A presentation a friend and I worked on while brainstorming ideas for a technology startup. Our objective was to explore opportunities in industries we're familiar with and industries we believe are ripe for disruption. The presentation lays out key industry metrics and profiles successful companies (somewhat startup-focused) within each industry.

1. Insurance, Rental, HOA, and
Consumer Loan MarketOverview
Authors: Dain Hall and ScottSnow
Date: April 2014
1

2. I. Insurance
II. Consumer Loans
III. Rental & HOA
2
Table ofContents

3. Insurance
3

4. 4
Market Ecosystem
Key Market KPIs

5. Insurance Ecosystem
5
The Graphic to
the Right
Landscapes
Distribution,
Service
Providers and
Carriers byValue
Chain Function
Note: Graphic is indicative.
Industry Associations
IT Solution Providers
Business Services
Third Party Administrators (TPAs)
Claims
Partners
Distribution
Global Brokers
Managing General Agents
IndependentAgency / Broker
Regulators
Customers
Marketing
and
Reporting
Distribution
Mgmt. / Sales
Underwriting
/ New
Business
Policy
Servicing
Billing and
Collections
Claims /
Payouts
Reinsurance
Asset /
Investment
Mgmt.
Enterprise
Services
Property and Casualty
Reinsurance
Life and Health Insurance
Government Insurance Programs
CarriersServiceProviders

6. Insurance Ecosystem – ITSolutions and BusinessServices
6
There are many
Software and
Technology
Companies
Attacking
Different Areas
of the Insurance
Value Chain
Note: Product / service offerings indicative and sourced through the company’s website.
Marketing and
Reporting
Distribution
Mgmt. / Sales
Underwriting /
New Business
Policy Servicing
Billing and
Collections
Claims /
Payouts
Reinsurance
Asset /
Investment
Mgmt.
Enterprise
Services

7. Insurance Ecosystem –Guidewire
Policy Center
• Guidewire PolicyCenter: Underwriting and policy administration system that manages the policy lifecycle,
including quoting, new applications, issuance endorsements, cancellations, reinstatements, renewals, and audits.
For each of these stages, PolicyCenter’s configurable workflow and business rules control how work is distributed
and managed and how underwriting decisions are made.
Billing Center
• Guidewire BillingCenter: is a billing system that manages the entire invoicing and payment lifecycle. The system
serves as an insurance sub-ledger and provides exceptionhandling, commission-management, and direct and
agency billing capabilities.
Claims Center
• Guidewire ClaimCenter:A claims system that manages the entire claims lifecycle from first notice of loss through
settlement, litigation, and recovery.The system also keeps track of all required claims-related financial data.
Other
• Guidewire Rating: enables product specialists to manage rating for policy transaction processing.
• Guidewire Reinsurance Management: enables reinsurance managers and underwriters to administer proportional
and non-proportional treaty and facultative agreements.
• Guidewire Client Data Management: provides customer support a comprehensive customer view across core
insurance processes.
Mobile &
Portals (New)
• Quote and Buy Portal: New customer acquisition through access to request a quote, review quotes, compare
quotes and buy a policy online
• Claim Portal: Expedite claims via claim reporting, coverage verification, and claim status transparency. Allows
communication with vendors during repairs avoiding delays and ensuring proper work authorizations.
• Account Management Portal: Improves customer satisfaction and aligns policyholder goals through online policy
review and modifications, policy document download, billing status viewing and online payment.
Technology
• Java platform, which is the preferred technology of insurance the industry
• 100% web client; no software is installed or maintained by end-user
• Customers can change the data models, business rules, workflows, screens, the user interface—without altering the
source code. Allowing tailored functionality, whileGuidewire can supply continuous improvements via upgrades to
the base system.
7
Guidewire
champions a
Java-based
platform that
services key pain
points in the
P&C industry

8. Their Mission is toSolveCommon Industry Pain Points
8

9. Type Examples
Managing General Agents: A specialized type of insurance
agent/broker that, unlike traditional agents/brokers, is vested with
underwriting authority from an insurer. MGAs perform certain
functions ordinarily handled only by insurers, such as binding
coverage, underwriting and pricing, appointing retail agents within a
particular area, and settling claims.
Global Brokers: Contrast to insurance agents, an insurance broker
represents the insured, generally has no contractual agreements with
insurance carriers, and relies on common or direct methods of
perfecting business transactions with insurance carrier
Independent Agency / Brokers: An insurance agent is an insurance
company's representative by way of agent-principal legal custom.
The agent's primary alliance is with the insurance carrier, not the
insurance buyer.
Insurance Ecosystem – Distribution
9
Carriers Rely
Heavily on
Multiple
Channels for
Distribution
much like the
Payment
Industry
Source: Wikipedia and insurance journals.

10. Insurance Ecosystem – Distribution (KeyChannelTrends)
 Rise in customers’ use of the internet to buy insurance products
 Customers currently use the internet primarily to research and compare various
policies, view policy details, make policy changes, pay premium bills, and contact
agents/brokers
 Increased use of social media as a distribution channel
 Social media benefits include new way to connect with users, differentiation,
quick response to process change/announcements, better relationships with
customers, increased transparency, no geographic limitation for agents, more
trust in interaction
 Rise in usage of SaaS solutions to enable the insurance distribution process across
multiple channels
 [See next page]
 Rise in usage of technological solutions to automate the underwriting process and
increase direct sales
 Underwriting automation yields benefits to end-to-end transparency, automated
risk analysis, integration with existing platforms, modernization and straight-
through processing
10
KeyTrends
Within
Distribution
Channels are
Leveraging new
Technologies to
Reduce Cost and
Increase
Operational
Efficiencies
Source: Gapgemini – Trends in Insurance Channels.

