Pitch deck - investor presentation

# HabitQuest Pitch Deck
**Seed Round | €500K Ask**

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## Slide 1: Cover

**HabitQuest**
*Level Up Your Life, One Habit at a Time*

**Tagline:** Gamified habit tracking that actually works — 78% user retention vs. industry 25%

**Contact:**
Sarah Johnson, CEO
[email protected] | +44 7700 900000
habitquest.app/investors

**Visual:** App icon + hero screenshot of quest dashboard with level-up animation

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## Slide 2: Problem

**Building Habits is Broken**

**Pain #1: Motivation Fades After Week 1**
• 92% of people fail New Year's resolutions by February
• Traditional habit trackers are boring checklists
• No emotional engagement = no long-term adherence

**Pain #2: No Sense of Progress**
• "I meditated 50 days" doesn't feel rewarding
• Tracking feels like work, not play
• Missing one day feels like total failure

**Pain #3: Isolated Journey**
• Building habits alone is lonely and demotivating
• No accountability beyond yourself
• Social support exists but fragmented (Reddit, Facebook groups)

**Visual:** Three icons: declining chart (motivation), checkbox with X (boring), person alone (isolated)

**Stat callout:** "€4.2B spent on habit apps annually, yet 75% churn within 30 days" (App Annie, 2025)

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## Slide 3: Solution

**HabitQuest: RPG-Style Habit Building**

Transform daily habits into epic quests where progress = character growth

**How It Works:**

**1. Choose Your Quest**
• Select habit categories: health, productivity, creativity, mindfulness
• Each habit = quest with levels (Novice → Master)

**2. Earn XP & Level Up**
• Complete habit = earn XP (experience points)
• Level up unlocks badges, titles, cosmetic rewards
• Streak multipliers: 7 days = 1.5x XP, 30 days = 2x XP

**3. Battle Bosses**
• "Boss battles" = hard milestones (run 100km total, meditate 30 days straight)
• Defeat boss = epic loot (premium features unlock, exclusive badges)

**4. Join Guilds**
• Team up with friends or join public guilds by interest
• Guild leaderboards create friendly competition
• Guild challenges = cooperative quests

**Why It Works:**
✅ Gamification = intrinsic motivation (proven to increase engagement 3-5x)
✅ Social accountability via guilds
✅ Progress visualization (levels, badges) maintains momentum

**Visual:** App flow: onboarding → habit selection → quest dashboard → level-up celebration → guild view

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## Slide 4: Market Opportunity

**€18B Total Addressable Market**

**TAM: €18B**
• 500M global habit app users (Statista, 2025)
• Average spend: €36/year (freemium SaaS)
• Growing 22% YoY (wellness + productivity boom)

**SAM: €4.5B**
• Target: "gamification-native" users (Millennials/Gen Z, 18-35)
• 125M users willing to pay for premium habit experiences
• Higher ARPU: €36/year (in-app purchases, premium guilds)

**SOM: €180M (3-Year Target)**
• 5M users by Year 3 (1% of SAM)
• ARPU €36/year = €180M ARR
• Realistic given Duolingo captured 8% of language learners in 10 years

**Market Trends:**

**📈 Gamification Adoption**
• 70% of Global 2000 companies use gamified apps (Gartner)
• Duolingo: 500M users, $500M ARR (proof gamification scales)

**📈 Habit Economy Explodes**
• Atomic Habits (book): 15M copies sold — mass-market validation
• Fitness gamification (Peloton, Strava, Zwift): €8B combined revenue

**📈 Social Wellness**
• Post-COVID: 84% people prioritize mental health (McKinsey)
• Community-driven apps (Strava, Fitbit challenges) see 3x retention vs. solo

**Visual:** Market sizing pyramid (TAM → SAM → SOM) + trend arrows with stats

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## Slide 5: Product

**HabitQuest App Tour**

**Screenshot #1: Quest Dashboard**
• Character avatar (customizable)
• Active quests list: "Morning Meditation - Level 4", "10K Steps - Level 2"
• XP progress bar to next level
• Current streak: 🔥 14 days

**Screenshot #2: Level-Up Moment**
• Full-screen celebration animation
• "🎉 Level 5 Achieved! Meditation Master"
• Unlocked: "Zen Master" badge + guild creation ability

**Screenshot #3: Guild View**
• Guild leaderboard: top members by XP this week
• Active guild challenge: "Collective 1000km Run This Month"
• Chat: light social features (encouragement, high-fives)

**Screenshot #4: Boss Battle**
• "Boss: The 30-Day Consistency Dragon"
• Progress: 22/30 days (boss health bar depleting)
• Reward preview: Legendary "Unbreakable" badge

