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MOBU

MOBU

SMART Investment Bank - allowing corporate efficiency and interoperability in capital markets

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Deal Type

Equity

Funding Goal

$500,000

Current Reservations

$0

Minimum Reservation

$10,000

Maximum Reservation

$500,000

Deal Stage

Seed

Pre-money Valuation

$5,000,000

Open Date

08/08/2019

Closing Date

N/A

Elevator Pitch

The SMART Investment Bank upgrading capital markets in a regulated manner for lower fees, less middlemen, faster settlement and change of ownership. The full infrastructure solution for digital assets

KPIs

30% ROI

Company Overview

The Company was established to create a comprehensive financial services infrastructure solution for the underbanked African & MENA region market, leveraging modern blockchain/distributed ledger technology to create a vertically integrated full-service infrastructure for commercial and investment banking services. The company remains a global company with an African & MENA-region focus which allows for a monopoly market.

The Problem:

Only 34% of adults in sub-Saharan Africa have bank accounts or access to formal financial services, even after banks have been in Africa for 50 years. Furthermore, the African continent currently receives less than 1% of global venture capital deal flow but consists of 30% of the world`s natural resources and 60% of arable land. No credit card solution exists for digital assets for the second largest continent of the world. Also current capital markets are inefficient characterized by high fees, too many middlemen and slow transaction times.

The Opportunity:

MOBU has a strong position in a high growth region and has the potential to take over the cryptocurrency market in Africa.

  • Investment banking in Africa is emerging, and a majority of the market is untapped and underutilized. MOBU will take the market by storm since it is the only player
  • The global digital currency market size has a high of USD $800Bn, and MOBU will infiltrate the African market before any other competitors
  • The GDP growth rate in Africa is 4.3% on average, compared to a global average of 2%
  • Phone users increased from 3% to 80% over the past decade allowing better banking solutions in Africa
  • Africa has 30% of the natural resources of the world, 60% of the arable land and is expected to represent 40% of the world population by 2100
  • MOBU has already obtained a strong database of venture capital funds, broker dealers and family offices to support funding on the platform

The Solution:

MOBU will develop a full-service platform which will provide the following functions:

  • Capital raising for startups and established businesses (equity and security tokens) – access to a wider investor group with compliance and vetting undertaken by platform. Think of Bnktothefuture
  • Securities trading on a secondary market – Blockchain based allowing faster change of ownership, less middlemen as it replaces clearing and settlement processes, faster execution that also complies with companies act and global securities laws in determining accreditation status of investor and KYC/AML.Effectively lowering trading fees from an average of 3-5% to 0.1-0.25% and automating corporate actions (dividends, voting) which amounts to a roughly 10Bn USD fee per annum.
  • Payment/banking solution for global investors (MOBU Cash) – VISA- and Mastercard approved debit card service with easy fiat currency conversion to 21 global currencies on one platform in a very convenient manner. Very similar to Revolut but the first debit card service provider for digital assets on the second largest continent of the world. The ability to open a corporate bank account within minutes

Security tokens/regulated digital assets have the same legal rights as a share certificate and allows for more improvement in corporate efficiency. Digitizing private placement issuance has a 40% cost saving over 5 year period - Entoro Capital.

It is expected that blockchain technology will be 10% of global GDP by 2027 according to Deloitte and since MOBU is developing the full infrastructure solution for the next generation of assets or regulated digital assets there is enormous upside potential. Security tokens or regulated digital assets are simply more efficient than traditional markets.


Traction

  • Licenses acquired and prototypes developed. Sound understanding of global security laws and digital assets

    April, 2019

Pitch Deck

Press Mentions

Key Customers & Partners

Amazix Equity Express Entoro Capital Investment Network

Testimonials

Steve Cinelli
Steve Cinelli
Advisor
"MOBU has the potential to raise 1-2Bn USD per annum within 3 years for companies on the issuance platform for African countries"
University of Cambridge
University of Cambridge
""A report compiled by the University of Cambridge estimated total crowdfunding activity in Africa to reach over R1.7 Billion in 2018. By 2025, this figure is expected to exceed R30 billion.""

