Guys, I wonder why nobody asks you about your business plan. Reviewing your Paper I have large doubts about your financial forecasts. Could you please clarify the following estimates: 1) How many users of robo advisory services will be in Europe by the end of 2021? Your market share in 2021?
2) The estimated volume of total AUM for robo advisory services in Europe by the end of 2021. Your market share in 2021?
3) Who are the main competitors for robo advisory in Europe and the world? Just 3-4 names.
4) How much do you plan to spend on marketing to promote this services (annual budget)?
Actually similar set of questions I have to every line of your business but let's start with this one. I really hope for the quick answer since you have to have all these numbers in your financial model and your mind:)
Forecasts, in fact, look like a dream. But €11 in such a long period as a pessimistic one... it’s ok I think. Really hard to predict the exact price. You might have your own opinion but there also could be unpredictable circumstances that don’t allow to do your best((
Think what stands behind this 11Euro - the companies value which comes from its income estimates.
It really seems the project has been abandoned. Anyway, would like to warn everybody - when you look through the ICO paper/business plan pay attention to numbers. I have 15 years experience in banking and financial markets and can tell you with certainty - to win 40% (!!!!) share in brokerage/advising business similar to Raison target markets is impossible. Even if you offer something new, unique, innovative you'll hardly move market titans. Raison mentioned Vanguard in its paper as one of the leaders of robo-advising. Just several facts about Vanguard:
1) The second largest investment group in the world operating
from 1975 (total asset under management
$4.5 trillion)
2) The total number of clients is about 20 mln in all segments of operations. Raison wants to attract 1 mln only in robo-advising for 3.5 years
3) AUM in robo advising is about $80 bn, Raison wants to raise $18 bn for 3.5 years and take about 40% market share in Europe
I'm pretty sure if I could look through the whole model I would find a lot of discrepancies in all revenue lines and expenses forecasts. While even above stated facts allows assuming that the probability of project failure is close to 100% with such "dreams" instead of real estimates. According to Raison's paper, more than 50% of its revenues come from traditional financial services in the real world. But I don't see anything explosive in their technology, products etc. that could justify such unbelievable forecasts. Guys, just take it in mind when deciding on similar investments.
Dear ICO Analyst,
We highly appreciate your comments. Each interest gives us the additional motivation to develop our product as fast as we can, and the professional interest is a 10x motivation! Let us answer your questions.
The overall amount of robo-advisory (RA) users in Europe in 2016 was approximately 500.000, according to Statista.com. The average AUM (Assets Under Management) per user was about $14.000. In 2016 the whole RA market was about $7bln. Current market growth is about 100% per year (make sure to check at Statista).
In 2017 the RA penetration rate in Europe was about 0,08% of the population. By 2021 the penetration rate can increase to more than 500%. The overall amount of users should grow up to 3.000.000 people only in EU.
Nowadays the EU robo-advisory market is almost noncompetitive, especially with regards to using AI as an escalation of RA for adapting automated managing strategies. We see this market as a very fast growing and thus very promising.
Based on benchmark analysis on example of N26 and Revolut we have determined that it is possible to bring the audience amount to the 1.000.000 mark by just providing a user-friendly, convenient and efficient service offering remote on-boarding, payments. And those are the sole banking platforms which don't use the PSD2 opportunities to implement external accounts into the app which is very flexible to obtain new customers as they won’t just move from their familiar banks (they will have sat within). 1KK of user is a very possible opportunity. 30% of the market? Why not. The market is really small.
If the market keeps on developing this way, we definitely will reach our goals. But we are thinking that its growth rate will be even faster (no one was thinking of such cryptocurrencies penetration into decent life a couple of years ago - even in January 2017 the total cap was only about $17bln, but in January 2018 it was already more than $800bln. This is amazing).
Vanguard are great. We love them, we work with their traditional investment products in our asset management business. But even working since 1975, it is highly unlikely that Vanguard has advanced technologies since they started. We aren’t eating anybody’s dust, but hard on their heels & even keeping ahead.
Feel free to contact us via private messages, since we are always happy to have a discussion with members of our community. More of we are hiring professionals so perhaps we could discuss the cooperation opportunities.
Thank you so much for your interest, as well as creating an account on BitcoinTalk just in order to get in touch with us!
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