**Key Features:**

✅ **Habit Tracking:** One-tap to log completion
✅ **Gamification:** XP, levels, badges, quests, boss battles
✅ **Social:** Guilds, leaderboards, challenges
✅ **Customization:** Avatar, themes, quest priorities
✅ **Insights:** Weekly reports, streak stats, personal records

**Tech Stack:**
• Mobile: React Native (iOS + Android)
• Backend: Node.js + PostgreSQL
• Real-time: WebSockets for guild updates
• Gamification engine: Custom Ruby on Rails service

**Visual:** 4 app screenshots with annotations

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## Slide 6: Business Model

**Freemium SaaS + In-App Purchases**

**Revenue Streams:**

**1. Premium Subscription (80% of revenue)**

| Tier | Price | Features |
|------|-------|----------|
| **Free** | €0 | 3 active quests, basic guilds, ads |
| **Hero** | €5/mo | Unlimited quests, ad-free, advanced stats |
| **Legend** | €10/mo | All Hero + guild creation, custom avatars, boss battles |

**Current Split:**
• Free: 85% of users (100K)
• Hero: 12% (14K) → €840K ARR
• Legend: 3% (3.5K) → €420K ARR
• **Total ARR: €1.26M**

**2. In-App Purchases (20% of revenue)**
• Cosmetic items: avatar skins, badge packs (€2-10)
• XP boosts: 2x XP for 7 days (€5)
• Guild perks: custom guild badges, expanded member limits (€15)

**Unit Economics:**

| Metric | Value |
|--------|-------|
| ARPU | €12/year (blended free + paid) |
| CAC | €8 (viral + paid ads) |
| LTV | €48 (4-year retention avg) |
| CAC:LTV | 1:6 ✅ |
| Gross Margin | 85% (low COGS: hosting €0.50/user/year) |

**Why This Model:**

✅ **Freemium funnel:** Free tier drives viral growth (share quests, invite to guilds)
✅ **Upgrade triggers:** Hit 3-quest limit → "unlock 4th quest for €5/mo"
✅ **Social monetization:** Guild creators upgrade to Legend tier (90% conversion)

**Visual:** Revenue pie chart (subscription vs IAP) + unit economics table

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## Slide 7: Traction

**Strong Product-Market Fit Signals**

**User Growth:**
• 120K total users (18 months since launch)
• 45% MoM growth (last 6 months)
• 68% organic (App Store search, viral sharing)

**Engagement:**
• **78% Day-30 retention** (vs. 25% industry avg)
• Daily active users: 65K (54% DAU/MAU ratio — elite tier)
• Average session: 8 min/day (3x industry standard)

**Revenue:**
• ARR: €1.26M
• MRR growth: 40% MoM
• Paying conversion: 15% (vs. 2-5% typical freemium)

**Social Proof:**
• 4.8★ rating (12K reviews on App Store)
• Featured: App Store "App of the Day" (June 2025)
• Press: TechCrunch, Product Hunt #1 (8,400 upvotes)

**Key Milestones:**

✅ **Month 1-6:** MVP launch → 10K users (founder network + Product Hunt)
✅ **Month 7-12:** Premium tier launched → €300K ARR
✅ **Month 13-18:** Guilds feature → 78% retention unlocked, viral growth accelerates

**What Users Say:**

> "First habit app I've stuck with past 2 weeks. The level-up dopamine is real." — @jessica_runs

> "My guild keeps me accountable. Lost 15kg in 4 months thanks to HabitQuest." — @mike_transforms

**Visual:** Growth chart (users + revenue), retention curve comparison (us vs industry), App Store rating screenshot

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## Slide 8: Competition

**We Win on Engagement**

**Competitive Positioning Matrix:**

| Competitor | Gamification | Social | Retention | Our Advantage |
|------------|--------------|--------|-----------|---------------|
| **Habitica** | ✅ High | ❌ Weak | 40% | Better UX, mobile-first (they're web-focused) |
| **Streaks** | ❌ Low (just counters) | ❌ None | 30% | We have RPG mechanics + social |
| **Fabulous** | ⚠️ Medium (coaching) | ❌ None | 35% | We have competitive guilds |
| **Duolingo** | ✅ High | ⚠️ Medium (leaderboards) | 75% | We focus on ALL habits (they're language-only) |
| **HabitQuest** | ✅ High (RPG-style) | ✅ High (guilds) | **78%** | **Best-in-class retention via social gamification** |

