Staryoo.com

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Investment Website Business Plan

Company Summary

Staryoo.com is a new company that will provide a Web-based Internet trading platform for Chinese investors. The formation of Staryoo.com is in anticipation of the very rapid growth in Internet trading due to recent government Internet programs and China's imminent membership into the WTO. Staryoo.com will provide investors with a group of features and a level of investing sophistication that has not been available with current trading platforms in China.

2.1 Company Ownership

Staryoo.com will be created as a Cayman Islands Corporation to take advantage of its tax-free status. Initially, Staryoo.com will be owned by Starmile System Engineering, Inc. and its principal officers. No officer will own greater than 10% of the company. Additional wholly-owned subsidiaries will be incorporated in Hong Kong, Shanghai, and Delaware.

2.2 Start-up Summary

Starmile System Engineering Inc. provided initial seed capital. This capital has been used for operating expenses and software development expenses required since company inception. The use of proceeds are detailed in the following chart and table:

Start-up
Requirements
Start-up Expenses
Legal $20,000
Stationery etc. $2,000
Brochures $5,000
Consultants $5,000
Insurance $2,000
Rent $25,000
Research and development $200,000
Expensed equipment $1,000
Marketing & Advertising $25,000
Total Start-up Expenses $285,000
Start-up Assets
Cash Required $100,000
Other Current Assets $0
Long-term Assets $50,000
Total Assets $150,000
Total Requirements $435,000
Start-up Funding
Start-up Expenses to Fund $285,000
Start-up Assets to Fund $150,000
Total Funding Required $435,000
Assets
Non-cash Assets from Start-up $50,000
Cash Requirements from Start-up $100,000
Additional Cash Raised $0
Cash Balance on Starting Date $100,000
Total Assets $150,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Investor 1 $370,000
Investor 2 $65,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $435,000
Loss at Start-up (Start-up Expenses) ($285,000)
Total Capital $150,000
Total Capital and Liabilities $150,000
Total Funding $435,000

2.3 Company Locations and Facilities

Staryoo.com currently leases 5,000 sq. ft. of office space from Jiaotong University in Shanghai, China. Annual costs of our space is $30,000, or $2,500 per month, not including utilities. We estimate that this facility will accommodate up to 60 employees and will be satisfactory through Year 1. We believe that additional space will be easily secured at a rate satisfactory to Staryoo.com in the current facility maintained by Jiaotong University.

Our initial United States offices are located at 3750 Cheerful Dr., Suite 111, Sunnyvale, California in the heart of the U.S. high tech industry, where we share approximately 650 sq. ft. with Starmile. Annual costs of our space is $15,600, or $1,300 per month, plus escalations.

This plan anticipates the following growth in facility space required: in January 1, Year 2 increase facility space to 10,000 sq. ft in Shanghai, and in June 1, Year 2 increase facility space to 2,500 sq. ft. in the United States. We believe that the United States space will be easily secured at a rate estimated at approximately $3.00 per sq. ft. per month.