Connecting General Contractors with Skilled Trades

This job isn’t ready

for me! What will I

do?

My plumber no-showed!

2

PROBLEM

ServicePair Confidential / Proprietary

Explicit Problem: Resourcing for Smaller Businesses in the Construction Industry

Problem #1: Absenteeism. A job sites have up to 20% absenteeism per day costing contractors 12-24 hours in delays and > $1,500 in lost revenue

Problem #2: Contractors & designers have difficulty finding tradespeople outside their limited networks

Problem #3: Tradespeople regularly take work outside of their specialty in order to earn money

Problem #3: Smaller suppliers have limited or inefficient CRM & unfocused advertising channels

They all work in the same community but don’t network with each other!

Industry Facts• Industry spends $550B on

supplies 2016• Smaller suppliers are 73% of

the total market. They represent $384 billion dollars in revenue.

• Avg. individual contractor spends $150K on construction supplies

• 1.5MM Self-Employed General Contractors & Designers

• 4.2MM Individual Tradespeople

• Combined are 89% of the US. 7.5MM workers & 650Kemployers nationally

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VALUE PROP

ServicePair Confidential / Proprietary

Solving the Expensive Resourcing Challenge in the Construction Industry

Smaller construction suppliers struggle to grow and retain their customer base during a time when larger big box stores are aggressively pursuing construction professionals.

Construction professionals all share the common problem of finding skilled help and additional work outside of their current network.

ServicePair solves the resourcing problem for the construction industry by providing unrestricted access to the largest network of construction professionals in the US.

ServicePair charges smaller construction suppliers for targeted marketing solutions to help suppliers compete against big box retailers.

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ServicePair Solves the Universal Problem of Resourcing Tradespeople Outside Their Limited Networks

SOLUTION

ServicePair Confidential / Proprietary

GPS or zip code based search

One button access to user specific suppliers

“Available Now” switch highlights users actively seeking work

Search by business name, category, or California License type

Every California Contractor License type available (60+)

250 + trade categories

Scroll through user customized results

Review and confirm credentials with one click

200,000 searchable businesses (entire CSLB)

Unrestricted contact using phone, email, or text. No concierge or middleman

See expanded profile for detailed information

Review users’ location and distance from searchers location

5ServicePair Confidential / Proprietary

BUSINESS MODEL

PROFESSIONALS

Unlimited Subscription: $9.99 - $49.99 per month

Pay per use Subscription: $1.99 per day

Subscription allows for unlimited searches and enabling “Available Now” feature

FUTURE: On demand equipment and tool rental

SUPPLIERS

Marketing Subscriptions:$199 - $999+ per month

Targeted marketing to specific trades, locations, and credentials.

Vendor specials & overstock.Self-managed equipment and supply offers from industry focused suppliers

FUTURE: Location based loyalty program and coupons

ServicePair monetizes both sides of $550B market.

How ServicePair Makes Money

6

MARKETING

ServicePair Confidential / Proprietary

San Diego “Proof of Concept”

* Details in the appendix

High Touch• Bilingual Street Teams• Expert Manned Pop-up Booths • Industry Organizations• Trade Schools• Vocational College Programs

Low Touch & Scale• Street Signs• Craigslist Ads• Advertising on Industry Sites• Advertising Materials at Key Suppliers• PR Outreach & Influencer

GOAL: 5,000 active users

High Touch• 1-1 Sales Meetings with Suppliers• Attend Supplier-Focused Events• Sponsor Customer Appreciation

events at Supplier locations• Supplier employee training• Bilingual Street Teams

Low Touch & Scale• Google AdWords• Industry Influencers & PR• Street Signs at Supplier locations• Advertising on Industry Sites

GOAL: 30 active stores

7ServicePair Confidential / Proprietary

Key Market Players & Types

Focus Networking Placement Discovery Placement Discovery Discovery Networking

Construction OnlyIntra-industry ecosystem (no homeowners)

- - - - -

ConciergeMiddleman or entity between searcher and results

- - - -

CostDoesn’t charge for rankings or placing job postings

- - - - - -

UberizationSeparates the individual from the company

- - - -

COMPETITION

Chad ArendsenFounder, CEO

• $200K seed investor in ServicePair

• Domain Expert in residential construction and remodeling

• Leveraged economic downturn to expand one-person handyman business into profitable multi-million dollar high-end renovation corporation.

James CahallCTO

• Successfully built mobile application with >2M active users (Toon Goggles)

• Manages technology infrastructure and feature integration for the Toon Goggles IPTV platform.

• Skilled in Server Dev. (Linux/Apache/Nginx/Windows), HTML5, CSS, JavaScript, PHP, MySQL, C++, Objective-C, Java, ActionScript, Perl, and Python.

