RAISON.AI. Investment proposal (Pitch Deck )

Transcription

1 RAISON.AI Investment proposal (Pitch Deck )

2 Platform for personal Finance management and easy access to investment products, financial and cryptocurrency markets RAISON.AI

3 Issues with financial assets systematization and assessment of the financial condition of the user A large number of Bank accounts the user has Systematic waste of time or missed payments in recurring transactions (e.g., debt service, utility bill payments, renewal of insurance, etc.). Issues and Trends Extremely non-optimal use of financial resources Complexity of understanding traditional financial products for the average user High competition among financial service providers, as a consequence of data noise for the user Emergence of new financial products, including cryptocurrencies, cryptofunds and related products Extension of p2p interaction between the parties, disappearance of additional inefficient providers Trend towards tokenization of traditional assets and expansion of mutual integration of classic products and stock market

4 Based on previous experience in the investment banking segment and the field of modern ITtechnologies, a draft RAISON was developed, integrating a variety of advanced technological solutions for personal finance management and investment Solution RAISON is a single platform that includes multiple legal entities, providing functional solutions, each of which is a separate business unit under the relevant regulations However, in the framework of client's use of the platform, the interaction of all business units for the solution of user tasks happens transparently. RAISON is a single high-tech IT environment, saving the user from use of multiple financial institutions

5 Market, customers and services

6 The main target audience of the project at this stage are residents of Europe and CIS countries Private persons Total estimated market volume during implementation of 70% of the planned functionality (without large investment block) is more than EUR 25 trillion Growth forecast for consumers on the basis of benchmarking is 1 million users by The total projected volume of AUM by 2022 will be about EUR 75 billion The total projected revenues cumulatively by the end of 2021 will be about EUR 460 million

7 Services for private persons PSD2 Payment Initiation Service Provider with thirdparty EU bank accounts AI-based financial and investment advisory Payment services in fiat currencies (money transfers and payments) Card product Investment products on a RAISON platform Custody, exchange and payments in virtual currencies (BTC, ETH)

8 An important part of RAISON business is providing services for the business clients. The growing demand for opening settlement and payment accounts for legal entities related to long compliance procedures due to the complexity of banking regulation opens up broad opportunities for expanding the client base Legal entities Currently, there is a seller s market in the B2B segment, financial institutions have large queues of applications for opening accounts, and customers are willing to pay high fees for opening and further service Automating the process of opening and maintaining of accounts, based on a preliminary automated check of the business UBOs and automation of operations checks, will reduce the client s waiting time for accounts opening and reduce the cost of service, adding additional margin for the business and increasing competitiveness of platform The introduction of alternative payment processing methods (receiving payments in virtual currency) will expand business opportunities and increase the competitiveness of RAISON

9 Integration of third-party services, API to use in customer products Payment services (transfers and payments) in fiat currency Services for legal entities Accounting Assistant Payment processing (both in virtual currency with automatic conversion into euro and fiat currency) Card product for the company and employees Exchange, custody and payments in virtual currencies (BTC, ETH) Business investment products for placing reserve company funds

10 Software

11 Interfaces

12 Current Functionality Web app, adapted for any mobile device Online customers' onboarding and account opening in 6 minutes (in accordance with EU PSD Directive), the possibility of opening accounts for clients worldwide, automated AML/CFT due diligence Integrated non-custodial system for managing cryptocurrencies (BTC and ETH). The owner of the private keys are the owners of the wallets and therefore the money inside (comparing to majority of web wallets and exchanges which are centralizing the custody of crypto asset) Fiat crediting (EUR) and withdrawal via SEPA transfers Converting cryptocurrency to fiat money and vice versa using stock liquidity Operations in the regulated legal field (licenses for the storage of crypto-currencies and exchange thereof)

