Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with...

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MOONWHALE VENTURES Security Token Offering Financial Advisory

Transcript of Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with...

Page 1: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

MOONWHALE VENTURES

Security Token Offering

Financial Advisory

Page 2: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

The Need For Funding: Small-Medium Sized Enterprises (SME)The Backbone Of Our Economy

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Small and Medium-sized Enterprises (SMEs) make up to 90% of all firms and

account on average for 60-70% of total employment and 50% of GDP.

Often, these businesses lack the experience to fund their growth. Bank loans are

mostly the means to finance expansion. However, many smaller businesses

cannot satisfy the bank requirement to qualify for the loan. Hence, SMEs need to

be encouraged to utilize diversified sources of financing.

(Source: OECD, Worldbank)

“Beyond debt financing, most commonly in the form of bank loans or a revolving

overdraft facility, SMEs often struggle to identify alternative sources of funding,

and particularly long-term funding. Ideally, private equity/venture capital is seen

as an attractive proposition, as it often comes with value-added post-investment

technical assistance and business strategy guidance attached to it.“

Digital technologies such as Blockchain and Security Token Offerings (STO) gives companies, the ability to obtain alternative funding by digitalizing their assets or shares. For example;

converting preferred shares into a digital token, raising funds by selling these digitalized shares to a broader fundraising base, enabling alternative growth-financing to loans and debt.

Assetization offers also earlier liquidity (capital is not tight until M&A/ IPO, but tradable on secondary markets). A security token performs the same function as conventional security, except

that it confirms ownership through blockchain smart-contract. Blockchain technology enables the “everyman’s IPO” and empowers the "democratization of equity funding”

giving everyone the chance to invest in electronically wrapped stakes or shares, disrupting a $24n+ market.

Page 3: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

Overview: STO Financial AdvisoryWe Understand the Challenges and Complexities of Successful Security Token Offerings (STO)

Financial Advisory Service Spectrum: One-Stop-Shop for Your Security Token Offering

Experience30+ STO/ICO

STOProcess

Token Economics

InvestorsNetwork

Venture Building

§ Determine business

processes, revenue

stream, financials

§ Determine technology

functionalities

§ Support on jurisdictional

requirements (US, ASIA)

Token Economics

§ Determine token type

functionalities

§ Design a Security/ Utility

Token based on your

business model &

requirements

Token Creation & Issuance

§ Token issuance incl.

smart contract creation,

blockchain wallets, KYC

§ Third-party; we work

with renowned token

issuance platforms

Sale Fundraising

§ Market your project to

our investor network

and retail investors

§ Organize due diligence

data room and

management

presentations

Marketing

§ Creating an Investment

Memorandum (business

plan / whitepaper/ pitch)

§ Creating Investment

Teaser documents

§ Strategize the marketing

campaign

Secondary Market Trading

§ Support security token

listing on crypto

exchanges

§ Enable secondary

market trading and

liquidity for investors

§ Business Development

We provide an end-to-end service for your STO project with the

key goal to achieve a successful fundraise.

Through STO, businesses are able to fund new ventures or

growth/ expansion phases through tokenization of assets (e.g.

Equity Shares, Real Estate, Commodities) as an alternative to

traditional financing means.

With our global presence in America, Europe and Asia, and a

network to industry & commerce, corporates and investors, our

services go beyond the STO process.

Suitable for all company sizes, in any region, and in any industry.

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Team & AdvisorsInternational, Expertise in Financial Markets, Venture Building, Blockchain Technology

Danny Christ

Co-Founder & CEO

Based in Bangkok. 20+ years in IT, and

operations across APAC. MBA from Strathclyde

Business School (UK)

- Council @ AIO Rating (Korea)

- Interim COO @ UDAX Exchange (Malaysia,

Indonesia, Korea, HK)

- Blockchain Advisor @ NSCS (Malaysia)

- Blockchain Council @ GLG (USA)

- System Integrator @ LTO (Netherlands)

- Interim COO @ MoneyFi (USA)

- Senior Advisor @ Tokenmatch (USA)

- Advisor @ Exploring the Block (USA)

- Partner @ XCEL ASIA (Taiwan)

- Commercial Partner @ Micobo (Germany)

- STO Advisor @ WAV, Inc. (USA)

Stefan Bergström

Co-Founder & Chairman

Based in Sweden. Angel investor and serial

entrepreneur. Invested in 20+ Tech-Startups.

