Next Gen Gifting Inc. Investor Presentation
Cryptocurrencies are a nascent set of currencies and markets for storing value and transacting. Their growth is striking, their permanence is established and companies/facilities are ramping up rapidly.
While the number of participants in the market is spiking, a question persists… If I want to give my friend some bitcoin to get them started, how do I do it?
STATE OF THE ART • Acquire a bitcoin wallet for yourself to hold the bitcoin and then buy bitcoin for yourself (and pay a transaction fee to buy the bitcoin). • Teach the friend how to download and use their own wallet. • “Pay” the friend in bitcoin, sending bitcoin from your wallet to your friend’s wallet (and pay another fee associated with sending/ receiving the bitcoin).
WHAT IS WRONG? • Current offerings place the onus on the giver to learn, jump through complex hoops and then educate. • And the receiver needs to jump through more hoops prior to receiving the gift itself. • The current ways to give cryptocurrency lack simplicity, visual appeal and the spirit of giving. • There is no pure-play cryptocurrency gifting company.
THE SOLUTION • Gift Cards • Globally recognized mechanism for giving a friend the opportunity to buy/do something. • Can bring simplicity and consumer friendly packaging to cryptocurrencies.
GIFT CARDS • $680B in stored value, 24% CAGR between 2017 to 2023 projected to $3T in stored value in 2023. 1 • Global standard for giving, incredible continued growth in the market. • Many mature companies interested in acquisitions, many startups rising and significant transactions. 1. Allied Market Research, 2017
RECENT ACTIVITY • 2017: First Data-FLEETCOR merger to create $362M revenue gift card business focused on market expansion / acquisitions. • 2016: Blackhawk Networks acquired GiftCards.com for $100M. • 2014: First Data acquired Gyft for ~$90M. Established players focus on acquisitions in growth markets.
NGG PRODUCT: SIMPLICITY Buy and give cryptocurrencies as easily as a traditional gift card. NGG platform can facilitate both digital/mobile and physical cards.
NGG BRANDS cgift is NGG’s first consumer brand cgift has been developed for market entry into Germany, Taiwan and United States in Q3 2018. cgift will deliver mobile app, web site and physical card variants of NGG’s capabilities.
NGG TIMELINE • 2016-2017: product development by Joe Bergeron (founder). • 2017: brand development and progress to late stage negotiations with potential retail location launch partners in United States and Taiwan. • 2017: structuring of seasoned collection of all necessary strengths: software, cryptocurrency, fintech, consumer branding and gift/ loyalty card market management team members. • 2018: Launch
MARKET SIZING • Consumer interest in buying cryptocurrencies has grown exponentially over the last 2 years and now represents a consistent thread of conversation within governments and the largest financial institutions. They are here to stay, grow and consumers will continue to become more aware and invested in cryptocurrencies. • NGG is poised to lead an important segment within that growth: new buyer/holder adoption. NGG is doing that through a simple but powerful mechanism in digital and physical gift cards. • The cryptocurrency market is holding $600B in USD value today, with massive growth continuing well into the future. Whether it is bitcoin or another cryptocurrency leading the way, NGG will enable redemption of gift cards for cryptocurrencies.
PROJECTIONS: 3 SUB-MARKETS • NGG’s owned brands (cgift) • Digital Gift Cards (online & mobile) • Physical Gift Cards • NGG operating white-label services for existing brands / retailers
DIGITAL GIFT CARDS • Aggressive advertising through search, partner sites and affiliate content (finance, etc.). Year 1 2 3 Transactions 100K 1.6M 5.5M Revenue (USD) $270K $4.4M $13.5M
PHYSICAL GIFT CARDS • NGG is in late stage conversations with two leading pharmacy and convenience store brands to sell and market cgift gift cards in stores in the United States and Taiwan across 4,000 locations in the United States and 2,000 locations in Taiwan. Year 1 2 3 Transactions 337K 250K 600K Revenue (USD) $886K $7M $25M
WHITE LABEL GIFT CARDS
COMPETITION • Consumers being “content” with the current complicated system of buying to give. • Bit4Coin (Amsterdam, Europe-only and not focused on the gift card opportunity)
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