You say your business plan notes in painstaking detail but your business plan is shockingly incomplete.
Could you please elaborate on what you mean by incomplete?
You mention some valid concerns in your post, but not really asking for much more details, so it's hard to know how to "complete it" to your satisfaction without further details.
I would be interested to know the background of the people founding the company. Also 25% equity is not going to cut the mustard for $250k... Valuing the company at $1m is just absurd as at the minute you have absolutely nothing... according to the report you haven't even developed any software etc...
Linkedin and NXT community involvement since it's inception should cover the first in terms of our crypto-involvement. We are all crypto-enthusiasts and all have been in the domain game for years, 2 professionally.
The valuation is based on several different factors, but I can understand your skepticism, so I'll do my best to shed some additional light on it:
Firstly we are getting funded entirely by cryptocurrencies, so as you probably know even if we raise the total amount it will still carry a big risk until we sell it through the exchanges. By then the value of either of these cryptos can have sunk significantly, so this risk is calculated into the sum we hope to raise. Pretty much every other IPO ever conducted has not had to worry about this, so it's a completely new element. But that comes with the territory of being innovative in a new and emergent market. A challenge which we accept.
Secondly, we are not just going to sell some domains. We are aiming to be a serious contender on the domain marketplace, parking and appraisal scene. Since you are already very familiar with the selling part I am a bit puzzled as to why you find it hard to believe that such a business will be worth 1 million dollars? Add parking and the appraisal business and the 1 million dollar evaluation suddenly don't seem to be a lot at all.
Thirdly, we are the absolute first serious company in this market that will accept all the major cryptocurrencies. This market alone is huge and continues to grow weekly. Having first mover advantage and branding/marketing here is a big deal.
This is also why it is so important to us to have a good and genuine relationship to the cryptocurrency scene. We donated NXT.org (bought for 15 000 dollars) and had it developed, just to help out the community. This sort of relationship is not something one can easily purchase. We have put months upon months into crypto activism.
Also regarding software, we do have software started and infact our appraisal tools are completely cutting edge and unlike anything in the domain game yet. It has been under development for years. But as you probably know, development and marketing cost money. Quite a lot of money. And as the numbers show: a significant sum of this will go directly to transfer-repository fees.
It doesn't matter how well presented a business plan is, if the underlying figures are so negative.
You emphasise throughout the plan of your huge forecasted figures but these are not at all realistic... $300m in 2018. Come on really...
I think you should go back and re-read the plan, the $300m number is only one of the variant projections.
We have a conservative one, realistic one and optimistic one.
Conservative for 2018: 7.9 million, realistic ~100million (if everything goes smooth and the domain market keeps growing at a steady rate, as experts and all available numbers suggest) and then 250 million or the optimistic one.
I would know this because I currently sell domains and I have a large portfolio as well as experience in this sector. Domains are very illiquid. You will not make $1m let alone $300m in my opinion.
Everyone is allowed to have their own opinions, but please read the full business plan and see the actual numbers before latching onto one tidbit and try to denounce our entire efforts based on that out of context.
Moderate my post at your will but these are the kind of thoughts any potential investor in your business are going to be coming up with.
Would never ever moderate anyones post in any shape way or form. I am happy to answer all questions you might have and don't mind at all that you raise your valid concerns. It's good to settle them and hopefully provide you with satisfactory answers!
The equity is not event emotively comparable to the risk.
Even with the very conservative estimate people are looking at more than 40x ROI. Of course there is going to be risk, but nothing comparative to the risk of dealing with altcoins in the first place.
We are trying to build a serious business based around this and think everyone understands that there is inherent risk in any investment, but we are also confident that our business plans and answers will make it easy for people to make up their own minds.
How much cash have you founders put up yourselves in this project already? Financial proof of this?
Tens of thousands and hundreds upon hundreds of hours of work. Not sure what would satisfy you as financial proof.
Best of luck with your project.
Thanks! I hope you find my answers clarify some of your concerns.