Blockchain Innovation Centre in the Nordics’.

Shon Tran

Board Member, Industry and Investor Relations

Based in USA. Venture and Angel Investor, and global

M&A activities. Advisor and board member of

multiple int. corporations. PhD in Behavioral

Economics.

Konstantin Dimitrov

Advisor, CTO, Enterprise Blockchain Solutions

Based in UK. Founder of DICE project. 20+ years

experience in IT and DLT. Masters in Computer Science

and Engineering.

Simon Cocking

Advisor, CMO, Investor Relations

Based in Ireland. Chief Editor at Irish Tech News,

CryptoCoinNews and InvestInIT - with over 1.5 million+

unique monthly views and growing.

Eike Schramm

COO

Based in Germany. Entrepreneur, 4+ years exp. in

Startups, M&A and VC. Previously VC at Deutsche

Telekom Capital. MSc Finance from Cass Business

School (UK).

Iliya Zaki

Head Marketing and Business Development

Based in Singapore. Marketing, Community Manager

for Crypto Projects, Admin for DataDash, Master's in

Media Composition.

Achim Jedelsky

Independent Partner, Real Estate Markets

Based in Germany. Expert in Real Estate and Blockchain.

Founder of FIBREE, an international network fostering

Blockchain within the Real Estate Industry. MBA, Vlerick

Business School.

.

Daniël de Blocq van Scheltinga

Advisor, Finance and Business Strategy

Based in Hong Kong. Founder of Polarwide., financial

advisory. Experience in corporate restructuring,

finance and M&A. Master of Law.

Page 5: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

What is a Security Token Offering 1/3Definition & Process

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Tokens offered in a STO are financial securities that derive their value from an underlying tradable asset. Tokens are created and sold (for USD$, Bitcoin or

Ethereum) with the purpose to fund a project. For example, a company can issue equity tokens and use the raised funds to finance its next growth phase.A security token performs the same function as conventional security, except that it confirms ownership through blockchain smart-contract. Regardless of the

type of security token, it can be traded on secondary exchanges after issuance. The “everyman’s IPO”, giving everyone the chance to invest in electronically

wrapped stakes or shares, subject to federal laws governing securities to protect investors.

Assessment

Investor Marketing

Token Creation

IdentifyExchange

Listing

Token Sale

06 01

02

0304

05

STO

01Identify the type of security which the issuing company wants to tokenize. For example

equity, real estate or commodities.

02Assess the key risks of the undertaking and advise on legal structure, required jurisdiction

checks for token compliance, and determine which investors can participate in the

offering. Evaluate the valuation of the underlying asset to set the price for the token.

03Create tokens through the issuance platform. The token is developed with embedded/

programmed regulation into a smart contract. Clients are provided with a dashboard for

investor management and verification including KYC/AML, and token rights such as voting.

04Create marketing materials including a whitepaper, investor pitch deck and STO website.

Prepare a marketing campaign incl. social media and community management, influencer,

bounty programs and PR articles.

05Tokens are offered through the Security Token Offering. Find institutional / accredited

investors in the private sale phase and retail investors in the public sale phase to purchase

your tokens. Investor round-table and pitching events, and fundraising.

06After the STO, tokens can be listed on Security Token Trading Exchanges so that investors

can trade the tokens on secondary markets. This provides new liquidity to investors.