13 Workflows After public launch on November 15, 2018 we reached about 450 customer (beta testing started on August 10, 2018) Active tests are conducted and problems with opening of accounts are revealed, actively interacting with clients to make the process smooth and easy Adaptation and improvement of onboarding processes to improve conversions Development of the customer support system, automation of support processes to reduce waiting time for problem solving Testing of marketing channels to attract customers

14 Current Implementations Opening of a merchant account, connecting to card processing system to integrate the top-up with a customer s bank card, withdrawal of funds to the same bank card Opening of additional Bank accounts for depositing/withdrawal of fiat funds outside SEPA payments (SWIFT, etc.) Issuing of prepaid cards to bind to the client's account that allows to pay online and at POS and to withdraw cash in ATMs worldwide Integration of triggers for ongoing KYC automatization to improve scalability (use of proportionately less number of human resources with a significant increase in users) Integration of artificial intelligence (AI), marking articles for Machine Learning as a part of integration of AI in recommendations to the clients (success rate of more than 85%) ios and Android apps B2B services including payment processing in BTC, ETH with auto conversion to EUR

15 Planned Development until the End of Q Integration in the platform of investment products to increase LTV, incl. primarily the funds of affiliated investment management company - mining fund, crypto-currency fund, investment fund for innovative companies, classical hedge funds Obtaining a license under the MIFID directive for adding investment products to the platform and use of advisory functions (discretionary and non-discretionary) Expansion of portfolio of cryptocurrencies available for investment Obtaining AEMI license in European jurisdiction (Lithuania is actively being worked out) for opening personal IBAN to clients (the platform already allows to custody of the EUR) Integration into the platform of thirdparty bank accounts in the EU using Open API in the framework of PSD2. Third-party accounts management, full analytics for expenses and cash flows Deep integration of artificial intelligence to manage personal finances, creation of marketplace on Raison platform (for example, debt restructuring, purchase of insurance products, choice of deposits, etc.)

16 Visit RAISON.AI to register online and overview the platform

17 Input data for revenue forecast (statistics) Average funds turnover (on a customer balance), per user ,9 EUR, consists of: POS terminals payments, monthly average EUR Digital payments, monthly average - EUR AI investment advisory, monthly average AUM, including growth of 7.5% p.a EUR 14,041.1 Cryptocurrencies custody, monthly average AUM, including growth of 30% p.a - EUR Cryptocurrencies exchange turnover, monthly average AUM, conservative EUR 1,066.8 Investment products sales, monthly average, including growth of 10% p.a EUR 1,422.4 Margin value (securities) - 25% Margin value (crypto) - 10%

18 Revenue forecast, optimistic scenario 4Q Q Q Q Q Q Q Q Q Q Q Q Q 2021 Total Total private persons 1 500, , , , , , , , , , , , , ,0 Total legal entities 75,0 150,0 500, , , , , , , , , , , ,0 Average funds turnover (on a customer balance), per user 610,76 EUR POS terminals payments, montly average* 428,16 EUR , , , , , , , , , , ,0 Digital payments, montly average** 182,59 EUR , , , , , , , , , , ,0 quantity of digital payments per private person, monthly average 3 quantity of digital payments per legal entities, monthly average 12 AI invetsment advisory, monthly average AUM***, including growth 7,5% p.a ,06 EUR сryptocurrencies custody, monthly average AUM****, including growth 30% p.a 4 267,10 EUR сryptocurrencies exchange turnover, monthly average AUM****, conservative 1 066,77 EUR , , , , , , , , , , , , ,3 funds and structured products sales, monthly average ****, including growth 10% p.a 1 422,37 EUR , , , , , , , , , , , , ,3 margin value (securities) 25% , , , , , , , , , , , , ,1 margin value (crypto) 10% , , , , , , , , , , , , ,2 Revenue, EUR accounts opening fee for legal entities 199,00 EUR monthly service fees for legal entities 99,00 EUR transaction fees for legal entities, per operation 19,00 EUR monthly fees for private persons 9,90 EUR transaction fees for private person, per operation 1,99 EUR cards issue 19,00 EUR cards monthly fee 9,90 EUR fees from card operations, per operation 0,2% Advisory fees, p.a. 0,3% , , , , , , , , , , сryptocurrencies exchange fees 0,35% 5 600, , , , , , , , , , , , , funds and structured products sales fees 1,0% Interest on margin (securities), p.a. 1,2% , , , , , , , , , , Interest on margin (crypto assets), p.a. 5,0% , , , , , , , , , , Total Operational Revenue, EUR *EU data, based on CAGR to 2015 data **EU data, based on Statista research, multiplied by USD/EUR 2017 average ***EU robo-advisory Statista research data, multiplied by USD/EUR 2017 average *** forecast

