FireHeart Ventures BUSINESS OVERVIEW FireHeart™ Ventures is part of the rapidly growing, sales outsourcing industry. A sales outsourcing company provides “a professional sales force” primarily to top branded, Fortune 500 companies. Outsource sales companies like FireHeart™ use the brand recognition and marketing muscle of the client company to transparently sell the clients products to both new and existing customers. Purpose – FireHeart™ exists to enable corporations to focus on their core competencies. Marketplace Opportunity - The global outsourcing industry surpassed $460 billion in 2007 and U.S.-based companies are responsible for 60 % of that total. Nearly 95% of all companies consider outsourcing, and an estimated 73 % of U.S.-based companies currently outsource at least one major business function to a third-party supplier. 87% of all jobs outsourced by U.S.based companies stay within the United States. (This type of outsourcing is referred to as domestic outsourcing).Within the outsourcing industry, sales and marketing outsourcing is growing at the most rapid rate. Established in the early 1990s, global sales and marketing outsourcing is now a $166 billion industry, according to published industry reports. Experts estimate sales outsourcing will continue to grow at an annual rate of 6.1% through 2010, reaching as much as $197 billion by the end of that year. (Source: Omnicom/MarketStar) Value Proposition – For Corporations, FireHeart™ provides access to a flexible, scalable, and exclusive professional sales force specifically designed to execute the clients’ initiative. Outsourcing frees up valuable client resources to focus on core product development, customer services and higher-level executive processes. Economy of scale enables FireHeart to use professional tracking tools such as Salesforce.com to source, track, close and service clients customers; translating into long term savings, higher ROI and higher closing ratios than in-house initiatives. Current Clients – Since November 2005, FireHeart™ has been leveraging the marketing muscle and brand recognition of Verizon, up-selling new Verizon business services to existing Verizon business customers. In our first two years of operation, and with just two sales reps, we have generated well over 400 contracts valued at over 15 million dollars for our flagship client, earning FireHeart™ $1.5 million in gross revenues. Our Immediate Mission – is to Identify and penetrate additional existing Verizon markets where we can be the dominant Verizon presence. Our Long Term Goal – is to leverage our success with Verizon to attract other well-branded companies from contemporary growth industries outside of telecommunications such as alternative energy, green technologies, and wellness. Distribution Strategy - FireHeart™ has a two pronged strategy for expanding our reach into other markets and industries. For the past 36 months, FireHeart™ has been exclusively up-selling Verizon Business products to existing Verizon business customers. As a Fortune 13 company with a custom base in all 48 of the continental United States, the opportunity to up-sell Verizon products to underserved Verizon territories is obvious. FireHeart™ has invested the past several months identifying these vast underserved areas and plans to initially hire ten additional sales people and four additional back office staff to take advantage of this market opportunity. Simultaneously, we have begun to research the roster of growth industries which exhibit, explosive growth potential, societal value, and the greatest probability of longevity. Primary analysis points to the alternative energy, wellness (mind, body, spirit), and green technologies industries. More in depth research, identifying decision makers, sourcing top brands, and corporate interviews will be initiated once the performance milestones of the Verizon expansion initiative are in sight. Our Team – FireHeart Ventures™ was founded and incorporated in New Jersey in October 2005 by founding partners Joseph D’Agostino and Peter Guzzardo bringing 40+ years of corporate and entrepreneurial experience leading business divisions, launching new products, championing transformation initiatives, and starting new companies. In Q1 2006 we were joined by Margaret Sacer, 20 year Verizon implementation veteran with complete knowledge of all Verizon in-house, on-line and outside tracking mechanisms. Joe oversees the sales, operations and delivery of data and IP communications services to all Verizon Business customers. In this capacity, Joe manages sales and service delivery employees nationwide who interact daily with Verizon business customers. Peter is responsible for establishing the identity, direction, culture, thought and strategy of FireHeart™; to attract talented professionals who share our values of ethics and integrity; to explore new avenues of opportunity outside the Verizon sphere, and to introduce the FireHeart™ brand to the larger business community. STRICTLY CONFIDENTIAL This business overview does not constitute an offer to sell or the solicitation of an offer to buy any securities. Statements in this document that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. FireHeart Ventures The team is further joined by a West coast division manager responsible for driving corporate revenues by identifying and penetrating underserved Verizon markets. In addition, the company has other advisors and consultants to support business operations. Company Milestones – Since its inception in October of 2005, FireHeart™ has achieved the following milestones: Q4 2005 - Verizon outsource subagent contract is negotiated and signed. Q4 2005 - 1st Sales agent is hired Q4 2006 - Verizon implementation specialist, Peggy Sacer, joins the team Q1 2006 - 1st Revenue payment received Q1 2006 - 2nd Sales agent hired Q4 2006 - 70% of start-up debt financing paid down. Q2 2007 - 3rd, 4th and 5th Sales agent hired. Q2 2007 - Infusion of capital via debt to fund new salesman Q1 2008 - Gross revenues since inception reach 1$ Q1 2008 - Verizon changes product focus to IP technologies Q2 2008 - FireHeart™ sells $300,000 of New IP product Q2 2008 - Verizon Delivery Issues stall implementation and payment Q2 2008 - Revenues plummet Q2 2008 - FireHeart secures line of bank credit to maintain sales force Q2 2008 -FireHeart reverts to selling Verizons’ volume based core products Q3 2008 -Revenues begin an upward trend. Financing - Start up funding came from $100,000 of founder backed debt financing with a second infusion of a $50,000 line of credit and a $25,000 business loan. Past Performance - From start up through Dec 31, 2007 Oct 05 -YE 2006 $480,154 $417,692 $62,462 YE 2007 $470,007 $381,263 $88,744 2008 NA NA NA Gross Revenue Cost of Sales Gross Profit Future Projections - Based on the size of the market and past performance of our two man sales force, our sales projections for growth in the first year with ten new sales people is $2,500,000 for a total projected gross revenue of $2,700,000 in year one. Funding Request - FireHeart is asking for $1,500,000 in return for equity. Market conditions will determine Exit Strategy. We are currently exploring an investor revenue sharing model for a timely ROI. Use of Proceeds - The proceeds from this round will be used to hire 10 additional sales people and 4 sales support staff. The purpose of the capitalization is to finance expansion into lucrative and underserved Verizon markets. Working capital requirements to date have been funded by the co-founders credit line and operating revenues. Thank you for reading this summary. We look forward to your comments, input and most of all, your term sheet. Peter Guzzardo & Joseph D’Agostino firstname.lastname@example.org 917 957-3393 Joseph.email@example.com 917 693-4726 FireHeart Ventures, Inc. - 11 Broadway Suite 463 - New York, NY 10004 STRICTLY CONFIDENTIAL This business overview does not constitute an offer to sell or the solicitation of an offer to buy any securities. Statements in this document that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. FireHeart Ventures STRICTLY CONFIDENTIAL This business overview does not constitute an offer to sell or the solicitation of an offer to buy any securities. Statements in this document that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially.
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