Page 6: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

What is a Security Token Offering 2/3Token Types & Features

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Token Types

Features

Equity Token

§ Tokens are backed by

equity shares in your

company

§ Providing equal rights to

token holders, e.g.

voting and dividends

Debt Token

§ Issue security tokens in

the form of debt

§ Promise to pay back the

principal amount plus

carried interest to token

holders

Real Assets Token

§ Tokenize real assets, e.g.

commodities like gold or

real estate

§ Value of the security

tokens is derived from

the real assets

Fractionalization of Assets

Ownership on Blockchain

Automated Compliance

Tailored Smart Contracts

Increased Liquidity

Global Investor Reach

Page 7: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

What is a Security Token Offering 3/3Technology Stack

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Blockchain

First-layer network on which your token is being

documented, e.g. Ethereum / Stellar / EOS…

Token FrameworkFramework for the smart contract of the

token, e.g. ERC-1400

Token Issuance PlatformToken creation and issuance with programmed

compliance into a smart contract

Trading Exchange ProtocolProtocol to enable the trading of tokens

across platforms and exchanges

Trading ExchangeTrading platforms specially designed to trade

security tokens, e.g. tZero

Page 8: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

Asset Tokeninzation (STO): Market OpportunityCryptocurreny is Emerging as a New Asset Class

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Problems with Traditional Securities

- Requires larger investment amounts

- Tied-up capital, especially in private placements like Venture Capital

- High costs due to complex fee structures

- Access to significant funding only through institutional investors

+ Allows fractional ownership, leading to smaller required investments

+ Tokens can be traded on secondary markets, better liquidity to investors

+ Lower fee structures due to automated compliance on blockchain

+ Larger investor base, allows everyone to participate

STO Transforming Traditional Finance

Tapping into a $24 trillion

market*Source: Deep shift: Technology tipping points

and societal impact, World Economic Forum

Shares

DLT will lead to decreased

transaction costs, improved

fungibility

and fractionalisation of

ownership

1 pixel art

Digital Asset

1 preferred share of

business

Capitalization costs

Min

imu

m c

ap

ita

liza

tio

nto

be

eff

icie

nt

Illiquid Asset (Art, IP)

Page 9: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

Moonwhale Advisory & Fundraising ServicesWe Advise, Raise Funds, Connect & Support

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Fundraising

Private Sale

Fundraising

Public Sale

Token Structure

§ Advise on Token Economics to attract retail and institutional investors

§ Propose token features & benefits to investors

§ Explore further token-based business models

§ Assess the key risks of the undertaking and advise on legal structure, required jurisdiction checks for token compliance, and determine which

investors to include in the participation of the STO

§ Evaluate the valuation of the underlying asset to set the price for the token

Financial Advisory

§ Due diligence on your business plan, support on financial model

§ Creation of an Investment Memorandum (whitepaper, business plan), Investment Pitch Deck & Investment Teaser for investor marketing

§ Support on incorporation/ jurisdictional requirements

§ Set up Management Presentations where the management team of your

project is pitching to interested investors

§ Organize virtual data room for due diligence phase

§ Advise on Public Sale marketing strategy

§ We support the public sale phase with in-house marketing capabilities through promotion in our network of a 40k+ Crypto Community of retail investors

§ We connect you to our trusted network for outsourced services: Media

publication partners in TV, news websites and influencers

§ We bring your project to potential investors (strategic companies or financial sponsors) with our network of institutional and accredited investors, and Match-Makers to support fundraising activities

§ Attend exclusive investor pitching events

§ Organize investor roadshows

§ Moonwhale team will be the liaison between you and investors

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Marketing

Campaign

Token Creation

& Issuance

Trading Exchange

Token Listing

Moonwhale

Factor

§ For the Public Sale phase, you need a professional marketing campaign to reach a larger number of retail investors

§ Setup of Bounty and other promotional activities (eg. Social Mining)