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Team

ServicePair Confidential / Proprietary

Executive Team & Advisors

Advisory Board

Derrick Oien Kim Davis

Miro Copic

Matt GahrDel Foit

Kevin MacDonald

Leadership

9

THE OFFER

ServicePair Confidential / Proprietary

Investment converts to equity at Series A25% discount on pre-money valuation

$5MM cap

(See Use of Proceeds slide in appendix)

$750K SEED ROUND

10ServicePair Confidential / Proprietary

Status Today

Featured On

• V1 Functional app available in both iTunes and Google

Play

• 450 Beta users in San Diego

• Previously Raised $200K from multiple investors

• Database with every licensed contractor in California

(> 200K)

• Unsolicited users in 4 states (FL, TX, NY, NJ)

• V2 feature planning underway

• Graduated from USCD Rady School of Business StartR

program

• Accepted into EvoNexus

• Completed marketing trials to identify preliminary CPA

• Conducted multiple in person and electronic surveys and

focus groups.

• Incorporated as a Delaware S-Corp and prepared to

convert to a C-Corp

NOW

CERTAIN OF THE STATEMENTS MADE IN THIS UPDATE CONSTITUTE “FORWARD-LOOKING STATEMENTS” MADE

PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT LIMITATION, ANY STATEMENT THAT MAY PREDICT, FORECAST,

INDICATE, SUGGEST OR IMPLY FUTURE RESULTS, PERFORMANCE OR SUCCESS. ALL FORWARD-LOOKING STATEMENTS

ARE BY THEIR NATURE DEPENDENT UPON EVENTS OUTSIDE THE CONTROL OF THE COMPANY, AND ARE

CONSEQUENTLY UNCERTAIN AND SUBJECT TO SUBSTANTIAL INACCURACY. IN LIGHT OF THE SIGNIFICANT

UNCERTAINTIES INHERENT TO THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN, MEMBERS ARE

CAUTIONED NOT TO RELY UPON SUCH STATEMENTS AS A REPRESENTATION OR WARRANTY BY THE COMPANY OR ANY

OTHER PERSON THAT THE PLANS OR PERFORMANCE DESCRIBED OR PREDICTED HEREIN WILL BE ACHIEVED IN ANY

SPECIFIC TIME FRAME, IF AT ALL. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO UPDATE ANY SUCH

STATEMENTS. MEMBERS ARE REMINDED THAT ARTICLE 11 OF THE COMPANY’S AMENDED AND RESTATED OPERATING

AGREEMENT IMPOSES OBLIGATIONS TO RESPECT THE COMPANY’S CONFIDENTIAL INFORMATION, INCLUDING THE

INFORMATION CONTAINED IN THIS UPDATE.

11

PRIVACY STATEMENT

ServicePair Confidential / Proprietary

12ServicePair Confidential / Proprietary

APPENDIX

13ServicePair Confidential / Proprietary

“Transform How Contractors, Labor, & Suppliers Interact With Each Other

Southern California Launch

GOALS OBJECTIVES METRICS TACTICS USE OF PROCEEDS START

“Must Have”

Resourcing App for

the Construction

Industry

5000 active users in San Diego

• Number profiles created or claimed by

an individual or business

• Number of contacts per user

• Number of supply store searches

• Number of ratings placed/received

• Number of users inviting others to join

the network

• User interaction

• Complete Licensed Contractor

Database in 3 other markets

• Bilingual Street Team (Pop-ups/table

days)

• Swag distribution to labor (T-shirts)

• Google AdWords

• Sign campaign

• Word of mouth reward / multiplier

• PR outreach to SD influencers

• Visits to local construction related

schools and education programs

• Continued data aggregation (California,

Texas and Florida)

$280K Total

• $145K Marketing programs

• $35K Development features

• $100K data acquisitions costs for

licensed contractor lists Q1 – Q4

Premier Customer

Loyalty App for small

to medium

construction

suppliers

30 active Supply Stores

• # of new supply store profiles

• # of overstock storefronts

• # offers distributed to end users

• # of offers completed by end user

• 1-1 meetings with store owners

• Demonstrate supply features in app

• Supply Stores Beta

• Bilingual Street Team (Pop-ups)

• Attend local supplier-focused events

• Industry influencer

• Google AdWords

$55K Total

• $20K - marketing

• $35K – Supplier app/features Q3 – Q4

Test Monetization

Strategy for our

investors

Profitable Revenue Model for US Wide

Expansion

• # of supply store subscriptions

• # of monthly contractors/labor

subscriptions

• # of single user transactions

• Total # of paying users (all)

• # of overstock deal offers

• Review user & supply analytics

• Test $ with suppliers

• Test $ with users (one-off &

subscriptions)`

$15K + Total

• $15K CC features developed

• Marketing costs built into marketing

costs above

Q3 – Q4

Headcount &

Operations

• 3 full time employees (CEO, CTO, CMO)

@ $60K

• 1 help desk employee @ $15 per hour

• Contract CFO, Legal, etc.

• AWS and operations

• $270K OPEX

• $130K Cash Reserves

USE OF FUNDS (DETAILED)