GLOBAL DEBT NETWORK
The NASDAQ marketplace for auto loan portfolios
September 2008 Investor Pitch
Auto Loan Originations
30,000+ dealers, banks and finance companies originate auto loans
new and used car auto loans financed/year Auto dealers sell estimated $25B of seasoned* loans/ year
$500B
Loan originators sell loans to
Risk Access Capital
Mitigate
Loans are sold by:
Expensive
brokers Internal sales teams
* Seasoned loans are loans with consumer pay history
Portfolio Buyers
Finance companies, banks, hedge funds and credit unions purchase seasoned loan portfolios-est. $100B/yr Buyers purchase auto loans
High
yield Liquid collateral
Loans are acquired via
Internal
sales teams Expensive brokers
This $125B+ market is broken…
Limited liquidity for loans Portfolio acquisition and selling costs are high Expensive and time-consuming transaction process
No transaction or document standardization
Sparse marketplace data
Marketplace translation is lacking
Difficult to attract new investors
Global Debt Network is the NASDAQ marketplace for auto loan portfolios
Why dealers and financial institutions use us…
Instant access Cost savings Disintermediation
Transparency
Transaction efficiency
How is GDN unique?
First online marketplace
Central access point
End-to-end transaction system
Online due diligence Buyer and Seller communication system
How we keep people coming back…
Portfolio filtering
Custom “recommended portfolios”
Action step drivers “Watch-list” portfolios Online due diligence
Buyer – seller translation (User Profiles)
Data
How we make money…
We make money on every completed transaction Future Revenue Sources
Transaction
data reporting New asset class entry International market expansion Line of credit lead gen model Partners referrals
Competition
Current competition/status quo
Portfolio size focus
GDN Loan brokers Any size Small
Scalability
High Low
Access to Buyers
High Low
Fees
Low High
Value-Add
High Low
Online Brokers
Internal Sales
Large
Any size
Medium
Low
High
Low
High
Expensive
Medium
High
Potential Competition
Dealer management software systems National banks Indirect lending platforms
Industry insiders Start-up mortgage platforms
Management Team
Scott Walchek- Co-Founder& Chairman
GP at Integrity Partners, a boutique VC specializing in technologies Former Baidu.com Chairman Co-founder and CEO of C2B Technologies (Sold to Inktomi in 1998)
Mike Sheridan- Co-Founder & President
Senior Associate- Amerivon/Growth Management Partners, a private equity firm
Debt and Equity Derivatives Trader- Stafford Trading and TD Equity Options Former Board of Directors at DocStoc.com
Carl Dellar
Research Director, Intel Research (part of CTG) 2003-2006 VP Engineering, C2B Technologies (Sold to Inktomi in 1998) VP Engineering (founding team), BroadVision, Inc.
Use of Funds & Capital Raising
Use of Funds
Capital Raising
Product development
Hiring salespeople & customer service reps Marketing programs Management team build out New market expansion
Current round: Series B
Seeking: $4mm
Past Investment
Series A : $500k June 2007 Convertible note: $750k April 2008
Milestones
Product Launch
Beta - May 19th, 2008 Official - June 24th, 2008
Market Traction
11 portfolios listed $30mm+ in loans listed ($39k to $11.5mm) 34 buyers/27 sellers 5 partnerships
Passtime: #1 GPS/starter interrupter devices CreditSmarts: Indirect lender platform VantageILM: Consumer loan portfolio management platform Peak5: Sub-prime loan servicer Carbiz: BHPH consultant and dealer
New Market Rollout Plan
Strategy
Prioritize markets similar to auto Capitalize on housing opportunity Develop market presence Leverage exposure
Keys
Attract new investors Technical and customer service ramp Easy to port app to new assets classes
Thank you
Please feel free to call or email Mike Sheridan
Email:
mike@gdnauto.com Cell Phone: 310-866-5103 Office Phone: 310-928-7634