§ We work with a STO marketing firm that handles community management

§ Services include e-mail marketing, influencer marketing, social media and

community management, PR articles, media banners, bounty programs and Pay-Per-Click advertising

§ We connect you to trusted STO Token Issuance Platforms

§ The token is developed with embedded regulation into a tailored smart contract

§ Tokens are being minted and issued during the STO phase

§ Issuers are provided with a dashboard for on-going investor lifecycle

management including KYC/AML, investor verification, investor relations communication, and executing token rights such as voting or dividends

§ Moonwhale is connected to the best-in-class Third Party provider for legal advise in almost every jurisdiction, marketing specialist and targeted investor sourcing

§ Moonwhale is connected to Token and Traditional Stock Exchanges, with a network that can support from STO to IPO

§ Moonwhale has an extensive Industry and Corporate Network across South-East-Asia and the United States

§ Initial Exchange Offering as alternative to ICO/ STO

§ After the sales, tokens can be listed on Security Token Trading Exchanges so that investors can trade the tokens on secondary markets

§ We connect you to Security Token Trading Exchanges and support the listing process for your token

§ Provide liquidity for your investors

Additional Outbound Services & Moonwhale PlatformWe Partner with Third-Party Providers for a Complete STO Lifecycle

Page 11: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

[email protected]

[email protected]

Our Partners

Contact

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Appendix: Contact & Partners Get in Touch

Page 12: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

Appendix: Reference Blockchain Projects Moonwhale Advised 30+ Projects since 2017

Location Project ICO/ STO Size in USD Year Describtion Moonwhale Involvement Link

MNODE by Chainfund Switzerland/ Vietnam 15mil 2017 A diversified portfolio of a passive reward-earning masternode fund Advisor http://mnode.chainfund.ch

ENVICATEC Germany 50mil 2017 EmPower and PAYGO trading Solar Power in Remote Locations Advisor/ Project Lead (till mid 2018) https://enpower.life

MapCoin UK nil 2018 Creation of HD maps and location data using Artificial Intelligence Advisor https://www.mapcoin.io

Loyaak USA 16mil 2018 Enterprise platform allowing for secure, verified and irreversible exchange of datAmbassador https://icobench.com/ico/loyakk

DBOS China 25mil 2018 Next-gen blockchain infrastructure protocol for industrial application Supporter http://dbos.global

Aimedis Germany 36mil 2018 One ecosystem for your healthcare and medical data Advisor https://icobench.com/ico/aimedis

MidasProtocol Singapore/ Vietnam 8mil 2018 The most sophisticated Platform for Traders Ambassador https://icobench.com/ico/midas

CoinAnalyst Germany 27mil 2018 “The Bloomberg of the crypto and ICO space” Advisor/ Business Development https://icobench.com/ico/coinanalyst-tech

MyCreditChain Korea 6mil 2018 Blockchain-based Credit Information Ecosystem Advisor https://icobench.com/ico/mycreditchain

xDAC USA 2.2mil 2018 Self-governed Platform for Autonomous Companies Advisor https://icobench.com/ico/xdac

Ufity Switzerland nil 2019 Cryptocurrency mined with physical activity Advisor/ Business Development https://ico.ufity.com

DICE UK 2mil 2019 Fundraising through Cryptomining Advisor/ Technology Partner http://dice.money

BITOZZ USA 3mil 2019 Exchange for Derivatives Trading Advisor https://icobench.com/ico/bitozz

Keochain Sweden nil 2018 Decentralized social network for crypto investors Advisor http://keochain.com

Syntera Ukraine 15mil 2018 Sharing Economy Platform Advisor https://syntera.io

Cross Hedge France 85mil 2018 Offer and distribute investment smart contracts called Smartpieces Advisor https://icobench.com/ico/crosshedge

ClinTex Ltd UK 17mil 2018 Blockchain Powered Clinical Trial Management Advisor https://blog.icoalert.com/clintex

