Forctis Presentation for Blockchain Startup Pitches Zurich 2019

Transcript

3. We want to help people and businesses to squeeze the highest possible yield from owned assets and to open new investment opportunities for everyone.
4. Transforming asset management into something as convenient and engaging as online shopping or social media.
5. Asset owners and investors (today) Our long-term target (potential investors today and asset owners of the future)
6. We project a volume of globally by 2024 in investible assets* $184 Trillion will likely be in the hands of a core target audience $91 Trillion Of which an estimated *60% originating from personal financial wealth and the remaining 40% from non-financial wealth (investible dwellings/REITs plus alternative investments). Forecasted CAGR of 5.47% between 2019 and 2024. Looking at the big picture
8. We are a young technology company that works at the bleeding edge of science to help people and businesses thrive. Creating new solutions for a new world.
9. A group of experienced entrepreneurs, technologists and leading academics who have a vision and the drive to transform it into something real.
11. We are building a unique ecosystem for the tokenization of any asset class
13. * Those instruments are known as tokens, namely “[a thing] serving as a visible or tangible representation of a fact, event, object, feeling, etc.” (Oxford English Dictionary, 2009 edition) Tokenization is simply the creation, replication or deconstruction of property or contractual rights into fungible or non-fungible instruments* on a digital platform.
14. 1 Representation 2 Deconstruction 3 Creation
16. +
18. Sergey Brin and Larry Page photographed in Susan Wojcicki’s home garage at 232 Santa Margarita Ave., Menlo Park, CA. Wojcicki is now CEO of YouTube, a Google property. Brin and Page rented the place in the winter 1998. Perhaps as new as search engines were when they created Google back in 1998. Yet Google went on to change search, and the internet, forever.
19. Why do we believe to stand out? Because our platform combines in one place and under one standard the features otherwise separately offered by industry competitors* * The list above provides a representative subset of companies currently engaged in the digital tokenization space; they encompass 95% and 99% of the token market measured by tokens issued (under those protocols) and MarCap, respectively. There are 11 competing tokenization platforms or protocols and nearly 60 different (and publicly known) security tokens issued globally. UTXO (unspent transaction output) tokens, more commonly known as colored coins, are not displayed above as they represent a negligible portion of the market.
21. 41% 53% About Holding of the Millenial, Gen-X and late Baby Boom cohorts (adults <60y/o today) of the world’s total net wealth Because of the visible shift in attitudes show today a preference for platforms and tools enabling them more direct control over their assetsa
22. Because roughly $180 trillion in financial wealth will move between cohorts (from the Silent Generation and early Baby Boomers to heirs) within the next 15 yearsb
23. Assumptions Just over 0.2% of world’s GDP now being managed on the blockchain or DLT platforms Market breakdown: 15% by institutional players and 85% retail Projecting the growth in tokenized assetsc Graph drawn to scale 26x 2019 2024 $190 $5.0 Because of the potential size of the pie Assumptions Roughly 2.7% of world’s investible assets on the blockchain or DLT platforms Breakdown: shift to 50% institutional and 50% retail market Global nominal GDP displaying 5.2% CAGR between 2019 and 2024 (based on latest IMF, OECD and EIU projections) Low-end estimate
24. 65% 67% Because younger generations embrace change are optimistic about the investment opportunities brought by changes perceived to materialize over the next decade are interested in aligning their portfolios with anticipated mega-trends* Among adults aged 15-50 and * The mega-trends identified by investors in the quoted age bracket are, by order of importance: ageing population, smart technology, increased automation, artificial intelligence and diminishing natural resources. Portfolio alignment relates to the allocation of investments in verticals that are most likely to benefit from those mega-trends (e.g. healthcare, technology and energy). Own estimates from data published in UBS Investor Watch, November 2019 (p. 7-8)
26. Physical representation of ARES. Each slab represents a particular asset class, and the fibers making each slab represent the tokenized assets within each one. Our polymorphic token ARESd is designed to becomethe one-stopshop for asset representation, deconstruction and creation. We’re building a new, future-proof standard.
27. ARES provides a flexible configuration enabling the representation or creation of rights of an absolute nature (such as property) or relative nature (such as contractual claims) or can ultimately act as a store of value.
28. Hence ARES tokens are technically interchangeable with each other even if their underlying properties vary from each other.
