Photo - Litnet
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Litnet

The e-book marketplace with a new distribution model

Ukraine, Kyiv city
Market: Entertainment, Another
Stage of the project: Operating business

Date of last change: 14.06.2018
Min investment
$  200.000
0
Total required
$ 400.000
Rating
equalizer 124 из 1000
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Idea

Litnet is literary marketplace which allows authors to monetize their books at any stage of writing.
Our model of distribution decrease the problem of piracy and couldn´t be easily copied by traditional e-book stores (Kindle, iBooks, Tolino). We sell the ebook a step before the traditional ebook stores and get main revenues from sales.

Current Status

Three language versions are launched:
- Russian (July 2015)
- Spanish (February 2018)
- Ukrainian (February 2018)

200 000 - daily users
~$1,5M - turnover in 2017
~$100K - net profit in 2017

Market

English language - ~$7000M
German language - ~$600M
Spanish language - ~$90M
Russian language - ~$60M

Spanish language, Turkish, Indonesian etc. have high level of ebook reading but piracy is very big problem. We plan to creat new markets of the legal distribution on the territories with high level of piracy.

Problem or Opportunity

Piracy is the main problem of digital books.
Advertising costs are too high for literature digital goods because they need to compete with more profitable businesses (online and mobile gaming).

Solution (product or service)

1. Piracy. We give the rightsholder (author or publisher) to publish the ebook part by part. Readers have to pay once(!) the price of the book and get access to the book. They become the followers who read the new episode when the rightsholder publish it. So the book is selling but doesn't appear in the pirate libraries because they publish the full text only.
So the book is protected from piracy for the first 2-3 months - the time of highest interest and sales.

2. Promo. Readers visit the Litnet every day because they follow the updates of the books. The rightsholders may propose new books for their readers because they have them as followers. It works like a social network contacts. And all these promo activities are very targeted and free.

Competitors

E-book stores such as:
Kindle store
LitRes
iBooks

Crowd-publishing platforms:
Wattpad
FanFiction

Literary communities:
Goodreads
LiveLib

Advantages or differentiators

We combine best features of all our competitors bulding a literary network where writer may:
- publish books (sell or publish them for free)
- network with readers and colleagues
- sale book even on the stage of part-by-part publishing

Finance

Monthly turnover of Russian version is ~$260K
Everage price of the book is $1,67

Business model

Sales comission (common for all marketplaces)
Advertising
Social networking (sales of rewards)

Money will be spent on

New market penetration

Offer for investor

We propose a company share and strong vision of future exit for both of us (founders and investors)

Won the competition and other awards

2nd place of Startup Battle at Login 2017 (Vilnius 24-26 May 2017)

Product Video

Website address

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video
Website address