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READ Enterprises Holding LLC

READ Enterprises Holding LLC

Revolutionary risk management disrupting the $1.5 trillion Student Debt market seeks Partners

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Deal Type

Equity

Funding Goal

$1,000,000

Current Reservations

$0

Minimum Reservation

$5,000

Maximum Reservation

$5,000,000

Deal Stage

Seed

Pre-money Valuation

$7,500,000

Open Date

02/22/2019

Closing Date

05/21/2019

Elevator Pitch

We are the only provider in the market that offers a fully integrated product that does not rely on interest rates or credit scores & helps millions of borrowers to get out of the student debt trap.

Company Overview

  • READ has developed a unique risk management approach to the US student loan crisis that will help millions of borrowers to get out of the student debt trap.

  • READ is the only provider in the market that offers a holistic risk assessment geared toward young student debt holders.
  • READ creates fully tailored solutions and looks at each borrower individually. Our dynamic model takes multiple factors into consideration such as e.g. earnings potential, cost of living, unemployment & disability risk, as well as behavioral factors.
  • READ does not rely on interest rates or credit scores. Once integrated into a fully regulated financial product, READ offers a unique solution that

  1. addresses the financial, psychological and economic consequences associated with student debt,
  2. combines debt repayments with savings allocations, unemployment insurance and smart budgeting tools,
  3. benefits an immediate market of at least 5.6 million borrowers corresponding to $175 billion in outstanding student loans,
  4. creates fully customized payment plans that adjust dynamically based on changing circumstances,
  5. allows to freeze the nominal debt amount at the current level through a built-in collective insurance pool (no compounding interests in case of default), and
  6. helps our clients to save for the future and build up an emergency and savings fund.
  • Over the next 12 to 18 months we seek investment partners to fund up to $5 million in exchange for 25% percent in the business. For this initial seed round we aim to raise up to $1 million for 12% in the company.

Traction

  • Aggregated Social Media followers: over 2500 (after 2 weeks post launch) and growing daily.

    March, 2019
  • Successfully grew team from zero to a dozen within 12 months

    March, 2019
  • Successfully closed a pre-funding round over $100k

    December, 2018
  • Successfully conducted a statistically relevant survey with 500 participants, resulting in an overall approval rate of over 70%

    November, 2018

Pitch Deck

Press Mentions

Key Customers & Partners

Legal Counsel Higher Education Advisor Corporate Service Provider Analytics Platform Provider

Previous Funding

  • $100,000 Equity
  • Raise Source: Investors
  • December 2018
  • $15,000 Equity
  • Raise Source: Self
  • December 2018

Frequently Asked Questions

Who is the Team

​Our team is currently 12 members strong with a combined experience of over 100 years, we have the relevant skill sets to successfully build, launch, and run READ. All team members have signed agreements with non-compete and confidentiality clauses.

Funding to date

The founders have prefinanced the project to date. During the pre-raise / private round, READ has received commitments of $100k from 3 investors and was fully subscribed.

Contingent Liabilities

READ has no contingent liabilities that have not been accounted for.

Existing or Potential Disputes

READ is not aware of any disputes.

Regulatory Considerations

READ will be a fully US-regulated financial firm and as such has to adhere to all relevant laws and regulations. The Founders have set up various regulated companies in the past and are fully aware of the legal requirements.

Corporate Investment Setup & Governance

READ has set up a company in Delaware as well as the BVI. Potential investors can either invest directly in the US company or through the BVI company. READ has drafted shareholder agreements which will govern the investment in READ.

Revenue Forecast & Break-even

READ is pre-revenue. Based on our conservative valuation model we estimate our top-line to grow from $875k after year 1 to $27 M in year 5. We plan to launch our first fund within 12 to 18-month post-funding with a target size of 12’500 borrowers or approx. $450M AUM (break-even point).

Revenue Model & Profit Margin

Our revenue model is a percentage fee based on AUM. Our financial models assume a rate of 75 basis points. EBIT margin of 40% in year 3 and a target margin of 70% in year 5.

