BTCJam.com. Worldwide Credit Bureau

1.

Jul 2014
BTCJam.com
Worldwide Credit Bureau

2.

2

3.

3

4.

Key
Metrics
8 employees
6M in loans funded to date
1M per month in new loans
1.2M seed round in Feb ’14
85% market share
4

5.

Celso Cardoso Pitta
• Built cryptographic systems for Visa and Citibank EDI platform
• Developer of complex computer vision algorithms which perform
facial detection and recognition, used to detect driver’s fatigue
• Attended Unicamp, described as the MIT of Latin America
by Wired Magazine

6.

Gustavo Guida Reis
• Co-Founder @ HelpSaude (merged with
NetCom)
• Co-founder @ Bondfaro (merged with
Buscapé, sold for US$400M)
• BA in Economics Rio de Janeiro's
Catholic University

7.

Team: high tech capability and knowledge in B.I. and financial systems
Flavio Rump
• Cofounder/CMO of DeinDeal.ch (acquired
by Ringier), Switzerland’s largest group
buying site scaled revenues to USD 35M
through PPC/CRO
• cofounded pollpigeon.com, 1M users
through viral growth
• BSc in EE from Top 5 School (ETH Zurich,
ranked #5 in QS World Rankings)

8.

Team: high tech capability and knowledge in B.I. and financial systems
8 employees:
2 Engineers
1 Customer Care
1 Bizdev
1 Office Admin
+HEADS
Raised $ 1.2M in February 2014
Bitcoin
Opportunity Corp.

9.

Mission
To arbitrage market asymmetry
Credit Card Average APR*
200%
175%
180%
160%
US$
200Bi
140%
120%
Make credit accessible
and affordable to all,
while promoting
a great and safe return
to investors.
Estimated
Market Size
100%
80%
45%
60%
40%
130%
15%
20%
0%
Average Return (% a.a.)*
19%
20%
18%
16%
14%
12%
12%
10%
8%
8%
11%
6%
4%
2%
0%
Developed Nations (US, UK, Germany)
BTCjam target APR*
Developed Nations (BRICs)
*Source: Euromonitor Consumer Lending 2013 – Trends, developments and prospects: outstanding credit card

10.

11.8%
16
14
14
12
12
10
10
4.5%
6.8%
8
8
6
7.9%
6
Emerging economies
access to credit
4
2
2
0
-2
0
North
America
Westem
Europe
Asia Australasia Middle East Latin
Pacific
and Africa America
2012
Rising disposal incomes in emerging markets,
thirst for luxury goods and major appliances,
spur a rise in consumer credit.
4
% growth 2012
Market
landscape
Global Consumer Lending
Outstanding Balance by Region 2012
Eastem
Europe
% growth 2012
Change in consumer expenditure 2010-2011
% change
2010-2011
*Source: Euromonitor Consumer Lending 2013 – Trends, developments and prospects
13.2 – 39.9
-1.9 – -5.4
8.7 – 13.1
0.0 – 8.6
-21.5 – -38.3 Not illustrated

11.

Market
landscape
Global
Peer to Peer
lending
Western
Europe
$ 0.1 bi
UK
$ 0.8 bi
USA
$ 2.4 bi
China
$ 9 bi
The total addressable
market is estimated to be
around US$ 1 trillion with
peer to peer lending
industry capturing less then
1% of the market today
(USD$ 5.3 Bi ≈ 0.005%)
US$
1tri
*Source: Credit disrupt – Lendit Conference – Jun/2013

12.

Taking p2p lending to a global level
Lending
without borders
180 countries
already served
Investors keep
investing
70%
Reinvestment
Rate
Investors find loans
that fit their needs
31k
Investments
made per
month
and providing credit to the bitcoin economy.
Investors diversify
their investments
7k
Loans created

13.

Evolution
The worldwide leader in p2p lending
Users in the platform
Loan Volume (USD)
฿ 25.904
=
US$ 6MM
In Volume
$1,049
average
ticket
41 days
average
term

14.

Credit
Scoring
The worldwide Credit Bureau
Loan Volume and Overall Repayment Rate
Default Rate by Credit Score
98.62%
A Score

15. New Borrowers per week up 300% since start of marketing

8.4.14
7.28.14
7.21.14
7.14.14
7.7.14
6.30.14
6.23.14
6.16.14
6.9.14
6.2.14
5.26.14
5.19.14
5.12.14
5.5.14
4.28.14
4.21.14
4.14.14
4.7.14
3.31.14
New Borrowers per week up 300%
since start of marketing
70
60
50
40
30
20
10
0
15

16. Growing while lowering costs per borrower

Cost Per Borrower
120
100
80
60
Cost Per Borrower
Линейная (Cost Per Borrower)
40
20
0
5.5.14 5.12.14 5.19.14 5.26.14 6.2.14 6.9.14 6.16.14 6.23.14 6.30.14 7.7.14 7.14.14 7.21.14
16

