Private Equity Investment Assessment Blockchain /Crypto

Blockchain Capital Market Platform

Situation

Target is a growing technology company that is well positioned to take advantage of a key market opportunity as businesses are more engaged in the crypto currency and digital asset ecosystem.  Target company’s planned launch is in 2022 and expects to grow rapidly.  Raise of $6M to capitalize the company and meet strategic objectives.

As part of the four-week assessment review LoBue evaluated the target company in the context of organization and corporate structure; operations analysis; products and services; resulting in a rating of Integrated and Mature (level four on a scale of one to five).

Recommendations
Results

High-level Review and Recommendations:

  • Vetted and expanded target’s forecast for five-year plan, with full driver details.
  • Reviewed and upgraded the target’s RTS-7 Compliance Assessment.  We view this as a measurable indication of target’s “go to market” readiness.
  • Our technology assessment affirmed that significant development has been done to ready the target “eco-system” for launch.  We have reviewed and updated the target’s technology roadmap, including estimated remaining work effort.
  • Reviewed target company products and services and readiness for delivery.
  • Evaluated sales, go to market capabilities, and competitive positioning.
  • Prepared Sources and Uses Statement to provide LoBue client with expected cash flow demand, as well as identifying potential challenges and opportunities.
  • Worked with target to define a more detailed set of performance measurement KPI’s, metrics, and activity indicators for better understanding of post-launch performance.

Selected Detailed Findings and Recommendations

  • Focus on very good execution so that their reputation will be a key driver for expanding client and market opportunities.
  • “White-glove” customer service is essential for all clients. Keeping ahead-of-the-curve, while scaling will minimize potential service challenges.  
  • Development of the CRM- customer service system, currently in their roadmap, should be a high priority.
  • As a high percentage of revenue will come from cryptocurrency trading fees, the expansion of tradable coins should be a high priority.
  • Management should utilize the already developed Crypto Drivers as part of daily, weekly, monthly, and year-to-date reporting.  
  • Given the technology roadmap development, cash burn, and required regulatory balances, it is imperative that the use of funds be carefully monitored and updated regularly.
  • Given the realities in the competition for engineering and programming assets worldwide, the focused recruitment effort should carefully monitor and updated as required.
  • Ensuring that regulatory compliance is bullet-proof is an imperative to avoid the very significant fines that the banking industry has suffered over the last several years.

Results:  

The initiative resulted in Private Equity Client moving forward with $6M investment in current round.