and is looking to offer a complete platform for human resources rather than focusing around recruiting. Workable along with many of our other competitors are playing in the ATS space which we believe is a saturated space and want little to nothing to do with. We are a layer on top of these (often costly) systems and integrate seamlessly.

Excel Data

All data from the 451 Group

Link to our model 1) http://bit.ly/11KVtB5 Links to our data: 1) http://bit.ly/12RIy56 2) http://bit.ly/15NRxlA

Applican The “common app” for jobs

Alchemist Deck 3/29/13

Example PWC Kenexa Implementation

Point Systems = Our Competition is Web 1.0 Data Retrieved on 3/14/2013