Previous Funding

  • $1,700,000 Equity
  • Raise Source: Self
  • September 2018

Frequently Asked Questions

WHAT IS A DIGITAL SECURITY/SECURITY TOKEN?

If a security derives its value from an external, tradable asset, it is classified as a digital security/security token and becomes subject to federal securities regulations. Failure to abide by these regulations could result in costly penalties and could threaten to derail a project. However, if a start-up meets all its regulatory obligations, the digital security classification creates the potential for a wide variety of applications, the most promising of which is the ability to issue digital securities that represent shares of company stock.

WHAT IS THE GLOBAL MARKET SIZE?

Global security market = 80 Trillion USD, Global Real estate = 220 Trillion USD. The multi trillion USD debt, equity and real-estate markets can be converted to smart securities for corporate efficiency and greatly assist in creating liquidity in large assets. It is also a massive industry for service providers and middlemen, as equities generate $27.6B of annual revenue for the top 5 US investment banks. If MOBU assumes any penetration at all for digital securities in the traditional equities market, we are talking of potential huge numbers.

HOW DOES MOBU DIFFERENTIATE ITSELF FROM ITS COMPETITORS?

MOBU is the only market solution encompassing the following: MOBU offers unique escrow services, a lockup utility to tokens and investor account portals. In addition, MOBU offers a digital securities exchange license and a digital banking solution for everyday investors. MOBU is the first and only: 1. Issuance platform for startups and established businesses seeking to raise capital in the form of equity and security tokens. 2. Secondary market for global investors for both equity and regulated digital assets (with current stock exchange revenue of $30m USD already). 3. Digital banking solution similar to Revolut issuing debit cards and converting digital assets to everyday fiat payments (Revolut operates only in the EU while MOBU is a global company) on the second largest continent of the world. The cornerstone of all operations entails (1) compliance, (2) identification of good projects and (3) a Middle East and African (MEA) focus.

HOW WILL MOBU APPROACH MARKETING EXECUTION?

This is a niche market that requires specialized knowledge, skills and expertise. MOBU has built a database of 100k+ investors, 10k VC firms, 600 crypto funds and 2k family offices globally to ensure deals on the Platform get funded. Already there are issuers with strong products that wish to onboard the Platform of which MOBU will receive 1–5% of the raise. MOBU has no less than 20+ broker dealer partnerships. SEO and traditional marketing have been done in Forbes, Entrepreneur, Yahoo Finance and many more. All the projects that successfully raise capital on the MOBU Issuance Platform will automatically be listed on the exchange. MOBU will approach listed companies to do the conversions. For example, the JSE alone offers more than 600 tradeable instruments. MOBU will consider exciting equity on own exchange going forward. MOBU charges low trading fees making it very challenging for competitors to enter the market. MOBU will be the sole debit card provider in Africa for digital to fiat currency payments.

WHY WILL THERE ALWAYS BE AN INCREASE IN THE VALUE OF A MOBU TOKEN?

The MOBU utility token is the underlying economic unit and driving force behind the entire MOBU ecosystem/marketplace. Service providers will not be able to earn an income without the use of the MOBU token. 1. MOBU Rewards Programme: To improve user involvement and exchange energy, MOBU is going to initiate a rewards programme, which equals 75-100% of the total trading fees charged by the utility exchange to users who hold MOBU in their accounts. 2. Trading Fee Discount: When placing orders to trade, holding a certain amount of MOBU in your MOBU account can lower the trading fee. MOBU aims to have a low standard fee of only 0.25%. 3. Buy-back Mechanism: At least 10% of the net profit will be used to buy back MOBU tokens. This will increase scarcity and demand.

Risks & Disclosures

Risks Related to the Company

The Company is a new enterprise, has no operating history and has no revenue from operations.