11. Insurance Ecosystem – Distribution (KeyChannelTrends cont.)
11
Insurance Firms
LeveragingSaaS
Solutions to
Speed up
Insurance
Distribution
Processes Across
Multiple
Channels
Source: Gapgemini – Trends in Insurance Channels.
Benefits Provided by the SaaS Model to Insurers
Delivered over the web by a
third party
Costs are incurred as variable operating
costs (e.g. Cost per user per month)
All infrastructure and related
management is highly abstracted
Multi-tenant, meaning the costs of such
infrastructure and operations is spread
over many customers
Resources are highly elastic
Ability to customize/extend
Significantly accelerated
speed of deployment
Very conductive to pilots
and experimentation
Accelerated innovation
and platform evolution
Visibly reduced dependence
and burden on internal IT
Generally lower costs per user

12. Insurance Ecosystem – Distribution (TopAgents vs Brokers)
12
There is a Large
Discrepancy in
the Size of
Agencies and
Brokerages due
to Brokerages’
Ability to ‘Shop’
for Better
Pricing on
Behalf of the
Customer
1) www.insurancejournal.com.
2) www.businessinsurance.com.
Rank Agencies (1) 2012 Rev ($ in mm) Brokers (2) 2012 Rev ($ in mm)
1 HUB International $750 Marsh & McLennan $11,924
2 Lockton Cos. $747 Aon $11,476
3 USI $335 Willis $3,458
4 Alliant $331 Arthur J Gallagher $2,385
5 Confie Seguros $205 Wells Fargo $1,575
6 Assured Partners $173 BB&T $1,480
7 Leavitt Group $120 Jardine LloydThomson $1,404
8 Integro $112 Brown & Brown $1,400
9 Beecher Carlson* $98 Lockton Cos $1,000
10 Ins. Office of America $87 Hub Internationl $989
Total $2,958 $37,091

13. Insurance Ecosystem -ClaimsServicing / Management
Type Examples
Third Party Administrators (TPAs): AThird PartyAdministrator (TPA) is an
organization that processes insurance claims or certain aspects of employee
benefit plans for a separate entity.Typically viewed as "outsourcing" the
administration of the claims processing, since theTPA is performing a task
traditionally handled by the company providing the insurance or the company
itself. Often, in the case of insurance claims, aTPA handles the claims
processing for an employer that self-insures its employees.
Claims Partners: Provide compliance and claims resolution services to
property/casualty insurance companies, self-insured companies and third-
party administrators.
13
Other Players
Focus on
HandlingClaims
Processing and
Compliance
Specifically
Source: Wikipedia and insurance journals

14. 14
Key Market KPIs
Market Ecosystem

15. Insurance
• US premiums have grown
~6%YoY since 2009
• ~$1.1 trillion in annual
premiums
• Companies looking to
grow direct channel and
reduce acquisition costs
by leveraging social
media and mobile
Insurance Software
• Significant IT investment
in customer acquisition
and retention
technologies
• Regulation such as the
NAIC Solvency
Modernization Initiative
expected to drive
spending on ERM and
enhanced MIS projects
Electronic Bill Payment
• ~One in Six Bill Payments
are Made by Cards and
That Number is Growing
Rapidly
• The Growth in Biller
Direct Payments is
Outpacing All Other
Forms of Consumer
Payments
ExecutiveSummary
15
A Huge Market
with Fast
Growing
Segments

16. Insurance Industry KeyTrends
 Acquisition ratios (1) are changing very little in most countries with only a
fraction of customers using direct distribution networks; however, insurers are
undertaking widespread efforts to increase the use of direct distribution
networks to increase profitability
 Customers are beginning to opt for new and alternative channels, such as
Internet and mobile; this is helping insurers to increase their reach, but
distribution costs remain high
 Highly competitive developed markets have high cost of new business
acquisition, since commissions still represent a large, integral distribution
expense, and the cost of competing for business through advertising and
aggregation websites is high
 Adding mobile channels, leveraging social media, and integrating all existing
channels remains focal points of insurer customer acquisition and retention
strategies
 Premium growth of ~6% from 2009 – 2012
Source: World Insurance Report, Capgemini.
1) Acquisition Ratio equal to ( commission + fees ) / gross written premiums.
16
InsurersTurning
to Mobile and
Social Media to
Reduce
AcquisitionCosts
and to Better
Customer
Experience
Insurance
Insurance
Software
Bill
Payment

17. US Insurance Industry Breakdown
Source: Federal Insurance Office, US Department of the Treasury
1) Net of reinsurance premiums.
17
Although there are
fewer L/H insurers
than P/C insurers, the
size of the L/H sector is
greater in terms of
premium volume and
other metrics
Life &
Health
$645
P&C
$460
Net Written Premiums (1) ($ in bn) Assets Under Management ($ in tr)
58%
58%
Life &
Health
$5.6
P&C
$1.6
78%
22%
NWP: $1,105 bn AUM: $7.2 trInsurance
Insurance
Software
Bill
Payment

