ScholarPRO_Investor_Presentation_Deck

							                         INVESTOR PRESENTATION
                               September 2010




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                                        What is ScholarPRO?

   The only common application for scholarships.

   For the first time, students have the ability to:

    Discover
    Apply using a unified application
    And electronically submit

   Applications for every scholarship they are eligible
   for—all in one place.
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                                                                  The Story




                                   1 Day                              18 Months
                                   to apply to
                                                                          to apply to
                               15 Colleges                        350 Scholarships
          Using the Common APP for college            Using old search methods and applying
                     admissions                                      by hand



 Co-founder, Diane Melville, spent 18 months searching and applying for 350 scholarships
 in an effort to pay for her college education. Her entire education has been paid for using
 scholarship and grant dollars.
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                                                                       Lose, Lose, Lose
                         • Students and their families are struggling to afford a college
                           education.
    Students                 – However, 70% of students never apply for a single scholarship because
                               “the process is too complex”




                         • Scholarship Providers are inefficient at awarding scholarship aid.

   Scholarship               – $600M in scholarships go unawarded due to a lack of applicants each
    Providers                  year




                         • College endowments have fallen and financial need has risen.

                             – In the wake of the recession, college endowments have fallen 30%, at
                               the same time, financial aid applications have increased by 40%.
     Colleges
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                                                                         Solution
   The Only Common Application for Scholarships

                         Step 1: Discovery
                              • Students create a profile on ScholarPRO.com that is used to match
                                them with scholarships that they are 100% eligible for.




                         Step 2: Unified Application
                              • Based on the scholarships that the student qualifies for, ScholarPRO
                                creates a one customized common application enabling the student
                                apply for multiple scholarships using just one application.




                         Step 3: Electronic Submission
                              • Students create a profile on ScholarPRO.com that is used to match
                                them with scholarships that they are 100% eligible for.


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                                                          Revenue Model


                         • Student subscription: $25/year


                         • Market Size: 34M students
                           – 17M college students
                           – 17M eligible high school and graduate students



                         • Total Addressable Market: $850M
                                                   (total not including lead generation)


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                                                                                  Beta Test
   •To determine the efficacy of the college as a marketing
   channel, we ran a beta test at Miami-Dade College.
   •Parameters:
           • 1 email sent to 500 students (incoming and returning) from 5 respective campuses
           • Email contained information on ScholarPRO and a link to the website (www.beta.scholarpro.com)
           • Site consisted of a temporary landing page, FAQ, information page, and sign up
           • Students were given 10 days to sign up for the beta



   •The Result:




                                   E-mail                            Credit Card
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                                                                                             Beta Test…
                                                                                                  Parameters:
                                              Miami-Dade Beta Test Results                             Total Population: 50,000
                        500                                                                            Sample Size: 500
                                                                                                       Emails sent: 1
                                                                                                       Test Duration: 10 days
                        450


                        400


                        350
 Response Rate




                        300


                        250


                        200


                        150


                        100


                         50


                          0
                                Emails Sent         Clicked Through   Personal Information   Credit Card/Conversion
           Number of students      500                   233                  212                     103
           Percentage             100%                  46.6%                42.4%                   20.6%


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                                                     Competitive Landscape
   The scholarship market has remained unchanged since the first scholarship search
                               engine launched in 1998.

    Current methods to find a                    Current ways to apply for a
           scholarship                                   scholarship




                                                             0
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                                      Competitive Landscape

                             Scholarship    Scholarship   Regular Search
                               Books       Search Engines    Engines




                 Discovery



       Unified Application



    Electronic Submission



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                           Exit Strategy


   • Potential Acquirers
   • Hobsons

   • Pearsons

   • ETS




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                                                    Founders
   Diane Melville                                     Evan Kimbrell
  CEO                                                COO
    • Education: Babson College,                     • Education: Babson College
      Harvard Business School (SVMP)                  • 3 years: Business Operations
    • 3 years: Private Scholarship Consultant


                                                Board of Advisors
   Jeffrey Moss                                        Jordan Harris
• Current: Chief of Enterprise Growth at
                                                   • Current: Partner at J.B. Harris
  ETS
                                                     Consulting, Inc.
• Past: Principle at Sterling Partners
                                                   • Past: Director of Program
• Education: University of Pennsylvania             Management at Sapient
  – The Wharton School                              Corporation
                         Progress to Date

    Product in Beta

    Schools

    Providers




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                         Progress to Date

    Partnerships




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                                           Customer Acquisition


   • Financial aid offices
   • What’s in it for them?
           More outside aid

           Less student indebtedness

           Less student unmet need

           Better than the alternatives


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                                    Exit Strategy


   • Areas of expansion
   • Lead generation

   • Resume / Essay Critiquing

   • Financial aid consulting

   • Provider “freemium” features

   • Analytics

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                                                                Financial Projections
                                      3-Year Projections
      $16.0



      $14.0



      $12.0



      $10.0



       $8.0                                                                           Revenue
                                                                                      EBITDA

       $6.0



       $4.0



       $2.0



        $-
                         Year 1                    Year 2                    Year 3


                             Average M&A multiple for educational software: 5-6x
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                                             Fundraising Needs


       • $40,000 invested to date

       • Raising $1.5M

       • Use of Proceeds:
              Commercialize prototype

              Partner with 100 colleges to promote ScholarPRO

              Database 25,000 scholarship applications


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                                                                             Timeline
          Progress to Date
   1. Product Beta
   2. 5000 scholarship providers identified



                                      5 Month Development Timeline

                         1. Continue development of product
                         2. 25,000 scholarship applications entered into the database



                                                                      April 2011

                                                   1. First emails sent from participating colleges




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