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www.eco-start.com A GLOBAL ECOSYSTEM EMPOWERING ENVIRONMENTAL BUSINESS INVESTOR GUIDE Your step-by-step guide to the EcoStart Project August 2019 Telegram: https://t.me/smart_idea18

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Page 1: INVESTOR GUIDE - EcoStart · and add value by removing intermediaries. We hope that we are not just the founders of the EcoStart project. In our imagination, we have drawn a way of

www.eco-start.com

A GLOBAL ECOSYSTEM

EMPOWERING

ENVIRONMENTAL

BUSINESS

INVESTOR GUIDE

Your step-by-step guide to the EcoStart Project

August 2019

Telegram: https://t.me/smart_idea18

Page 2: INVESTOR GUIDE - EcoStart · and add value by removing intermediaries. We hope that we are not just the founders of the EcoStart project. In our imagination, we have drawn a way of

FIRSTLY

THANK YOU FOR CONSIDERING US!

The EcoStart project is a global eco-business, empowering the ecosystem, which provides transparency in financing green projects using blockchain technology. Our goal is to increase investment in green projects and tokenization of investment activities. We will use blockchain technology to add much needed transparence to the process and add value by removing intermediaries. We hope that we are not just the founders of the EcoStart project. In our imagination, we have drawn a way of life, a vision of how the ecology on our planet can be in the future, and we want to change what people are doing with the environment now. We know how people will use our product, how it can improve the ecological situation on earth and the quality of life, and we hope that our startup will become a visionary. We want you to support us by giving us the opportunity to act. We all live on the same planet. Earth is your home too. Our formula for success is new technologies, a strong team, community involvement in product improvement.

We believe EcoStart represents an extremely attractive investment opportunity, and look forward to having you join us on our journey.

Olga Bergen General Manager

2 www.eco-start.com

Page 3: INVESTOR GUIDE - EcoStart · and add value by removing intermediaries. We hope that we are not just the founders of the EcoStart project. In our imagination, we have drawn a way of

CONTENT

PROJECT PROPOSAL

STAGE OF DEVELOPMENT 4

Financing Needed 5

HOW YOU CAN INVEST 6

DELIVERING ON OUR PLAN 7

BUSINESS OVERVIEW 8

THE ECOSTART SOLUTION 9

OUR ADVANTAGES 10

KEY CUSTOMERS 12

ECOSTART BY THE NUMBERS 13

INCOME MODEL 14

OUR PLATFORM 15

PROPOSED ORGANISATIONAL BUSINESS MODEL 16

A global ecosystem empowering environmental business 3

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STAGE OF

DEVELOPMENT The EcoStart private sale has got off to a successful start. Following the

completion of our private sale, we plan to launch Initial Exchange Offerings (IEO’s) -

the public sale of our tokens on major cryptocurrency exchanges - followed by

immediate listing on the same exchanges.

4 www.eco-start.com

Page 5: INVESTOR GUIDE - EcoStart · and add value by removing intermediaries. We hope that we are not just the founders of the EcoStart project. In our imagination, we have drawn a way of

ABOUT US

1 Financing Needed

We are looking for investors including title partners as

investors. Ready for any collaboration option, including

co-founding.

Number of

Employees

Registered

Company

STO Target

February 2021

$ 11.3 – 26.3 million is needed, including:

- $ 0.2 million for the development of the platform, including on MVP - $ 30 K - $ 10-25 million for the creation of working capital of an investment fund and the receipt of appropriate licenses. - $ 1.1 million is required for marketing, advertising, conducting a Security Tokens Offering (STO), license for financial and exchange services, operating expenses, etc.)

A global ecosystem empowering environmental business 5

5 EcoStart Corporation

Required Raise amount

Page 6: INVESTOR GUIDE - EcoStart · and add value by removing intermediaries. We hope that we are not just the founders of the EcoStart project. In our imagination, we have drawn a way of

2

HOW YOU CAN

INVEST

WE’RE LOOKING FORWARD TO WORKING WITH YOU

We want to take the headache out of investing in our private sale, so you can

focus on the things that matter. Helping to grow the business together. To

that end, we have three flexible options for investment:

LEAVE IT TO US C-CORP YOU CHOOSE

We conclude an agreement

with you, in which we

describe the terms of the

transaction, the timing of

the release, etc.

