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cryptothrift
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April 22, 2014, 05:19:46 AM
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Bitify PTY Ltd (https://bitify.com)
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April 22, 2014, 05:23:41 AM
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Just an FYI, I am one of two founders of CryptoThrift, but wanted to post the above from our company forum account.

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April 22, 2014, 06:37:16 AM
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Just an FYI, I am one of two founders of CryptoThrift, but wanted to post the above from our company forum account.
Hi Mr. Founder.  What do you have to say about this?
http://www.reddit.com/r/Bitcoin/comments/23ni1c/psa_of_bitcoin_scam_by_operators_of/

ARE YOU CRIMINAL SCAMMERS!!?

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April 22, 2014, 06:45:17 AM
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As a start you should probably publicly respond to this reddit topic: http://www.reddit.com/r/Bitcoin/comments/23ni1c/psa_of_bitcoin_scam_by_operators_of/
I've never used your service or even heard of it- but shooting down or clarifying situations like this would aide in gaining some trust regarding your business.
Regarding your questions- if you were to list Havelock is the site that I have a greater trust in- there have been far too many scams on Cryptostocks. Which ever way you decide to go- the more financial records and general transparency that you are able to provide the more likely you are to gain trust with investors. For some reason the crypto stock community seems a little bit immune to this (ie see Neo Bee)- and for me a big red flag from the beginning. In any investment, in any field, and in any currency historical and forward-looking financial records should be a prerequisite for an investor.

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April 22, 2014, 07:02:06 AM
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Just an FYI, I am one of two founders of CryptoThrift, but wanted to post the above from our company forum account.
Hi Mr. Founder.  What do you have to say about this?
http://www.reddit.com/r/Bitcoin/comments/23ni1c/psa_of_bitcoin_scam_by_operators_of/

The reddit post is being responded to right now.  The buyer appears to have pasted the payment address - our escrow address - into the refund form when applying for the refund instead of his own BTC address.  This generates an email containing the refund details which is then processed by our support.  So we sent the refund to that address not knowing that it was our own address.  He then emailed us again about this on the weekend and we haven't responded to him yet as we have both been on holiday.  The first we heard about it was when we got a call from one of the Sydney Bitcoiners about the reddit post about half an hour ago.  So it was just a simple misunderstanding and he has now been fully refunded.

 

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April 22, 2014, 07:13:39 AM
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As a start you should probably publicly respond to this reddit topic: http://www.reddit.com/r/Bitcoin/comments/23ni1c/psa_of_bitcoin_scam_by_operators_of/
I've never used your service or even heard of it- but shooting down or clarifying situations like this would aide in gaining some trust regarding your business.
Regarding your questions- if you were to list Havelock is the site that I have a greater trust in- there have been far too many scams on Cryptostocks. Which ever way you decide to go- the more financial records and general transparency that you are able to provide the more likely you are to gain trust with investors. For some reason the crypto stock community seems a little bit immune to this (ie see Neo Bee)- and for me a big red flag from the beginning. In any investment, in any field, and in any currency historical and forward-looking financial records should be a prerequisite for an investor.

Thanks for the advice.  Fortunately we have an account of every transaction in or out of the site, and have kept all of our other invoices etc too.  From this we graph a daily sales / profit chart, which I'm sure will be useful to investors.  Our business plan details our projected and target figures, and obviously our strategies for achieving them! 

I had the same feeling about Havelock over Cryptostocks.  To be truthful I have my reservations about using either and think we will get more out of a VC in terms of advice and contacts.

The trust issue does concern us.  We submitted the registration of the business here in Australia just before Easter, so hope that, along with disclosing our office address and personal identities, will go some way increasing trust in us. 

It sounds like we need to push our advertising front more too if you hadn't heard of us Cheesy

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April 22, 2014, 08:16:31 AM
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What are people's experiences of using "securities" exchanges such as Havelock and Cryptostocks?  I understand that several other such exchanges have gone out of business.

Are there legal implications of using these securities exchanges as we are essentially a private company (as are most who list there AFAIK).

There are very serious implications.  Consider that these are illegal in many countries.  They have not been up long, and exchanges of these types tend to come and go.  If your business is already profitable, but at a small scale, then it's likely your business will outlive any exchange you list upon.  Listing here will hurt your prospects with traditional VC.  If you still want to list on one of these fly-by-night exchanges, then at least spend a small consultation fee ahead of time on a lawyer so that you know what kind of liabilities you're opening for yourselves.

Is there anywhere in the community (here or other sites/forums/organisations) that we should look for individual investors or Bitcoin related VC's?
Your best bet is to start looking at various incubators.  Y-Combinator is the big one, but it's very competitive.  There are a many smaller, less well known organizations.  Many are in Silicon Valley, and although I am not aware of specifics in Australia, I am sure that they exist.

Do investors / VC's at this stage expect a monthly dividend, given that we are still early-stage and therefore heavily re-invest our profits into development, marketing & advertising, etc?

Traditional VC are more interested in growth in value and a potential exit further down the line (during later series funding or an actual, legitimate IPO) once you make yourself attractive to a buyout.  They fund many projects with the expectation that many will fail, but that the ones which do survive will more than make up for the losses.  They will also need a bit more wooing than making a slide deck and a forum post.  Considering that they are investing in the idea and your ability to implement it, they will need to have some evidence that both of these are sound.  A profitable product at minor scale is a good start, but you'll need to prove that you can scale and that the market for the idea exists or can be created.  

Most incubators offer more than just startup capital.  They'll offer technical, financial, and legal expertise (usually in the form of consultations or mentorships), contacts, and will possibly help you seek later stage funding when the time is right.  They, and the VC they represent, will want to have some level of involvement at every stage until their exit.

When you list on one of these unregulated bitcoin exchanges, though, you will find different types of investors..  Many are used to the constant swings of BTC price and are not looking for a long term investment.  They will buy into these pseudo 'IPOs' with the hope that it's been priced incorrectly and that demand will turn a quick profit once all of the available shares are sold.  IPO pricing is a skill.  If the market for an IPO is incorrectly gauged, then you will either not raise enough capital or will be leaving money on the table.  Others are more traditional, in the sense that they'll invest without sure profit being generated and wait a while before expecting any dividends (see Neo&Bee lead up, though this was a bad idea to begin with), but these will be hoping that their share price is going to rise commensurate with their wait.   Some are just hoping for a solid source of dividends and will focus on those businesses already generating profits while maintaining their share price.  With any of these, though, be prepared to answer to the criticism of anonymous investors (or bystanders).

What is a sensible expectation of dividend payments (annual ROI %) for investors in companies such as ours?  

I can't help you on this one.  ROI will differ depending on the share price that an investor bought in at.  If you are looking to provide a flat percentage return, consider taking out a loan instead of selling equity.

How should we value a company such as ours, in an inherently volatile market?

You need to do a lot of calculation.  Take a look here for some common metrics that you should be reviewing to help you determine the cost of a customer through various channels, their lifetime value, churn rates, etc, all so that you can predict revennue and costs.  Beyond that, you'll need to somehow figure out how bitcoin price volatility impacts your business (or if it does at all).  

What kind of information (beyond the obvious Business plan, Sales/CoS, P&L) do potential investors usually ask for?  

Investors will need to see some evidence that you can follow through on your plans.  This can be evidenced by a history of experience, previous successes/failures.   They'll want to know that the plan itself is sound.  Investors will want to know that you're accountable in some manner; in the bitcoin space, it's too easy for someone to take investment and then slip away.  

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