Business Plan CONTENTS 1. INTRODUCTION........................................................................ 4 2. EXECUTIVE SUMMARY.................................................................. 5 3. FINANCIAL PLAN.......................................................................12 Forecast 12 Financial Highlights by Year 12 4. BUSINESS MODEL......................................................................18 a. Value Proposi�on 18 i. The Problem 18 ii. The Product 18 b. Channels 24 c. Customer Rela�ons 25 d. Partners 26 5. COMPANY SUMMARY.................................................................. 27 a. Vision 27 b. Mission Statement 27 c. Business Objec�ves 27 d. Registered Name and Corporate Structure 28 e. Company Ownership 28 i. Company Loca�on 29 ii. Risk Management 29 iii. Management Summary 30 Organiza�onal Chart................................................................... 32 6. THE MARKET.......................................................................... 33 a. Financial Markets 33 i. Crowdfunding 35 ii. NAO Stats 35 iii. NAOs 35 iv. Remi�ance 35 v. How Is the Interna�onal Money Transfer Market Evolving? 37 vi. Remi�ances: Fees are Falling and MTOs Dominate 38 vii. The Pressure to Lower Fees is Affec�ng MTOs 39 b. Target Market 40 i. Retail Investor Demographics 40 ii. Forex Technology Stats 40 iii. Forex Trader Stats 40 iv. Global Crowdfunding Market – Segmenta�on 41 v. Remi�ance 41 vi. Digital Exchange 42 c. Compe�tors 43 i. Crowdfunding 43 ii. Remi�ance Compe�tors 44 a. Stock/Forex Brokers/Money Managers 45 Compe��ve Analysis 46 7. COMPETITIVE ADVANTAGE............................................................. 49 a. Differen�a�on 49 b. SWOT Analysis 51 8. EXECUTION PLAN...................................................................... 52 002 Road Map 52 Key Ac�vi�es 52 Go-To Market Strategy 53 Financial Plan 55 9. FINANCIAL INFORMATION.............................................................. 57 a. Resources 57 b. Costs and Expenses 58 i. Konzor�a Capital 58 ii. InveStart 59 iii. Capitalista 61 iv. NovaBank 63 c. Revenue Streams 65 i. Konzor�a Capital 65 ii. InveStart 65 iii. Capitalista 66 d. Required Capital 67 i. Konzor�a Capital 67 ii. InveStart 68 iii. Capitalista 69 iv. NovaBank 70 e. Use of Proceeds 70 f. Projec�ons 71 i. Konzor�a Capital 71 ii. InveStart 75 iii. Capitalista 77 10. INVESTMENT OPPORTUNITY............................................................85 a. Exit Strategy 85 b. Financial Structure 85 c. NAC distribu�on 86 d. Investment Details 86 Projected Return per Share 87 11. LEGAL CONSIDERATIONS............................................................... 90 a. Disclaimer and Legal Info 90 003 1. INTRODUCTION Technology evolves at an incredibly fast pace and companies that not only understand and adopt these technologies, but implement them as well, are the companies that become household names, like Apple and Google. At Konzor�a Capital, that concept is the founda�on of our company. We are crea�ng real solu�ons to exis�ng problems while implemen�ng the latest technology: blockchain. But what is blockchain? Blockchain is a technology that allows transac�ons to take place in the most secure way, without need for a physical place to store the data. Data is tradi�onally stored on servers which can be corrupted. Blockchain technology can also be used to create pla�orms, for example, using self-execu�ng programs or in so-called smart contracts. Now, the most successful business strategies show that not everything is about technology, but about collabora�on and scalability. The Airbnbs and Ubers of the next decade that will dominate their respec�ve markets are those that understand and put into prac�ce this concept. It’s not about crea�ng a company to generate profits; it’s about crea�ng real solu�ons for real people on a worldwide scale. Everyone has something to win by par�cipa�ng in these business models. That’s exactly what Konzor�a Capital is doing: reshaping exis�ng businesses and disrup�ng exis�ng markets with a model adequate for the 21st century, using 21st century technology and 21st century thinking. 004 2. EXECUTIVE SUMMARY Konzor�a Capital S.A. is a Fintech company created with the objec�ve of disrup�ng financial markets and remi�ance services along with changing the way risk capital is raised by startups, all of these by introducing a new asset class and through the use of cu�ng-edge technology called blockchain. The company will also act as a holding company, par�ally owning InveStart, Capitalista, and Novabank while providing its investors with a very liquid and innova�ve instrument, a New Asset Class. 