Daroteka Germany

Investment opportunity
Investment summary
COUNTRY Germany
INDUSTRY Internet business
PRODUCT DEVELOPMENT STAGE Internet application Daroteka fully operational
BUSINESS STAGE Startup
COMPETITORS Swedish company WRAPP and no others

FUNDING NEEDED EUR 1,2 million
PAY BACK PERIOD 3 years
RETURN ON INVESTMENT 300% (i.e. EUR 3,6 million)
USE OF FUNDS - marketing (FB and classical) EUR 750K
- salaries EUR 200K
- customization of Daroteka application EUR 25K
- office and utilities EUR 25K
- other EUR 200K

Revenue projection
Darotekas users
Universe is constant in projection period
Darotekas users increase in projection period from
10,25% of universe in Y1 to 25% in Y5 (i.e. from 1,6 million
users in Y1 to 3,8 million users in Y5)

Partners commission
Number of Darotekas users that actually make a
purchase on Daroteka increase from 261K in Y1 to 765K in
Y5
Assumption is that we have constant value of 75 EUR per
1 purchase in projection period
Value of all purchases (partners turnover) increase from
EUR 19,6 million in Y1 to EUR 57,4 million in Y5
With constant 10% commission on partners turnover in
projection period, revenue from commissions increase
from EUR 2 million in Y1 to EUR 5,7 million in Y5

Marketing campaigns
Assumption is that reach to Darotekas users will increase
from 20% in Y1 to 35% in Y5 (i.e. from 314K in Y1 to 1,3
million of clicks in Y5)
Constant price per 1 click of EUR 0,20 in project. period
With increase of number of campaigns from 11 in Y1 to
200 in Y5, revenue increases from EUR 154K to 55,6
million in Y5
Profit & Loss Statement
Revenue
Total cumulative revenue in 5 years period reaches EUR 133
million
Revenue structure changes obviously making revenue
generated from marketing campaigns dominant (in
cumulative it makes 85% of total revenue)

Direct costs
In the structure of direct costs marketing campaigns are
dominant (FB marketing campaigns and other marketing
activities i.e. classical media)
Banks fees are calculated as 3% of total partners turnover
(these are costs of credit card commissions)
Media buying agencies fees are commissions that media
buying agencies charge for selling Darotekas marketing
campaigns to advertisers. The fees are calculated as 5%
commission on value of marketing campaigns revenue.

Operating expenses
Dominant expense relates to gross salaries. It reach EUR 279K
for 5 employees in Y1 and EUR 7 million in Y5 for
approximately 40 employees. It contains all benefits like yearly
bonuses and son on.

EBITDA
EBITDA is negative for EUR 1,2 million in Y1 and reach EUR
37,6 million in year 5 (the main driver for such kind of
increase is marketing campaigns revenue).
Cumulative 5Y EBITDA makes 52,3% of revenue and reaches
EUR 69,5 million