SEATTLE -- Maven (ticker symbol: MVEN) today announced it has signed and is in the process of integrating more than 60 channel partners (“Mavens”) into its coalition and that second quarter expenses tracked with internal forecasts as the company builds toward a network rollout.
Maven’s platform was unveiled in May and the company plans a formal launch in the fourth quarter.
Maven’s strategy is to deploy an invite-only coalition of expert, passion-based channels within 20 broad content verticals – including politics, investing, fashion and entertainment – that each extend into numerous subcategories.
“Looking ahead, we seek to partner with 1,000 high-scale, category-specific Mavens – partners with organic, highly engaged audiences – over the next few years,” said Maven CEO James Heckman. “We envision more than 100 million organic, unique users – each engaging with independently operated Mavens on the network.
“The beauty of our platform is the efficiency. Unit costs come down as each new channel comes into our coalition because fixed costs remain relatively static as we grow,” Heckman added. “Moreover, this is a proven model – one that our leadership and engineering team began pioneering two decades ago; this is simply our next generation. This powerful coalition of professional leaders, all operating on a single platform, brings together massive scale, high efficiency and market-leading engagement.”
“Our veteran, product-focused team came together with a clear vision and began creating value on day one. In less than one year, we architected an end-to-end business and technology platform that will support millions of highly engaged consumers and in turn, reward our shareholders,“ Heckman added. “We are on track to meet our internal 2017 goals, both for number of Mavens signed and activated. It’s also important to note that each Maven is a driven, passionate expert in their field, with a devoted audience.”
Q2 2017 Strategic Initiatives
Maven, during the second quarter of 2017, focused on three key strategic initiatives: (1) developing our technology platform, (2) business development to sign new Mavens to our network and (3) launching operations with certain Mavens.
Developing Technology Platform
Since the Company’s founding in July 2016, the primary focus of the Company’s software engineering team has been building the world-class publishing and social media technology platform. Since inception, Maven has invested nearly $2 million in the technology platform.
Simultaneous with technology development, the Company’s network development team has been searching for and developing business relationships with hundreds of leading experts and community leaders we call “Mavens.” As of August 15, we have signed more than 60 Mavens to contractual arrangements to transition their web presence to www.themaven.net.
Beginning with the initial, preview launch deployment of the Company’s technology platform in May 2017, our publisher support team has been working with signed Mavens to transition to the Maven network. This process generally takes 60 to 90 days to transition all publishing operations. We anticipate that by the end of the 3rd quarter more than half of the currently signed Mavens will be fully operational.
Q3/Q4 2017 Outlook
We expect to begin generating advertising and membership revenue during Q4. Until Maven has the opportunity to test revenue streams against migrated channels, we will not provide a revenue forecast. The primary leading indicator of our progress is the number of Mavens we have signed. We expect that each Maven will increase our network’s monthly unique users. As we grow the number of channels and the number of monthly unique users we expect that our advertising and membership revenues will increase in direct proportion.
The Company is in the earliest stages of launching business operations as noted above. We expect that we will continue to operate at a loss and incur negative operating cash flows as we make ongoing investments into business development and the technology platform. During the second quarter, the Company completed a private equity investment of $3.5 million, net cash in common equity. During the third quarter, we expect that we will complete an additional round of equity financing.
Financial Highlights as reported under United States Generally Accepted Accounting Principles (GAAP)
Net loss for the three months ended June 30, 2017: $1,588,367
Net loss for the six months ended June 30, 2017: $2,593,195
Capital Investment in Website Development and Fixed Assets
For the three months ended June 30, 2017: $749,043
For the six months ended June 30, 2017: $1,393,618
Total investment in our technology platform since inception: $1,898,951
Cash raised from issuance of common stock in the second quarter, net: $3,537,052