Investor Presentation May 2014 Who We Are • EveryLoan is vertically integrated online lending company focused on prime and super-prime consumers in the United States with a fast and efficient way to borrow money at attractive interest rates through peer-topeer (P2P) lending • We are an information-driven, simple-to-use resource. • We are a “one-stop-shop” for consumers to compare and apply for loans provided by a diverse range of providers across several categories: – – – – – personal, business, home, auto and education. 2 Our Business 3 Why We Exist • We are a response to the status quo in lending in a multi-trillion dollar consumer credit market which, for borrowers is: – Time consuming, – Administratively challenging, and – Functionally opaque • We are a marketing solution for lending partners that want to drive transactions and extend brand value proposition • Online lenders are gaining momentum as alternative to conventional banking – Lending Club and Prosper (Personal) – OnDeck Funding Circle, Kabbage (Business) – SoFi and Common Bond (Student) 4 How it Works 5 How We Make Money • • • • Direct Loan Origination - ~ 4% of transaction fee Referral (Performance Marketing) - ~1% of transaction fee Lead Sales - ~ $20 per lead (can be re-purposed) Ad sales As the table below shows, direct loan origination drives the most value on a per transaction basis: Origination Referral Avg. Fee (Personal Loan) $600 $150 Avg. Fee (Business Loan) $1,200 $300 6 Lending Partners Additional partners pending 7 The Power of One Each lead can potentially be directed into several lending funnels and monetized in a variety of ways 8 Our Market • Leading “Peer-to-Peer” lenders Lending Club and Prosper issued $2.4 billion in loans in 2013, up from $871 million in 2012. • U.S. household consumer debt profile: – Average credit card debt: $15,191 – Average mortgage debt: $154,365 – Average student loan debt: $33,607 • In total, American consumers owe: – – – – $11.68 trillion in debt $854.2 billion in credit card debt $8.15 trillion in mortgages $1.1 trillion in student loans 9 Key Trends - Lenders • P2P Lending is gaining momentum. • Lending Club loans are available to borrowers in all but six states while Prosper is available in all but three states. Investors face greater restrictions. Investors in only 29 states plus the District of Columbia are given access to Prosper. Investors in a slightly different set of 28 states have access to Lending Club. If P2P lending were to become available throughout the rest of the U.S., investment dollars and P2P borrowing could grow substantially. – Lending Club has issued more than $3B in loans – Google invested $125M into Lending Club @ $1.5B valuation 10 Going Mainstream • Community banks (e.g., Titan Bank and Congressional Bank) have begun purchasing loans through the Lending Club platform and Titan Bank started to offer personal loans to their customers through Lending Club. 11 Key Trends – Small Business • Median loan size: $18,000 to $40,000 for larger firms • More Difficult to procure loans from conventional banks and finance companies due to higher level of perceived risk – Higher failure rates – More vulnerable to economic downturns – Informational opacity • Despite higher interest rates, increasingly turning to P2P lending – Less paperwork, more efficient process • With nearly 7,000 community banks in the US, the potential for additional partnering with Lending Club as it expands into the small business space is substantial • The passage of the SEC crowdfunding rules will expand the pool of individuals eligible to provide funding to small businesses 12 Business Strategy • Our website is at the core of our marketing strategy and fundamental to our success – A one-stop web destination for consumers seeking information and resources regarding loans – Better execution in matching consumers with lenders • We are a marketing-centric business – Traffic drives both Loan Origination, Lead generation and Lead conversion • We work closely with leading agencies that specialize in digital marketing, with proven success in the P2P and lending markets to assist us in the development and execution of campaigns designed to drive traffic to EveryLoan.com. 13 Business Roadmap Current Near-Term keys to success: - Driving unique visitors to EveryLoan.com - Maintaining “stickiness” and loyalty to site by providing value added resources and tools, borrower education Mid-Term Mid-Term: - Maintaining marketing velocity Long-Term Long-Term: - Vertical integration of - Additional lending products marketing platform to add and partners proprietary lending solutions - Building site loyalty and - Building site loyalty and community community 14 KEY BUSINESS DATA 15 Capitalization and Offering Entity Type Shares Authorized Shares Outstanding Current Offering Shares Offered Offering Price/Shares Shares Outstanding Post Offering Valuation (pre-offering) Valuation (post-offering) Use of Proceeds Website Launch Marketing Operating Capital Delaware Corp 100,000,000 3,000,000 1,000,000 1,000,000 $1.00 4,000,000 $3,000,000 $4,000,000 $100,000 $700,000 $200,000 $1,000,000 16 Pro Forma Forecast* Total Revenue Total Direct Costs Gross Margin Total Operating Expenses Operating Income (Loss) Total Other Income Income Taxes Net Income (Loss) EBITDA (Loss) % $ $ 2014 2015 1,483,875 $ 14,295,000 50,682 507,698 1,433,193 13,787,302 1,672,434 2,986,517 (239,242) 10,800,785 2,260 19,641 3,681,167 (236,982) 7,139,259 (239,242) $ 10,800,785 -16% 76% 2016 $ 28,074,000 1,036,557 27,037,443 4,012,391 23,025,052 103,832 8,082,290 15,046,595 $ 23,025,052 82% 2017 $ 37,380,000 1,434,901 35,945,099 4,928,880 31,016,219 262,771 10,930,822 20,348,168 $ 31,016,219 83% *Financial performance assumption is based on Company successfully completing current offering. Any delay or failure to complete all or part of the offering will have a negative material impact on the pro forma forecast herein. 17 Management Sam Stamper – Founder and CEO Mr. Stamper brings over 15 years’ experience in marketing, mortgage and finance. Prior to EveryLoan, Inc., Stamper served as President of Pacific Capital Group and Vice President at GPN. He remains an active leader in finding innovative ways to bring loans and financing to those seeking same. Stamper’s vast knowledge of the market and future trends put EveryLoan’s new business model ahead of the curve. Mr. Stamper holds a BA in Political Science and is licensed with the California Department of Real Estate to sell Real Estate. 18 For more information, contact: Company: Sam Stamper, CEO Ph: 949-734-4420 E: [email protected] Investors: Thomas Carter, Capital Services Group Ph: 760-845-7545 E: [email protected] THANK YOU 19 APPENDIX 20 Peer-to-peer lending volume and interest rate by Lending Club, by loan purpose and year of issue 21 Peer-to-peer lending volume and interest rate by LendingClub.com, by loan purpose and year of issue 22 Net percent of firms reporting that credit was harder to get compared to 3 months ago, by # of employees 23