18. US Insurance PremiumGrowth
Source: Federal Insurance Office, US Department of the Treasury :
1) Net of reinsurance premiums.
2) Gross direct written premiums.
18
 From 2009 to 2012,
the US Insurance
Market Grew ~6% a
Year
Annual Property & Casualty Direct Written Premiums (2) ($ in bn)
Annual Life & Health Net Written Premiums (1) ($ in bn)
$143
$121
$100
$123 $131
$323
$225
$286
$327 $340
$154 $160 $168 $169 $171
$3 $2
$25
$4 $4
2008 2009 2010 2011 2012
Life Annuity & Deposits Accident & Health Other
8%
$238 $240 $246 $251 $261$245
$227 $223 $236 $247
$8 $8 $8 $9 $8
2008 2009 2010 2011 2012
Personal P&C Commercial P&C Accident & Health
3%
Insurance
Insurance
Software
Bill
Payment

19. InsuranceSoftware KeyTrends (1)
 Consumers' demands for "anywhere, anytime" interaction continue to drive
significant IT investment in digital channels across all regional markets
 As insurers emerge from short-term cost-cutting, CIOs are beginning to
prioritize projects that drive customer acquisition and retention or improve
operational effectiveness
 Within the European markets, intensive competition and prolonged slow
premium growth is driving a focus on customer retention, with online portal
projects being key IT initiatives
 Expected budgets directly related to digital channels to grow at a 9% CAGR,
with mobile and social media emerging as the key focus of channel-related IT
projects
 A key priority driving IT spending by NorthAmerican life insurers is the need to
comply with emerging regulation such as the NationalAssociation of Insurance
Commissioners (NAIC)Solvency Modernization Initiative (SMI).The impact of
regulatory compliance on IT budgets will continue to be felt up to 2017, driving
spending on enterprise risk management (ERM) and enhanced management
information systems (MIS) in particular
1) Source: www.insurancethoughtleadership.com citing Ovum Insurance Technology Spend Forecasts. 19
IT budgets
expected to
grow 8%
annually
between 2013
and 2017 to
reach a global
value of just
over $49 bn
Insurance
Insurance
Software
Bill
Payment

20. 2014 ITSpending Plans by BusinessCapability
1) Source: SMA research report, 2014 Insurance Ecosystem: Insurer Technology Spending, Drivers, and Projects. 20
 Significant Increase
in IT Spend for New
Business /
Underwriting and
Product
Development
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Marketing
Distribution / Sales
Product Development
New Business / UW
Policy Services
Bills and Collections
Claims / Payouts
Reinsurance
Enterprise Services
Asset / Inv Management
Increase Flat Decrease
Front
Office
EnterpriseBackOffice
Middle
Office
Insurance
Insurance
Software
Bill
Payment

21. Recurring Bill Payment KeyTrends
 Mail-In Payments Continue to Decline Rapidly
 Biller Direct Is Becoming the Preferred Payment Method
 CardsAre the Fastest Growing PaymentType
 Growth in the Number of Under banked Households NeedingAlternative
Payment Channels Increases the Need for Prepaid Debit Card Acceptance
 Consumers are (Finally) Embracing E-Presentment of Bills
1) Source: World Insurance Report, Capgemini.
2) Acquisition Ratio equal to ( commission + fees ) / gross written premiums.
21
Consumers are
Rapidly
Adopting
Recurring,
Electronic Bill
Payment
Methods
Note: Figures in this
section from 2009
Insurance
Insurance
Software
Bill
Payment

22. Bill Payment byType
Source: First Data: Bill Payment Trends: Major Shifts in Consumer Behavior Require Comprehensive Planning, 2009.
1) Biller Direct encompasses IVR and website portals.
2) Consolidator includes financial institutions and other third party aggregator sites
22
The Growth in
Biller Direct
Payments is
Outpacing All
Other Forms of
Consumer
Payments
5% 5% 5% 5% 5% 5% 4% 4% 4%
2% 2% 2% 2% 2% 4% 4% 5% 5%
14% 14% 14% 14% 14%
14% 14% 14% 14%
6% 7% 9% 10% 10%
11% 12% 13% 15%10%
13%
16%
18% 21%
24% 26%
28%
31%
63%
59%
54% 51% 48%
42% 40%
36%
31%
2004 2005 2006 2007 2008 2009 2010 2011 2012
Mail
Biller Direct
Consolidator
Direct Debit
Automated Cards
Walk-in
Bill Payment Breakdown byType
(1)
(2)
Insurance
Insurance
Software
Bill
Payment
Note: Figures in this
section from 2009

23. Bill Payment byCardGrowth
Source: First Data: Bill Payment Trends: Major Shifts in Consumer Behavior Require Comprehensive Planning, 2009. 23
 ~One in Six Bill
Payments are Made
by Cards andThat
Number is Growing
Rapidly
4%
5%
6% 7%
8%
9%
10%
11%
12%
2%
2%
3%
3%
3%
4%
4%
5%
5%
6%
7%
9%
10%
11%
12%
14%
15%
17%
2004 2005 2006 2007 2008 2009 2010 2011 2012
web/phone cards
automated cards
Card Payments as % ofTotal Bill Payment
Insurance
Insurance
Software
Bill
Payment
Note: Figures in this
section from 2009