**Why We're Different:**

**vs. Habitica:**
• They: Web-first, clunky mobile app, outdated UI
• Us: Mobile-native, modern design, seamless UX

**vs. Streaks/Fabulous:**
• They: Solo experience, no social layer
• Us: Guilds create accountability + retention

**vs. Duolingo:**
• They: Single-category (language learning)
• Us: Universal platform for ANY habit

**Our Moat:**

🏰 **Network effect:** More users → more active guilds → higher retention → more word-of-mouth
🏰 **Gamification expertise:** 18 months of A/B testing optimal XP curves, level pacing
🏰 **Community:** 2,500 guilds created (hard to replicate overnight)

**Visual:** 2x2 matrix (axes: Gamification vs. Social) with competitor logos plotted, HabitQuest in top-right corner

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## Slide 9: Go-to-Market

**Viral + Paid Acquisition**

**Channel #1: Viral (60% of users)**

**Organic Virality:**
• Guilds: Users invite friends to join their guild (avg 3.2 invites per guild creator)
• Quest sharing: "I just hit Level 10 in Meditation!" → share to Instagram Story
• App Store SEO: ranked #3 for "habit tracker", #1 for "gamified habits"

**K-Factor: 0.6** (60% of users invite at least 1 friend who signs up)
• Not fully viral (K<1) but strong organic flywheel
• Goal: Hit K=1.0 with improved sharing features

**Channel #2: Paid Ads (30% of users)**

**Current Spend: €20K/month**
• Facebook/Instagram: €12K/mo, €6 CAC, 2K users/month
• TikTok: €5K/mo, €8 CAC, 600 users/month
• Google UAC (Universal App Campaigns): €3K/mo, €10 CAC, 300 users/month

**Creative Strategy:**
• UGC-style videos: "How I finally stuck to my habits" (TikTok-native)
• Before/After transformations: weight loss, productivity gains
• Boss battle victories: "Just defeated the 100-Day Meditation Boss!"

**Channel #3: Content Marketing (10% of users)**

• Blog: SEO-optimized guides ("How to Build a Habit in 21 Days")
• YouTube: Habit-building tutorials, app walkthroughs (12K subscribers)
• Partnerships: Collabs with productivity YouTubers (Ali Abdaal, Matt D'Avella)

**Growth Roadmap (Post-Funding):**

**Months 1-6:**
• 2x paid ad spend → €40K/month
• Launch referral program: "Invite 3 friends, unlock Legendary avatar"
• Influencer partnerships: 10 micro-influencers (10K-50K followers)

**Months 7-12:**
• International expansion: localize to Spanish, German, French
• PR push: target Wired, Fast Company, wellness podcasts
• Guild partnerships: partner with fitness brands (Nike Run Club integration)

**Target:** 500K users by Month 12 (4x growth from 120K)

**Visual:** Funnel diagram (organic + paid + content → sign-ups → activation → retention) + channel breakdown pie chart

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## Slide 10: Team

**Experienced Founders + Proven Operators**

**Founding Team:**

**Sarah Johnson - CEO**
• Background: Product lead at Headspace (5 years), grew DAU from 1M → 10M
• Previous: Consultant at McKinsey (wellness tech practice)
• Skills: Growth strategy, consumer psychology, fundraising
• Why HabitQuest: "Meditation apps work, but habit-building needed gamification to scale retention"

**Alex Martinez - CTO**
• Background: Senior engineer at Epic Games (Fortnite team, 4 years)
• Previous: Mobile tech lead at King (Candy Crush)
• Skills: Scalable mobile architecture, real-time systems, gamification engineering
• Why HabitQuest: "I want to bring Fortnite-level engagement to self-improvement"

**Dr. Emma Chen - Head of Product**
• Background: PhD Behavioral Psychology (Stanford), studied habit formation
• Previous: Product manager at Noom (weight loss app, Series D)
• Skills: Behavioral science, product discovery, experimentation
• Why HabitQuest: "Gamification + behavioral science = the future of habit change"

**Equity Split:** 40% Sarah, 35% Alex, 25% Emma (4-year vesting)

**Key Hires (Past 6 Months):**

**Liam Patel - Head of Growth**
• Background: Growth lead at Calm (meditation app), 3x'd users to 100M
• Responsible for: Paid acquisition, virality optimization, retention campaigns

**Olivia Kim - Lead Designer**
• Background: Senior designer at Supercell (Clash of Clans)
• Responsible for: UI/UX, avatar system, visual gamification

**Team Culture:**
• Fully remote (talent from SF, London, Berlin)
• Weekly "Habit Showcase": team shares personal habit wins using the app
• Customer-obsessed: Monthly user interviews, daily feedback review

**Advisors:**

**Nir Eyal** - Author of "Hooked" (behavior design)
**Jane McGonigal** - Game designer, TED speaker (gamification expert)