Morpheus.Network USA 18mil 2018 Automated Supply Chain & Payments Advisor https://icobench.com/ico/morpheus-network

MoneyFi USA 150mil 2019 Remittance Blockchain on existing Hybrid ATM Infrastructure Advisor/ Project Lead http://moneyfi.io

Wav Inc USA TBA 2019 Technology distributors from LTE to networking and Wi-Fi Advisor/ Project Lead http://www.wavonline.com

RedBrick Singapore/ Vietnam TBA 2019 Tokenized Real Estate Platform TBA https://redbrickholdings.net

SpaceIT Serbia TBA 2019 Blockchain Sharing Economy on Rental Spaces Advisor/ Project Lead http://spaceit.io

Lojika Turkey TBA 2019 Decentralized Peer-to-Peer Ride Sharing TBA https://www.lojika.net

KATA Indonesia TBA 2019 Blockchain ChatBot Platfrom TBA https://kata.ai

beQ Germany TBA 2019 Location-based Social and Business Meetups Advisor/ Project Lead http://beq.com

Preferendum Chile 100mil 2019 Voting on the Blockchain Advisor/ Business Development http://preferendum.com

Listed Company Indonesia 100mil 2020 Gold-mine STO Advisor/ Project Lead TBA

Listed Company Indonesia 100mil 2020 Payment Systems B2B Advisor/ Project Lead TBA

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Page 13: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

§ Determine Security vs. Utility token use cases incl.

commodity index token

§ Propose coin-based utility / functionality possibilities

§ Propose blockchain integrations for the

farmer platform, e.g. supply chain & profiling

§ Determine legal framework and

jurisdiction strategy

Prerequisite

1

§ Token Economics

§ Whitepaper

§ Investor deck

§ Marketing strategy

§ Fundraising strategy,

e.g. fundraising regions, timeframe, payment terms &

investor types

§ Source and add

advisors with domain expertise to the project

Preparations of Collaterals

2

§ Propose STO/ICO rating sites

§ Fundraising

marketing

§ Investor outreach

and targeting

§ Organize investor roadshow

§ Attend investor pitch events

§ Launch social media campaign

§ Propose explainer

video

Private Sale

3

Preparation

Continuous

§ E-mail and social media marketing

§ Outsource

Community management

§ Influencer marketing

§ PPC campaigns

§ Bounty program

§ Media banners

§ PR articles

§ Website Update

§ Exchange listing preparation

Public Sale

4

§ Token issuance to investors

§ Funds management

§ Investor relations management

§ Exchange listing

§ Platform/ Ecosystem development

§ Blockchain development

§ System/ Technology Integrator

§ Regional Marketer

and Representative

Post-Fundraise

Management

5

Execution Post-Fundraise

1 Month 2 Month

5 Months

§ Strategize to utilize own vs. established blockchain

§ Determine listing platforms

§ Propose STO/ICO website, whitelisting

§ Propose Token

issuance Platform incl. KYC/AML, Smart

Contract & Wallets

§ Potential E-Wallet App development for

business cases

Preparations for Execution

2

2 Months

Appendix: STO / ICO / IEO RoadmapMoonwhale supports, advises and excutes

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Page 14: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

Marketing Materials: Whitepaper & Investor Deck

Marketing materials will be made available to investors through direct communication and download on the STO website. The Whitepaper is essentially the business plan of the STO project, thereby outlining the goals, envisioned product, business model, technology, team and more. The Investor

Deck is a brief presentation focusing on why buying the coin during STO can be a good investment.

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Token Economics2

Marketing Strategy3

STO Advisors5

Token economics refer to the monetary token structure and its utility to facilitate the desired use case of the project. This includes how many coins will be created, how many will be sold to public, the price per token during STO, and the functions of the coin (what can the token be used for in the

future when the product has been built after the STO). This is also part of the Whitepaper.