24. Consumer Loans
24

25. • Shakeup of the traditional lending model through data-driven analytics and peer-
to-peer lending
• Analytics deviate from traditional methods such the use of traditional credit scores to
encompassing things like social media and other credit-worthy data sources
• Peer-to-peer lending sometimes encompasses relationship-model (i.e. student loans funded
by alumni)
• The web and software are major catalysts to cost savings by reducing operational costs that
can be transferred to the consumer
• US Consumer loan market is ~$11.7 trillion (1); micro business loan market is
~$140bn (2)
• Market participants are not only supplying cheaper capital to individuals, but also
using new analytics-driven models to supply capital to those who can’t get it from
traditional lenders
• There are essentially three barriers to new entrants in the lending market (3)
1) Significant startup costs due to the regulatory requirements
2) A new entrant must build up a track record in order to gain investor confidence
3) A lot of data must be accumulated over time to get the credit model right
1) Source: FRBNY Consumer Credit Panel / Equifax.
2) Defined as loans less than $100k; source: SBA, Small Business Lending in the United States 2012.
3) Morgenthaler Partner Rebecca Lynn in regards to TechCrunch article on LendingClub.
25
ExecutiveSummary

26. TotalUS Debt Balance
261) Source: http://www.newyorkfed.org/microeconomics/hhdc.html#2014/q1
Total Debt Balance
$3.0T
$8.7T
Housing debt
encompasses
~74% of a
consumer loan
market worth
~$11.7T

27. Non-Housing Debt Balance
27
Student loans at
$1.1T are now
the largest non-
housing form of
debt, surpassing
credit cards in
2012
1) Source: http://www.newyorkfed.org/microeconomics/hhdc.html#2014/q1
Non-housing Debt Balance
$1.1T
$0.3T
$0.7T
$0.9T

28. Delinquencies by LoanType
28
Student loans
have the highest
rate of 90+ day
delinquencies
and are also the
only type of
loan where
delinquencies
are NOT in
decline
1) Source: http://www.newyorkfed.org/microeconomics/hhdc.html#2014/q1
% of Balance 90+ Days Delinquent

29. Landscape of Key DisruptiveCompanies
29
AnalyticsPeer-to-peer
Consumer Business
Student Loans Personal Auto Medical Payday Mortgage Working Capital
Kiva
Disruption of the
traditional
lending model
throughout the
lending value
chain is being
driven
predominantly
by two factors:
better analytics
and a new peer-
to-peer lending
model

30. Landscape of Key DisruptiveCompanies-Continued
30
Heavy funding
and high
valuations in the
space with
heavy-weight
investors taking
bets on winners
A B C D Other Key Sponsors
Sept 2011
$4mm /
$8mm
Sept 2012
$77mm /
$180mm
Apr 2014
$80mm /
na
Na
Total Debt
Raised
$400mm
Aug 2007
$10mm /
na
Mar 2009
$12mm /
na
Apr 2010
$25mm /
na
Aug 2011
$25mm /
$275mm
May 2013
$125mm / $1.6bn
Apr 2014
$65mm / $3.8bn
July 2011
$19mm /
na
July 2012
$73mm /
na
July 2013
$20mm /
Na
na Na
Oct 2012
[unknown]
Nov 2013
$14mm /
na
na na
Total Debt
Raised
~$50mm
2006
$2mm /
na
2007
$16mm /
na
Jan 2011
$25mm /
na
Feb / May 2013
$59mm /
na
Mar 2014
$77mm /
na
Jan 2011
$7mm /
na
Aug 2011
$17mm /
na
Sept 2012
$30mm /
na
May 2014
$50mm /
na
Total Debt
Raised
~$360mm
Dec 2009
$6.5mm /
na
May 2010
$15mm /
na
Sept 2013
$24mm /
na
na
May 2014
$350mm
valuation
Series /
Valuation
PeterThiel
PeterThiel
Warren Stephens
Jim McKelvey

31. • Free web-based credit and financial management service for US consumers.
• In addition to credit scores, Credit Karma also offers financial account monitoring through account
aggregator serviceYodlee. This service allows consumers to track their bank, credit card, savings
and loan transactions and balances in Credit Karma’s interface
• Advertisement revenue offsets the costs of free credit score tracking and financial monitoring.
• Originally funded by CEO of Prosper and former president of E-Loan
• User base now accounts for $1.2 trillion of U.S. consumer debt, or roughly 10% of the nearly $13
trillion of consumer debt outstanding in the U.S.
• After an $85mm series C financing in March 2014, the Company’s post-money valuation of ~$1bn
• The service is primarily distributed through employers as a workplace financial wellness benefit
• In January 2014, HelloWallet partnered withTheVanguard Group to provide guidance on
managing debt, spending wisely, and maximizing company benefits toVanguard's plan
participants
• Members track their spending, create financial goals, and receive guidance on saving for
emergencies, retirement, and health expenses within the application
• Check utilizes proprietary account aggregation technology for secure payment technologies in its
mobile applications
• Check's primary service allows users to pay bills and track bank, credit card, investment, and loan
transactions and balances through a provided mobile application.
• Applications for iOS andAndroid platforms
Other DisruptiveCompanies in theConsumer Loans Market
31
Credit Karma
Credit Karma is
one of the
industry’s
fastest growing
service
providers,
providing free
credit tracking
information to
users by
offsetting
tracking costs
with targeted
financial product
advertisements