Track Record of the CEO

Alberto is regarded as an expert in managing and setting up complex multi- jurisdictional asset structures. He worked for big firms like UBS, Credit Suisse, Ernst & Young, and Willis Towers Watson. For 4 years Alberto was a trusted advisor to Daniel Jaeggi and Marco Dunand, the co-founders and majority shareholders of Mercuria Energy Group. Alberto has successfully setup multiple regulated entities from scratch, including 3 asset management firms (Dubai, Mauritius) and associated fund structures (PCC, Cayman SPC,) as well as 1 insurance broker firm (Liechtenstein) and acted in the capacity as an authorized officer vis-à-vis regulatory bodies. In 2014 Alberto co-founded Red Box Enterprises, an early investor in Chargifi Limited (which was subsequently backed by Intel Capital and HP Ventures) and set up the Asian franchise business of Chargifi Limited. Alberto raised $1.8 M for the business and increased the valuation from $3 M to $10 M.

Fund Allocation

The raised capital will be allocated as follows: 1. Product Development: 31% 2. Marketing: 17% 3. Legal Fees: 10% 4. Staffing: 25% 5. Reserve: 12% 6. SG&A: 5%

Implementation Time

The implementation requires an estimated 12 to 18 months until we can launch our first fund, given the requirement of SEC, FINRA and State-issued lending licenses, which will take approximately 6 – 9 months to obtain.

Risks & Disclosures

THIS OFFERING AND ANY OTHER DOCUMENTS PUBLISHED IN ASSOCIATION WITH IT RELATE TO AN EQUITY SUBSCRIPTION OFFERING OF READ SHARES TO POTENTIAL ACCREDITED INVESTORS.

THE INFORMATION PROVIDED HEREIN ARE INTENDED SOLELY FOR THE USE OF THE PERSON THAT HAVE BEEN REGISTERED ON THIS PLATFORM. READ HAS DELIVERED THIS OFFERING FOR THE PURPOSE OF EVALUATING A POSSIBLE PURCHASE OF EQUITY AND IS NOT TO BE REPRODUCED OR DISTRIBUTED TO ANY OTHER PERSONS (OTHER THAN PROFESSIONAL ADVISERS OF THE PROSPECTIVE INVESTOR RECEIVING THIS DOCUMENT) OR USED, IN WHOLE OR PART, WITHOUT THE CONSENT OF THE DIRECTORS OF READ ENTERPRISES.

THIS OFFERING DOES NOT CONSTITUTE AN OFFER OR SOLICITATION OF AN OFFER TO PURCHASE OR PARTICIPATE IN THIS CROWDFUNDING CAMPAIGN IN ANY COUNTRY, STATE OR OTHER JURISDICTION WHERE THIS OFFER OR TRANSACTIONS THEREOF WOULD BE RESTRICTED OR PROHIBITED OR TO ANY FIRM OR INDIVIDUAL WHO DOES NOT POSSESS THE QUALIFICATIONS TO ENTER INTO THIS TRANSACTION. ACCORDINGLY, PERSONS INTO WHOSE POSSESSION THIS OFFERING COME ARE REQUIRED TO INFORM THEMSELVES ABOUT, AND TO OBSERVE, SUCH PROHIBITIONS OR RESTRICTIONS THAT MIGHT APPLY TO THEM.

THIS OFFERING IS OFFERED SOLELY BY THE INFORMATION AND REPRESENTATIONS CONTAINED IN ON THIS SITE AND RELEVANT OTHER DOCUMENTS ASSOCIATED WITH IT. ANY FURTHER INFORMATION GIVEN OR REPRESENTATIONS MADE BY ANY PERSON MAY NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED OR APPROVED BY READ ENTERPRISES OR THE DIRECTORS.

THE OFFERING HAS NOT BEEN APPROVED OR DISAPPROVED BY ANY SECURITIES COMMISSION OR OTHER REGULATORY AGENCY OF ANY JURISDICTION, NOR HAVE ANY OF THE PREVIOUS AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

PROSPECTIVE PERSONS SHOULD NOT CONSTRUE THE CONTENTS OF THIS OFFERING AS CONTAINING LEGAL, TAX, OR FINANCIAL ADVICE. TO BE CLEAR ON THE CONTENTS AND OBLIGATIONS CONTAINED WITHIN THIS OFFERING, PROSPECTIVE PERSONS SHOULD CONSULT THEIR PROFESSIONAL ADVISER. POTENTIAL PERSONS SHOULD BE AWARE OF ALL POSSIBLE TAX CONSEQUENCES, THE LEGAL REQUIREMENTS, AND ANY RESTRICTIONS, WHICH THEY MIGHT ENCOUNTER UNDER THE LAWS OF THE COUNTRIES OF THEIR CITIZENSHIP, RESIDENCE OR DOMICILE.

