Executive Summary

Parvenu

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Parvenu’s Mission: Transformational Giving at the Point of Sale

“With tax reform looming, every corner of the philanthropy world will be
impacted. A probable reduction in the corporate tax rate (now as high as
35%) could make charitable donations less attractive. That could have a
negative drag on business charitable support. Against this pending backdrop,
checkout charity may surface as an even more important source of
fundraising than is the case now.”

-Curt Weeden, Founder and Director of New Strategies,

Georgetown University

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Charitable donation at the retail point of sale needs innovation. As a result, charity
checkout giving remains in legacy format, behind the rapidly evolving technology of
point of sale (POS) and chip reader systems. Retailers are pressed to find more
competitive philanthropic solutions that can increase their brand loyalty in order to
drive customer retention. Meanwhile, charities need a broad boost in giving due to
the new tax law.

Innovation-driven POS integration technology, both online and in-store, is a key

missing element to empower retailers to grow a socially conscious brand. Existing
fundraising efforts at the checkout lane are low-tech, non-local, and not data-driven.
Parvenu offers the solution, with choice for in-store and online donation.

Parvenu’s software for POS and chip reader is a smart platform that utilizes
intelligent, data-driven functionality to create personalized engagement for the
customer. We offer the POS donation platform that transforms traditional charity
checkout efforts into high-tech crowdfunding technology.

Operating Pillars

Transparency - We will utilize data analytics to support transparency for all

donation activity and to produce reports for customers and donors;

Local - We will use smart implementations to focus on local causes, such that
communities can benefit;

In-store and Online - We will aim to be ubiquitous for our customers, partners and
donors, seeking opportunity on every platform;

Partners - Our leadership and our team will engage in healthy relationships with
our partners that will lift up our collective brands

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The Addressable Market

Crowdfunding accounted for $5.5 billion in donations in 2015. Furthermore, the

crowdfunding industry is projected to grow to over $300 billion by 2025. POS giving
totaled $441 million in the US in 2016. Millennials are twice as likely to donate than
those aged 55+ (79% vs. 42%), and half prefer to donate through Crowdfunding
over any other option.

As we perfect the online POS platform, we will sell our in-store application to
storefront brands who have had success with retail POS giving in the past. This will
generate repeat revenue from transaction fees (see: Financials). Parvenu’s platform
elegantly solves the sharpest pain points for three major players: nonprofits,
storefront retailers, and consumers.

Nonprofits are experiencing stifled growth due to a lack of innovation in

philanthropy and the impact of the new tax law. Progress is impeded by the
negative stigma around investing into overhead rather than maximizing
donor receipts. Parvenu eliminates traditionally high upfront costs by
crowdfunding at the point of sale. Transforming fundraising into
crowdfunding provides a two-fold advantage: nonprofits gain a free platform
that nullifies the overhead cost stigma, while expanding to a new donor base
to diversify their revenue stream. Parvenu’s ease of use and Pre-Check
branding elevates fundraising, democratizing tools to meet new markets.

Storefront Retailers have an immediate need to better engage millennials to

compete with Amazon’s growing market dominance. AmazonSmile has used
cause marketing to boost its image and differentiate itself from competitors,
but their overall donation amount still pales to retail giving.

Shoppers do not typically donate at the point of sale because they are
presented with unfamiliar, non-local causes on an uninspiring display.
Parvenu’s proprietary platform utilizes data-driven suggestions to inspire
millennial shoppers to go local by presenting dynamic smart donation
amounts and causes. A recent study found that 54% of donors indicated a
preference to donate locally.

“This tweet is a request for ideas… I’m thinking I want much of my philanthropic
activity to be helping people in the here and now – short term – at the intersection of
urgent need and lasting impact. If you have any ideas, just reply to this tweet with the
idea.”
- Jeff Bezos, CEO of Amazon

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The Demonstration Project: Pre-Check

Five test trials with a prototype of Parvenu’s application have already yielded
results 312% better than the national average for POS campaigns. Traditional
checkout campaigns ask the customer, “Would you like to donate?” This opt-in
method of asking for a donation frames not donating as the default choice. Opt-in
POS donation has yielded an 8% success rate. Parvenu’s platform fosters a culture
of giving by choosing to Pre-Check the donation box for the shopper. This opt-out
method frames donating as the default choice. This approach has yielded a 25%
success rate, with zero customer complaints.