We registered the company

EcoStart Corporation in the

state of Delaware (USA) as

a C-corporation

We are open to alternative

investment agreements –

feel free to contact us to

discuss a proposal.

6 www.eco-start.com

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DELIVERING ON OUR PLAN What we do best

We have already

created an early ‘buzz’

around the project

by completing the

following deliverables:

MARKETING DELIVERABLES

• Launched a project website: https://eco-start.

com/

• Pre-announcement of the project across related

media outlets

• Created videos about the project (8 videos)

PRACTICAL DELIVERABLES

• For the implementation of the project, a company

was established in USA (Delaware )- EcoStart

Corporation

• Formed a team with experienced advisers

SIGNED AGREEMENTS

• An agreement has been signed with the listing of

Dobi

• An agreement has been signed with Faster

Capital (OAU) on a cooperation.

• Agreements have been reached with the Binance,

Bibox and IDAX exchanges on holding an IEO on

their exchanges, including subsequent listings.

COMMUNITY BUILDING

• A bounty campaign has been held, with 1254 subscribers

• A growing EcoStart community has been formed using the

following social networks:

Reddit: 1200 followers, karma 800

Medium: 475 followers

Linkedin: 5600 followers

YouTube: over 3000 views

Twitter: 744 total subscribers

Facebook: 950 followers

Telegram channel 3500 followers

A global ecosystem empowering environmental business 7

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OVERVIEW

3 BUSINESS

OVERVIEW

THE TRADITIONAL SYSTEM IS BROKEN ...AND WE PLAN TO FIX IT.

• Intermediaries cause unnecessary expense: Using traditional funding institutions is a

fairly expensive mechanism of financing, creating a high barrier to entry for many with

plans to start an environmental project.

• It is difficult for investment institutions to collaborate when investing in environmental

projects, which leads to duplication, dispersion of material, labour and money resources.

As a result, millions of dollars are spent each year on inefficient environmental projects.

• Entities who wish to invest in environmental projects have no central hub on which to

take a global view of available projects. This means some high priority projects miss out

on funding simply because investors were forced to opt for more local or visible options.

• Due to lack of transparency, distrust in the existing system has arisen, which has led to

stagnation in environmental financing.

• Poor communication of the value of environmental projects has led to investor apathy

investors need to know that their investments will be directed to projects with clear,

measurable goals.

• The financing selection process is often politicized.

• There is no mechanism for attracting small scale investors currently. Environmental

projects are missing out on the crowdfunding phenomenon, meaning many fail to scale

and achieve visibility.

8 www.eco-start.com

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THE ECOSTART SOLUTION And this is just the beginning

EcoStart will empower business growth in the Environmental sector by developing

the following channels:

• Decentralised Marketplace uniting all participants of environmental

communities (green business, investors, volunteers) and providing them with

the ability to create registered digital tokens as instruments for financing

environmental projects approved by EcoStart experts.

• A brand new, TECO blockchain platform with the ability to issue security tokens by companies to invest in their environmental projects

• EcoStart Environmental Investment Fund (EIF) for the financing of

environmental projects.

• Сrowdfunding and Fundraising services - for environmental startups

and NPO

• Cryptomessenger based on P2P (peer-to-peer) technology will let all community members communicate fast via secure channels using end-to-end encryption.

• A decentralised hub for reputation-based environmental project expertise

and recommendations.

• Open API for building applications that facilitate the implementation and

support of environmental projects.

• Space Surface Monitoring Application will help ecology enthusiasts and project

leaders to target the contaminated areas on the Earth or territories under high

risk of pollution. This will become a handy tool for monitoring, prevention, and

real project progress.

• Ecological lottery 50% of the funds remaining after payment of winnings

and operating costs will be directed to the environmental investment fund

(jurisdictions permitting).