32. • Mint.com is a free web-based personal financial management service for the US and Canada
• Mint originally provided account aggregation through a deal withYodlee, but has since moved to
using Intuit for connecting to accounts.
• Mint's primary service allows users to track bank, credit card, investment, and loan
transactions and balances through a single user interface as well as make budgets and goals
• Can connect with more than 16,000 US and Canadian financial institutions and supports more
than 17 million individual financial accounts
• Revenue is generated through lead generation in which Mint.com recommends highly
personalized financial products to its users
• September 13, 2009:Announced that Intuit would acquire Mint for $170 million
• Free online personal financial management service in the United Kingdom
• Provides users with the ability to view all of their online financial accounts in one place
• Powered byYodlee, an account aggregation service used by many of the world’s leading banks
and financial institutions
• Also provides users with the opportunity to analyse past transactions and budget for the
future
• Yodlee is an American software company that develops an account aggregation service that
allows users to see their credit card, bank, investment, email, travel reward accounts, etc
• Yodlee Labs (formerlyYodlee MoneyCenter), a free web application that helps consumers
manage their finances online, provides features such as bill payment, expense tracking, and
investment management
• Over 45 million users, and over 150 financial institutions and portals (including 5 of the top 10
U.S. banks) offer services powered byYodlee
• Aggregation engine powers several applications for partners, including websites like Money
Dashboard, MoneyStrand,Thrive, and several large banks and financial institutions
• Yodlee has an incubator program which gives teams free 6-month access to its otherwise
privateAPI (http://bit.ly/1nMaxZV)
Other DisruptiveCompanies in theConsumer Loans Market
32
Mint
Yodlee’s data
aggregation
engine powers
numerous
startups’ and
financial
institutions’ web
portals and
offers an
incubator
program which
grants teams
access to its API
Acquired by:

33. CaseStudy
33
SoFi is a peer-
to-peer loan
platform that
connects
students and
recent
graduates with
alumni and
institutional
investors via
school specific
student loan
funds
Source: Wikipedia and insurance journals.
Corporate Timeline
Model
• SoFi utilizes an alumni-funded lending model that connects students and recent graduates with alumni and
institutional investors via school specific student loan funds
• Investors receive a financial return and borrowers receive rates lower than the federal government
• The company seeks to minimize defaults by focusing on low-risk students and graduates
Key
Statistics
• Loans funded: $500mm
• Total borrowers: 6k
• Average savings per borrower: $9k
Additional
Products
• Unemployment Protection: If borrower loses job, SoFi will pause loan payments and help borrower find a new job
• Career Support: SoFi offers free career planning and job search assistance to all borrowers in its network
• Entrepreneur Program: Up to 6 months of deferment, access to SoFi’s accredited investors, professional mentorship
and resources, networking with other SoFi entrepreneurs
Sept 2011: 4 Stanford GSB students
started low-cost student loan program
funded through alumni. Raised $4 mm.
Oct 2013: Raised $500mm in equity and
debt;At this point had funded $200mm
in loans to 2500 borrowers at its 100
eligible schools
Apr 2014: Raised $80mm led by
DiscoveryCapital Mgt., PeterThiel,
Wicklow and existing investors. Money
will be used to extend into new products
like mortgages and personal loans
Sept 2012: Raised $77mm led by Baseline
Ventures with participation of DCM and
Renren
Nov 2013: Announced deal with Barclays and
Morgan Stanley to create a bond backed by
peer-to-peer student loans representing the
first securitization of such loan

34. CaseStudy - Impact ofStudent-loan Debt
34
People with
student loan
debt were less
likely to own a
home and had
lower credit
scores than
those without
college debt,
according to a
new report. Both
groups,
however, are
buying cars

35. CaseStudy -Student LoanStatistics
35
Average Debt per Borrowing Grad Percentage of Students with Student Loans
% Change in Median Income vs Student Loan Balances (Age 25-34) % Change in Mortgage Debt Outstanding by Age Group (Q4 2013)
70% of
graduates have
student loans
with an average
of ~$35k.
Meanwhile,
median income
for graduating
students has
declined,
impacting other
markets such as
mortgages

36. CaseStudy
36
It appears that
new entrants in
the billing /
payment space
has diminished
Official
Payment’s share
of the
Government
and tuition
payments
market
Source: Wikipedia and insurance journals.
Corporate Timeline
Model
• Official PaymentsCorporation enables citizens to use their credit card or debit card to make
payments such as parking fines and tax bills to governments and other institutions
• OPS processes traffic fines, gas bills, electricity bills, water bills, tuition payments, and property taxes
• The IRS accounts for a large portion of OPS volume
Key
Statistics
• Processing for the IRS since 1999
• 27 state governments
• 400+ Colleges
• 4600+ municipalities and local government agencies
• Q1 2013 run-rate ~$45mm Rev / $6mm EBITDA (~ (-5%) / (-30%)YoY growth)
1996: Founded 2002: Acquired byTier
Technologies, a California based
consulting firm
Nov 2013: Acquired byACI Worldwide
for an EV of ~$109mm
1999 Began processing transactions for the IRS

