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“ An eBay for Rentals”. Investor Presentation June 2012 www.rentalcompare.com. Our Goal. To make anything which can be rented available to anyone in the world through our web marketplace. Vendors / Rental Companies. Renters. Network Affect. Listings attract renters . - PowerPoint PPT Presentation
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Investor PresentationJune 2012
www.rentalcompare.com
“An eBay for Rentals”
To make anything which can be rented available to anyone in the world through our web marketplace.
Network Affect
Renters
To be their “go to first” online marketplace when they think
of renting anything
Vendors / Rental Companies
To be their most effective marketing partner and #1 source of rental inquiries
Our Goal
Market OpportunityEquipment rental industry - a $33.5 billion market and growing
Rental companies: Compete for visibility on web Seek an efficient marketing channel
Highly fragmented vendor base is ideal for market maker
Renters: Seek a more efficient process given less time to search for rentals Options today include:
Web search using Google/Bing/Yahoo: must drill down into multiple rental company web sites to find specific items
Directories, which are entirely category based
Compare Search results displayed by item in grid format
with photos
RentRenters arrange rentals directly with vendors / rental companies via RC’s quote request
service, email, or phone
Subscription Based Business Model
Free for renters
Vendors/rental companies pay fixed listing fees (recurring revenue) to list their products or services
RentalCompare: The SolutionRentalCompare aggregates vendors, renters and items for rent to create a vibrant online rental marketplace – “an eBay for rentals.”
Subscription Business ModelProfessional 1 Item $4.95Bronze 5 Items $9.95Silver 25 Items $19.95Gold 50 Items $49.95Unlimited Unlimited $99.95
THREE SIMPLE STEPS
Listing Package # of Items Monthly Fee
SearchRenters fill in search
keyword(s) and location
Equipment Rental Industry (North American and Canada, US$ Million) – including three market segments: party and event, general tool, and construction and industrial equipment; source: American Rental Association/IHS Global Insight
Equipment rentals are a $33.5bn industry and growing
Rental Industry Market Size
1 2012 American Rental Association/IHS Global Insight forecast
Estimated 5MM Unique Rental Items 5,000,000 Unique Rental Items
X 90 Average Rental Days Per Year X $74 Average Rental Rate
$33,500,000,000X 10% Take Rate1
$3,350,000,000 Addressable Market 250,000 Rental Vendors/Service
ProvidersUS and Canada
Highly Fragmented Vendor Base Ideal for
Market Maker
50,000 200,000
Event Vendors Service Providers
Rest of World
1 Current “take rate” estimated at 4.8% which we believe can increase to 10% once the RentalComp marketplace has matured. Estimate consistent with “take rate” of US vacation rental website homeaway.com which has a similar subscription based business model and market dynamics2 As at February 29, 2012
Transforming a $33.5BN Fragmented Industry
US and Canada
5MM Total Rental
Items
500k RC Rental Items2
Value Creation For Vendors/Service Providers
[ ]m Rental Vendors/Service Providers$386
Annual Listing Fee 1 Estimated Annual Rental Income
1 Average based on 5% Professional, 25% Bronze, 35% Silver, 25% Gold, and 10% Unlimited subscription listings.2 Annual listing fee as a percentage of estimated annual rental income.3Assumes 3 rental items booked per month through RentalComp inquiries with an average 3 day rental at $74/day.
$8,040 3
~21x:Estimated ROI forVendors/Service Providers
Value Proposition for Renters
Speed – RC is the fastest path to searching and comparing rentalsSize – widest variety of search resultsPrecision – keyword search for specific items, ex. “red sofa”Connection – fast quote request service and/or direct communication with vendors/rental companies
Outstanding Value Proposition
Current competition lacks critical mass of vendors/rental
companies and inventory4.8% Take Rate
2
Increase Number of Listings Increase Revenue per ListingThrough …
Direct Marketing to Rental Companies
Largest Rental Inventory benefits from “Critical Mass”
New Geographies
New Rental Item Categories
Additional Features, ex. Proposal Generator, Mobile RentalComp, Rental Resource Directory
Reflected in …
Other Revenue Channels
Average Revenue Per
Listing Increasing the Base Listing Price
Add-ons, ex. Featured Listings
Advertising
eBlasts
Technology
Global Vision, Multiple Growth Drivers
Stage 1, Complete2010-2011
Design and Create Web Platform; Generate Critical Mass of Vendors and Rental Items
Stage 22012 Capital
Raise
1. Build Sales Team2. Convert Rental Company Vendors/Service
Providers to Paying Customers – US & Canada 3. Refine Website
Stage 318-24 months,
following further capital raise
Expand to all markets, increase number of listings and revenue per listing
Execution Strategy
Large, highly fragmented industry presents huge opportunity
Compelling value proposition Vendors and renters together in a more efficient, cost effective manner Offers renters a faster, more precise solution to finding rentals Offers vendors access to a global market Attractive ROI for vendors Recurring, subscription based business model
PTraction Website has been designed and created 500,000 rental products from over 1,000 vendors Supported by industry leaders – signed national accounts Generating revenue
Experienced team to exploit this opportunity
Why Invest in RentalCompare?
Financing DetailsExisting Investors/Financing
Founders seed funded the company for 2 ½ years Approximately $500,000 invested to date
Supports RentalComp 1.5 years Operate in the black after 18 months Use of Proceeds
Expand sales/marketing team to market the site to Vendors/Clients Build SEO presence to increase its search position; develop programming
team to refine RC’s capabilities Develop “Affiliate” network with other marketing companies outside North
America to resell RC’s listing services Expand RC in the long-term as the international rental marketplace for
anything that can be rented.
Capital Raise of $900,000