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Allison Carmen info@materialmix.com 1.800.MIX.1BID www.materialmix.com. 4 April, 2013. Recyclers. Manufacturers. Competitive Landscape. Competitive Landscape. Competitive Landscape. Value Proposition. Efficient Marketplace . Logistics . Simplified Compliance. $. $. $$. $$. $. $.
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Allison Carmen info@materialmix.com 1.800.MIX.1BID www.materialmix.com 4 April, 2013
Recyclers Manufacturers
Value Proposition Efficient Marketplace Logistics Simplified Compliance
$ $ $$ $$ $ $ Sustainable Service Model
An efficient marketplace with benchmark pricing • Comprehensive, automated waste reporting • Transactional continuaity and security • Standardized best practices for industrial resource management • Connectivity among recycling stakeholders Our mission is to become the global standard for sustainable materials management by providing:
Industrial Solid Waste (66%) Initial Target Markets Biomass Construction & Demolition • Electronics Metal Minerals Paper Plastic Waste and Recycling Industry NAICS (North American Industry Classification System) data taken from US Census database
Our Focus… Within 3 years: 0.73% of total market ($8.7M) (1.71% of targeted industry market) 3-Phases: Highest concentration of manufacturers $13 B Market Opportunity
350 active users • $11.7 M in assets under management • 230 tons diverted from landfill • 17,000 subscribers • 735,000-user network reach on LinkedIn • Marketing Automation Adoption Milestones
Transporter Bidding Description Tags Inventory Management ERP Integration Barcode Technology First to Market with Technology Best Practices Secure Easy to Use
Competitive Advantages • Investor validation: Recyclebank raised $47M in 2011 (consumer sector) • Material Mix Model: • Even larger market (industrial sector) • Algorithm based on industry research • 5,000 unique materials • 7 industry verticals • Industry best practices • Secure 3rd party escrow
Materials R&D Non Profits Logistics Professionals Trade Associations Policy Makers Fragmented Exchanges (Competitors) Scrap Traders Manufacturers Clean Energy Go to Market Strategy Sales
Best Practices Materials Experts Revenue Sharing Recyclers Manufacturers End-to-End Ecosystem Buyer’s Guide
Strategic Partnerships Materials Experts Recyclers Manufacturers
Revenue Strategy BIG DATA $$$$$ Waste Consulting $$$ Licensing $$ • Logistics • Planning Paid Subscription $$ • Regulatory • Reporting scale customer value, then monetize • LinkedIn API • User Experience Q4-2013 Q2-2013 Q2-2014
Pro $39 Per Month Standard $0 Always Free Premium $99 Per Month • 3 Users • Bulk Upload • MaterialWiki • MaterialMap • Regulatory Reporting • Single User • Broker ToolsMaterials Dashboard • Company Page • Unlimited Users • Built-in Marketing • Verified Status • Banner Ad Space Subscription Model Order now Order now Order now
Series A $600 K SEED $110 K Angel $490 K • Funding • Capital Innovators • $50 K (Q1-2012) • Arch Grants • $50 K (Q2-2012) • Clean Energy Trust • $10 K (Q1-2013) • Milestones • Launched Q2-2012 • Proven traction • Steady adoption • In-house re-build • Tranched $500 K • $245 K (Q2-2013) • $245 K (Q1-2014) • Non Dilutive Grant Opportunities • LinkedIn API • Regulatory reporting • Logistics integration • Expedite adoption • Consulting partnerships • $600 K (Q4-2014) • Advanced trading • International campaign Total Startup Costs: $1.2M
Use of Funds $13B Market Opportunity Exit Strategy: Acquisition by waste management or logistics company
Allison Carmen – Founder, CEO • MBA: Saint Louis University, BS Biology: Ecology and Environmental Policy • Past: Policy and Waste-to-Energy Specialist for City of San Diego Chris DeGroat – CTO • 12 years designing and developing scalable web applications • Lean Startup methodologies: Release, Measure, Iterate Patrick Camp – CFO • 13 years’ experience in Plastics, use of recycled materials, and virgin price arbitrage • Past CFO manufacturing David Raymes – VP Business Development • 20+ Years’ experience as a corporate development executive • Past: Founder of WasteXChange Mich Hancock – Social Media Manager • BS Marketing, Computer Science: St. Louis University Sales – Account manager with manufacturing experience Software Developer – PHP, MySQL Team
Hal Gentry – CEO and entrepreneur • 30 years of experience in the software industry • Founder of two successful software businesses; GridLogix and Gentry Systems Dr. Renato Cataldo – Accomplished senior executive • Decades of expertise in technology and online markets Scott McKye – Owner of Kleertech Plastic • 30+ years in plastic manufacturing • American Society for Testing and Materials (ASTM) contributor and reviewer Harvey Gershensen – Past President, COO of AP Materials • Senior mentor for high-tech startups • Reviewer for SBIR/STTR at National Science Foundation Roger Relfe – Financial Advisor with brokering expertise • Decades of experience in compliance, strategy, budgeting, risk assessment Lisa Wood – Expert in construction and demolition recycling • 20+ years in regulatory compliance and waste diversion
Triple Bottom Line: People, Planet, Profit. $13B Market Opportunity For $1.2 M Series A
Marketing Automation Adoption Milestones
Marketing Automation • LinkedIn Groups • Promotion • Customer Acquisition • Newsletter • YouTube • Website • Blog • News • Education • Company Features Sales
LinkedIn Lead capture 13 Trader Accounts 735,000 Users Network Reach 17,000 subscribers Bi-weekly newsletter Manage relationships Targeted campaigns Lead Management Promote listings Drive traffic 218LinkedIn groups 735,000 Users Adoption $11.7 M in inventory 230 tons diverted 350 active users Adoption Snapshot: April 2013
1. • No one else is linking these stakeholders • Profit opportunity in creating this ecosystem 2. Why Create an Exchange?
