EMAIL DETAILS

Eric D. Schwerin
eschwerin@rosemontseneca.com

Sent from my iPhone

Begin forwarded message:

> From: "Neil Callahan \(Rosemont Seneca\)" <ncallahan@rosemontseneca.com>
> Date: March 8, 2013, 11:13:06 PM EST
> To: "'Eric Schwerin'" <eschwerin@rosemontseneca.com>
> Subject: RE: Data Room - Cayova
> Reply-To: <ncallahan@rosemontseneca.com>
>
> Hey Eric,
>
> I have not started to review in detail. Their lawyers and consultants must be happy, they have clearly spent a ton of money on document creators.
>
> In their original summary document that they shared with us via email has their revenue projections and the earning multiple that support their valuation.
>
> Next year (2014) they say they will do $401MM in revenue and then more than double their revenue each year to $1.95B in revenue in 2017. All of the revenue is advertising revenue. And they will be do more revenue per user than Facebook by then.
>
> They lose money every year until 2017 where they will make $782MM and based on an earnings multiple 10.3x, they have their market valuation at $7.9B.
>
> So pretty aggressive projections and a plan from two guys who’ve never sold an ad in their life and have no experience in technology, but who knows crazier things have happen.
>
> What I do want to have is a user id and password to the product and to talk with the their technology lead. I would also want to talk with their sales lead and see their pipeline, they should have some of the 2014 $400m already identified in their pipeline and some of that already sold if that number is going to be taken seriously. (I don’t think I’ve ever heard of a company going from $0 revenue to $400MM in one year, GroupOn did not have that type of growth)
>
> Best,
>
> Neil
>
>
> Neil Callahan
> Rosemont Seneca Partners
> 401 Greenwich Street, Suite 300
> New York, New York 10013
> 917-945-9516 (m)
> 866-749-8879 (f)
> www.rosemontsenecatech.com
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>
> From: Eric Schwerin [mailto:eschwerin@rosemontseneca.com]
> Sent: Friday, March 08, 2013 6:51 PM
> To: Neil Callahan
> Subject: Data Room - Cayova
>
> Neil-
>
> I am sure you are still going through things in the data room (or may not have even started). Let me know if there is other documents we should discuss. I may have missed it but I don't see a lot that shows projected revenue and supports the valuation. Do you? I have asked them for anything on that as well.
>
> Let me know if there is anything else you see missing and we can get it.
>
> Best,
>
> Eric
>
>
>
> Eric D. Schwerin
> Rosemont Seneca Partners, LLC
> 1010 Wisconsin Ave., NW
> Suite 705
> Washington, DC 20007
> (202) 333-1880
> eschwerin@rosemontseneca.com
> P Consider the environment before printing this email.
> =2