37. CaseStudy
37
Check (fka
Pageonce)
mobile
payments
growth grew
exponentially
once it started to
white label its
mobile
payments
solution
1) Bloomberg interview with Menlo Ventures Managing Director Venky Ganesan..
Corporate Timeline
Model
• Free app; it charges a per-transaction convenience fee for bill payments using a credit card and, secondly, through
“targeted money-saving offers to its users.”
• Partnerships with companies like BlackstoneTechnology Group, which sells technology solutions to utilities that want
to add mobile bill payment options for their customers.
• The partnership allows utilities to integrate Pageonce without the usual IT costs and effort and essentially offers an
alternative version of a Pageonce white-labeling solution and providing a valuable customer acquisition strategy
Key
Statistics
• 10+ mm users
• ~$2mm bill payments / day (~$750mm / year) (1)
Late 2007: Founded by
CEO Guy Goldstein and
CFO Ahikam Kaufman to
manage passwords and
usernames across online
accounts; received angel
funding by private
investors of ~$1.5mm
May 2010: Series B of
$15mm
May 2014:
Rumored to be
in talks with
Intuit for a
$350mm
acquisition
Dec 2009: Raised $6.5mm
Series A from Pitango
Ventures
MobileTransactionVolume Growth ($)
Sept 2010: Raised
$24mm Series C

38. Rental & HOA
38

39. Property management executive summary
39
Property
management
industry is highly
fragmented
Majority of
industry made
up of property
management
companies with
fewer than 5
employees
• The US Property Management industry is mainly composed of small independent firms
• 90% of all industry operators employ fewer than five people (including
nonemployers, which make up 77.1% of all enterprises)
• the largest four companies comprise only about 3.2% of industry revenue
• As such, the industry has a very low level of market share concentration
• The industry is highly fragmented because participants must have strong contacts and
personal knowledge of local markets
• Additionally, the majority of industry costs are variable or semivariable, making it
harder for firms to gain economies of scale
• The industry is also characterized by low barriers to entry and low capital costs, which
make it easier for smaller firms to enter the marketplace

40. Property management market overview
40
Rental rates
have returned to
normalized
levels of 5%
Source: Deloitte market research.
• National rent growth across all sectors has returned to normalized levels of
approximately 5%
• Rental rates are expected to continue to stay at the same growth rate through 2018

41. Property management market overview
41
Vacancies rates
have lowered
across all sectors
Expected to
continue to
decrease going
forward
Source: Deloitte market research.
• Tight underwriting standards, high home foreclosures, and stagnant income have
continued to favor renting and impact home-buying decisions
• Thus, apartment demand will likely continue in the medium term, although development
activity will likely slow rental growth

42. Property management cloud adoption opportunities
42
Multitude of
opportunities
exist within the
property
management
software space
Source: Deloitte market research.
CRE function Current IT trends Cloud opportunities Potential benefits
Human
resources &
payroll
Outsourced solutions
from vendors such as
ADP
Will likely implement
hosted solutions as
vendors launch newer
versions on cloud
Higher cost savings and
increase efficiency
Sales &
marketing
Minimal IT usage except
promotion by
smartphone
applications and social
networks
Can adopt cloud-based
solutions for better data
collection, sharing and
usage
Improved business
intelligence through
superior information
flow
Asset
management
Use external software
solutions and host them
internally
Most likely to adopt
hosted solutions has
most solutions in this
area are on the cloud
Increased operations
efficiency and cost
savings
Construction
& design
Excel-based point
solutions
Adopt superior state-of-
art tools on a pay-per-
use model
Better business agility
through faster
execution
Finance &
accounting
Most large REITs have
on-premise ERP
solutions such as JD
Edwards
Use cloud ERP solutions
for faster
implementation and
better capacity
management
Improved operations
efficiency and cost
savings
Leasing &
cash
management
Use external software
solutions and host them
internally
Use similar solutions
hosted externally on
cloud
Improved scalability and
cost savings
Benefitsofcloud
Stakeholder impact
Management:
Real-time portfolio visibility
across diverse geographic
locations will likely improve
decision making
Employees:
Real-time enterprise
information across the
industry will likely increase
employee productivity
Investors:
Robust information flow will
potentially increase investor
visibility
Tenants:
Cost-effective marketing
campaigns and improved
agility will lead to enhanced
quality of service and aid
tenant retention
Society:
Improved energy efficiency
will enable firms to reduce
carbon footprint

43. Property management cloud adoption opportunities
43
Analytics
provides another
significant
opportunity for
software
providers
Source: Deloitte market research.
Presents
additional
revenue
opportunity
beyond basic
software
offering

44. Residentialproperty management market size
44
The US
residential
rental housing
market is
enormous
Source: Homeaway S-1.
Number of
Property Size Estimated Rental Units
(in millions)
Single-family properties
1 unit 14.5
2-4 units 7.8
Multi-family properties
5-9 units 5.3
10-49 units 8.4
50 or more units 3.7
Total RentalUnits 39.7
• The rental housing market is large and characterized by challenging and location-specific operating
requirements, diverse industry participants, significant mobility among residents and a variety of
property types, including single-family and a wide range of multi-family property types, including
conventional, affordable, privatized military, student and senior housing
• According to the U.S. Census Bureau American Housing Survey for the United States, there were
39.7 million rental housing units in the United States in 2009
~40M rental units
in the US

45. Residentialproperty management market size
45
A breakdown of
these 40M
rental units
shows that the
entire market is
addressable
Source: John Burns Real Estate Consulting

46. Residentialproperty management market size
46
Just the
residential rent
payment
addressable
market size is
$300M+
Source: Homeaway S1; Transunion.
• Based on U.S. Census Bureau data and Homeaway’s estimates, they believe that the overall size of the
U.S. rental housing market, including rent, utilities and insurance, exceeds $300 billion annually
• However, just annual rent payments total to $33.3B, This seems reasonable based on the analysis below:
Metric Size
Estimated number of rental units (M) 40
Median rent / unit $840
Annual US rent payments (M) $33,600
Take rate 1.0%
Revenue potential $336M
• While $336M seems like a large number, there is significant competition in the space competing for this
revenue
• Potentially creating a more wholistic offering could capture additional revenue – e.g. providing a
solution for rent, utilities and insurance for the property manager / consumer