The Innovation

In addition to Pre-Checked donations, Parvenu’s smart, integrative technology

features multiple data-driven tools that will drive adoption by consumers, partners,
and charities.

Inspiring Display - A high-tech display at the point of sale shows the specific
project that the money is going to, the nonprofit’s Charity Navigator ranking,
a progress thermometer of the fundraiser’s goal, and a thank you screen that
integrates with the retailer’s existing loyalty program to offers discounts and
tracks the shopper’s impact to encourage a sense of progress.

Predictive Cause Alignment - Nonprofits and stores identify alignment,

such as pairing a hunger charity with a grocery store, as the single most
important component of successful POS fundraisers. Our intelligent platform
takes this one step further by aligning transaction products with causes to
personalize the shopper’s experience. For example, a shopper buying dog
food would be asked to donate to the local animal shelter, and a shopper
buying diapers would be asked to donate to the local children’s hospital.

Smart Price Points - The platform analyzes shoppers’ purchases and

predicts the donation price point that maximizes donation amount and
likelihood to give. For instance, a shopper buying on-sale items sees a smaller
donation ask than a shopper buying premium, high-end products.

Beacons & Geo-Fencing - These emerging technologies will infiltrate the

market in the near future and allow us to take innovation to the next level.
We will send targeted notifications to shoppers’ phones both in proximity to
the store and within the store. A shopper in the dog food aisle receives a
notification informing them of a local animal shelter fundraiser and offers a
discount on dog food through the store’s loyalty program for donating.

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Parvenu’s proprietary technology dramatically increases customer engagement by
personalizing the shopping experience. In addition to integrating these disruptive
features, we are innovating through marketing by building a brand that shoppers
want to associate with. Whereas a traditional fundraising agency operates more like
a behind-the-scenes consultant for retailers, we are placing our brand at the
forefront in order to create a membership network of shoppers, retailers, and
nonprofits.

The Roll-Out

According to the 2017 Cone Communications study on corporate social

responsibility, 89% of millennials are willing to switch brands associated
with a good cause. This creates a significant market opportunity for Parvenu
to convert existing brands into social enterprises. Recently, top POS entities
like Verifone and Ingenico have opened up their systems for the first time to
third-party developers. Verifone has expressed interest in directly partnering
with us in order to build a successful marketplace of early applications. This
positions Parvenu to be the first-mover in a new, high-growth space with an
ideal partner.

Development: Development will initially be done using online platforms in

order to produce a minimum viable product that can be quickly tested and
debugged while it generates revenue. This bootstrapping shows our
commitment to moving forward with Parvenu’s brand expansion, online and
in-store.

Proprietary Technology gives us an advantage in a field of low-tech,

consultant-type competitors. Whereas a traditional consulting approach
gives our competitors growth on a shallow incline, a distinct focus on cutting
edge technology allows us to disrupt and scale quickly.

Legal & Compliance is a constant focus for Parvenu. We receive guidance

from advisory board members, including Mike Wakeland, CEO of
DialogueDirect, a multi-million-dollar fundraising company. We will register
as a Funding Portal with the SEC, comply with state fundraising laws, and
selectively work with developers experienced in PCI compliance. In addition,
Parvenu will use donor-advised funds (DAFs) as a vehicle for minimizing
regulatory barriers.

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Sales Plan

Nonprofits with Existing POS Campaigns will be the initial target, as

Parvenu adds value to their existing projects by tightening brand and
boosting donations. Patrick’s existing relationship with The Nature
Conservancy makes them an ideal initial target. Other targets include
Children’s Miracle Network (Walmart), St. Jude’s (Best Buy), and humane
societies (Petco).

