High Impact CrowdLending

Transcription

1 High Impact CrowdLending

2 LENDING WITH IMPACT We are a P2P Decentralized CrowdLending platform for high impact projects 2

3 THE PROBLEM: A two-tiered world limited opportunities VALUE Developed World Emerging Economies Seeking new investment opportunity Outside of traditional financial products Farming communities have a profitable Activity but no access to financial services % < 5% Interest rate on savings Relative abundance of money INTERNET= INFORMATION Interest rate on local cash loans Money is scarce and expensive 3

4 THE SOLUTION: A New Model for value transfer BLOCKCHAIN= INFORMATION + VALUE Lenders Access to global lending opportunities to diversify with impact +10% Improved return on lended money Lenders can choose and trace their money s positive impact BLOCKCHAIN ENABLES INTERNATIONAL VALUE TRANSFER, IT BUILDS TRUST AND ELIMINATES P2P RISK THROUGH SMART CONTRACTS Borrowers Unlimited access to global funding to improve local economies <50% Lower interest on loans Builds a Digital Reputation Local Node Selects and organizes farmers into cooperatives and acts as their bridge to the digital world 4

5 MARKET OPPORTUNITY: to gain exposure into the booming lending marketplace 25.2% CAGR in transaction value for P2P Marketplace lending 214,403,500 ALTERNATIVE FINANCE MARKET VOLUME Successfully funded alternative loans expected by MILLONS US Transaction value of the global Alternative Lending market In $380.6 billion 2015 SOURCES: STATISA, GLOBAL FINDEX DATABASE (2017)

6 THE MARKET OPPORTUNITY: The unbanked are a huge and profitable sector thanks to Internet and Blockchain billion adults (Total: 570 million in 161 countries) do not have a bank account SOURCE: LOWDER, SKOET & RANEY ,7 Percentage of Farms Worldwide Adults without a bank account (in millions) Million 100 Million Million 0 SOURCE: GLOBAL FINDEX DATABASE. NOTE: DATA ARE NOT DISPLAYED FOR ECONOMIES WHERE THE SHARE OF ADULTS WITHOUT AN ACCOUNT IS 5 PERCENT OR LESS. CHINA INDIA PAKISTAN INDONESIA NIGERIA MEXIC O BANGLADES H VIETNAM BRAZIL PHILIPPINES SOURCE: WORLDBANK Million 6

7 MARKET OPPORTUNITY: Sustainability is the new innovation wave Impact Investing is more than a trend 18% PERCENT OF RESPONDERS IMPACT PERFORMANCE Annual Growth IMPACT INVESTING MARKET VOLUME FINANCIAL PERFORMANCE 15% 15% 82% 76% 3% 9% OUTPERFORMING IN LINE UNDERPERFORMING 70 d Water & Sanitation Food & Agric. Health c 50 Microfinance b 40 Energy Housing Forestry & timber a. b. c. d. Education Manufacturing Information & communication tech Infrastructure Financial services a SOURCES:, GLOBAL IMPACT INVESTING NETWORK BILLON DOLAR 60 Total: $113.7 bn 7

8 SCENARIOS A / B CONSERVATIVE A B Just coffee in Mexico IDEAL 20 countries and 50% of crops (only 10% of the eligible farmers) $ 80 MILLION $ ANNUAL INTERMEDIATED CREDITS 40 BILLION ANNUAL INTERMEDIATED CREDITS million 2 million FARMERS LENDERS FARMERS LENDERS 8

9 NEW ASSET CLASS with Impact RISK OF LOSSES HIGH RISK EthicHub loans are a non correlated asset class that can improve traditional p2p lending which was already one of the best assets in the risk/return ratio. EMERGING MARKET SHARES / EQUITY AIM SHARES EMERGING MARKET BONDS FTSE SHARES PEER-TO-BUSINESS EQUITY COMMERCIAL PROPERTY FINE WINE (CROWDFUNDING) PROPERTY UK BONDS PEER-TO-BUSINESS LENDING SHOCK & SHARE ISA CASH ISA PEER-TO-PEER LENDING GITS LOW RISK CASH LOW RETURN HIGH RETURN POTENTIAL ANNUAL RETURN 9

10 WHY WE WILL SQUARE THE CIRCLE? Diego Pablo Pablo manages the biggest coffee trader company in Chiapas, Mexico Jori manages a coffee farm in Mexico builds a microfinance structure for smallholders in Mexico Unbanked farmers had loans with less than 3% default rate developed a Bitcoin p2p lending platform as his open source master degree thesis Iñigo organized spanish first bitcoin crowd-donation campaign Raul starts hacking away with smartcontracts Jori learns about blockchain during his MSc in innovation Extensive research and Feasibility study of using blockchain on a proven microlending model First Whitepaper draft, team creation, community building Blockchain4 Humanity Award Best Financial Inclusion Project Spanish Fintech Awards. Fintech with greatest social impact Spanish Public Agency for Development. Design for Development Award Pre-Seed Funding Live MVP Platform First loans funded and paid back on the platform 10

