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1 Video Ad Marketplace for Smart TV DIVAN.TV 2.0 Bridge Financing_ divantv.io

2 Executive Summary A marketplace that connects worldwide and local players, with a new, disruptive business model DIVAN.TV has a new product - an Advertising Marketplace for brands and services, available in Smart TV App Stores. This opens companies up to viewers on more than 1 billion Smart TVs and connected gadgets. Our marketplace will target brands and services, located both locally and worldwide. The Smart TV platform opens them up to equally wide exposure. Our Investment Opportunity Divan.TV seeks to raise the first external $5M bridge round in addition to $6M historical investment in the company. Investors will gain equity in our existing, profitable 7 years old international business, while the investment funds are used in the further development of our new, strategic product - an advertising marketplace that will disrupt the current, $170B TV advertising market. The holding company including the marketplace will generate $5M in revenue and then proceed with its further B Series round. divantv.io 02

3 DIVAN.TV Snapshot A Profitable Company Achieved break-even in 2018 Over 3 million registered users worldwide with the core audience in the US and EU; 93% CAGR All technology is patented and developed in-house First external round gained historical $6M investment $5M revenue in More than just hockey-stick growth - over 290% predicted Existing partnership with 5 online cinemas and 25 Smart TV vendors, including Apple & Samsung divantv.io 03

4 Programmatic TV Market is Growing 100% Annually Programmatic TV advertising* totaled $2 billion in 2018, and will reach nearly $4 billion by Connected TV traffic ballooned by 40%. In addition Future potential: 30% Connected TV and OTT account for more than 90% of growing programmatic advertising. According to PwC, programmatic TV will reach approximately 1/3 of global TV ad revenue by emarketer predicts that programmatic TV advertisement spending will reach more than $57B globally. * Programmatic TV advertising is the data-driven automation of audience-based advertising transactions. divantv.io 04

5 The Market Problem Being Solved with the DIVAN.TV B2B Marketplace Brands spend $170 billion on media-buying, but lose up to 70% of this budget to middlemen and ineffective targeting They are demanding the ability to measure TV advertising with the same effectiveness and accuracy as with the web, by utilizing programmatic real time bidding (RTB)* Subscription and On-Demand services available on Smart TVs want new streams of advertising revenue Brands and services available in Smart TV App Stores do not currently have a working mechanism that would effectively bring targeted video advertising to the 1 billion Smart TV/connected gadgets. Especially when considering transparent reporting *RTB utilizes software to negotiate rates for placing ads on TV, by targeting pre-defined audiences with specific ad units and creative approaches. divantv.io 05

6 Leveraging 7 years old market experience and own OTT service we ve built a New unique B2B Marketplace for Brands and Services, focusing on Smart TV Our clients are Smart TV services (games, movies) and existing and emerging TV channels, empowered by tech to create and monetize. Buyers Advertiser Advertiser Advertiser Advertiser Advertiser Advertiser Advertiser Advertiser Advertiser Network 1 Network 2 Network 3 DIVAN.TV OTT Service 1 OTT Service 2 OTT Service 3 Sellers Our platform offers a turn-key solution for brands and services on Smart TV App Stores, with a real time bidding solution. Video Services do not need to develop their own programmatic and blockchain based reward and programmatic service. Brands will receive immediate access to worldwide and local audiences. Revenue model: DIVAN.TV will receive a fee for each transaction on the Marketplace. divantv.io 06

7 Technological Solution: Programmatic RTB The first Programmatic Real Time Bidding Media Distribution and Advertising Platform for Smart TV (think Google Ads, in Dynamic Video) 1. The Programmatic RTB negotiates rates for TV ad placement, by targeting pre-defined audiences with specific ad units and creative approaches. 2. Ensures the validation of: consumer-level data bid-system reporting reconciliation among all players across the programmatic market 3. The market will understand how to utilize RTB to connect brands and users on 1 billion Smart TVs and Connected gadgets Manager evaluates advertiser targeting, and bids if it matches Viewers on the services connected to the marketplace Auction with all bids take place Exchange announces available bid to manager Winning exchange serves ad divantv.io 07