In order to get people to invest, marketing your STO is a vital part for a successful fundraise. All marketing activities to be executed during the STO phase need to be planned ahead. Private Sale marketing targets institutional and accredited investors (e.g. attending investor events). Public Sale

marketing targets retail investors (e.g. social media campaigns, e-mail marketing, PR articles).

Adding STO advisors to the project can increase the credibility of the STO. Advisors have different roles within the STO, ranging from legal, technical and business advise. Advisors are in general compensated with tokens

from the STO.

Fundraising Strategy4

Determine the funding needs and use of funds for the project. Furthermore, determine what kind of investors are allowed to invest in the STO, and which countries. Countries have different sets of KYC/AML regulations that need to be adhered to. The US for example has strict rules by the SEC

that an STO needs to comply to if US investors are to be included in the fundraise.

Resources

Moonwhale to create marketing

materials

Deadline

Week 8

Timeline

1-2 months

Resources

Moonwhale to design the token

economics

Deadline

Week 6

Timeline

2 weeks

Resources

Moonwhale to propose strategy. Need to hire STO

Agency for execution

Deadline

Week 8

Timeline

2 weeks

Resources

Moonwhale to propose fundraising

strategy

Deadline

Week 8

Timeline

2 weeks

Resources

Moonwhale has a network of industry

experts

Deadline

Week 8

Timeline

4 weeks

Appendix: Roadmap in Detail - Preparation PhaseCollaterals for STO execution need to be ready before the start of the STO

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Page 15: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

Blockchain Protocol Strategy

Determine if the token should be built on an established Blockchain or to develop and maintain its own Blockchain. For example many decentralized applications (dApps) are build on top of existing platforms like Ethereum, where tokens are being issued as a Smart Contract. The Blockchain

Protocol Strategy will also inform the Whitepaper.

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Token Issuance Strategy2

Token Listing Strategy3

Token Creation5

Token issuance refers to how the investors will receive the tokens. Options are SAFT vs. Smart Contract vs direct issuance. Some tokens will only be issued after the STO. Private Sale phase investors often only receive a written agreement (SAFT), and Public Sale phase investors often

receive a Smart Contract upon depositing funds, promising to receive the tokens once created.

After the STO, your token needs to be listed on a crypto exchange so it can be traded on the secondary market. Renowned trading platforms are Binance, Bitfinex or Coinbase. Getting your token listed comes with a listing fee. Depending of the size of the trading exchange, the fee can

range from $50k-$1m+. Listing fees are usually paid from the proceeds of the STO.

Token creation refers to issuing tokens, creating smart contracts, implement KYC/AML procedures, and blockchain wallet creation. This can be done via own development team (requires blockchain developing expertise) or an token issuance platform can be used. Issuance platforms provide all of

the requirements for a retainer ($50k+)

STO Website4

STO website is the key element for every potential investor to get informed about your project. Prior to the STO, investors can sign up (whitelisting) for STO notifications. Investors will be able to create accounts and deposit funds during the STO through your website. The website’s content will include

your product, technology, team, STO overview, project roadmap and more.

Resources

Moonwhale & Tech Project Lead to determine best

strategy

Deadline

Week 6

Timeline

1 week

Resources

Moonwhale to propose strategy

Deadline

Week 7

Timeline

1 week

Resources

Moonwhale to propose strategy

Deadline

Week 7

Timeline

1 week

Resources

Website Developer / External Agency

Deadline

Week 10

Timeline

6 weeks

Resources

Blockchain Developer / Outsource Issuance

Platform

Deadline

Week 10

Timeline

4 weeks

Appendix: Roadmap in Detail - Preparation PhaseDevelopment for STO execution needs to be ready before the start of the STO

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Page 16: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

Private Sale

Private Sale will only target institutional and accredited investors. The phase will be approx. 1-2 months long (depending on progress). The goal is to raise as many funds as possible during this phase. A strong track record of funds raised during the private sale gives confidence to the retail

investors in the public sale thereafter. The token price comes with a discount in this phase.

