Internet - New Media Biz Game seeking Equity Investors to close CR

Opportunity Snapshot

  • Country: India India
  • Industry: Internet, eBusiness
  • Stage: Initial growth (first revenues)
  • Years in operations: 2, Employees: 5
  • Investment size: $1,500,000 / min. $25,000
  • ROI: 1100% in 4 years
  • Type of investment: Equity

Investment Opportunity

A global web based Co. called My Heroes secures licenses to access and leverage celebrities’ personal IPs in innovative, ground breaking ways.

The heart of our value proposition is our ability to access and personalise Heroes' IPs to their fans via a range of personalised interactive products.
We are offering 28% equity for $1.5million to 'mine' market & promote our Cricket/Bollywood assets to India's +100 million middle class.

100 million Indians/ approx. 8% of India's overall population (only) are connected to the Internet with a similar number forming India's emerging middle class, with good jobs, high disposable incomes and spending power. Both internet penetration rates and emerging middle class estimates reveal similar no's/growth estimates to be around 350 million by 2015.

My Heroes (MH) generates its revenue through the sale of its unique & innovative personalised Hero products spanning verticals including;
• Personalised printed products ordered from the web,
• Mobile digital products (personalised images & premium video ordered to or transferred via QR code technology)
MH enables fans to reach out and personally connect and interact with their favorite sports and entertainment heroes via traditional and new media mediums.

3 years in the making we have soft launched and are ready to market and promote MH while launching our Bollywood vertical + adding other IPL teams. Here are some of the things we have achieved so far:
• Secured contracts with significant leading Talent Management agencies /IPL teams providing MH ability to create and personalise celebrity/team IP
• Covering sports and entertainment Bollyowood genres
• Developed Product mix which includes: Personalised digital printed products, QR code extensions to mobile devices, and mobile phone ‘Hero’ applications
• Linked MH website to branded Social network ‘apps’ with payment gateway constructed & ready for launch to enable Hero/fan interactions via print/QR code enablement
• My Heroes Pte Ltd incorporated in Singapore
• Rnd 1 and Rnd 2 of capital raise closed. Rnd 3 @ $1.5m activated with first 15% filled.
• Activated e-marketing, social networking and promotional plans
• Enabled Mobile to Social & celebrity sponsored /advertised content & in time digital gaming.
• Secured global iconic retail partners enabling cross promotion / sales driven activities across their Indian store networks
Additionally, we provide in-store presence and point of sale opportunities of MH customized products (as opposed to personalised products).

My Heroes has a strong philanthropic focus.

We are offering 28% equity for $1.5million with +1100 return in 3-4 years.

Competitive Advantage

Over 3 yrs MH has established a highly differentiated offering:
Our licensing rights enable us re-purpose 'Hero' IP 2 by creating and personalising a suite of unique digital/electronic products for Bollywood and sport teams/celebs.

Significant contractsare already in place with UTV/Disney, Globosport Digital, Raj Royals, Delhi Daredevils, Kings X1 Punjab, Kolkata Knight Riders and Insite Org. enabling MH 2 leverage celebrities personalised IP. There are ongoing negotiations with a number of other Indian talent management Co's and IPL teams.

Rationale for the deal

In India there are insatiable Fans of the Sports (predominantly Cricket) & Entertainment (Bollywood) sectors. India houses 1/5th of the world’s population - 1.2b - and a global Indian diaspora larger than Australia’s total population. India also houses the youngest population on Earth with a median age of 24. With India's emerging middle class rising from <100m to +350m in the next 4 years, with over a billion in Bollywood ticket sales and with 800m mobile connections it is expected to overtake China within 10yrs.

We will make money by connecting fans to their sports and entertainment heroes enabling them to get up close and personal with them.

The idea is backed by strong parallels to as well as lessons from my time building the WCSN business sport & LIVE streaming biz. Sure the WCSN end product is very different; however engaging the sports themselves and their communities/fans and driving them to a destination (portal) by having a presence at the governing sports level and cascading to the direct Olympic sports (teams) themselves, being part of their e-communities, e-communicating with members via their e-news and driving promotions and incentives from the sports and their websites and links to WCSN, and using social media to shape and drive consumer behavior and build the on-line community, ALL has an extremely strong correlation to My Heroes and what we are building.

Use of financing

Finance will give My Heroes the opportunity to:
• Formally launch My Heroes in India
• Announce My Heroes inaugural celebrities & IPL teams (while securing additional rights)
• Generate cash flow from the print / QR code print to mobile verticals
• Activate strategic e-marketing, social channels, PR & communications initiatives devised to generate sales of products and profile of the My Heroes brand
• Employ Indian based ‘on ground’ MH staff
• Launch official MH FaceBook ‘Hero app’ = MH ‘shop front’ in IPL & Bollywood FB fan pages
• Develop & launch mobile ‘Hero app’ enabling interactive content between fan & celebs

We have embarked on 3 rounds of finance to raise the overall amount of $2.3 million having successfully closed Rnds 1 & 2 (the latter over subscribed to)

Opportunity for the investor

28% equity for $1.5million with plan for trade sale or IPO in 36-48 months and forecast return of +1100% return on capital invested:
• Subject to achieving financial projections and achieving our EBIT of $11,792,000 after x3 years from close of capital raise.
• And based on the average exit multiple of 5.2x - being the market average return on invested capital in Indian Tech Co’s from 2004 & 2011 (as compared with 3.4x for non tech exits)
we would therefore achieve an exit value of $61,318,400

This means anyone investing now on the post money valuation of approx. $6m would get 11.4x times their investment or 1140%.

Investment schedule in equal lots of $500k and linked to KPI's & milestone achievements before progressing to the next tranche.

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