47. Commercial property management marketsize
47
The commercial
property
management
presents an even
larger market
opportunity…
$1.7B+ in
revenue
Source: Grubb & Ellis (rental rates); realtor.org (inventory)
Metric Size
Square ft of office space (M) 4,132
Average rent / ft $23
Annual US rent payments (M) $95,036
Take rate 1.0%
Revenue potential $950M
Office:
Metric Size
Square ft of industrial space (M) 8,510
Average rent / ft $5
Annual US rent payments (M) $42,550
Take rate 1.0%
Revenue potential $426M
Industrial:
Metric Size
Square ft of retail space (M) 2,042
Average rent / ft $19
Annual US rent payments (M) $38,798
Take rate 1.0%
Revenue potential $388M
Retail:

48. Property Management Landscape – what companies are out there?
48
The property
management
landscape is
highly
fragmented
Feature
functionality
ranges from
basic e-
payments to
comprehensive
solutions
Source: softwareadvice.com; company websites
Property Management Feature functionality
Priceforproduct
R / C, ✓
R, ✓
R, ✓
R / C / H, ✓
R, ✓
R = residential focus
C = commercial focus
H = HOA focus
✓= payment processing functionality
R / H, ✓
R / H, ✓
C, ✓
C, ✓
R / C, ✓ R / C, ✓
Owned by Yardi

49. Property Management Landscape – how many units do they target?
49
No niche in
number of units
served
Source: softwareadvice.com; company websites
# of units
10K+
5K – 10K
2.5K – 5K
500 – 2.5K
100 – 500
50 – 100
< 50

50. Property Management Landscape – how many units do they target?
50
No niche in
number of units
served
Source: softwareadvice.com; company websites
# of units
10K+
5K – 10K
2.5K – 5K
500 – 2.5K
100 – 500
50 – 100
< 50
Owned by Yardi

51. PayLease profile
51
Payments
provider for the
property
management
industry
Partners with
property
management
companies as
well as software
providers
Company
Overview
 Overview: PayLease is a payments provider for the property management industry,
specifically serving the Residential, Homeowner Association and Commercial markets
 Target customer: Services property management companies large and small across all 50
states; clients are a mix of multifamily, single family, HOA and commercial portfolios
 Partners: Paylease partners with Property management software, online leasing providers,
website & portal developers, accounting software and utility billing providers
 Other: founded in 2003; HQ in San Diego, CA
Functionality  Provide property managers the ability to collect rent, dues and lease payments
electronically, resulting in less administrative work and improved cash flow and funding time
 Offer web integration, so tenants can go directly to clients’ websites to make a payment
 System also supports the ability to electronically transfer funds directly to property owner
accounts
 PayLease offers integration into the vast majority of property management and HOA
accounting software packages, enabling payment information to automatically populate into
your system
Traction  Serve thousands of property management clients in all 50 states representing over 8 million
units
Financials  Revenue: Unknown
 Funding: No public financings

52. Appfolio profile
52
Comprehensive
cloud-based
property
management
software
Outsources
payments to
Sage Payments
and Cirrus
(Mastercard)
Company
Overview
 Overview: Web-based property management system with accounting and management
capabilities
 Target customer: Targets property management companies of all sizes (easy, cost-
effective solution is especially beneficial for smaller property management companies)
 Other: founded in 2006; HQ in Goleta, CA
Functionality  Serves as the central hub for all business needs, including marketing, accounting, online
rent payments, applicant screening, online applications, online lease agreements and other
key processes
 All property information is stored in AppFolio, so vacant units can be quickly posted to
hundreds of sites on the Internet including the property managers’ website
 Online applications can be filled out, and background checks can be completed using the
software (through Experian)
 Also offers a comprehensive payment platform that includes a variety of payment options
including E-check, Credit Card, or Electronic Cash Payment (outsource payments to Sage /
Cirrus)
Traction  Acquisitions: Acquired Renter’s Friend in 2013, which provides online rental applications
and background checks (aims to revolutionize the rental application process)
Financials  Revenue: Unknown
 Funding: $30M in funding from e.ventures, Cisco, and Investment group of Santa Barbara

53. Yardi profile
53
Legacy property
management
software
provider
Company
Overview
 Overview: Browser-based property management systems designed for a wide range of
property types
 Yardi is the largest / one of the oldest property management software company in the world
 Target customer: Serves residential and commercial properties, military housing, senior
housing, public and affordable housing, and homeowners associations (also covers virtually
every size property management company)
 Does not cover includes the vacation rental market, hotel/resort management, and
self-storage property management
 Other: founded in 1984; HQ in Santa Barbara, CA, with offices in Australia, Asia, the Middle
East, Europe and North America; 1,200 employees
Functionality  Each system is designed for a specific industry but each edition has similar core modules,
such as tenant and lease tracking, accounting and building maintenance
 Yardi offers a number of optional modules that interface with the Voyager line
 CHECKScan turns paper checks into electronic receivables
 PAYScan turns paper invoices into electronic transactions
Traction  Support the more than 15,000 businesses and organizations, which manage over 7 billion
in commercial square feet and over 8 million residential units around the world
 Acquisitions: in the last year, Yardi Systems has acquired residential software company
DIY Real Estate Solutions, resident screening service Rent Grow and online real estate
portal Property Shark
Financials  Revenue: Unknown
 Funding: No public financings