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Private Sale Marketing2

Public Sale3

Exchange Listing Preparation5

The marketing focus is on organizing a roadshow to pitch the project to investors in private meetings, and to attend public investor events. Executives of the STO project are required to travel and pitch the project. This phase is also the start of social media campaigns with the goal to build

the brand and a community.

The Public Sale targets retail investors. This phase comes after the Private Sale and is divided into the Pre-Sale (the token price is offered at a discount), and the main Public Sale (no discount). The total length of the Public Sale is often 2-3 months (depending on progress).

Review total funds raised to date and propose a budget for crypto exchange listing. Identify potential listing exchange candidates and start applying. Negotiate listing fee deals with exchanges that are willing to list your token. In general, it is preferred to get listed on the bigger exchanges due

to their relatively large liquidity and user base, resulting in more recognition for your token.

Public Sale Marketing4

The marketing focus is on reaching a massive amount of potential retail investors. This includes influencer marketing (e.g. YouTube crypto channels), bounty program (freelancer actively promoting the STO), media banners (e.g. paid ads on crypto news sites), and active community management

(e.g. Twitter, Reddit, Telegram channel).

Resources

Moonwhale & Project CEO have investor

meetings

Deadline

n/a

Timeline

1-2 months (execution)

Resources

Organizing meetings, roadshow /

Community Manager

Deadline

Week 13

Timeline

4 weeks (preparation)

Resources

Moonwhalemarketing on all

social media channels

Deadline

n/a

Timeline

2-3 months (execution)

Resources

STO Marketing Agency / Community

Manager

Deadline

Week 17/22

Timeline

4 weeks (preparation)

Resources

Apply for exchange listing & negotiate

Deadline

End of Token Offering

Timeline

4 weeks

Appendix: Roadmap in Detail - Execution PhasePrivate and Public Sale Phase (Dependent on overall Market Sentiment)

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Page 17: Security Token Offering Financial Advisory · as an attractive proposition, as it often comes with value -added post-investment technical assistance and business strategy guidance

Appendix: Deal Proposal STO/ ICO ExecutionMoonwhale Direct Services

Moonwhale External Partner / Third-Party Services (estimation)

Additional Compensation Success Fee

1.5% of total

project token or equity

1.5% of total

funds raised

Prices depend on scope, legal requirements and marketing budgets

Moonwhale is working with third-party providers for specific STO/ ICO related

related services. All external partners are

fully vetted and trusted.

Payment Terms

Upon Signing: $25k

Each Month: $10k

Description Phase Amount

Prerequisite Market Research Prerequisite

Determine Security vs. Utility Coin Strategy Prerequisite

Propose Token Utility Possibilities Prerequisite

Identify Business Model Opportunities Prerequisite

Prepare Token Economics STO Preparation

Preparation of Collaterals (whitepaper, pitch deck) STO Preparation

Propose Marketing Strategy STO Preparation

Propose Fundraising Strategy STO Preparation

Propose Blockchain Protocol Strategy STO Preparation

Moonwhale Fundraising Activities STO Execution

Moonwhale Social Media Marketing STO Execution

Total Costs (Roadmap – 5 months engagement) $ 75,000

Description Phase Est. Amount

Legal Framework Setup (depending on token complexity,

licenses required, country of company setup)**Prerequisite

TBA

Token Issuance Platform incl. Smart Contract, KYC/AML,

Lifecycle Management**STO Preparation

50k

STO Website incl. Whitelisting* STO Preparation 10k

Marketing: Road Shows & Events / Conferences* STO Execution 50k

Marketing: PPC Campaigns / PR Articles / Media Banners* STO Execution 40k

Community Management STO Execution 20k

Fundraising, Family Office Meetings, Matchmakers* STO Execution 50k

Optional: Nasdaq Interview, Fox Business News, Bloomberg STO Execution 60k

**fundamental for successful execution * recommended budget

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