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LX Ventures is a publicly traded technology accelerator that acquires, integrates and accelerates high growth technology companies. We are vertically integrated with internal best-in-class practice area teams in sales, marketing, engineering and finance that are leveraged to turn our portfolio companies into industry leading organizations, one by one. We are in the business of building businesses. For further information about LX Ventures, please visit: www.lxventures.com
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TSXV: LXV | NOV 2013
INNOVATION STARTS HERE LX Ventures acquires & integrates SaaS-based technology companies that are at revenue
lxventures.com
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Certain statements contained in this document constitute “forward looking statements”. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “propose”, “anticipate”, “believe”, “forecast”, “estimate”, “expect” and similar expressions as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the Company’s current views with respect to future events and are subject to
certain risks, uncertainties and assumptions. Many factors could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company does not intend, and does not
assume any obligation, to update any such factors or to publicly announce the result of any revisions to any of the forward- looking statements contained herein to reflect future results, events or developments except as required by law.
DISCLAIMER
IMBALANCE IN CANADIAN CAPITAL MARKETS
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TSX Weighting
Tech makes up less than 3% of TSX
172 Tech Companies listed Vs. 2055
Resource Companies
Over 30% of the technology companies on TSX are
graduates of TSXV
Tech was best performing sector on TSX in 2012 (share
price appreciation)
$1.3B raised for tech Vs. 56.6B raised in total for
all sectors in 2012
About LX Ventures
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+ LX Ventures is a publicly traded accelerator that acquires and integrates SaaS-based technology companies that are at the revenue stage
+ We identify exceptional products and teams that require expertise in scaling revenues
+ 3 Wholly-Owned Subsidiaries…all at revenue:
Management and Advisors Exits:
$2 Billion +
EXPERIENCED MANAGEMENT
Mike Edwards, CEO, Director
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+ 20 years of startup technology experience + Recent exits to Google, Twitter and Marchex
Ray Walia, COO, Director
+ Serial entrepreneur, 2 successful exits
+ Startup and marketing guru + Built and sold 2 marketing companies
Patrick Audley, Managing Director + Seasoned
technologist with 18 years experience
Mark Binns, Managing Director
Bernd Petak, President
+ Experienced entrepreneur, executive, consultant and advisor. Former Deloitte Consulting Partner.
Kevin Rathbun, CFO
+ CA, CFA, Capital markets + Dozens of M&A transactions + Realm Energy & Newstrike
Alison Lawton, Advisor
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+ Social Venture Philanthropist
Reza Kazemipour, Advisor
+ Silicon Valley and Canadian start-up Board advisor
+ Co-CEO of Virgin Group
David Baxby, Advisor
Lance Tracey, Advisor
+ Co-founder of PEER 1. Sold for $526MM.
WORLD CLASS ADVISORY BOARD
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Derek Lew, Director
Keir Reynolds, Director and IR
+ Seasoned capital markets executive + $200MM in equity raised
+ Active technology angel investor + Corporate, commercial and real estate law
Jeff Durno, Chairman and Director + Managing partner of ASKD
Law LLP + Chairman of Emprise Capital Corp., a Vancouver based merchant banking co.
BOARD OF DIRECTORS
Mike Edwards, CEO, Director
Ray Walia, COO, Director
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HOW WE SELECT OUR TARGETS
+ At revenue generation stage …There is a complete product
+ Within our market focus: HealthTech, AdTech and FinTech
+ High margin, reoccurring revenues …Not one time sales
+ Solving a big problem in a large and consolidating sector …NO WINNER TAKE ALL
+ Emphasis on B2B markets …not as fickle as the fractured consumer markets
+ Suitable for M&A or Spin Out within 12 to 24 months …typical acquisition is 2 to 3 years in its lifecycle
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OUR INVESTMENT MODEL
+ Within 18 to 24 months seek to monetize subsidiary
+ Technology project generator
+ IPO, RTO, Spin Co., Acquisition or M&A
+ Scale revenues
+ Utilize our class-leading biz dev and sales talent
+ Additional Funding by VC’s, outside of public markets
+ Acquire high-growth tech companies
+ Integrate talent and control business
+ Greater than 51% ownership
Acquire Accelerate Exit
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2014 Valuation Goal Sector
SUMMARY OF COMPANIES
Wholly-Owned Subs $100.0M
CDN
HeathTech
AdTech
FinTech
$100.0M CDN Current Market Cap: $18.5M @ $0.38
Share price at $100M = $1.35 includes 25M shares of dilution
~350%&Poten,al&Upside&
+
+ Acquisitions
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Acquired in May for $600K all stock deal
Monetizes social media followers
Connects brands to their desired audiences
Highly disruptive ad tech (achieves 35% ad unit consumption
versus 0.05% display ad average)
MANAGEMENT TEAM
MOBIO TECHNOLOGIES INC.
