PrepayWay Equity
Crowdfunding Campaign
Invest in Swiss-Estonian Fintech Start-Up
PrepayWay Systems Estonia OÜ
Start date:
19 Mar 2019
Promotional package:
We accept:
Credit cards,
bank transfer, cryptocurrency, PayPal
bank transfer, cryptocurrency, PayPal
INVESTMENT SOUGHT:
2 450 000 EUR
EQUITY OFFERED:
10%
MINIMUM INVESTMENT:
10 EUR
VALUATION (PRE‑MONEY):
24 500 000 EUR
Introduction
PrepayWay AG is a Swiss fintech holding developing a blockchain ecosystem that simplifies and streamlines international collaboration, contracting, and payments for companies across multiple industries. PrepayWay Systems Estonia OÜ, the subsidiary of PrepayWay AG, is developing three flagship products:
PrepayWay combines digital contracting, self-executing smart contracts, embedded payment options in fiat and cryptocurrency, escrow service, and new enforceable dispute resolution technology.
Designed to boost business processes, PrepayWay changes the way companies do business, rendering traditional business models obsolete.
PrepayWay Real Estate
Contracting and escrow tool for real estate transactions
PrepayWay Global Trade
Collaboration, contracting, and payments platform for global trade
Elleeo
Cross-border decentralized financing platform
Designed to boost business processes, PrepayWay changes the way companies do business, rendering traditional business models obsolete.
Value Proposition
PrepayWay is an all-in-one solution for international contracting, financing, payments, and dispute resolution.
PrepayWay combines the functions of lawyers, banks, escrow agents, and arbitral institutions.
PrepayWay – a simple solution for complex processes.
PrepayWay combines the functions of lawyers, banks, escrow agents, and arbitral institutions.
PrepayWay – a simple solution for complex processes.
Use of Funds
At this stage, we are raising funds to develop and release working versions of our core products: Elleeo, PrepayWay Real Estate, PrepayWay Global Trade.
See roadmap for detailed information on the product development milestones planned after completion of fundraising stage 1.
To date, PrepayWay has been focused on streamlining the company’s processes, on the development of the core products and the ecosystem, and on creating value to prepare for the next funding round.
See roadmap for detailed information on the product development milestones planned after completion of fundraising stage 1.
To date, PrepayWay has been focused on streamlining the company’s processes, on the development of the core products and the ecosystem, and on creating value to prepare for the next funding round.
Development Strategy and Current Status
Our strategic planning process involves a “bottom-up approach” – from unique products with immediate, practical application to a comprehensive blockchain ecosystem.
Distinct feature: easy scalability across industries, scopes of application, and geographies.
Distinct feature: easy scalability across industries, scopes of application, and geographies.
Two main stages:
The next step is the development of the working products. See roadmap for more detailed information.
- Stage 1: development of innovative products and the core elements of the ecosystem.
- Stage 2: product implementation and integration – practical use and adoption of the blockchain ecosystem.
The next step is the development of the working products. See roadmap for more detailed information.
Exit Strategy
An exit strategy is a contingency plan that is executed by an investor, trader, venture capitalist or business owner to liquidate a position in a financial asset or dispose of tangible business assets once certain predetermined criteria for either has been met or exceeded (source: investopedia.com).
It is too early to speculate about detailed exit strategies at this stage.
PrepayWay is yet to achieve ongoing profitability; thus, the success of the venture in the long run is contingent upon further funding. We are building the ecosystem, while simultaneously forging valuable partnerships and obtaining the regulatory authorizations – doing all that is necessary to achieve our vision. PrepayWay is striving to radically change the way companies do business, similar to the way Uber was a disruption to taxi services and Airbnb – to the hotel industry.
We will ultimately require further funding to fully develop and implement PrepayWay Ecosystem and may consider a variety of fundraising sources, including the possibility of an IPO, to secure funding for further expansion. We believe that IPOs for scalable blockchain companies will continue to attract considerable public interest in the coming years.
It is too early to speculate about detailed exit strategies at this stage.
PrepayWay is yet to achieve ongoing profitability; thus, the success of the venture in the long run is contingent upon further funding. We are building the ecosystem, while simultaneously forging valuable partnerships and obtaining the regulatory authorizations – doing all that is necessary to achieve our vision. PrepayWay is striving to radically change the way companies do business, similar to the way Uber was a disruption to taxi services and Airbnb – to the hotel industry.
We will ultimately require further funding to fully develop and implement PrepayWay Ecosystem and may consider a variety of fundraising sources, including the possibility of an IPO, to secure funding for further expansion. We believe that IPOs for scalable blockchain companies will continue to attract considerable public interest in the coming years.
Promotional Package
Each participant that invests more than 100 EUR is eligible to receive the promotional package.
Each participant of the crowdfunding campaign is eligible to receive 1000 free InBits for every 10 EUR invested during the campaign. For example, a participant who invests 3600 EUR during the campaign is eligible to receive 360 000 free InBits.