19 Revenue forecast, neutral scenario 4Q Q Q Q Q Q Q Q Q Q Q Q Q 2021 Total Total private persons 1 000, , , , , , , , , , , , , ,0 Total legal entities 50,0 100,0 350,0 750, , , , , , , , , , ,0 Average funds turnover (on a customer balance), per user 610,76 EUR POS terminals payments, montly average* 428,16 EUR , , , , , , , , , , ,0 Digital payments, montly average** 182,59 EUR , , , , , , , , , , ,5 quantity of digital payments per private person, monthly average 3 quantity of digital payments per legal entities, monthly average 12 AI invetsment advisory, monthly average AUM***, including growth 7,5% p.a ,06 EUR сryptocurrencies custody, monthly average AUM****, including growth 30% p.a 4 267,10 EUR сryptocurrencies exchange turnover, monthly average AUM****, conservative 1 066,77 EUR , , , , , , , , , , , , ,2 funds and structured products sales, monthly average ****, including growth 10% p.a 1 422,37 EUR , , , , , , , , , , , , ,7 margin value (securities) 25% , , , , , , , , , , , , ,1 margin value (crypto) 10% , , , , , , , , , , , , ,6 Revenue, EUR accounts opening fee for legal entities 199,00 EUR monthly service fees for legal entities 99,00 EUR transaction fees for legal entities, per operation 19,00 EUR monthly fees for private persons 9,90 EUR transaction fees for private person, per operation 1,99 EUR cards issue 19,00 EUR cards monthly fee 9,90 EUR fees from card operations, per operation 0,2% Advisory fees, p.a. 0,3% , , , , , , , , , , сryptocurrencies exchange fees 0,35% 3 733, , , , , , , , , , , , , funds and structured products sales fees 1,0% Interest on margin (securities), p.a. 1,2% , , , , , , , , , , Interest on margin (crypto assets), p.a. 5,0% , , , , , , , , , , Total Operational Revenue, EUR *EU data, based on CAGR to 2015 data **EU data, based on Statista research, multiplied by USD/EUR 2017 average ***EU robo-advisory Statista research data, multiplied by USD/EUR 2017 average *** forecast