100% owned subsidiary company of LXV
Has attracted influencers as big as Ke$ha (30M followers)
Mark Binns Patrick Audley
President Serial entrepreneur in the marketing and technology space with 2 exits
VP Technology
Seasoned technologist with more than 18 years
of startup experience
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• Platform for fans of film and sports celebs
• $19.3 million in VC funding • Greylock, Comcast Ventures
• Monetizes brands social networks • $14.1 million in VC funding • Acquired by Google in July 2012 for
$350 million
Exits Market Size: $38.4 billion (US) At 1% Market Share: $384M in revenues
MOBIO TECHNOLOGIES INC.
Peer Comparables • Social media marketing software for small and medium-sized businesses
• $1.45M million in VC funding • Acquired by Infusionsoft in January
2013 for $25 million
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MOBIO TECHNOLOGIES INC.
Reach 20 influencers with scale 1M+ by March 2014
Achieve 500K platform users by Q1 2014
Ad Revenue Per Unit target of $0.25 by Sept. 2014
Milestones
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SOSIDO NETWORKS INC.
HealthTech Market Vertical
100% wholly-owned subsidiary of LXV
Online knowledge exchange community for healthcare professionals
(HCP’s: 4M+ in North America)
100% of members are monetized
Tanis Steward
Sponsorship deal with
MANAGEMENT TEAM
Co-Founder & CEO Experienced leader in healthcare industry
Has led numerous healthcare associations such as CANO,
CBMTG, ISCT. Malachite Management, StemCell Technologies
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SOSIDO NETWORKS INC.
• Professional network for scientists and researchers to make their research visible.
• $35 million in VC funding • Bill Gates, Tenaya Capital
• Professional network for physicians to connect, get noticed and earn honoraria.
• $28 million in VC funding
Peer Comparables
Market Size: $400M annually At 10% Market Share: $40M annually in reoccurring revenues
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SOSIDO NETWORKS INC.
Milestones
Sign 5 Medical Associations by Dec 2013
Secure first US Association by Q1 2014
20,000 users @ $100/user by Dec 2014
Sign 6 Pharma funding deals in the next 12 months
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100% owned subsidiary company of LXV
Service and SAAS model – High Margins
Cloud CFO – to service, scale and monetize the cloud accounting industry
Targeting small businesses globally
Gary Boddington MANAGEMENT TEAM
Chief Executive Officer
Last exit: Alchemex, acquired by Sage Group
in 2011
FODIO TECHNOLOGIES (+ FinTech)
Growth phase of business, revenues began in Q2 2013
Accomplished and driven entrepreneur and executive
Deep expertise in business intelligence solutions
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• Modern bookkeeping for small business
• $7.5M in seed funding • Acquired in 2012 by
GoDaddy
Market Size: $3 billion annually (North America) At 5% Market Share: $150M annually in reoccurring revenues
FODIO TECHNOLOGIES
• HR, finance and accounting in the cloud
• $9 million in VC funding • Google Ventures
Peer Comparables
Cloud Accounting
Traditional Bookkeeping
Market Positioning
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Milestones
Fodio SaaS implementation by Q1 2014
2 new acquisitions by March 2014
6 FinTech integrated companies by Dec 2014
FinTech (Fodio + Acquisitions)
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HOW WE GENERATE RETURNS
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EXITS AND MONETIZATION
Multiple Exits - We offer multiple exit strategies: IPO, RTO, Spinout, "Acqui-Hire" and M&A
Dividends - LXV shareholders will receive special dividends of cash or shares on exits
Near Term - We focus on acquiring companies that grow our consolidated revenues
Coming Wave - We are incubating tech companies for the coming wave of new money flowing in from sector rotation
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CAPITALIZATION – Nov 2013
Issued: 48.9M shares
Fully Diluted: 71.1M shares
Cash: $1.5M
Fully Diluted Cash: $7.1M
Debt: $0
Options: 4.9M @ $0.16 to $0.32
Warrants: 11.1M (@ $0.30)
6.2M (@ $0.22)
Mgmt & Insiders: 24%
Market Cap: $18.5M
Recent Price: $0.38
Avg Daily Volume (3m): 1,057,000
Previous Financings: $2.2M @ $0.10
$800k @ $0.20
$1.6M @ $0.15
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WHY INVEST IN LXV?
Positioned - Get positioned for the anticipated sector rotation
Management - Expert management team with more than $2B worth of technology company exits
First Mover - First entity to truly bridge Silicon Valley-style technology companies with the TSX Venture
Multiple Exits - Exposure to our wholly owned subs offering multiple exit strategies
Deal Flow - We collaborate with some of the world's leading VC's
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CONTACT US
Investor Inquiries
Keir Reynolds Tel: 778-998-9242
Email: [email protected]
Media Inquiries
Mark Binns Tel: 778-628-7427
Email: [email protected]
Web: lxventures.com
Address:
Suite 300 – 128 West Hastings Street Vancouver, BC, Canada