Hearken Company Profile

Why Now: The Seismic Shift

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WHY NOW: THE SEISMIC SHIFT

WHY NOW: THE SEISMIC SHIFT

WHY NOW: THE SEISMIC SHIFT

2020

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While despair might permeate the greater part of the nation, others achieved a new realization of the fact that only readiness for self-sacrifice could enable a community to survive.

Some of the greatest saints in history lived in times of national decadence, raising the banner of duty and service against the flood of depravity and despair.

- Sir John Glubb

Against all odds you have found us. Welcome. We are honored to share our story with you. Perhaps like us, you have a hunch that the future of everything, our economy, environment, public institutions, and communities, rests on this “banner of duty and service” as Sir John Glubb wrote. This banner isn’t the banner of philanthropy. It’s the fabric of the future of prosperity itself. In our decades of doing this work, we at Hearken have discovered two truths that seem so obvious once they’re recognized. First, organizations are in a panic. They don’t know how to create this banner, and yet they know their survival depends on it. Who sews it, how is it raised, what does it signal, what does it serve? The answer couldn't be more simple: the community they serve creates the best and most resilient banners.

The old model of engagement-- from journalism to education to civil society -- was a top-down, hierarchical approach. Decision-makers still made decisions, they just asked people to, “Let us know what you think” or, “Add your comment here.” The people they were serving had no real power to

change the services offered. With time, the services they offered became less relevant and useful.

At Hearken, we have perfected the art of participatory, public powered engagement. And here’s the discovery: Pursuing this path is profitable.

From multi-billion dollar publicly-traded media outlets to private sector business organizations to publicly funded colleges: our customers arrive at the same results. Flying this new banner of duty and service reinvigorates staff, raises revenue and retention, and redefines their industries. The Hearken method strengthens collaborative networks. These newly networked partners are more resilient in times of risk and adaptable to change.

We invite you to learn more about our singular company and join us on the journey.

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03 WHY NOW: THE SEISMIC SHIFT At no other time in history has community been more important to brands

“If a company can transition from simply delivering a product to building a community, it can unlock extraordinary competitive advantages and both create and support a superior business model...The result of this are very real network effects: as engagement grows, the community gets smarter, faster to respond, more globally available, and generates more value.” “When Community Becomes Your Competitive Advantage,” Harvard Business Review, 1/21/20

HEARKEN’S VALUE PROPOSITION

The CMX 2020 Community Industry Trends Report shows communities are viewed by most respondents as integral to the organization:

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Advertisers pay 6x higher ad rates using Hearken-powered technology Hearken content has 3-4x as many pageviews as average site content and 4x time on site Users who engaged in the Hearken process were 2-5x more likely to convert to paying subscribers.

They converted to membership at nearly double the rate through non-Hearken paths.

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“Never have I found an organization that so effectively articulates the business case for engagement while also providing tools and building enthusiasm and buy-in for the heart of the work.�

Ashley Alvarado, Director of Community Engagement, KPCC

OUR TEAM

06 We are a distributed team with a European subsidiary and hubs in

Chicago, Illinois Portland, Oregon Denver, Colorado Copenhagen, Denmark

OUR VALUE

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Business Model

Funding Raised:

We are a tech-enabled consultancy. Our professional services establish deep, trusted relationships with partners, and position us as leading engagement industry experts. Partners then scale, measure, and monetize this engagement as subscribers to our software products (Switchboard and the EMS, Engagement Management System). In this blended model, services (60%) result in increased client success and higher contract value while software (40%) converts to annual recurring revenue. Comparative companies include SAP, Ideo, and EAB.

$2.9M ($1.9M Debt, $1M Equity)

Revenue *Fun/sad fact: According to American Express’ 2018 State of Women-Owned Business Report only 1.7% of women-owned companies cross the $1M ARR threshold.

$10.25M

$5.1M

$950K

$1.7M

$6.7M

$3.7M

$450K

2014

2016

2018

2020

2022

2024

2026

From Top Funders & Investors

New Media Ventures Democracy Fund Collaborative Fund Joanne Wilson Caterina Fake Knight Foundation Lenfest Institute for Journalism News Integrity Initiative Matter VC

Customers

300 Customers 300,000 users engaged 90 countries 18 Languages

Industries

Key Accounts Include

Our diverse industry portfolio de-risks exposure while allowing us to serve the social impact space:

The New York Times BBC Texas Tribune Tribune Publishing Dallas Morning News Australian Broadcasting Corporation Post Media Media News Group MIT Princeton University University of Alberta Portland State University Oregon State University University Innovation Alliance City of Chicago, Mayor’s Office City of Portland, Economic Development Office Wichita Community Foundation Surdna Foundation Oregon Federal Public Defender’s Office

RECOGNITION

Journalism and media Higher education Foundations and philanthropy Public sector and government Membership organizations Alternative capital and finance

Our Work Has Been Featured In: Harvard Business Review New York Times New Yorker Columbia Journalism Review Forbes TechCrunch Nieman Lab Conscious Company Wired BBC ABC

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Our Work has Been Mentioned in the Following Books: Starting a Revolution There’s No Crying in Newsrooms Lab Rats: How Silicon Valley Made Work Miserable for the Rest of Us Reshaping the News: Community, Engagement, and Editors You Are More Powerful Than You Think: A Citizen’s Guide To Making Change Happen Meaningful Inefficiencies

Awards & Recognition

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SXSW, "Best Bootstrap Company" Media Changemaker Prize, Center for Collaborative Journalism Sulzberger Fellowship 20 Hottest Startups Founded by Women, Business Insider 30 World-Changing Women in Conscious Business, Conscious Company Magazine RSA Fellowship Women of Influence Award, Portland Business Journal 40 Under 40, Portland Business Journal

Speaking & Guest Lecturing SXSW Google Newslab Summit Techfestival, Oslo TEDxPortland SOCAP Digital Innovators Summit, Berlin The New School, Milano School of Policy, Management and the Environment, University of Oregon, Charles H. Lundquist College of Business, Northwestern, Stanford, Duke, Boston College, University of Colorado, Denver, Columbia University, University of Sydney, Arhaus University (Denmark), University of Chicago, New York University, Arizona State University Walter Cronkite School of Journalism, University of Oregon, University of Southern California, Emerson

Systems Change The Hearken theory of change and intellectual property has been applied to start and seed international organizations from the ground up, including:

Zebras Unite is an international movement of founders and funders creating a more ethical and inclusive startup culture narrative to build the businesses of the future Civic Exchange is a co-working space and learning community centered on how news, information and technology can increase democracy and freedom.

Business for a Better Portland is the city’s fastest growing business organization. It advances issues like affordable housing, active transportation, and equitable access to capital.

XXcelerate Fund is a character-based loan fund and educational program serving Oregon women entrepreneurs.

$3B Resulting social impact through policy change

$3M Revenue growth (fee for service, membership dues, sponsorships) for these organizations under Hearken leadership.

Grants secured from top funders including: Omidyar Network, Meyer Memorial Trust, Business Oregon, and the Kauffman, Knight, Rockefeller, McCormick, MacArthur, and Oregon Community Foundations.

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CONTACT INFORMATION Jennifer Brandel jennifer.brandel@wearehearken.com Chelsea Haring chelsea.haring@wearehearken.com Mara Zepeda

2020

mara.zepeda@wearehearken.com