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US Capital Investment Management

IRONYUN INCORPORATED


US Capital Investment Management

INVESTMENT OPPORTUNITY


US Capital Investment Management (the “Manager”), through its affiliate US Capital Global Securities, LLC., is offering membership units in the amount of $2 million for USCIM Fund XXV, IronYun, LLC (the “Issuer”). The Manager will purchase convertible Notes in the IronYun Incorporated (the “Company”).


INVESTMENT TERMS


US Capital Investment Management

Overview

IronYun is a cloud computing and video search company providing enterprise customers with advanced video management software. IronYun provides software for video search and video mining capabilities. Founded in 2015, Company is a Cayman Island holding company with subsidiaries in the US, Singapore and Taiwan. IronYun is seeking growth capital to increase headcount and expand its footprint in the US.


Market

The video surveillance industry is made up of a complex ecosystem that includes software, storage, hardware and services. The total video surveillance market was sized at $15.47 billion in 2013, and is expected to grow to $54.97 billion by 2020.1 IronYun’s focus within this larger market is on the Video Surveillance as a Service (VSaaS) market, which is expected to reach $5.18 billion by 2020. IronYun’s customer base consists of enterprise clients and government/public security organizations. IronYun’s target customers are mid-market companies who have a complex video camera infrastructure (1000+ cameras), and are seeking better solutions in video search/analytics at a lower cost.


Product Offering

IronYun offers clients with hardware and software solutions around video search, video mining and cloud data. IronYun’s product is the CityEyes Appliance – a cloud based video surveillance device optimized for cloud computing and big data surveillance applications. CityEyes appliance is a private cloud video surveillance system that will offer an “all-in-one” solution, consolidating hardware and software components which IronYun expects to be needed for a secure private surveillance infrastructure.


US Capital Investment Management

Growth Strategy and Revenue Model

Company generates revenue from hardware sales of its CityEyes product, and additional recurring revenue through its software solution. Hardware is priced at $6,900 for the basic model, up to $40,800 for an advanced device with custom functionality. IronYun’s recurring revenue is expected to come from its video analytics software package, which will be offered as a subscription service. Company has identified 3 primary avenues to drive growth:

1) Product mix and volume expansion: increasing number of cameras, storage capacity, and analytics engines.
2) Regional expansion: utilizing SEO and SEM marketing strategies and expansion into US, China, EMEA and India.
3) Vertical market expansion: Move up market and target larger enterprises (Fortune 1000 companies).


Value Proposition

IronYun’s intended value proposition to its customers consists of 3 key factors: ease of use, high performance, and low total cost of ownership. The Company’s product is a “hyper-converged” solution which will provide customers with an end-to-end solution for video storage, analytics and search. By combining functionality into a streamlined software and hardware package, IronYun intends to reach a low TCO (total cost of ownership). The software is being design to search common words to search matching video frames across thousands of hours of video data. Due to the large number of cameras deployed in enterprises, the cost for human operators to monitor videos is very high. IronYun’s products are intended to reduce thousands of hours of monitoring costs into seconds of video search time.


FINANCIAL SNAPSHOT


Income Statements

Pro forma data are contingent to successful and full completion of the proposed $2,000,000 Convertible Note Offering, the additional $15,000,000 Series B Equity Offering expected to take place in 2017, and execution by mangement team. For year-ending June 30th.


US Capital Investment Management

COMPANY’S MANAGEMENT TEAM


Paul Sun, President and CEO

Paul is a seasoned executive and serial entrepreneur with multiple success at VC backed companies. Previously, Paul was President/CEO of Avidia Systems, a telecom and Datacom system company acquired by PairGain Technologies in 1997. In 1998, Paul founded DSL.net (Nasdaq: DSLN) and served as chairman and CTO. Paul Led DSL.net successfully through its startup stage and into an IPO. Paul also founded, and served as President/CEO of Motio Inc. Prior to IronYun, he was the director of ITRI’s cloud computing center. Based in Taiwan, ITRI is a leading national research institute focusing on cloud computing and big data technologies. Paul earned a B.S.E.E from the National Taiwan University, and a M.S.E.E. from the University of Washington.


Tom Ma, Executive Chairman of the Board

Tom has more than 20 years of industry experience leading companies that develop, manufacture and market high-end software and hardware to a broad range of markets. Prior to founding IronYun, Mr. Ma founded MPX Technology Group, serving as its Chairman & CEO. He has served as Chairman/CEO at TVAnywhere Inc; He was also the Sr. VP for Turin Networks, which was acquired by Dell Computer in 2012 for $900 million. Tom has served as the regional VP and Managing Director for Asia Pacific region for PairGain Technologies, a telecom company that was acquired by ADC Telecom for $2 billion in year 2000. Tom earned a B.Sc in Electrical Engineering from the University of Ottawa.


Jerry Ko, Vice President- Engineering

Jerry has extensive experience managing large scale software engineering projects at startups and established global companies. Prior to founding IronYun, Mr. Ko is the division director for ITRI’s cloud computing center, responsible for all software products. Jerry was vice president of product engineering at Shutterfly (Nasdaq: SFLY), a leading web based social expression and personal publishing service company. Mr. Ko also led engineering teams at Escalate and Netscape. Jerry earned his Master’s in Computer Science from the University of California, Davis.