2.1 THE PRODUCT Konzor�a Capital uses blockchain as the underlying technology for all of its pla�orms to operate. Blockchain enables data to be stored and transac�ons to take place without the use of a centralized server. One of the par�cular features of blockchain technology is that it uses a decentralized network while applying cryptography to ensure security, therefore, data cannot be corrupted nor altered. Konzor�a Capital will be many things at once. From a tradi�onal standpoint, Konzor�a Capital is the holding company that par�ally owns InveStart, Capitalista, and Novabank. From a not-so-tradi�onal standpoint, Konzor�a has created a new type of equity, a New Asset Class with special features that mix the advantages provided by the equity of a private company with the liquidity of shares traded in a tradi�onal stock market. Konzor�a Capital will provide the technological structure for InveStart, Capitalista, and Novabank to operate in the blockchain; transac�ons within the consor�um will take place using Koura as the transac�onal currency, and that´s what makes this New Asset Class so special, and its func�onality challenges the difference between equity and money. One of the main factors investors pay par�cular a�en�on to while looking at an opportunity is the exit strategy, and that’s one of the special features about Konzor�a Capital. The same way one is able to trade stocks in any given stock market one will be able to trade Koura’s shares in a New Asset Offering Index (NAO Index) featured in Capitalista. Konzor�a Capital is developing a brand model that is looking to revolu�onize the tradi�onal financial market, by introducing Koura is also introducing the concept of New Asset Offering (NAO). Startup companies and projects, in general, have a hard �me raising capital. Venture capitalists are hard to get and expect to receive too much of your equity and you end up being someone else’s employee. If you are working on a startup company or project, you have no track record and therefore banks will not lend you any money. Bearing in mind that not all companies can have access to accelerators, angel money or any other alterna�ves to raise capital, startups are le� with one last resource, a crowdfunding pla�orm. A crowdfunding pla�orm is only a viable op�on if the startup is willing to register in a given jurisdic�on where the crowdfunding pla�orm is based, this is also valid for equity-based crowdfunding which is more restricted and less popular than tradi�onal crowdfunding. This process where a company creates a New Asset Class in InveStart is called New Asset Offering (NAO) and it’s very similar to the process where a company goes public in an Ini�al Public Offering (IPO). 005 These newly created assets will be issued using Kouras as the base currency, and once a successful NAO takes place, they will be listed in Capitalista where they can be traded like any other tradeable instrument, and exchanged for Koura or liquidated for fiat currency using the exchange services offered exclusively by Novabank. Most people would agree that making money in the markets can become challenging, especially for small investors. One of the main reasons is that quality services are only available to wealthy investors. Some of the services that are widely offered are trading signals and managed accounts. A trading signal simply tells the investor at what price a trade should be entered and at what price it should be closed at a pair, while managed accounts are trading accounts where the trading is executed by a professional trader in exchange for a por�on of the profits. Quality trading signals are just non-existent and, in most cases, trading signals are generated by amateur traders and uncalculated risks are taken which causes investors to lose money and managed accounts that actually generate profits are only available to those that set up large trading accounts. Capitalista will provide its clients with quality services that will allow them to profit from financial markets with trading signals that actually deliver posi�ve results and managed accounts accessible to both large and small investors. Clients will be able to virtually trade any liquid asset in the world using Capitalista’s pla�orm at a cost close to zero, as the strategy is to use this service to a�ract new clients and profit from the other services. Capitalista will feature an index where all companies that raise capital using InveStart will be listed, and their tokens can be traded the way trading is done in a stock market, this market will be called NAO Index. Capitalista will be able to compete against the industry’s dominant players by using a scalable model through its franchising and network marke�ng strategy. That way, independent affiliates will be able to offer the company’s services and get compensa�on for it using a network marke�ng reward model. Trading accounts can be kept using Kouras as the base currency, and everything will be done using the security provided by blockchain technology. In most cases, remi�ance services are very expensive, some�mes very limi�ng when it comes to the amounts allowed, and overall just not prac�cal. Many suffer from lacking access to banking services. Novabank solves many problems by converging many innova�ve features such as: _Credit card and Koura payment processing for merchants.