smart asset financing€¦ · sources: savills, mckinsey, bloomberg, bank of international...
TRANSCRIPT
Smart asset financing
BlockState addresses an enormous market opportunity
Section 1
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Wealth* Real estate Debt capital
UninvestableInvestable
of global assets are not easily investable ($359tn)
*Global personal financial wealth". Investable: listed equity, funds, currency, deposits // Non-investable: Life insurance, pension funds, unlisted equitySources: Savills, McKinsey, Bloomberg, Bank of International Settlements (2017)
Most global assets are not accessible for the mass market
Global capital market infrastructure has not developed significantly throughout the past decades. Access is still
privileged to entities with large issuance volumes, financial resources and financial market know-how.
BlockState enables capital market access for illiquid assets
Most assets are poorly accessible.
Assets like SME equity, real estate and other
non-bankable/illiquid assets are not easily
accessible for most investors.
Access is restricted to private equity, hedge
funds or large asset managers. Transferability
is limited to inefficient OTC transactions.
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Our technology enables access.
Asset tokenisation allows issuers to target
both retail and institutional investors faster
and more (cost-) efficiently.
Fractional ownership, transferability of
assets and a streamlined investor UX allow
issuers to address a much broader market.
BlockState provides poorly accessible assets like SME equity or real estate with fungibility, liquidity and easy lifecycle
management. Tokenisation maximises efficiency in the issuing process and our strong partners secure deal flow.
Real estate Non-bankable assetsSME equity
- Local asset class
- High demand, but low liquidity
- Big tranches and large tickets
- Most SME equity is unlisted
- Bond issuance is not provided
- Limited options beyond loans
- Only accessible to insiders
- Often large ticket sizes
- No or limited transferability
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While SMEs, real estate and a range of “non-bankable” assets represent a large part of global value, capital market
access for these assets is characterised by information asymmetry, poor investor access and high transaction costs.
There is a huge global financing gap for many asset classes
Fractional ownership TransferabilityLow-cost issuance
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Tokenisation bears several advantages that fundamentally improve market access for asset holders and investors.
Besides reducing the general costs of issuance, tokenisation improves both the access and attractiveness of assets.
Digital management Fast executionLiquidity premium
Tokenisation disintermediates the
issuance process, saving valuable
time and resources.
Assets with high minimum ticket
sizes can be fractionalised without
any extra cost.
A fully digital infrastructure enables
the instantaneous and global
transfer of asset ownership.
Secondary market listing provides
liquidity, enabling a premium of up
to 20% for issuers.
Smart contracts enable digitised
shareholder registries, automated
reporting and corporate actions.
By standardizing and automating the
issuance and management process,
we minimise the time to market.
Tokenisation is ideal to connect issuers with investors
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Leading institutions like KPMG, Deloitte and the World Economic Forum project that ten percent of the global GDP
will be tokenised by 2025-2027, opening up a huge market potential for STO providers.
$88tnProjected global
GDP by 2025*
https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/shifting-tides-global-economic-scenarios-for-2015-25
10%Total global assets tokenised by 2025
$8.8tnGlobal market size
tokenised assets (2025)
1%Market share
captured by 2025
2%Commission fee on
issued volume
$1.8bnRevenue potential
by 2025
x
x
=
=
Tokenisation will disrupt a trillion dollar market
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Name Jurisdiction STOs Status Valuation/FundingDaura CH Planned: 5 Operational n/aEdexa LI Planned: 1 Operational €4.9m (expected funding)Harbor US 1 REIT; Vol. = $20m Operational $40m (funding)Indiegogo US Launched: 1; Vol. = $18m Operational $56.5m (funding)Liquid EU, SE Planned: 3 Operational n/aNeufund EU Planned: 10+; Own STO Operational €125m (valuation)Polymath US 6+; Vol. = $210m Operational $30m (market cap)Securitize US 7+; Vol. = $500m Operational $12.8m (funding)STOBox Global None In development $9m (valuation)Swarm Global 6+; Vol. = $130m+ Operational $5.5m (ICO funding)Tokenize EU EU Planned: 1; Launched: 2; Vol. = $3.6m+ Operational n/aValidity Labs CH Planned: 3 Operational n/a
Based on publicly available data
The market is seeing the first STO providers kicking off
A few players are emerging in the US and Asia, but Europe is underserved. Most providers are inflexible due to a
holistic in-house offering. We believe that leveraging the ecosystem’s networks and capabilities will be key to success.
BlockState is building a security tokenisation ecosystem.
Section 2
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Execution
Access
Distribution
Setup
Legal docs
Tech setup
Management
Maintenance
Reporting
InvestorsIssuers
BlockState offers a one-stop asset tokenisation solution
/
Tokenisation is only half the story. Using a holistic approach, BlockState provides issuers with support along the entire
issuance process and connects them to a strong financial service ecosystem for private placement and liquidity.
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Week1 Week3 Week8
Project planning
• Project assessment
• Financial structuring
Legal setup
• Termsheets
• Incorporation docs
• Shareholder agreement
• Prospectus
Technical setup
• Smart contract
• Investor onboarding
• KYC/ AML set-up
Issuance
• Start of subscription
• Onboarding
• Distribution
Week10
Definition of scope and general setup of the offering
Preparation of documents based on agreed terms
Implementation of smart contract and investor frontend
10 weeks from assessment to issuance
Depending on the scope and individual requirements of the issuance project, BlockState can set up and launch a
Security Token Offering in as little as 10 weeks from initial assessment.
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BlockState provides full lifecycle management solutions. From legally binding structuring and issuance via smart
contracts, cap table management to automated reporting – our interfaces vastly simplify asset management.
