Blockchain platform for viral videos and challenges on smart contracts ICO 15 NOVEMBER 2017 STARTS INVESTMENT DECK
MARKET SITUATION Millenials Video challenges Legal SPEND AN AVERAGE OF 20 HOURS WATCHING VIDEOS ON THEIR SMARTPHONES FILLED 7 POSITIONS OUT OF 10 IN THE TOP-10 MOST POPULAR VIDEOS ON YOUTUBE IN 2016 NO LEGAL OPTION TO UNDERTAKE MONEY CHALLENGES ONLINE Source: www.straitstimes.com Source: www.time.com Source: www.youtube.com
ASIAN MARKET IS INTERESTING Asia and India ONLINE VIDEO IN ASIA IS FAST GROWING: IT WAS WORTH $13B IN 2016 AND EXPECTED TO REACH $35B BY 2021 +700 М NEW USERS MILLENNIALS UGC video views are growing SNAPCHAT, INSTAGRAM STORIES, MESSENGER, LIVE-STREAMING APPS, ETC Crypto industry is growing ~50% OF ASIAN PEOPLE DON T HAVE A BANK AC- COUNT, IT S MUCH EASIER TO USE CRYPTOCURRENCIES Source: www.variety.com www.economictimes.indiatimes.com www.aseanup.com Source: www.boast.io Snap Inc. Form S-1
СONTENT MARKET ASIA IS GROWING ONLINE VIDEO $13B VIDEO VIEWS 114B 59B Online video market Challenge videos $510 М 15B 29B 2014 2015 2016 2017 TAM: $13B IN 2017 UP TO $35B BY 2021 YOY CAGR 97,5% Source: www.variety.com www.insivia.com Source: www.socialblade.com
MARKET PROBLEMS PROCRASTINATION PEOPLE ARE BORED FEW HIGH-QUALITY SOURCES OF LOCAL VIDEO CONTENT IN ASIA BIG PLAYERS ARE NOT ADAPTED TO THE ASIAN MARKET REALITIES DIFFICULTIES WITH CARD2CARD PAYMENTS FRAUD IN MONEY CHALLENGES
PROBLEM SOLUTION Procrastination Viral content and entertainment People are bored. They spend time on searching high-quality entertainment content on the Internet. Most of the viral content on the Internet (apart for music videos and animals) are challenges. Video challenges filled 7 out of 10 positions in the top-10 most popular videos on YouTube in 2016. Eristica is the biggest producer of challenge content in the world at the moment.
PROBLEM SOLUTION Lack of high-quality sources of local video content in Asia Eristica s local UGC content Market players (YouTube, Facebook, Snapchat, Instagram) are dominated by American content. People want to have local, more personalised and relevant content. They want content they can associate with. Users from each country upload content on the platform on their own, and local communities then and Eristica s content managers pick the best from the lot.
PROBLEM SOLUTION Big players are not tailored for the Asian markets Eristica is optimized for Asian countries Facebook, YouTube, Snapchat, Instagram apps take a lot of space on a smartphone plus it consumes a significant amount of memory and traffic. That usually strains users wallets. Eristica s APK consumes only 7Mb of memory while the technology of parallel video multi-streaming solves the traffic problem.
PROBLEM SOLUTION Payment difficulties Cryptocurrencies are integrated into Eristica platform ~50% of Asian people don t have a bank account. In order to pay for online-content they need to buy promo-codes in offline stores for cash. Instead of regular currency we use cryptocurrency as a prize in a challenge, which is available in Asia and can t be compromised.
PROBLEM SOLUTION Fraud Decentralization and blockchain Participating in challenges has always been a risk for people. There s no guarantee that a person will accept a loss in a challenge or send a prize to a winning party. Decentralized community voting and blockchain technology solves fraud issues, video proofs montage and excludes opportunistic behaviour.
ERISTICA ERISTICA IS A MOBILE VIDEO PLATFORM WHERE LOCAL PEOPLE CREATE, SHARE AND GET MILLIONS OF VIEWS FOR CHALLENGE VIDEOS AND EARN CRYPTOCURRENCY IN THE PROCESS Engaging content Social activity Cryptocurrencies VIRAL VIDEOS GRAB USERS ATTENTION CHALLENGE FRIENDS EARN CRYPTOCURRENCY USING YOUR TALENTS
ERISTICA Watch fun challenge videos Challenge your friends Earn cryptocurrency using your talents
Already available on AppStore and Google Play
ERISTICA 100% 100% Eristica Eristica with cryptocurrencies 2015 2016 2017 2018 2019 Blockchain and cryptocurrencies support will be integrated in the main Eristica app. In order to do so, we re releasing a massive update in 2018 Q2 on AppStore and Google Play. This is going to be available to all users.
ERISTICA WITH CRYPTOCURRENCIES Using a blockchain technology, we allow users to undertake unlimited amount of challenges and transparently participate in them. Challenges on smart contracts Decentralized voting Video proofs which cannot be compromised Total transparency
CRYPTOCURRENCY STAKES Challenge is a smart contract IF THEN ELSE... {user_1 wins}, {user_1 gets BTC from user_2} User 1 User 2 Users put their crypto wallet IDs, a stake (e.g. in ERT tokens or BTC) and fix the terms of a challenge on the app. This challenge and its status are automatically put to Eristica s blockchain. A winner of the challenge gets money after a smart contract is activated and the platform gets its fee.