29. ARES runs on top of a novel distributed infrastructure
30. Integrated into a feature-rich, flexible and scalable tokenplacee
31. Secured by an unbreakable encryption protocolf
33. Revenue potential from the HNWI segment ▪ Let’s postulate as fee structure – 0.05% charge on top of servicers|insurance|custodian annual fees and 0.15% charge on in-platform transactions on tokenized assets. ▪ Market operational profiling – 25% of volume going to digital titling (attracting no fees). Transactions involving tokenized assets: 50% @ 1-year maturity|30% @ 2-year maturity|remaining 20% @ 3-year maturity. In addition, assume 70% uptake of servicers|insurance|custodian products offered in-platform. ▪ Let’s finally assume Forctis achieves a 10% adoption in this market segment by 2024. Baseline model
34. solely brought by this target audience Projected yearly gross revenue $210
36. For this particular audience, by advancing partnerships with leading brands, financial industry players and HNWI servicers globally.
39. We’ve forged a unique partnership with Gartner that will enable us to enhance our technology even further and develop a strong GTM strategy.
41. There’s Sanity Returning Q&A with Steve Jobs Business Week May 25, 1998
43. Notes to this presentationhe HNWI segment a Own estimates based on information from multiple sources, amongst them: Credit Suisse Global Wealth Report 2019; WEF Technology Tipping Points and Societal Impact Report 2015; ECB Household Finance and Consumption Survey (Wave2, 2017); B. Hammer (2015), The Ownership of Assets and the Role of Age: Age-Specific Household Balance Sheets for Euro Area Countries, AGENTA WP 8/2015; Hemmons, Hernandez Kent and Ricketts (2018), The Demographics of Wealth, 2018 Series, Federal Reserve Bank of St. Louis; Peter G. Peterson Foundation; Cerulli Associates (2019), The Neglected Generation; EY 2018 Global Alternative Fund Survey; Lele and Shim (2019), NextWave Consumer Financial Services: financial subscriptions are coming, EY research; PWC (2014), Asset Management 2020: A Brave New World; WSJ Wealth Management Report 2015; US Labor Bureau, US Census Bureau, UK FCA, Federal Reserve Board Survey of Current Finances, OECD, IMF, ECB and World Bank datasets. c Own estimates based on information from Credit Suisse Global Wealth Report 2019; Capgemini World Wealth Report 2019; Oliver Wyman PFA Report and Future of Private Banking reports; Boston Consulting Group Global Wealth 2019; Knight Frank 2019 Wealth Report; Finoa (2019), The Era of Tokenization; CISCO Blockchain Whitepaper (2019), Build trust-based business networks for digital transformation; OECD, IMF and World Bank datasets. Figures are preliminary estimates and subject to change. Baseline yearly data for 2019 reflect the 12 months to Jun 2019. d ARES is an acronym for Asset Representation System. Polymorphism enables ARES to fuse high-velocity, liquid assets (e.g. cryptocurrencies) and low-velocity, more illiquid assets, hence opening the door to a true holistic management of wealth. e Tokenplaces are simply marketplaces that facilitate asset and price discovery for digital tokens. f Hypothesis based on known available technology. The suite comprises (1) a cryptographically secure and statistically robust pseudo-random number generator (CSPRNG); (2) a post-quantum key exchange algorithm (KEA) using our CSPRNG; (3) a flexible, secure client-to-node binding (key-lock) protocol, that mimics protein-DNA interactions; and (4) a one-time pad (OTP) protocol for encrypting messages. The technology is undergoing IP patenting at the moment. g Own estimates based on information from Credit Suisse Global Wealth Report 2019; Capgemini World Wealth Report 2019; Boston Consulting Group Global Wealth 2019; Knight Frank 2019 Wealth Report; Wealth-X (2019), High Net Worth Handbook 2019; IMF and World Bank datasets. Baseline value set at $69 trillion in 2019, CAGR estimated at 5.7% between 2019 and 2024. h We consider this market segment will display a slightly higher propensity (and certainly have more opportunities) towards tokenizing their investible wealth. b Own projections using information from Credit Suisse Global Wealth Report 2019; Capgemini World Wealth Report 2019; Boston Consulting Group Global Wealth 2019; Knight Frank 2019 Wealth Report; Coldwell Banker (2019), A look at wealth 2019: millennial millionaires; Cerulli Associates (2019), The Neglected Generation; Wealth-X (2019), High Net Worth Handbook 2019; OECD and World Bank datasets.