**Visual:** Team photos + brief bios, advisor logos

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## Slide 11: Financials

**Path to Profitability**

**3-Year Projections:**

| Metric | Year 1 (Current) | Year 2 | Year 3 |
|--------|------------------|--------|--------|
| **Users** | 120K | 600K | 2M |
| **Paying Users** | 18K (15%) | 90K (15%) | 300K (15%) |
| **ARR** | €1.26M | €6.5M | €21M |
| | | | |
| **Revenue** | €1.26M | €6.5M | €21M |
| **COGS** | €180K | €900K | €3M |
| **Gross Profit** | €1.08M | €5.6M | €18M |
| **Gross Margin** | 86% | 86% | 86% |
| | | | |
| **R&D** | €500K | €1.2M | €2.5M |
| **Sales & Marketing** | €600K | €2.5M | €7M |
| **G&A** | €200K | €500K | €1.2M |
| **Total OpEx** | €1.3M | €4.2M | €10.7M |
| | | | |
| **EBITDA** | **-€220K** | **€1.4M** | **€7.3M** |
| **EBITDA Margin** | -17% | 22% | 35% |

**Key Assumptions:**

• User growth: 45% MoM → 30% MoM → 20% MoM (tapering as we scale)
• Conversion rate: 15% (best-in-class for consumer apps)
• ARPU: €70/year (mix of Hero + Legend + IAP)
• CAC: €8 → €12 → €15 (increases as we scale, but LTV grows faster)
• Team: 8 FTE → 25 FTE → 50 FTE

**Break-Even:** Month 20 (middle of Year 2)

**Cash Flow:**

**Year 1:** -€220K (burn €20K/month avg) — need seed funding to extend runway
**Year 2:** +€1.4M (cash flow positive!)
**Year 3:** +€7.3M (profitable scale, Series A war chest)

**Visual:** Bar chart (ARR growth), line chart (profitability timeline), table (key metrics)

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## Slide 12: The Ask

**€500K Seed Round**

**Deal Structure:**
• Security: SAFE (Simple Agreement for Future Equity)
• Valuation cap: €6M post-money (8% dilution)
• Discount: 20% on next priced round
• Pro-rata rights: Yes

**Use of Funds:**

| Category | Amount | % | What It Funds |
|----------|--------|---|---------------|
| **Product Dev** | €200K | 40% | Mobile enhancements, guild features v2, AI-powered habit coaching |
| **Growth** | €200K | 40% | Paid ads scale (€40K/mo), influencer partnerships, content marketing |
| **Team** | €80K | 16% | 2 engineers, 1 growth marketer, 1 community manager |
| **Operations** | €20K | 4% | Tools, infrastructure, working capital |

**Milestones (12 Months):**

**Month 6:** 300K users, €3M ARR
• Launch AI habit coach feature
• International expansion (ES, DE, FR)

**Month 12:** 600K users, €6.5M ARR, cash-flow positive
• 5,000 active guilds
• Featured in App Store "Best of 2026"
• Series A discussions (€3-5M round)

**Expected Returns:**

**Base Case (40% MoM growth):**
• 18 months: €10M ARR, 1.2M users
• Series A valuation: €40M (4x revenue)
• Investor return: 6.6x

**Bull Case (50% MoM growth + international traction):**
• 18 months: €18M ARR, 2.5M users
• Series A valuation: €80M
• Investor return: 13x

**Why Invest in HabitQuest:**

✅ **Massive TAM:** €18B habit economy growing 22% YoY
✅ **Proven PMF:** 78% retention (3x industry), 4.8★ rating, €1.26M ARR
✅ **Moat:** Network effects via guilds, gamification expertise, behavioral science IP
✅ **Team:** Headspace + Epic Games + Stanford PhD = world-class consumer execution
✅ **Timing:** Wellness boom + gamification adoption = perfect storm

**Comparable Exits:**

• Calm: Acquired (rumored €2B+ valuation)
• Headspace: Merged with Ginger (€3B valuation)
• Noom: Series F at €3.7B valuation
• **HabitQuest potential:** €500M-1B exit in 5-7 years

**Contact:**
Sarah Johnson, CEO
[email protected] | +44 7700 900000

**Next Steps:**
• Due diligence: financial model, user cohort data, cap table
• Follow-on meeting: product deep-dive + roadmap
• Close: 30-day timeline

**Visual:** Use of funds pie chart, milestone timeline, comparable company logos

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**Appendix Slides (If Needed):**

**A. Detailed Roadmap:** Feature releases, international launches
**B. User Testimonials:** 10 quotes + screenshots
**C. Press Coverage:** TechCrunch, Product Hunt, app reviews
**D. Financial Model:** Detailed P&L, cohort analysis, sensitivity scenarios
**E. Competitive Analysis:** Deep dive on Habitica, Streaks, Duolingo strategies