20 Revenue forecast, pessimistic scenario 4Q Q Q Q Q Q Q Q Q Q Q Q Q 2021 Total Total private persons 750, , , , , , , , , , , , , ,0 Total legal entities 37,5 75,0 250,0 500, , , , , , , , , , ,0 Average funds turnover (on a customer balance), per user 610,76 EUR POS terminals payments, montly average* 428,16 EUR , , , , , , , , , , ,0 Digital payments, montly average** 182,59 EUR , , , , , , , , , , ,1 quantity of digital payments per private person, monthly average 3 quantity of digital payments per legal entities, monthly average 12 AI invetsment advisory, monthly average AUM***, including growth 7,5% p.a ,06 EUR сryptocurrencies custody, monthly average AUM****, including growth 30% p.a 4 267,10 EUR сryptocurrencies exchange turnover, monthly average AUM****, conservative 1 066,77 EUR , , , , , , , , , , , , ,3 funds and structured products sales, monthly average ****, including growth 10% p.a 1 422,37 EUR , , , , , , , , , , , , ,2 margin value (securities) 25% , , , , , , , , , , , , ,9 margin value (crypto) 10% , , , , , , , , , , , , ,4 Revenue, EUR accounts opening fee for legal entities 199,00 EUR monthly service fees for legal entities 99,00 EUR transaction fees for legal entities, per operation 19,00 EUR monthly fees for private persons 9,90 EUR transaction fees for private person, per operation 1,99 EUR cards issue 19,00 EUR cards monthly fee 9,90 EUR fees from card operations, per operation 0,2% Advisory fees, p.a. 0,3% , , , , , , , , , , сryptocurrencies exchange fees 0,35% 2 800, , , , , , , , , , , , , funds and structured products sales fees 1,0% Interest on margin (securities), p.a. 1,2% , , , , , , , , , , Interest on margin (crypto assets), p.a. 5,0% , , , , , , , , , , Total Operational Revenue, EUR *EU data, based on CAGR to 2015 data **EU data, based on Statista research, multiplied by USD/EUR 2017 average ***EU robo-advisory Statista research data, multiplied by USD/EUR 2017 average *** forecast

21 Revenue Planning, Forecast Scenarios Forecast revenue is based on incorporated in financial model parameters, including the rate of growth of users, frequency of use of the service, the dynamics of LTV of a user, baselines of the averages in investment banking sector in Europe, benchmarking In a optimistic scenario, a customer base at the end of 2021 is 1,000,000 private customers and 50,000 legal entities; the projected total revenue of about EUR 469,000,000 million In a neutral scenario, a customer base at the end of 2021 is 500,000 customers and 25,000 legal entities; the projected total revenue of about EUR 289,000,000 million In a pessimistic scenario, a customer base at the end of 2021 is 175,000 customers and 8,750 legal entities; the projected total revenue of about EUR 132,000,000 million

22 RAISON is a joint venture of investment company Threesixty Elements ( and IT-company Netbox Team RAISON has more than 20 employees, offices in Moscow and Tallinn The RAISON project was approved by the Startup Committee of the Ministry of Internal Affairs of Estonia as a significant startup and included in the list of innovative companies in the country RAISON was approved by the European Commission as an innovative project and was included in the list of projects of the European Investment Projects portal.

23 Elena Romanova Global Head of Compliance The founders and management team members have significant RAISON guiding experience in such companies as: Mail.Ru Group, Finam, SMP Bank, Svyazbank, HP, TNT Media

24 Investments In the development of the project were invested the funds of the founders in the amount of about EUR 350,000 In December 2017 pre-seed stage was held, the project raised about EUR 950,000 from a group of private investors and a private investment fund as a lead of the stage. Placement was structured as a convertible notes sales with a coupon with floating interest rate and maturity up to the end of 2021, also with an option of an early redemption in 2020 Current placement is held under a private placement regime with convertible debt instruments offered with a total issue volume in the amount of EUR 5,000,000. A coupon note offered with maturity before the end of 2021 and floating interest rate and option of an early redemption in The Issuer of the debt is Estonian license holder Various options for purchasing equity and relevant placement structuring are discussed with institutional investors The main points of investment proceeds are: product development, additional licensing, expansion of user base within the current geography

25 Contacts Raison is a product of RSN Finance OÜ, company from Estonia with registry code having its office at Roosikrantsi 11, Tallinn city. Raison operates under following licenses: - Financial services, Virtual currency wallet service - FRK Financial services, Exchange services between virtual currencies and fiat currencies - FVR estonia@raison.ai Please contact for additional information: Alexander Zaitsev, a.zaitsev@raison.ai

26 This document is not intended for general public. Securities are only available for professional (qualified) investors. Distribution to third parties without the written consent of the Issuer is prohibited. Disclaimer All materials published on behalf of the Company, and information contained therein is for informational purposes only and cannot be considered either as an invitation or inducement for an offer, nor a request to buy or sell securities/other financial instruments or undertake any other investment activities.