11 ROADMAP Q4 Q3 Q Q1 Q1 DAI integration 2nd country started 1st local node training center Decentralized auditing system 4th and 5th countries Q2 Mobile App Q3 Arbiter system Q4 Compensation Pool Positive impact scoring Autoinvest Bot 3rd country Decentralized Governance Proposal Ethical debt recovery policy Inverse interest rate auction Team tokens vesting ends 11

12 ETHICHUB PLATFORM: A proven competitive and safe environment for value transfer ALPHA PLATFORM IS LIVE AT App.EthicHub.com Validated Product-Market fit: First communities of coffee farmers in Mexico received up to 40k$ in loans and repaid on time PILOT PROJECT MAIN METRICS 60 FARMERS >40 K USD IN LOANS 03 COMMUNITIES 100% PAID ON TIME 12

13 REVENUE MODEL INTEREST DISTRIBUTION for each loan TOTAL LOAN 10% 9% 4% 3% 0.5% 27% Non Profit INTEREST FOR INVESTORS ORGANIZATION Full value of the project kept in the community Measured Social Impact Stamp COMPENSATION POOL FOR RISK MITIGATION LOCAL NODE INCENTIVES TOTAL COST FOR BORROWERS ETHIX TOKEN Operate compensation pool Reward for Local Nodes and investors Cornerstone of governance WHY THE ETHIX Boost Scaling capacity Mitigate Default Risk Mitigate Exchange Risk NUMBERS CALCULATED FOR AVERAGE LOANS RELATED TO COFFEE IN MEXICAN MARKET. ADJUSTMENTS MAY BE REQUIRED FOR OTHER CROPS AND OTHER COUNTRIES. 1 3

14 COMPETITIVE ADVANTAGE BLOCKCHAIN BASED Allows real P2P interaction EXPERIENCE IN PROJECT SELECTION No platform risk More efficient international transfer of value Transparency and immutability Own token to incentivize proper behaviour DAI stablecoin to eliminate currency volatility problem Compensation Pool to mitigate exchange and default risk Already financed over farmers with less than 3% default rate Access to a network of over farmers DECENTRALIZED LOCAL NODES FOR PROJECT SOURCING Personal relation with the farmers Acts as bridge to the digital world Cost-efficient compared to traditional Microfinancing Experts on coffee market Advise farmers on how to increase their productivity Recognized and multi awarded model Facilitates product traceability and Impact Measurement Only cooperative loans to reduce default risk 14

15 OUR TEAM A multicultural group with experience in blockchain and financial inclusion POWERED BY A GLOBAL COMMUNITY 15

16 ADVISORS & PARTNERS Yacine Teraï International network and PR Aurelio Benitez Legal (México) Iñigo Molero Blockchain & Communication Sebastien Rouxel Startup Token Maricruz Lacalle-Calderón Jesús Pérez Luis Espiga Joel Jabalera Fintech Advisor Fernando Ramos Legal (Spain) PhD Microfinance & Financial Inclusion Social Economics Blockchain markets 16

17 MULTI STAKEHOLDER GOVERNANCE CURRENT STATE TARGET FUTURE STATE Centralized Governance proof of concept Multistakeholder Decentralized Governance Managed by LendingDev a spanish limited company Transitioned from LendingDev to EthicHub Foundation No equity offer to allow for future decentralization of organization Governance rights shared with users, contributors, partners and not only investors Fees and funds reinvested into EthicHub Active community engagement value creation kept within the community (not a rent seeking company) Founding team s tokens vested for 2 years with 6 months cliffs aligning interest with investors Audits will be decentralized and managed by the community Moving towards a Decentralized Autonomous Organization 17

18 ALIGNED WITH UN 2030 AGENDA Measuring the impact Maricruz Lacalle-Calderón The conceptual framework is based on Household economic portfolio model (HEMP), defined in the AIMS(1) project by the USAID(2) Experimental study (Randomized Control Trial) will be carried out with one Intervention Group (IG) and one Control Groups (CG). PhD Microfinance & Financial Inclusion MICROFINANCE IMPACT CHAIN EthicHub facilitates Loan (1) Assessing the impact of microenterprise services Farmer benefits from received Loan (2) United States agency for development Farmer changes his/her behaviours and practices Outcome of the changes on social and economic situation 18

19 CONTRIBUTE TO CHANGE THE WORLD: SEED FUNDING INVESTMENT ALTERNATIVE INVESTMENT GOAL 500k Needed to complete next milestones Mezzanine Capital 60% return in 4 years 35%/Income DEVELOPMENT 4 Developers / 2 Marketing / 2 Project Collection 180,000 USER ACQUISITION PR Agency / Marketing Campaigns / Events 170,000 Web / Audits 30,000 OPEX Tech licenses / Coworking / Car expenses / Travel expenses 60,000 CAPEX Tech equipment LEGAL Foundation setup / Mexican Entity setup EXTERNAL DEVELOPMENTS FUND LOANS AND OTHERS 8,000 35,000 23,000 19

20 Solution ready to be scaled P2P Lending and Impact Investing markets are growing Invest in EthicHub s growth! Established Network for project sourcing ICONS DESIGNED BY FREEPIK FROM THE FUTURE IS NOW 20

21 Thanks!