United States, Ca... "Cybacom, Inc.: Executive Summary Mission People want privacy when shopping on the Internet. People do not want to give their name and credit card number to on-line merchants. People want the choice to spend cash or credit. People want simplicity. Cybacom's mission is to provide all of these things. The Company Cybacom, Inc., is a start-up located in Ojai, North of Los Angeles. Cybacom is a Delaware Corporation, founded by Richard Schofield based on the development of a unique and patentable method for performing on-line transactions. Market Forces In a recent survey, 69% of Internet users said their main on-line concern was giving their name and credit card number over the Internet. More than 90% say that they would prefer to remain anonymous during on-line sessions--if it were possible. Unique Proposition Cybacom will offer five new services, which include three of the holy grails of E-commerce: anonymous transactions; micropayments; and spending cash on-line. Cybacom's unique advantage is that all of these services will operate within the merchants' existing web-sites--with no need for merchant enrollment. New Services Cybacom will offer five new services, ranging from the ability to block the use of your credit card on-lineů..to aggregating many small on-line transactions into a single paymentů..to spending cash on-line with complete anonymity. All of these services are designed to operate within a standard on-line credit card purchase form. Cybacom's five unique services are described below. Credit Card Blocking. Customers will be able to block the on-line use of their credit or debit card. When the customer wishes to make an on-line purchase, they will unblock their account for long enough to complete the transaction, and then re-block it. Customers will also be able to assign daily, weekly and monthly on-line transaction limits for their credit cards. These basic features will give customers control over their accounts, and minimize the risk of unauthorized transactions. Name and Address Masking. Customers will be able to provide an alias identity to the merchant, concealing their real identity. Cybacom will submit the customer's real name and credit card information to the credit card processor for authorization, however the merchant (and anybody intercepting the information) will not have access to this data. Credit Card Masking. This feature will allow the customer to completely conceal their name and credit card information, so that neither the merchant nor the credit card company (or bank) knows that they have made that specific purchase. For example, when the customer makes a $20 on-line purchase, the merchant will only know that a $20 purchase by ""John Smith"" has been authorized and funded. The customer's credit card statement will only show that the customer made a $20 purchase to Cybacom. Customers will be able to view their transactions on-line at Cybacom's secure site. Cash Spending On-Line. Cybacom has developing a way for customers to spend cash on-line, with complete anonymity. This requires the customer to pre-deposit cash into a Cybacom account, or make funds available by one of several other methods. Micropayments. Many on-line merchants seek a universally accepted method for making payments under $5.00. Cybacom offers such a system that all merchants can accept, and all credit or debit card holders (or Cybacom's cash-spending customers) can use. Intellectual Property Cybacom has a pending patent, and will further protect its intellectual property through copyright protection and additional patent applications. Partnerships Cybacom's strategy is to seek a partnership or alliance with a major player in the on-line credit card processing industry. Cybacom is already in feasibility discussions with Cardservice International, a $600 million Payment Gateway company who processes 60% of all on-line credit card transactions. Competition Cybacom's main competition comes from CyberCash and the other ""wallet"" companies. Their services, however, lack the anonymity which is the cornerstone of Cybacom's service, and are only accepted at a limited number of merchant sites. Strategy Cybacom's strategy is to launch its services with an aggressive marketing campaign, and seek rapid dominance in the anonymous transaction arena. This will be done in conjunction with Cybacom's partners, utilizing co-branding to quickly establish legitimacy. Financial Projections Cybacom's revenues will come from a combination of setup fees, monthly fees and transaction fees for its various services. Based on a preliminary fee structure, Cybacom projects initial average earnings of $3 per month per customer, with a profit margin of 20%, giving year 2001 profits of $34 million. Capital Requirements Cybacom is seeking seed capital of up to $1,000,000 in equity investment. This will be used to complete the feasibility analysis with Cardservice International, continue intellectual property protection, and provide operating cash until a strategic partnership can be formed. Additional funding requirements will depend on the nature of that partnership. It is anticipated that first round financing of $1 to $2 million will be required to finance operations leading up to a product launch in the fourth quarter of 1999. Second round financing would then be sought (prior to product launch) for an aggressive campaign of advertising and on-line product promotion. Manageme...
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