Retail Foundations are the nonprofit foundation arm in charge of the for-
profit retailers’ cause marketing efforts. Our strategy is to connect through
these foundation arms, such as The Walmart Foundation and the Amazon
Foundation, to gain the needed exposure to their parent companies.
Verifone also has a long-standing relationship with Walmart, and we hope by
working together, introductions will be quick.

Strategic Partnerships with allies involved in the domains of cause

marketing and open source POS technology further accelerate our scale.
Potential partnerships on the technology side include: Verifone, Ingenico,
Square, and Lightspeed Rail. Potential partnerships on the retail side include:
Think Local First and GoCatalist. Potential partnerships on the nonprofit side
include: Engage for Good, Selfish Giving, and For Momentum.

Management Team

Patrick Hoban, CEO: An experienced fundraiser who has raised over

$350,000 in under a year for The Nature Conservancy and Save the Children.
Patrick brings sales, strategy, and nonprofit experience, including valuable
connections with industry experts. He co-founded the app ChampTrade, a
fintech peer-to-peer lending platform in gaming. Patrick’s charismatic
relationship development skills set him apart.

Johnny Li, COO: Johnny brings experience as a former implementation

consultant in financial technology solutions across diverse sectors, including
energy, manufacturing, entertainment, retail, and dining. Johnny provides
financial analytics, industry insights, corporate best practices, and
implementation strategy.

Krista Conley, CSO: A serial entrepreneur with strengths in strategy, sales,

systems, and exit positioning. She sold her first startup in Boston in 1998 to
Great Hill Partners and served as acting CSO to a Vermont-based startup that
sold to Oracle. Previously, she worked with Senator Ted Kennedy and the
Hong Kong Government. She has won a National Innovation Award in digital
health and was an angel investor for five years.

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Competitive Analysis

First-Mover Advantage - Parvenu enjoys the advantage of being first to

market in the United States for Verifone’s new app store. The most dominant
competitors in the POS giving space are stationed in Europe, where the open-
source chip reader market was established ahead of the U.S. schedule.

Small Nonprofits Can Compete on Cost - Local nonprofits can purchase

signal boosts to feature their cause on more checkout displays during high
traffic hours in order to compete with large national nonprofits that have a
higher fundraising budget.

UK Comparison: Europe adopted EMV card readers earlier than the US.
Pennies is a European crowdfunding platform for POS giving. They operate in
the United Kingdom and are actively willing to help us with industry insights,
best practices, and guidance to circumvent some of the mistakes they made
early on. They are currently in more than 1,000 stores across the UK and
have doubled their monthly donations to over 200,000+ in 2017 after
partnering with Verifone. Our closest competitors are overseas and have
proven the success of our goal, while still using low-tech features.

Parvenu’s fundamental advantage over competitors is that it sits on the most

scalable end of the fundraising consultant vs. technology spectrum and the
charity vs. cause marketing spectrum.

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Partnership Opportunities

Incubated by SEED SPOT

Technology
________________________________________________________________________
VeriFone* Mulesoft* Snipp
Ingenico First Data Apple
Square* Mashape
Lightspeed Flatiron School*

Retail
________________________________________________________________________
Think Local First* Crystal City*
Chain Store Guide

Nonprofit
________________________________________________________________________
Engage for Good* FundsforNGOs
Selfish Good* Pennies*
DialogueDirect*

Agency
________________________________________________________________________
GoCatalist* Channeltivity
For Momentum*

* Indicates an existing partnership or that we are currently negotiating a

partnership

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Financials

Dollar figures are in 000s

The break-even point is estimated at Month 7, and the profit point begins in Month
10.

Summary

Parvenu is approaching ideal market timing for transformation in the POS giving
space. We are taking a proven service in European that is highly profitable and
scalable and transforming it into a cutting-edge technology with disruptive,
intelligent features.

Thank you for reviewing our Executive Summary. We look forward to speaking with
you about investing.

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