17. Borrower LTV & CAC

Borrower LTV & CAC
Strategic
become borrower
May
June
July
4%
Loan Volume CLV 4% CAC
$1,143
$46
$1,732
$69
$749
$30
Strategic
$67
$83
$45
Referrals
become borrower
May
June
July
Loan Volume CLV 4% CAC
$8,725
$349
$2,266
$91
$1,367
$55
Organic
become borrower
May
June
July
ROI
-32%
-16%
-33%
1
$353
$1,248
$749
2
$293
$484
3
$498
$20
$20
$20
1645%
353%
173%
1
$675
$805
$1,367
2
$999
$1,461
3
$7,051
Loan Volume CLV 4% CAC
$3,181
$127
$2,714
$109
$1,378
$55
$$$-
1
$1,014
$1,640
$1,378
2
$1,577
$1,074
3
$590
Overall
become borrower
Loan Volume CLV 4% CAC
January
$10,246
$410
February
$8,267
$331
March
$5,114
$205
April
$5,324
$213
May
$3,390
$136
June
$2,666
$107
July
$1,432
$57
$50
$50
$50
$50
$50
$50
$50
1
$787
$963
$781
$928
$941
$1,554
$1,222
2
$1,096
$2,052
$1,581
$1,091
$1,483
$939
$210
ROI
ROI
720%
561%
309%
326%
171%
113%
15%
3
$1,256
$1,247
$1,169
$2,153
$783
$173
4
$1,290
$1,559
$714
$912
$184
5
$1,508
$1,317
$647
$239
6
$1,811
$782
$223
7
$2,497
$348
17

18.

The past
3 months
API Integration
with wallets
Referral
program
Investor
Leaderboard
UI/UX
Improvements
Lead nurturing
and mailing list
and all of that spending $ 600k
50% MoM

19.

The next
steps
Use of Proceeds
User Acquisition
SEO&Content
Partnerships
PPC Advertising
Product
Automated Investments
Mobile App
Design/Usability
Localization
Backoffice & Support
Phone & Live Chat
Faster Verification
Credit Scoring
Enter Fiat World for last mile
Regulatory Approval
Institutional Money
Collections Agency
19

20. Recap

Killer team with 3 exits
1 Trillion dollar market size
5 Billion unscored people
Growing 20% MoM
20

21.

[email protected]

22.

Appendix

23.

The next
steps
Hiring
-Engineers
-Support
-Marketing
Automated
Investments
Make UX more
social
Improve
customer
support
Mobile App
Our goal is to keep at least a 20% MoM growth
Accelerate
Marketing efforts

24.

Our
projections
To fund
US$ 2.8 Bi
by 2018
600.000
Assumptions
Quantity of loans funded
• Annual Growth (11-12) Lending Club: 354%
• CAGR BTCJam: 178%
Average ticket
300.000
46.620.000
• Lending Club (2013): USD 8,000
• BTCJam (2017): USD 3,000
Commission fee average: 2,50%
US$ 2.83Bi in loans funded by 2018
120.000
18.561.600
10.000
Global community, with users from
5 continents and 180 countries
40.000
6.154.800
254.500
Year 1
1.633.600
Year 2
Year 3
BTCJam Projected Revenue (USD MM)
Year 4
Year 5
Number of Loans Funded

25.

Market
landscape
Global Peer to
Peer lending
The total addressable market is estimated to be around US$ 1 trillion with peer to
peer lending industry capturing less then 1% of the market today (USD$ 5.3 Bi ≈ 0.005%)
US$
1tri
Current
market size is
US$ 12.3 bi
Potential market
size
Average
growth of
300%
per year
>85%
of loans
pay credit card
debt
Facts
USA, UK and Europe
have 2 to 3 platforms with
over 80% of the market
China has over
400 platforms
Consumers in developed
economies believe P2P
to be a great alternatives
to banks
Chinese consumers
rely heavily on the
community for replacing
banks (trust factor)
Alternative lending is highly
accepted in LATAM (15 – 35% of
total lending) because of banks
bureaucracy and high cost of capital

26.

User
acquisition
strategy
Borrowers
Geographical
Clusters
Referral
System
Paid
Advertising
Geographical
Clusters
Build network effect
in regional clusters
(forums, communities, etc.)
Targeted
Advertising
LinkedIn / Facebook
Google / Reddit
Retail
Partnerships
Referral
System
Borrower can refer
a friend and get
% off from his listing
Retail
Partnerships
Retail loan booth
(being where the
customer needs credit)
“Pay later” button

27.

User
acquisition
strategy
Investors
Geographical
Clusters
Guerrilla
Marketing
Paid
Advertising
Geographical
Clusters
Build network effect
in regional clusters
(forums, communities, etc.)
Targeted
Advertising
LinkedIn / Facebook
Google / Reddit
Institutional
Investors
Guerrilla
Marketing
Unconventional, low cost
marketing strategy to
create awareness in certain
forums and communities
Institutional
Investors
Build track record
and go after
investment funds

28.

Execution
strategy
Hiring
Focus on building
a strong interconnected
community around a
first class credit scoring
algorithm and a reliable
payment infrastructure
powered by bitcoin.
• Retail marketing expert • UX designer • Statisticians
• Software engineers • Support
UX
Frictionless investments and payments • Customized
experience based on user profile • Conversion focused
landing pages • Retention and lead nurturing
Partnerships
• Bitcoin payment processors
• Bitcoin exchanges • Online marketplaces • Retail stores
• Collection agencies • Institutional investors

29.

Competition
Current P2P Local Communities
Other e-currencies
Potential
Competitors
Local governments might create regulations over BTC currency
Regulatory
Barriers
International arbitration is still being validated with BTC loans (96% efficiency in other fields)
E-currency adoption by merchant and buyers is a cultural barrier
What are we doing
to win this game?
How?
We are nurturing the trust network between lenders and borrowers
Always improving our borrowers validation process and our scoring algorithm, reducing default risk
Making local partnerships with credit scoring systems
Using the unique characteristics of Bitcoin network to create new types of risk assessment,
unknown in a fiat currency environment
Using innovative ways of contract enforcements like International Arbitration awards
Bringing the trust relationship already built in other social networks (ebay, Facebook, G+, Linkedin)