The Company’s legal structure was formed as a limited liability company under the laws of South Africa on August 23rd, 2017.Its principal offices are currently located at 1B Menion Close, Silverlakes Golf Estate, Pretoria, South Africa. Company’s email is: info@mobu.io.The Company’s website is housed at the URL: https://mobu.io.The Company is a newly-formed entity and faces risks and uncertainties relating to its ability to successfully implement its business plan and begin to generate revenue from operations.The Company is dependent on a number of factors, including the full development and completion of the three elements of the Platform (digital issuance platform, digital asset exchange, digital banking solution), obtaining the requisite licenses, authorizations from regulatory bodies, and approvals necessary to operate, recruiting employees, implementing operating procedures and attracting sufficient clients and users to generate income from operations. The Company may encounter setbacks which could delay the implementation of its business plan or render it impractical.

The Company’s business plan is based on assumptions and projections that may not prove accurate.

The Company’s business plan is based upon assumptions and projections. No assurance can be given regarding the validity of the assumptions or the attainability of the projections. Although the Company believes the assumptions underlying its business plan are reasonable, the Company cannot assure that its results of operations and growth will be as contemplated. If any of the assumptions upon which these projections are based prove to be inaccurate, these projections could be unattainable.

The technology and all licenses necessary to conducts its operations is still in development.

The technology and all licenses necessary for the Company to conduct its operations is still in development, as of the date of this Memorandum, is not fully in place.There is no assurance that: (i) the technology necessary to operate will be fully developed or function as intended; (ii) the enhancements necessary will be completed and functional when anticipated; or (iii) the Company will succeed in attracting sufficient interest from investors, users, and other stakeholders. Any such delay or limitation could limit the amount of Revenue, if any, available for distribution to Digital Security holders.

Operations will require the Company to secure permits and comply with extensive government regulation.

Operations especially in terms of the digital securities issuance platform will be subject to extensive government regulation. The Company generally will be required to secure permits or licenses from federal and local government agencies in each of the jurisdictions where it intends to operate. The Company is working with third party brokers to simplify and accelerate the licensing procurement; however, it does not yet have all the licenses necessary to operate in all jurisdictions and markets.Any failure or delay in securing the requisite permits and licenses to operate would delay or impair the generation of Revenue and provide an opportunity for competitors to enter the market.

The Company’s operations will be subject to extensive laws and regulations. Changes may sometimes lead to additional expenses, increased legal exposure and additional limits on the Company’s ability to generate revenue. Moreover, laws and regulations are administered and enforced by a number of governmental authorities, each of which exercises a degree of interpretive latitude.Consequently, the Company is subject to the risk that compliance with any particular regulator’s interpretation of a legal issue may not result in compliance with another’s interpretation of the same issue, particularly when compliance is judged in hindsight. In addition, a risk exists that any particular regulator’s interpretation of a legal issue may change over time to the Company’s detriment.Changes in the overall legal environment may, even absent any regulator’s interpretation of a legal issue changing, cause the Company to change its views regarding the actions it needs to take from a legal risk management perspective, thus necessitating changes to its practices.Furthermore, in some cases, these laws and regulations are designed to protect or benefit the interests of a specific constituency rather than a range of constituencies.Any of these factors may limit the Company’s ability to grow or to improve its business.

The Company relies heavily on technology services.

The applications and technology necessary to operate and utilize the various platforms, and any network with which they are interacting, may malfunction or function in an unexpected or unintended manner.Any unscheduled disruption in the Company’s technology services, and the technology, and infrastructure required to operate, including blockchain technology for the replication of transactional details through distributed ledgers, could result in an immediate, and possibly substantial, loss of revenues due to a shutdown of Company’s business. Such interruptions may occur as a result of, for example, a failure of our information technology or related systems, catastrophic events or rolling blackouts.

The Company is subject to cyber security and data loss risks and other security breaches.

The Company’s business will involve the storage and transmission of users’ proprietary information. Security breaches could cause a loss or misuse of this information, resulting claims, fines, and litigation against the Company.Cyber-attacks may target the Company or its clients and customers, e-commerce in general, or the communication infrastructure on which they depend. An attack or a breach of security could result in a loss of private data, violation of applicable privacy and other laws, significant legal and financial exposure, damage to reputation, and a loss of confidence in security measures, any of which could have a material adverse effect on the Company’s financial results. Any such attack or breach could materially adversely affect the ability of the Company to operate, which could materially adversely affect the value of the Digital Securities.Any breach of data security that exposes or compromises the security of any of the private digital keys used to authorize or validate transaction orders, or that enable any unauthorized person to generate any of the private digital keys, could result in unauthorized transactions and would have a material adverse effect on the Company.