THE PERSONS HEREOF ACKNOWLEDGE AND AGREE THAT THE CONTENTS OF THIS OFFERING CONSTITUTE PROPRIETARY AND CONFIDENTIAL INFORMATION OF READ ENTERPRISES.

ACCEPTANCE OF THIS OFFERING BY THE PROSPECTIVE PERSONS CONSTITUTES AN AGREEMENT TO BE BOUND BY THE PREVIOUS INFORMATION CONTAINED HEREIN. THE PERSONS SHALL NOT BE LIABLE FOR DISCLOSURE OR USE OF ANY INFORMATION CONTAINED IN THIS OFFERING WHERE THE SAME IS REQUIRED TO BE DISCLOSED BY LAW OR REGULATION OR PURSUANT TO LEGAL PROCESS.

IF YOU ARE IN ANY DOUBT ABOUT THE CONTENTS OF THIS OFFERING, YOU SHOULD CONSULT AN INDEPENDENT PROFESSIONAL ADVISER.

PARTICIPATION IN THIS OFFERING IS ONLY SUITABLE FOR ACCREDITED INVESTORS WHO ARE CAPABLE OF EVALUATING THE MERITS AND RISKS OF SUCH PARTICIPATION AND WHO HAVE SUFFICIENT RESOURCES TO BEAR ANY LOSS WHICH MIGHT RESULT FROM SUCH PARTICIPATION.

PERSONS PARTICIPATING IN THE OFFERING ARE NOT PROTECTED BY ANY STATUTORY COMPENSATION ARRANGEMENTS IN THE UNITED STATES IN THE EVENT OF THE FAILURE OF READ.

NEITHER THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (“SEC” OR “COMMISSION”) NOR ANY STATE SECURITIES ADMINISTRATOR HAS APPROVED OR DISAPPROVED THE SECURITIES OFFERED HEREIN NOR HAS THE COMMISSION OR ANY STATE SECURITIES ADMINISTRATOR PASSED UPON THE ADEQUACY OR ACCURACY OF THE DISCLOSURES CONTAINED IN THIS CONFIDENTIAL OFFERING MEMORANDUM OR THE MERITS OF AN INVESTMENT IN THE SECURITIES OFFERED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE 1933 ACT, OR THE SECURITIES LAWS OF ANY STATE AND ARE BEING OFFERED IN RELIANCE UPON CERTAIN EXEMPTIONS FROM REGISTRATION UNDER SUCH LAWS.

SUCH EXEMPTIONS IMPOSE SUBSTANTIAL RESTRICTIONS ON THE SUBSEQUENT TRANSFER OF SECURITIES SUCH THAT AN INVESTOR HEREIN MAY NOT SUBSEQUENTLY RESELL THE SECURITIES OFFERED HEREIN UNLESS THE SECURITIES ARE SUBSEQUENTLY REGISTERED UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

PERSONS PARTICIPATING IN THE OFFERING MUST BEAR THE ECONOMIC RISK OF INVESTMENT IN THE SECURITIES OFFERED HEREIN. BECAUSE THE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SEC OR REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE, THE SHARES ISSUABLE HEREUNDER MAY NOT BE RESOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER FEDERAL AND APPLICABLE STATE LAW OR AN OPINION OF COUNSEL TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

EXCEPT AS OTHERWISE INDICATED, THIS OFFERING SPEAKS AS OF ITS DATE OF ISSUE. NEITHER THE DELIVERY HEREOF NOR ANY SALE MADE HEREUNDER, SHALL CREATE AN IMPLICATION THAT OUR AFFAIRS HAVE CONTINUED WITHOUT CHANGE SINCE SUCH DATE.

READ ENTERPRISES RESERVES THE RIGHT, AT OUR SOLE DISCRETION, TO WITHDRAW OR MODIFY THIS OFFERING WITHOUT PRIOR NOTICE OR TO REJECT ANY SUBSCRIPTION IN WHOLE OR IN PART OR TO ALLOT ANY PROSPECTIVE PERSON A LESSER NUMBER OF SHARES THAN SOUGHT TO BE PURCHASED BY SUCH PROSPECTIVE PERSON.

Documents

Confidential

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