54. Buildium profile
54
Web-based
solution focused
on residential
real estate
Company
Overview
 Overview: Web-based solution for focused primarily on residential properties.
 Target customer: Focused primarily on residential management
 Property Manager Edition is designed for property management firms
 Also offers versions for landlords or owner operators and homeowner associations
 Best suited for small to mid-sized organizations managing between 2 and 500 units
 Some early traction in commercial
 Other: founded in 2003; HQ in Boston, MA; 20 employees
Functionality  Automate core management functions, such as tenant tracking, accounting, maintenance
management, payments and property marketing
 Gaps in offering: payroll processing, common area maintenance (CAM) reconciliation,
commercial operating expense reconciliation, insurance tracking, compliance tracking,
utility metering and QuickBooks integration
Traction  Number of units managed: 250K+ units
Financials /
pricing
 Revenue: Unknown
 Pricing: priced per unit managed, with total monthly pricing ranging from roughly
$10/month-$175/month (customers that pay annually receive discount)

55. Interviewwith Property Manager who usesAppfolio
55
Overall the
Property
Manager is
pleased with the
Appfolio product
• Number of properties managed: ~200 (relatively small property management company)
• Appfolio was chosen over ~10 other software solutions including:
• Tenant Pro (which was recently acquired by PropertyWare)
• Buildium
• Yardi (legacy provider)
• Property Manager
• Picked Appfolio for the following reasons:
• Cost effective
• Accounting function: this is not strong, but has basic accounting functionality that she finds useful
• Cloud based: can upload videos of an inspection, tenant leases, and other documents that tenants
can access through the tenant portal – also allows her to directly email tenants from the system
• Tenant portal: ability for tenants to log in and see their account, submit work orders, and access
lease documents (they lose leases all the time)
• Market vacant units through Appfolio: provides the ability to advertise easily; auto-uploads into a
number of portals including Craigslist (however, there are sometimes glitches with this, where
their pictures do not upload)
• Payment function (not internal): done by Cirrus and Sage

56. Interviewwith Property Manager who usesAppfolio (continued)
56
Overall the
Property
Manager is
pleased with the
Appfolio product
• Monthly spend: $600 / quarter (the software saves her more than this in bookkeeping / operations time)
• Payment costs are included in the $600 fee
• Payments using the software: Outsourced to Sage payments and Cirrus (worldwide interbank network
operated by MasterCard Worldwide)
• Property manager setup: takes two weeks to setup account with the property manager’s bank
(saying that property manager is in fact the owner of the account)
• This property manager has separate accounts for each property
• Tenant setup: takes 2 – 3 days for a tenant to setup their account so their payments can be
processed using Sage
• Functionality: the property manager can access their cash flow statement using Appfolio and see
which tenants have paid
• She has experienced glitches where tenants pay early and this creates a prepayment issue
(she says this isn’t a big deal, but is slightly “annoying”)
• Credit card payment: she does not accept credit card, because she doesn’t want to pay for it (must
be extra fee thatAppfolio charges)
• Appfolio is linked to Experian: payments are linked to Experian, so all payment history will be reported
to the credit agency – she really likes this functionality because it reduces late payments
• When a tenant applies, the Experian integration allows them to do a credit report within the software

57. We have severalsoftware options within property management
57
For discussion
Payments only
(e.g.Yapstone)
Payments with
software provider
integration
(e.g. PayLease, Sage)
Comprehensive
software platform w/
payments built in
(Yardi?)Greater
functionality
Less
functionality
Pros Cons
Less time to launch
Lower upfront costs
Undifferentiated product
Sophisticated property managers
are looking for a more
comprehensive offering
Less time to launch
Lower upfront costs
Most software providers already
outsource or insource payments
(high switching costs / difficult to
differentiate)
Potential to build a differentiated
product and compete in a large
market
Property managers are looking for
a comprehensive offering
More time to launch
Higher upfront costs
1
2
3

58. Appendix
58

59. Property Management market size backup
59
Median rent of
apartment units
in the US is $840
Source: NMHC tabulations of the U.S. Census Bureau's 2011 American Housing Survey. Notes: The data for apartment units include on those
units in structures with five or more units that are rented.Updated 12/2012
Median Rent of Rental Apartment Units, 2011
Total $840
Year Unit Built
Built Prior to 2000 $810
Built 2000 to 2010 $965
Number of Bedrooms
Zero $703
One $750
Two $920
Three or more $1,020
Region
Northeast $953
Midwest $690
South $806
West $940

60. Property Management market size backup
60
By this estimate,
there are
approximately
43K renter
occupied
households
containing
100K+ residents
Source: NMHC tabulations of 2013 Current Population Survey, Annual Social and Economic Supplement, U.S. Census Bureau
(http://www.census.gov/cps). Updated October 2013.
U.S. Households- Renters & Owners
Type of Household
Households
(000s)
% of
U.S.
Total
Residents
(000s)
% of
U.S.
Total
Renter-Occupied 43,018 35% 104,194 33%
Owner-Occupied 79,484 65% 206,923 67%
Total 122,502 100% 311,117 100%
http://www.nmhc.org/Content.aspx?id=4708