WHERE ARE WE NOW? Consistent organic user growth over 2 years CIS 1.100.000 users Launched in March 2017 India & SEA 100.000 users
WE KNOW WHAT WE RE DOING NUMBER OF VIDEO VIEWS IN 2017 1.500.000 500.000 1.000.000 1.200.000 21.000 100 1.000 MARCH APRIL MAY JUNE JULY AUGUST
ERISTICA FOR CONTENT CONSUMERS New videos and challenges every day Celebrities on the platform Ability to earn cryptocurrency by taking part in decentralized voting
ERISTICA FOR CONTENT MAKERS Earnings in cryptocurrencies by undertaking challenges Get to boost your own channel Transparent mechanism of challenges on smart contracts New audience
COMPETITIVE ADVANTAGE Local Interactive Challenges 2G optimized Gamified Local KOLs and regular users Users can challenge & interact with their friends or KOL s Small app size, small data usage, optimised for emerging market phones Users are able to participate in challenges DOUBLEDOG FACEBOOK VIDEOS SNAPCHAT YOUTUBE
BUSINESS MODEL We take a 3% fee from each challenge ARPU = [# of challenges] * [stake amount] * 3% Key business drivers: Number of challenges Stake amounts Cryptocurrencies Retention Sharing Views per user Time per session Content quality Referrals
GROWTH STRATEGY: PREINSTALLS Agreements for free Eristica preinstalls on branded smartphones 100.000 per month Indonesia 100.000 per month Thailand, Philippines 100.000 per month India 100.000 per month India 50.000 per month Russia
STELLAR TEAM Nikita Akimov CEO Investment Analyst @ Aton, SUEK. Econometrics tutor @ MSU. Founded Eristica in 2014, achieved 1M+ registrations with no marketing budget. Artem Dalevich CMO Marketing consultant @ AIC (digital design company). Microsoft Student Partner, previously founded Appsbunch (raised USD$2M) Valentina Ivashchenko COO Previously founded her sweatshirt company, where she sold all the clothing lines. Managing director of real estate in Moscow. Legal council analyst @ TNK-BP Andrey Sheludchenko CTO Apple Russia CEO s Assistant, serial entrepreneur since the age of 17, back-end engineer, head of mobile dev @ Wildberries, KROK
SUPERSTAR TEAM OF ADVISORS William Bao Bean General Partner @SOSV Hayk Hakobyan Serial Entrepreneur Ryan Shuken Serial Entrepreneur Melody He General Member AngelVest William Shor Managing Director Caspian VC Evgeny Yakushkin Consultant
CONSULTANTS Max Taldykin Evgeny Tchebotarev Max is an experienced smart contracts developer, currently working on provable off-chain computations for Ethereum. Max is a Haskell, Idris and Rust programmer, specializing in functional programming and formal methods. First time entrepreneur who founded 500px, a photo marketplace for millions of photographers, on the new quest to: 1) Dramatically improve education through software 2) Help startups bridge gap between Asia & the West.
ACHIEVEMENTS Winners of McKinsey Startup Competition in 2016 and CryptoBazar 2017 Reached Top-5 ranking apps In lifestyle section in Russia Open webpage Devoted fans who love us Top-ranked product Eristica is the only Russian team which went through #1 accelerator in Asia MOX from SOSV
PRESS ABOUT US Open webpage
ERT Eristica is doing Initial Coin Offering (ICO) by launching its own token (ERT) ICO LASTS FOR 25 DAYS START: 15 NOVEMBER 2017
ERT TOKEN A token is a blood circulatory system of Eristica, which provides the highest level of security and prevents an unsanctioned human impact on processes within the platform. Token is used: As a prize in challenges on the platform As a fee to start a challenge with a celebrity As an access key to the unique content and other in-app features
TOKEN DISTRIBUTION HARD $10M CAP MAXIMUM*: 845 060 983,78 ERT 71% PUBLIC ICO 10% CHALLENGE FUND 10% ERISTICA TEAM 9% ICO ORGANIZATION Payment options: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCC) *in case the hard cap is reached
CHALLENGE FUND 10% Our goal is not only to provide the most advanced technology but to make the new economy work. CHALLENGE FUND IS CREATED TO MOTIVATE USERS ACTIVITY We re planning to use 10% of ERT tokens for incentivising users to take part in decentralized voting and challenges, as well as for motivation of content makers.
PROJECT S FINANCIALS AFTER THE ICO 31% PRODUCT DEVELOPMENT 23% CONTENT PRODUCTION 3% OTHER EXPENSES 9% BACK-END EXPENSES 31% PROMOTION 3% EXPO AND CONFERENCES
ERISTICA IS FOCUSED ON 4 SEGMENTS AND WE OFFER A VALUE TO EACH OF THEM MARKET being a leader in the challenge niche of the FunTech sector, Eristica sets a high benchmark for quality standards, transparency and self-organisation CONTENT MAKERS an option to monetize and promote your talent through the mechanics of challenges INVESTORS an option to become a pioneer in forming the new market. Additional income from tokens value growth CONTENT CONSUMERS high standards and unique content on Eristica always deliver the best experience when spending time on the platform
MILESTONES FOR 18 MONTHS 2017 Nov 2018 Q1 2018 Q1 2018 Q2 2018 Q2 2018 Q3 2018 Q3 2018 Q4 2018 Q4 2019 Token Sale Embedding smart contracts, content production Preinstalls on smartphones in Southeast Asia and India (~500,000) Fully functional website Monetizing off of challenges fees in cryptocurrency Content personalization AI 50 partnerships with bloggers Launch in the U.S. market Increase time per session up to 30 minutes 50M video views with 3M registered users
NIKITA AKIMOV nikita@eristica.com mssg.me/na @eristica Open webpage