InBits will be distributed by the Token Generator during the TGE scheduled for 2019.
Each participant of the crowdfunding campaign is eligible to receive 1000 free InBits for every 10 EUR invested during the campaign. For example, a participant who invests 3600 EUR during the campaign is eligible to receive 360 000 free InBits.
InBits will be distributed by the Token Generator during the TGE scheduled for 2019.
Please note:
At this point, we refrain from providing the exact dates for the InBit token issuance, considering it necessary to prepare the ground for the application of InBit token in the real economy, as well as taking into account the state and the mood of the cryptocurrency market and the stage of development of legal framework. The Token Generator reserves the right to refuse to distribute or to suspend the distribution of InBit tokens to individual participants or to all participants if such distribution is prohibited by the laws and regulations in force at the time of InBit token distribution or if there are any regulatory obstacles for the Token Generator to distribute InBit tokens.
At this point, we refrain from providing the exact dates for the InBit token issuance, considering it necessary to prepare the ground for the application of InBit token in the real economy, as well as taking into account the state and the mood of the cryptocurrency market and the stage of development of legal framework. The Token Generator reserves the right to refuse to distribute or to suspend the distribution of InBit tokens to individual participants or to all participants if such distribution is prohibited by the laws and regulations in force at the time of InBit token distribution or if there are any regulatory obstacles for the Token Generator to distribute InBit tokens.
Token Sale and Company Valuation
Should the company valuation be expected to significantly increase as a result of a successful token sale event?
The InBit token issuance is scheduled for 2019. However, the decision to invest in PrepayWay Systems Estonia OÜ shares should not be based on the hope that the company valuation will increase as a result of a successful token sale event. The cryptocurrency market is currently characterized as being at the initial stage of development. And when you have a market that is insufficiently regulated and highly unstable, it is impossible to make any predictions.
The InBit token issuance is scheduled for 2019. However, the decision to invest in PrepayWay Systems Estonia OÜ shares should not be based on the hope that the company valuation will increase as a result of a successful token sale event. The cryptocurrency market is currently characterized as being at the initial stage of development. And when you have a market that is insufficiently regulated and highly unstable, it is impossible to make any predictions.
How to Invest
Currently, we are collecting indications of interest. While participation is not binding, we strive to gather realistic data about the amount potential investors would be interested and willing to invest.
In order to submit your indication of interest, please click "Invest in equity", fill out the form, and click “Submit”.
Оur sales team will contact you shortly.
In order to submit your indication of interest, please click "Invest in equity", fill out the form, and click “Submit”.
Оur sales team will contact you shortly.
Crowdfunding Campaign Structure
Nominee Structure
Investors make their investment in the shares of the fundraising company – PrepayWay Systems Estonia OÜ – via the nominee (PrepayWay Nominee OÜ), which holds their shares on their behalf.Investors are the beneficial owners of their shares in the fundraising company, but the shares are held on the investors’ behalf by the PrepayWay Nominee OÜ. PrepayWay Nominee OÜ is listed as a shareholder of the fundraising company PrepayWay Systems Estonia OÜ. PrepayWay Nominee OÜ, acting as a nominee, is responsible for safeguarding and administering the shares in accordance with relevant laws and the Investment Agreement.
Investors that contribute 50 000 EUR or more have an option to hold their shares directly outside of the nominee structure.
Roadmap
Introduction
We believe that the way of progress is development of the technology that is supported and adopted by the society. PrepayWay is not mere technology without users. The PrepayWay product is a combination of technological achievements and global networking powered by the community. We are constantly working on the roadmap that reflects our future plans and current progress. Product value creation is not about sticking to a plan, but being able to respond to change.Roadmap and Token Generation Event (TGE)
The TGE is scheduled for 2019, but the roadmap below does not include the TGE. Why is that? We are planning to undertake our development in accordance with the roadmap regardless of the TGE. We believe that the participants of our equity crowdfunding campaign and of the InBit token presale should have a realistic understanding of our development plans. At the present moment, we deem it reasonable to refrain from speculation about the impact of the InBit token issue on the future development plans. InBit token is a utility token for access to the Ecosystem, not an instrument for investment. We will update the roadmap as and when there is an update or a change in the plan.Roadmap and Equity Fundraising Stages
Please note that the roadmap assumes successful fundraising stage 1 and stage 2 where the max cap is achieved. If the fundraising campaign achieves a different result timeline may be shifted. All the future functionalities are considered actual in the current technological and legal environments. By the time a certain milestone is reached, some options that are presently planned to follow it may become obsolete or other requirements may arise. Future development plans may have to be adjusted depending on amount of funds raised and the changes in the legal environment, technological environment, and business or other requirements.-
2017-2018
- Seed investments round successfully closed