8 Decentralized Advertising and Data Ownership Unlike programmatic Web advertising, where Google owns almost all data single-handedly, the Smart TV advertising market is fragmented and data belongs to services. DIVAN.TV is building a decentralized marketplace where: Services are matched with advertisers, while remaining owners of their data Advertisers get access to an inventory with near-perfect ad completion. During CTV advertising, viewers are watching the ads all the way through, with a 98% average completion rate Highly entertaining ad formats, with unlimited screen space. Unlike limited banner and video ad size on the Web, CTV has ads that encompass the entire TV screen divantv.io 08

9 DIVAN.TV B2B Smart TV Marketplace Value Proposition Brands and services available on Smart TVs will have no barriers between them and 1 billion Smart TV/Connected gadgets, immediately after plugging in. Brands and services on Smart TVs will use our platform to have instant access to a turn-key, easy-to-integrate solution: 25 Existing Partnered Smart TV vendors including Samsung, LG, and Philips. Ad exchanges with numerous advertisers. Ready made software (SSP) that works with available advertising inventory. Data management platform (DMP) to manage consumer insights and data. Blockchain based system that validates programmatic activity, open to all players on the platform. Blockchain based reward system for viewers and additional monetisation model for content providers divantv.io 09

10 Adapting the Existing DIVAN.TV B2C Service The current DIVAN.TV B2C service will be among the first to join our marketplace. This instantly provides advertisers with access to more than 3M targeted users. All existing DIVAN.TV assets, patented technologies, brands, and customer bases will be available to facilitate the marketplace s development and growth. DIVAN.TV s B2C service will disrupt existing subscription-based video streaming business models, by utilizing programmatic RTB, tokenizing the business model and reshaping the way brands, content owners and viewers interact on Smart TV. This will help to onboard similar CTV services, and show them our benefits. R&D expertise and access to more than 25 vendors worldwide. General and Administrative cost-sharing will provide a competitive advantage for the B2B marketplace, and make launch less intensive on capital. divantv.io 10

11 Programmatic Advertising Competitive Landscape Single, unified cross-screen programmatic advertising platform, targeting publishers and advertisers Services: PMP, RTB, DMP, programmatic infrastructure Formats supported: desktop, mobile, connected TV Cons: Dependency on third-party companies Multiscreen programmatic advertising private marketplace for publishers and advertisers. Services: PMP, ad Marketplace, ad blocking, direct sales Formats supported: desktop, mobile, connected TV Cons: Works only with Panasonic and LG Main investment focus and future development on mobile, video and programmatic trading. Entered CTVs advertising by the acquisition of YuMe. Doesn t have own independent publisher with millions on viewers. Online monetization platform for CTV & OTT services. Services: ad exchanger, video cloud stream, ad managers: customized choice of ad insertion. Geography: 120+ countries. Doesn t have a lot of advertisers and inventory beyond Asia and the US. Formats supported: CTV, OTT, linear TV Cons: Limited geographical reach Focus entirely on CTVs and lack of cross-screen advertising Doesn t have own independent publisher with millions of viewers. divantv.io 11

12 DIVAN.TV Snapshot Founded in 2011 with a free and subscription-based video streaming business model on Smart TV. Operates in 195 countries, with offices in the EU (Cyprus), California (San-Diego), Hong Kong, Ukraine, and Russia. Targets language groups such as Ukrainian, Russian and English, with content in Chinese, Japanese, Spanish, French, German, Polish, Korean, Vietnamese, and Hindi live streaming TV-channels and a library of over 50,000 available movies and TV shows. Signed contracts with channels and right-holders worldwide: Game of Thrones, Boardwalk Empire, The Newsroom, The Young Pope, The Jinx, and many more Team has designed all proprietary technology and have their solutions patented. In-house product development helps to minimize costs compared to competitors, who have spent multiple millions to buy these technologies from vendors. divantv.io 12

13 DIVAN.TV: Key Vendors Has partnerships with world-leading Smart TV brands - LG, Samsung, Philips, Sharp, Telstra, Hisense, Haier +15 other vendors Other STB partners - Sony, Roku, Skyworth, TCL, Apple TV, Android TV, Amazon Fire, etc. divantv.io 13