The Company’s future growth and profitability are dependent on the Companys ability to successfully operate in an industry that is subject to competition.

Although the Company offers very distinctive qualities and provides a competitive edge to the fintech industry, the Company’s future growth and profitability are dependent on the Company’s ability to successfully operate in an industry that is subject to increasing competition as other companies become aware of the benefits of modern technology. New competitors could seize upon Company’s business model and produce competing products or services with similar focus.Likewise, these new competitors could be better capitalized than Company, which could give them a significant advantage.There is the possibility that the competitors could capture significant market share of Company’s intended market.

Cessation of Operations

It is possible that, due to any number of reasons, including, but not limited to, an unfavorable fluctuation in the value of cryptographic and fiat currencies, the inability by the Company to establish its Platform, the failure of commercial relationships,Company’s failure to raise sufficient capital for operating expenses, development expenses, or other types of expenses, or intellectual property ownership challenges, the Company may no longer be viable to operate and the Company may dissolve or take actions that result in dissolution.

Risks Related to the Offering and the Digital Securities

The Digital Securities are novel in type and are not a cryptocurrency, virtual currency or a commodity, have no history and Investors will not be able to compare them against other like instruments.

The Digital Securities will not have any utility other than the right to participate in Revenues. Their value will be based on a number of factors, including the Company’s ability to succeed in its business plan and generate Revenues. Accordingly, evaluation of an investment in the Digital Securities should consider the uncertainties related to the Company’s business, that the Company’s projections may not prove accurate, and that the Company may not achieve its operating objectives. Past performance of the Company’s affiliates, or any similar digital securities issued by other companies, is not predictive of the Company’s future results, the value and success of the Digital Securities, or the ability of the Company to ever generate and pay Revenue.

No assurance of investment return.

The Company cannot provide assurance that it will achieve any specific level or frequency of business transactions. As a result, the Company’s revenue streams are uncertain, and will likely be subject to fluctuation, based on numerous factors many of which will be out of the control of the Company.Furthermore, there is no assurance that, if the Company does achieve revenues from its operations, such revenues will either be reflected in the trading price (if any) of Digital Securities or that Digital Security holders will realize any return from holding the Digital Securities. An investment in Digital Securities should only be considered by persons who can afford a loss of their entire investment.

The Offering is being conducted on a “Best Efforts—No Minimum” basis, and the Company may need to raise additional capital to fully implement its business plan.

The Company expects that funds raised in the Offering will be sufficient to permit the Company continue development of its products and services. However, the Offering is being offered on a best efforts basis, with no minimum. There is no assurance that the Company will raise the Maximum Offering Amount, or any specific amount. In addition, unforeseen circumstances may arise, and the Company could be required to seek additional capital beyond its initial budget expectations. Additional capital may not be available or may only be available only on terms that restrict the Company’s operations in a manner that would impair the amount of Revenue that the Company can generate.If the Company seeks additional outside funding in the future, it may have to issue additional Digital Securities.Any future issuance of Digital Securities, for capital raising purposes, or otherwise for compensation purposes, could result in further dilution to holders of the Digital Securities.

Digital Security holders are expected to be subject to significant dilution.

Before this Offering, the Company agreed to issue Digital Securities, or granted the right to acquire Digital Securities, to persons who provide or are expected to provide services to the Company at a reduced price or for non-cash consideration. The Company believes the foregoing transactions will bring significant value to the Company and therefore the issuances are aligned with the interests of purchasers of the Digital Securities.However, there can be no assurance that such persons will contribute to the success of the Company. The Company may issue additional Digital Securities out of issuer reserves for cash or non-cash consideration in the future, which also would likely have a dilutive effect on holders of the outstanding Digital Securities.

The Digital Securities may not be liquid investments and may be subject to volatility risk.