A global ecosystem empowering environmental business 9

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OUR ADVATAGES

4. ECOSTART’S KEY COMPETITIVE ADVANTAGES

LACK OF

INTERMEDIARIES

Independence and

efficiency in raising funds

& Lack of dependence on

government bodies and

global financial groups

Unlocking savings for every

investor and every project

INVOLVEMENT FULL

TRANSPARENCY

Of all active participants and

socially oriented businesses,

including investors with small

capital, in solving

environmental

Transparent system to attract

and control spending.

TRACKED RESULTS OPEN API

The results of each project will

be publicly available, which

will allow investors (charitable

organizations, influential

investors, small donors) to

identify and help scale up

environmental projects that are

truly effective

By welcoming third party

developers to use our open API

we aim to foster the development

of new products and services

and achieve a powerful network

effect.

10 www.eco-start.com

INDEPENDENCE

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A GLOBAL ECOSYSTEM

EMPOWERING

ENVIRONMENTAL

BUSINESS

Reduced resource consumption

Our platform will run without the need for large computing or energy resources, we practice what we preach. The EcoStart blockchain, will be far more efficient than the Bitcoin and Ethereum blockchains, for example, which are extremely energy intensive. Billions of calculations absorb computer energy and electricity, often coal- fired and other fossil fuels. EcoStart will utilise our unique solution to keep energy consumption to a minimum.

EcoStart will create a community

of consumers who will buy goods through a proven, transparent supply chain. This chain will show the environmentally safe extraction of natural resources by workers in safe conditions, the production of goods using green technologies, the supply of goods through fair trade agreements, and their transportation with low energy costs.

A global ecosystem empowering environmental business 11

GROWTH FORECAST

We forecast that the price of security tokens TECO will increase by 2-5 times 3 years after the launch

of the platform.

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4

TARGET MARKETS

5. OUR KEY CUSTOMERS

TARGETED USERS OF OUR SERVICE ARE EXPECTED TO COME LARGELY FROM ENVIRONMENTALLY ACTIVE SEGMENTS OF THE POPULATION AND SOCIALLY-ORIENTED BUSINESS CIRCLES, AS WELL AS MUNICIPAL AND REGIONAL AUTHORITIES:

ECOLOGICAL START-

UPS

BUSINESSES

And companies implementing

ecological projects

Socially responsible businesses

(investors)

NOT FOR PROFITS VOLUNTEERS

Non-profit organizations,

environmental activists and

environmental societies

The lifeblood of many successful

environmental projects

Green activists (35 percent of the population)

This segment consists of people whose age ranges from 25 to 34 years and

from 45 to 54 years. Compared to other segments, this is one that unites

people with higher education working in more skilled jobs (middle and senior

management and specialists from intellectual, scientific and artistic

professions) and receiving higher incomes. Persons in this segment occupy

a favorable position in in relation to all environmental aspects, especially in

relation to perceived efficiency, environmentally friendly behavior of buyers,

processing, sensitivity to economic factors and saving resources owls.

12 www.eco-start.com

1

3

2

5

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6. ECOSTART BY THE NUMBERS Forecast of income and expenses (profit and loss plan), USD m

A global ecosystem empowering environmental business 13

Revenue forecast (sales plan), $ US M.

Types of services (income) Years

2 020 2 021 2 022 2 023

Number of platform members, pcs 3 350 1 300 3 500

Platform fee, $ 0 0 100 100

Revenues from sales 0,0 0,0 0,13 0,35

The number of EcoStart STO 20 40 80

Average collection amount, million USD 1,00 1,20 2,00

commission amount from the fee amount,% 4,00 4,00 4,00

Commission amount, mln. USD 0,80 1,92 6,40

Number of copies of crypto lottery 6,00 18,00 24,00

Average amount collected per each print run, mln. USD 1,50 2,00 5,00

Revenues from the lottery,% of the fee 40,00 40,00 40,00

The revenue from the lottery, the amount from the fee, million USD 0,36 1,44 4,80

Amount invested in environmental projects, USD 12,00 25,00 30,00

Interest rate, % 4,00 10,00 15,00

Amount of interest payments, mln. USD 0,48 2,50 4,50

Sales revenue, USD 0 2,12 8,36 20,20

Forecast of income and expenses (profit and loss plan)