Management dashboard Reporting dashboard
Compliant reporting and analytics are
provided automatically.
Financial reports are created and
distributed with the click of a button.
Issuance dashboard
We guide our clients through the
definition of their STO, step by step.
We generate a legally binding smart
contract to tokenise assets.
Issuers can manage their cap table
via a management dashboard.
Features include corporate actions
and investor communications.
Our intuitive interfaces streamline lifecycle management
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Setup fee Commission fee
€30k – €90k
Depends on complexity
of project setup
0.75% - 4%
Depends on volume
and type of asset
+
Our simple pricing ensures cash flow and significant upside
A set-up fee is charged prior to STO to validate interest and provide early cash flow, while the issuance volume based
commission captures the larger part of revenue created with a client.
Revenue per client
€60k - €300k
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SMEs have a high stake in the provision of alternative funding solutions including capital increases through equity
token offerings (ETO) and debt products (e.g. tokenised bonds), making them the ideal focus for market entry.In
vest
or ty
pe
by st
age
Lifecycle stage: Incorporation Seed Growth Late IPO
Founder & FF x xBusiness angels x xCrowd x xVC x x xPrivate equity x xStrategist x xAsset managers x
Access x x xFractionalisation x x xTransferability x x x xLiquidity x x xLow issuance costs xFast time to market xTo
keni
satio
n be
nefit
We focus on SME equity and debt for market entry
BlockState team, traction and Security Token Offering
Section 3
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A team of seasoned founders, financial and tech experts
Ludwig SchrittenloherCredit Portfolio Pictet, formerly Credit Suisse
Dr. Martin SchröderDirector, SMBC Nikko Capital Markets
Executives
Advisors
Paul ClaudiusCEOSerial entrepreneur & investor;Corporate finance, strategy expert.
Michael WeberCFOInvestment banker and serial entrepreneur; regulation and financial expert.
Patrick StorcheneggerCo-founder Ethereum Foundation
Bertjan JanzenPartner PWC Netherlands
Martin HoblerSerial entrepreneur and investor
Julian TrautweinHead of CommsAirbnb
Andre VoineaETPs and Asset Management expert
Phillipp SchoppmannGoogle, Humboldt University
Samuel BrackCTOFinTech developer; cryptography & blockchain expert.
Carl BrunsCMOSerial entrepreneur and venture developer; operations and marketing expert.
Bernhard RobbelVice President Houlihan Lokey
Christopher KraftExecutive Director Perella Weinberg
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Type Jurisdiction Category Status Issuance volume
SME DE Consumer Letter of Intent CHF5m
Non-bankable asset CH Natural resources Letter of Intent €10-15m
Non-bankable asset DE Digital Assets Letter of Intent €30m
SME CH Blockchain Engagement letter €4m
SME CH Media Engagement letter €5m
Real estate CH Project Preliminary €30m
Non-bankable asset CH Art Preliminary €10m (TBD)
SME CH Blockchain Preliminary €15m
With four letters of intent signed and continued interest from a range of diverse asset classes and industries, we are
set to tokenise assets in excess of EUR >100mn. Projects scheduled for H2 2019/H1 2020 include the following:
Our deal pipeline is filled and interest is growing
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BlockState in the international press
The funds raised in the upcoming STO will be used to further develop our technology to enable further cost
efficiencies and use cases. In addition, we will intensify business development in non-EU countries.
Excerpt
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Angel round closed
BlockState STO
Operational break even
Top 3 in Europe for digital asset issuance (by fee)
Scaling non-European market (UAE/ SEA )
First client signed
STO launchpad go-live
First STO clientonboarding
First client STO launch
> 5 STOs conducted
Automation of underwriting process
B2B interface for whitelabel solutions
Q1 2019
Q22019
Q32019
Q42019
H12020
H22020 2021 2022
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Private chain option (R3 Corda) Interoperability with
leading secondary markets
Service blueprint for 5 asset types in CH & EUR
Milestones and product / business development
Main sale start: June 18, 2019 at 07:00 CEST
Main sale end: July 12, 2019 at 17:00 CEST
Settlement date: July 30, 2019 at 13:00 CEST
Jurisdiction: Switzerland
Whitelist/KYC: Required (Fractal ID)
Website: Visit
General
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Token name: BKN
Token type: Tokenized Share of Swiss stock company
Token rights: Ownership, Voting, Dividends
Platform: Ethereum (ERC-20)
Volume issued: EUR 2.000.000
Valuation: EUR 20.000.000
Restricted: USA, Korea, Iraq, Iran + more
Currencies: EUR, CHF, BTC, ETH
Token
The BlockState STO
BlockState will hold a security token offering under Swiss regulation, issuing tokenised company equity to institutional,
professional and retail investors globally.
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Use of STO funds
The funds raised in the upcoming STO will be used to develop our technology, building inter-chain compatibility and
enable further cost-efficiencies and verticals. In addition, we will intensify business development in non-EU countries.
Legal & Administration25% of funds (€500.000)
Research & Development40% of funds (€800.000)
Sales & Marketing35% of funds (€700.000)
Total funding target:
€2.000.000
www.blockstate.com
Smart asset financing
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www.blockstate.com
Please note that this non-binding draft version of the BlockStateSTO deck is for advertisement purposes only and does notconstitute a binding offer nor a solicitation of an offer to purchasetoken-based stocks.
Only the official version of the securities prospectus, to bepublished and found under blockstate.com/sto/blockstate, isbinding and authorised for the public offering of token-basedstocks.
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