| Shareholder Activism

Vajra Fund III: Angie’s List’s brand Value

Excerpts from the letters

The Company’s excellent business prospects

We invested in the Company because we are very optimistic about the prospects of the Company. By opening up features of its website to members free of charge, the Company has the opportunity to monetize the significant traffic attracted organically by its well-known brand and sterling reputation — a competitive advantage enjoyed by no other business in this market today.  Simply put, no competitor can match the brand value of the Company.

As management has reported, the Company receives approximately 100 million unique visits annually, and for many years the vast majority of that Internet traffic has been bouncing off the pay wall un-monetized.  Going forward, these home-owning consumers will be converted into qualified leads with well-established economic value.  We also think the Company is on the right track by presenting a set of compelling paid membership offers to inbound consumers who want premium access and services, thereby allowing the Company to preserve and grow its membership revenue line even after the pay wall is gone.

Most importantly, we believe that of the more than half a million non-participating service providers who currently benefit from the Company without paying, many will choose to engage as participating members with the new platform.  This development will boost revenue and profitability while assisting service providers to better serve the Company’s members. If you are interested to read insights like this, we are happy to offer you a free trial.