Indicators Years

2 020 2 021 2 022 2 023

Revenues from sales 0,00 2,12 8,36 20,20

Variable costs 0,00 0,00 -0,01 -0,12

Marginal (gross) profit 0,00 2,12 8,35 20,08

Constant overhead costs -1,02 -1,27 -3,60 -3,80

The cost of labor performers (production staff)

0,00 0,00 0,00 0,00

Management costs, thousand US $ -0,06 -0,69 -1,20 -1,50

Commercial expenses 0,00 -0,20 -0,30 -0,61

Earnings before depreciation, interest and taxes (EBITDA)

-1,08 -0,04 3,25 14,17

Basic financial ratios Capital / Cost of Capital

168,2 175,8 228,0

Profit / Cost of Capital

0,0 17,6 75,6

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TECO w

1ill be the

Platform for the eco-conscious.

Our unique algorithms create and protect blocks up to 5 times faster than most current blockchains, and require less electricity (up to 60 times) than than other blockchain platforms that use conventional mining methods.

Network effe

2ct: Reed’s Law states

that the utility of large networks, particularly social networks, can scale exponentially with the size of the network. EcoStart platform’s is perfectly placed to conform to this law, as participants will not only be able to interact with each other, but also create their own tokens. New communities will appear in the EcoStart ecosystem creating the potential for exponential

growth

We for

3ecast that EcoStart’s

capitalisation will be $75.6m

3 years after launch of the

platform.

We forecast that the company's

capitalization over three years

may increase by 2.8 times

7

INCOME MODEL INCOME MODEL

Platform fee

% from the

Сrowdfunding

and

Fundraising

services

Revenues

from crypto

lottery

Income

from IEF

The core of the project is the TerraEcoCoin (TECO) cryptocurrency. Its growth

factors are as follows: -

14 www.eco-start.com

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OUR PLATFORM

The TECO is blockchain platform “ with the possibility of issuing security tokens (tokenized securities) by companies to tokenize their assets and to invest in their environmental projects

TECO's blockchain platform will be offered to customers as a service according to the Blockchain as a Service (BaaS) model. The TECO is a global multi-functional and public platform with an open API, with built-in support for additional applications for it (including cryptocurrency). Ready to integrate with any ecological programs and deploy applications on the platform. It is a platform for supporting business in “green tones” using blockchain technology that unites the participants of the Ecological ecosystem and develops it by providing infrastructure for various processes (investment, project review, asset tokenization, fundraising, rating system and other).

FUNDING REQUIREMENT/CONDITIONS FOR IEO We plan to raise

- soft cup $11.3 million - hard cup $26.3 million

a. To develop the EcoStart platform and promote the project:

- $ 200K for the development of the platform, including on MVP - $ 30K - $ 45K license for financial and exchange services

- $ 150K marketing, advertising and PR - $ 570K operating expenses (office, salary, business trips, etc.) - $ 300K conducting a Security Tokens Offering (STO) with obtaining permission from the SEC - $ 35K contingency _____________________________________ Total $ 1.3 million b. To create an environmental investment fund. It is planned to place security tokens to create fund capital through conducting a STO : - Soft cup - $ 10 K - Hard cup - $ 25 K

A global ecosystem empowering environmental business 15

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PROPOSED

ORGANISATIONA

L BUSINESS

MODEL

We registered the company EcoStart Corporation in the USA (in the state of Delaware) in the form of a C-corporation. This company will be the owner of the EcoStart project. Among the founders are distributed 60% stocks, 37% stocks of the company (privileged convertible stocks) we offer to project investors: when investing the first $ 230K. The remaining 3% of stocks will be an option for the CEO.

SECURITY TOKEN OFFERING

In order to attract further investment to be used for the development and scaling

of the EcoStart project, we will also conduct a Security token Offering (STO). The

Security Tokens allocated to American investors will be sold in accordance with

the Regulations of REG D, and those sold outside the United States will be sold in

accordance with Regulation S. The American corporation, if necessary, will

conduct the STO and issue TECO security tokens.

A global ecosystem empowering environmental business 16

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