Introducing Roundabout

Roundabout™ is a free fundraising technology for online, European retailers (such as Amazon.co.uk or Tescos.com) to enable “small-change” donations at point of sale to consumers’ (aka donors’) charity of choice. The installation of Roundabout™ on a site will cause the efficient aggregation of millions of small-change donations (at no cost to the retailer or charity), and will affect an instant and ongoing cash injection to the top-line of charities we partner with. The donation process is done in a single-click, intimidation-free manner. Deployed in this spirit, Roundabout serves as an effective electronic fundraiser to encourage “frequent, small change” donations, rather than “infrequent, larger” DILLEMMA OF THE 3 C’s donations, and to convert consumers’ willingness to give into actual giving. Roundabout solves some of the CONSUMERS most pressing issues as it pertains to the online distribution of wealth and giving to worthy causes. “I really want to Three broad constituencies will benefit: give, and do so regularly, but the current channels present too much of a hassle.”




Online retailers wishing to: • Position themselves as socially responsible corporations in the eyes of consumers and regulators, • Demonstrate their understanding of the “real” consumption needs of modern consumers who increasingly demonstrate a desire to “give back”.




Charities wishing to: • Bolster their top-line donor volumes without having to compete head-on with likes of Amazon for consumers’ time and attention, • Widen their donor profile, and • Amplify their visibility.




Most importantly, online consumers wishing to: • Give regularly at their whim to their favorite charity in a single-click, hassle-free, secure manner through a trusted brand

COMPANIES “We don’t know how to keep consumers’ ‘social attention span’ and what to make of CSR!”

CHARITIES “We can’t compete against Tesco for online consumer money, so why bother.”

How does it work? Roundabout™ installs seamlessly onto retailers’ systems. Roundabout automatically rounds up a purchase to the nearest pound, and offers the consumer the choice to donate or not (the default position is “decline”, and a donation will only be made if the consumers chooses to). The donation process does not intrude on selling – essentially, Roundabout blurs the line between buying and giving to emerge as an effective impulse fundraiser. Consider the graphic depicting a purchase of £9.24 being rounded to £10.00. Donors also have the option to add in extra pound amounts. At month-end, Roundabout invoices the retailer with an itemized bill for all donations that have been collected over the month. Upon receipt of these donations, Roundabout sorts and distributes the donations to the selected charities. A similar concept has already been shown to be successful by IDEO-designed “Keep the Change” campaign for Bank of America to improve savings.

Where does the profit come from? The revenue model relies on high volumes of low value transactions – a feasible approach given the boom in online retail and the volumes of transactions that leading retailers are experiencing (see Tesco.com). The administration fee structure is set in such a manner that the maximum amount of money can be transferred the charities we partner with.

UK donations from small (<£10) donations: 27%

Economic Philosophy: SMALL CHANGE ADDS UP!

Total number of Roundabout donations

696,000 2008

1,176,000 2009

1,740,000

2,376,000

2,580,000

2011

2012

2010

Number of online transactions in 2006: 10,5mn. Revenues in excess of £1bn.

FEE STRUCTURE •

Average donation size: £0.50

•

For donations ≤ £0.10 – Free! and for donations > £0.10 – 10%

•

As revenues increase, expenses stay relatively fixed

Development costs are minimal, and a prototype is currently being developed. Marketing to large online retailers will commence soon. The business model relies on partnering with only a few bigticket online retailers with high-volume online presences. Given the high probability of signing at least a few of these retailers, Roundabout can reasonable expect to break even within an 18month period, and within a short space can see dramatic trading volumes. Break-Even Analysis

I ncome Statement

Year ended 31 December (£000s ) £500,000 £400,000 £300,000

Break-Even Point BREAKEVEN

£200,000

(18 months)

£100,000

Revenue

Sep-12

Jan-12

May-12

Sep-11

Jan-11

May-11

Sep-10

May-10

Jan-10

Sep-09

Jan-09

May-09

Sep-08

Jan-08

£May-08

2008 2009 2010 2011 2012 Turnover 220 716 1,327 2,258 3,519 G&A Expenses 239 641 697 747 807 Operating Costs 22 22 22 22 23 BREAKEVEN: 18MONTHS MONTHS Marketing Expense 3118 27 24 21 19 BREAKEVEN: PBIT (72) 25 584 1,468 2,671 Interest 6 6 5 5 4 Taxation 0 7 164 411 748 Net Profit (78) 12 415 1,052 1,919 Profit Margin -35% 2% 31% 47% 55%

Expenses

Management team: The original business plan was developed by 5 Oxford MBA’s – 3 of which are carrying this forward and championing the incorporation and rollout. The management team’s combined experiences cover a wide range of domains, including online startup experience and work in the social sector. The team consists of:
Mr. Christopher North (CEO) – South African national working fulltime in UK private equity sector as a renewable energy investor. Experience with Accenture and a niche actuarial consultancy in South Africa advising widely on financial services issues. Founder of 2 South African SME’s. Completed internships in venture capital and the social sector (Rwanda). Responsibilities: Building an A-list of charity partnerships, constructing a world-class Board of Directors, and raising (social) venture capital to achieve large-scale rollout.
Mr. Daniel Adams (Director of Business Development) – British national working fulltime as an entrepreneur and Director of Business Development for Tribe Partners, an internet startup and consultancy. Former senior counsel for AOL with significant experience negotiating contracts on behalf of multinational corporations and their online operations. Responsibilities: Heading all business development activities, promoting Roundabout widely to the online retailing community, establishing a large base of retailing clients.
Mr. Shreekant Vattikuti (Director of Strategy / Legal) – US national with substantial legal, financial, and operational experience. Working fulltime in boutique US investment bank, promoting entrepreneurial deals mostly in the technology sector with significant exposure to key players in global banking and venture capital sectors. Responsibilities: Evaluating and monitoring Roundabout’s proposition to all stakeholders, and proactively identifying growth opportunities. Responsible for incorporation and ongoing legal matters.