Goal: Reduce Industry Risk • Customers: • Lowered adoption barriers • Cheaper feedstock • Transparent interactions • Investors: • Validation: Recyclebank $47M • Data-driven strategy • Clean energy market, No PPE • Capital efficiency • Demand Pull • Large market opportunity • Regulatory-driven need • Tenured team • Lean Startup Model • Non-dilutive opportunities
Competitive Landscape • Secure Easy to use • Automated marketing • Global • Multiple industries • Donate to non-profits
“Bright Ideas” in St. Louis Development Corporations Annual Report (2012) • “Going All-In” in Saint Louis University Shareholder Magazine (2012) • “Material Mix wants to turn trash into profit” in St. Louis Business Journal’s “Biz Next” Blog (2012) • “Shaking the Money Tree” in St. Louis Small Business Monthly (2012) • “Cash for Trash: A Web-based Exchange for Recycling Demolition Debris and Industrial Waste” in St. Louis Beacon (2012) • “Arch Grants Four-Part Web Series” (2012 • “All About Business” TV Segment from Channel 11 News (2012) • “Entrepreneurship 101” in business section of STL Today (2012) • “Entrepreneurs to Watch in 2012” of St. Louis Small Business Monthly (2012) • “Downtown Buzz” of DowntownSTL channel (2011) Recognition and Honors Confidential
Steering Committee: WEST (Women Entrepreneurs of St. Louis) (2012) • Guest Speaker: Old North Business Development Symposium (2012) • Guest Speaker: Techli Innovation Speaker Series (2012) • Guest Speaker: Mizzou Entrepreneurship Retreat (2012) • Guest Speaker: National Black MBA “Entrepreneurial Think Tank” (2012) • Guest Speaker: Saint Louis University Sustainability in Business Class (2012) • Mentor to other startups: Saint Louis University and Washington University (2011-2012) • Active Member of Green Building Council’s Advocacy Committee (2012) Corporate Culture
Marketplace Value per Ton Tons/year1,600 130 3,590 530 40 2,900 1,600 (per facility) Highest Demand Materials
Waste diversion: 14M tons of garbage, $635M worth of landfill capacity • Conservation: Promoting reuse curbs the rate of consumption of virgin materials • Emissions Reduction: 99,700 Metric tons of emissions, $1.2M value of carbon offset • Job Creation: 28 jobs in the St. Louis region, stimulated growth for small.mid sized businesses • Recycling Market: 0.07% of total US market for recovered materials 3-Year Sustainable Impact
Initial Target MarketsIndustry Number(s)* Construction & Demolition ............................................ (236, 328) Metal ………………………………………………….…….. (331, 332) Non-Metallic Minerals ……………………………….….… (327) Paper ……………………………………………………....... (332) Plastic ……………………………………………………..…. (326) Wood …….……………………………………………..…… (321) Secondary Markets Agriculture Glass Rubber Chemicals Oils Storage, Containers Electronics Organic Textiles, Fibers, Hides Furnishings Paint, Enamel Tools *NAICS (North American Industry Classification System) data taken from US Census database CENSTAT
Due to a lack of alternatives, manufacturers are leaving significant value on the table (Per facility) Unrealized Value
$ 35 $69 K $14 K Value of Material (per ton) $ 160 Customer Profit vs. Hauling Expense $74 K $2 K $ 4.2 K $2 K $25 K $ 330 $23 $39 K $160 $74 K $30 K $ 260 $125 K $166 K What are the materials worth? $13 B Market Opportunity Industry data taken from US Census database, value per ton taken from RecycleMatch sample