14 DIVAN.TV Roadmap DIVAN.TV Launch Mobile App on Google and Apple stores Launch of Divan.TV on Roku, Amazon Fire TV stick and 15 other vendors DIVAN.TV Marketplace launch Q Q Q First Smart TV Application Release Commercial launch of Divan.TV in 185+ countries B2B Marketplace MVP launch divantv.io 14

15 Proceeds of Funds Funds invested in DIVAN.TV holding company will be used for the marketplace expansion: 30% into Sales Force 30% into further Research & Development 40% into expanding US, UK and Asia operations All current general and administrative costs, alongside the capital-intensive OTT video streaming service, will be supported from DIVAN.TV B2C service proceeds. divantv.io 15

16 The DIVAN.TV Team Andrew Kolodyuk On the plane worldwide Founder and Chairman Of The Board Andrew is a serial entrepreneur and investor. He started his entrepreneurial career in New York in 1992, and went on to found and built over 10 companies in IT, telecom, internet and media, some with annual revenue of over $1B. Andrew founded DIVAN.TV in He is a founder and Managing Partner in AVentures Capital and Board Member of Ciklum. Andrew was elected a Young Global Leader of the World Economic Forum in Arkadiy Kanyuka Head of Cyprus office Executive Director Responsible for General Management, Arkadiy has over 20 years of experience in Telecom business and investment. He was previously working as a commercial director of online business at Optima Telecom, and also as director of consulting company iks-consulting (conducting market research for Kyivstar, Data group, MTS, Astelit), director of the investment company Finart Capital Invest, and commercial director of P&S Capital. Vladimir Pyrozhenko Head of Hong Kong office Member of The Board Vladimir holds an MBA degree from the prestigious Kellogg School of Management (IL, USA) and has more than 20 years of experience in strategy and financial advisory at KPMG and World Bank. He has advised on strategy and raised investments for many startups, private companies and banks. Vladimir has launched and supported several successful startups. Denys Lukash Head of San Diego office Co-founder, CTO Talented and experienced Product manager with more then 20 total years of experience in the field of IT and Software. 10 years of product development: web based Software and Content services 8 years of managing projects in OTT Industry on senior level. 3 years of experience in BigData products. divantv.io 16

17 The DIVAN.TV Team Andriy Khavryuchenko Ukraine Advisor BPC Advisor on blockchain architecture and implementation. Expert in AL/ML/NLP, Distributed Agile Team building. Blockchain developer at Dash, Dmarket, DreamTeam. Alex Bornyakov New York Advisor and Investor Investor in new media and tech companies. President at Adtelligent BPC (USA) and the founder of VertaMedia (USA), a video Supply Side Platform (SSP) for publishers. A regular columnist for a number of respected industry publications including Forbes, Business2Community, and MarTech Today. Ruslan Gavrilyuk Singapore Advisor and Investor Сo-founder and President of Token-as-a-Service (TaaS), the last-generation closed-end fund dedicated to blockchain assets. Ruslan has more than 15 years of experience in founding and managing large-scale projects all over the world. Keynote speaker, awarded "Advisor And 60 other team members! divantv.io 17

18 Deal Structure and Use of Funds 100% ownership $5M Holding Company $5M 100% ownership Basic $5M bridge round deal terms Interest Rate 8% Next Round Discount 20% SSP platform with core focus on Smart TV International expansion & business development divantv.io 18

19 B2B Marketplace Status Technological Status MVP is ready. Marketplace launch in March-April 2019 Marketplace Back-End Integration Supply Side 50М audience and billions of monthly impressions in the US and EU from VOD services and aggregators: VIAWAY, ivi, TVzavr, Amedia, Tvigle,Pladform, OVVA, DIVAN.TV Marketplace Back-End Integration Demand Side 54 advertising partners including DBM, Appnexus, Yandex, SmartyAds, and others Ad insertion clients 91 Live national and YouTube channels Formats Supported 25 Smart TVs (Samsung, LG, Apple TV, Philips, etc), mobile, desktop Geography US, Eastern Europe. The UK and EU as next priorities divantv.io 19

20 Contact us Thank you! a_kolodyuk andrew_kolodyuk 21st Floor, CMA Building 64 Connaught Road Central Hong Kong 4455 Murphy Canyon Road Suite 100 San Diego, CA This presentation has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, financial, legal or investment advice. You should consult your own financial, legal and investment advisors before using and relying on this materials. divantv.io