Jennifer Hou – CFO & Human Resources

Jennifer has broad and extensive experience in the field of corporate and venture capital fund raising. Prior to founding IronYun, Jennifer was the director of new venture development at ITRI, where she led the incubation group for various ITRI startups. Prior to ITRI, Jennifer was the founder, CFO and COO for SYNergy Scentech Corp., where she grew the company to a world leading supplier of Bluetooth battery component company. SYNergy is planning an IPO in Taiwan stock exchange.



SOURCES AND USES OF FUNDS


US Capital Investment Management

CAPITALIZATION CHART – IronYun Incorporated (Cayman)


US Capital Investment Management

RISK FACTORS


You should be aware that an investment in Units of the Issuer, and the Issuer’s investment in Company Securities, involves considerable risks, including the possible loss of all or a material portion of your investment. The abbreviated risks set forth below, as well as the detailed risk factors set forth in the Confidential Offering Memorandum and Supplement, are not the only risks facing investors. The abbreviated risks set forth below, as well as the detailed risk factors set forth in the Confidential Offering Memorandum and Supplement, are not the only risks facing investors.

The Company is a cloud-computing and big data video search company. The Company has created hardware devices and accompanying software products for video search and video mining. The Company is subject to a number of significant risks that could result in a reduction in its value and the value of the Company Securities, potentially including, but not limited to:

• The Company is an entity registered in the Cayman Islands.
• The Company has limited operating history.
• The Company relies on third party vendors for various services.
• The Company’s software will be subject to the changing technology and failure to improve, introduce, or otherwise perform new technology will negatively impact market acceptance of its products and services.
• The Company will encounter competition in substantially all areas of the software and services industry.
• Exchange rate fluctuations could reduce the Company’s earnings when stated in U.S. dollars.
• The Company has a pricing model that has not been tested yet.
• The Company does not own the patents on which its technology is built. The patents are owned and licensed to the Company by a shareholder of the Company, Industrial Technology Research Institute (controlled by the Taiwanese government).
• The Company will be exposed to the regulatory environment.
• The Company is strongly dependent on its intellectual property and exposed to intellectual property risks.
• The Company may initiate a stock swap with its Taiwanese subsidiary.

Investors must understand that by purchasing Units they are voluntarily assuming all of the risks of the investment, including any and all risks relating to the Company and Company Securities, whether disclosed in this Fund Summary, Offering Memorandum and Supplement or not.


CONFLICT OF INTEREST


The Manager and USCGS are affiliated entities. Charles Towle is Co-Managing Partner of the Manager, the Division Head and licensed principal of USCGS, and an indirect stockholder and Co-Managing of an affiliate company of the Manager and USCGS. Jeffrey Sweeney is Co-Managing Partner of the Manager and an indirect controlling stockholder of the Manager and USCGS. Conflicts of interest may arise in connection with Mr. Towle’s and Mr. Sweeney’s indirect control of both the Manager and USCGS. Investors should be aware that these conflicts of interest, and a number of other conflicts of interest relating to the Manager and its affiliates, are permitted under the terms of the Fund’s offering documents. You should not invest in the Fund unless you are willing to accept these conflicts of interest and the associated risk.


DISCLOSURES


This presentation does not constitute an offer to sell or a solicitation of an offer to buy any security and may not be relied upon in connection with the purchase or sale of any security. Any offer would only be made by means of a formal offering memorandum. No offer or solicitation will be made prior to delivery of a confidential information memorandum, private placement memorandum, or similar offering documents (“Offering Documents”). Offers and sales will be made only in accordance with applicable security laws and pursuant to the Offering Documents, operating agreement, subscription agreement, and other definitive documentation.

This presentation does not purport to be all-inclusive or to contain all of the information that the recipient may require and is qualified in its entirety by reference to the Offering Documents. This presentation is not a part of or supplemental to the Offering Documents or such definitive documentation. The Offering Documents and any supplements will supersede this presentation in its entirety. Projections and other forward-looking information as to events that may occur in the future (including projections of revenue, expense, net income and stock performance) are based on information provided by the Fund and other publicly available information as of the date of this presentation. There is no guarantee that any of these estimates or projections will be achieved. The recipient should not rely on any information contained herein. No investment, divestment or other financial decisions or actions should be based solely on the information in this presentation. Actual results will vary from any projections in this presentation, and such variations may be material, including the possibility that an investor may lose some or all of its invested capital.

This presentation is confidential. By acceptance hereof, you agree that (i) the information must not be used, reproduced, or distributed to others without prior written consent; (ii) you will maintain the confidentiality of all information herein that is not already in the public domain; and (iii) you will use the information contained herein solely for preliminary informational purposes.


1. BIS Research – Video Surveillance System. Market Size: Global Analysis & Forecast 2014-2020.

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BrokerCheck

Securities offered through US Capital Global Securities, LLC, member FINRA, SIPC.

IMPORTANT: All investing is risky, and no investor should decide to commit funds without first consulting with a competent professional adviser. Some or all invested funds can be lost. The past performance of any investment, investment strategy or investment style is not indicative of future performance. Future results may vary, and are not guaranteed. The value of investments and their income may increase or decrease, and a loss of principal – including all principal – may occur.

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