The digital asset market is a new and rapidly developing market which may be subject to substantial and unpredictable disruptions that cause significant volatility in the prices of digital assets.There is no assurance that any secondary market for the Digital Securities, should one develop, will be free from such disruptions or that any such disruptions may not adversely affect a Digital Security holder’s ability to sell its Digital Securities.Therefore, there is no assurance that Digital Security holders will be able to sell Digital Securities at a particular time or that the price received upon a sale will be favorable.

The terms of the Digital Securities may also lead to additional price volatility. The value of the Digital Securities will be tied to a number of factors, including the revenue participation payments by the Company. See “DESCRIPTION OF THE SECURITIES—Economic Terms.” Consequently, unlike other digital assets, the operations and financial position of the Company will directly impact the price of the Digital Securities which may create additional volatility based on the Company’s future performance.Further, the Company may elect to make payments of Revenue owed to Digital Security holders in digital currencies.This could enhance the volatility risks associated with holding the Digital Securities.

Inadequacy of Funds

The amounts raised by this Offering may ultimately be insufficient for Company to accomplish its immediate goals.If only a fraction of this Offering is sold, or if certain assumptions contained in Company’s business plans prove to be incorrect, the Company may have inadequate funds to fully develop its business and may need debt financing or other capital investment to fully implement the Company’s business plans.

The Digital Securities are subject to significant transfer restrictions.

The Digital Securities have not been, and after the consummation of the Offering are not expected to be, registered under the Securities Act, the securities laws of any state or the securities laws of any other jurisdiction and therefore cannot be resold, except in accordance with exemptions from those registration requirements.Persons in the United States will be required to hold the Digital Securities for one year. In addition, secondary transactions of the Digital Securities may only be executed to accredited investors or suitable purchasers as described under “DESCRIPTION OF SECURITIES--Restrictions on Transfer”.These restrictions will have an adverse impact on a holder’s ability to resell the Digital Securities and the price at which that holder may be able to resell them, if at all.

There currently is no trading market for the Digital Securities and an active trading market may not fully develop.

The Company may take steps to encourage the development of a secondary market for the Digital Securities.However, as of the date of this Memorandum, there is no established trading market for the Digital Securities, and there can be no assurance that a secondary market will develop. If a secondary market does develop, there can be no assurance that it will provide the holders of Digital Securities with liquidity of investment or that it will continue for the life of the Digital Securities. The liquidity of any market for the Digital Securities will depend on a number of factors, including: (i) the number of Digital Security holders; (ii) the Company’s performance and financial condition; (iii) the market for similar digital securities; (iv) the interest of traders in making a market in the Digital Securities; (v) regulatory developments in the digital securities or cryptocurrency industries; (vi) legal restrictions on transfer; and (vii) the issuance by the Company of additional Digital Securities.

Any trading system or exchange for the Digital Securities that may be developed also will be subject to the risk of technological difficulties that may impact trading of the Digital Securities. Any such technological difficulties may prevent the access or use of the Digital Securities. This could have a material impact on the applicable trading system or exchange’s ability to execute or settle trades of the Digital Securities, to maintain accurate records of the ownership of the Digital Securities and to comply with obligations relating to records of the ownership of the Digital Securities and could have a material adverse effect on the holders of the Digital Securities.

Holders of the Digital Securities will not have voting rights or other governance rights in the Company

The Digital Securities do not afford the holder any voting or other management or control rights in the Company. Accordingly, Company management will control decisions for the Company that in other companies would require approval from its equity holders, including the approval of significant transactions, material changes to the operations, or the election to liquidate or terminate the Company, which could have adverse consequences on holders of Digital Securities. Holders of the Digital Securities are not owed fiduciary duties by the officers and directors of the Company, and therefore lack certain legal protections afforded to voting equity holders, or in some cases debt holders, of corporations and other entities.

Digital Security holders will not have liquidation rights

The sole right afforded to Digital Security holders is the right to receive Revenue from business operations. Upon any liquidation, bankruptcy or other dissolution of the Company, Digital Security holders will not be entitled to any claim on the assets of the Company or any share in any liquidation proceeds of the Company that normally would be afforded to voting equity owners.

Documents

Confidential

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