- PrepayWay сore team You can see full PrepayWay team here
- PrepayWay AG (HQ in Switzerland) founded See registration at moneyhouse.ch
- PrepayWay Systems Switzerland AG founded – escrow service provider See registration at moneyhouse.ch
- PrepayWay Systems Estonia OÜ founded See registration at e-krediidiinfo.eePrepayWay Systems Estonia OÜ owns and develops 3 flagship products: Elleeo, PrepayWay Real Estate, PrepayWay Global Trade
- PrepayWay® trademark application and registration See registered trademark at euipo.europa.eu
- SmartArb® trademark application and registration See registered trademark at euipo.europa.eu
- InBit® (token) trademark application and registration See registered trademark at euipo.europa.eu
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2017-2018
- PrepayWay Ecosystem business logic You can download the PrepayWay Ecosystem whitepaper by clicking here
- PrepayWay Real Estate business logic You can download the PrepayWay Real Estate system description by clicking here
- Elleeo business logic
- SmartArb business logic
- Elleeo prototype Elleeo project has already reached the functional demo stage. You can view it at elleeo.com
- SmartArb model clauses published SmartArb is an alternative dispute resolution (ADR) service, a new, efficient way to settle disputes. Our model clauses can be incorporated in (international) commercial contracts at the time of contract creation, anticipating the possibility of disagreements that might arise in the future. You can view them at smartarb.org
- Elleeo fully functional demo Elleeo is a platform where lenders and borrowers from different countries meet and transact to make great things happen. In this demo, you will be using accounts of investor and borrower to see different sides of the transactions concluded on the Elleeo platform. Read more about Elleeo or check a live demo.
- PrepayWay Real Estate contract creation and negotiation process proto closed testing The testing was conducted among a group of real estate agencies using a prototype that is currently available online. The goal was to evaluate the usability and to get feedback from the real estate professionals regarding the core process of reservation agreement creation.
- PrepayWay Ecosystem business logic
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2019 H1
- Fundraising stage 1 PrepayWay is to hold a round of investment through equity crowdfunding where investors will have an opportunity to buy equity in PrepayWay Systems Estonia OÜ. For more information please see our crowdfunding page.
- SRO membership application Financial intermediaries in Switzerland have two options: to be supervised by FINMA directly or to become a member of SRO. To achieve full compliance with regulations, PrepayWay Systems Switzerland AG is planning to file an SRO membership application. Find out more about the Swiss regulations at finma.ch.
- PrepayWay Real Estate visual prototype A prototype* of the core processes of the PrepayWay Real Estate tool will be made available. The mockup will present the design of the main screens. You will be able to view the prototype online and go through the process of creating a contract.
*prototype is an early model of a product built to test a concept or process or to act as a thing to be replicated or learned from. - Real estate agreement creation process demo version Demo version of the main process – the creation of a reservation agreement. Real estate professionals can try out the stages of reservation agreement creation, from initiation to payment. The demo will be available online.
- SmartArb Rules published The SmartArb Rules are based on the 2010 UNCITRAL Arbitration Rules with the inclusion of optional additional clauses to provide parties with more choice to tailor them to their own needs. Significantly, the Rules allow SmartArb to decide challenges to arbitrators and introduce provisions to aid emergency relief and enhance efficiency.
- Fundraising stage 1
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2019 H2
- PrepayWay Global Trade prototype PrepayWay Global Trade is an integrated blockchain solution for fast, secure, and convenient international business contracting, from creation to execution. A prototype of the core processes of the PrepayWay Global Trade tool will be made available. The mockup will present the design of the main screens. Once it is uploaded, you will be able to view the prototype online and go through the process of creating a contract.
More info on the Global Trade tool.
Leveraging self-executing smart contracts and decentralized storage of transaction data, it replaces the traditional paper- and trust-based system with a fully digital alternative. PrepayWay Global Trade automates contracting and payment processes, reduces transaction costs, and increases transparency, traceability, and efficiency of cross-border transactions in a wide range of industries. - SmartArb as a fully functional mediation and arbitration institute SmartArb was created to provide alternative dispute resolution (ADR) services. To provide the highest quality of ADR services at reasonable cost, SmartArb is working closely with neutrals and advisors certified by the Chartered Institute of Arbitrators, JAMS, and other well-established ADR institutions. SmartArb has its own model clauses for commercial contracts, and its own set of rules that parties can reference in their business agreements (ex ante) and in arbitration agreements (expost). SmartArb provides ADR services to a wide variety of industries and for many types of commercial dealings. The roster of neutrals suggested by SmartArb also includes experts with knowledge of many legal systems and proficiency in all major languages. SmartArb is developing special expertise for disputes arising out of smart contracts.
Benefits for users (compared to traditional litigation):- More friendly - preserves business relationships
- Faster - resolves disputes faster and has no appeals
- More professional - relies on neutrals who understand your business
- Confidential - preserves the confidentiality of business deals
- More trustworthy - does not put you at the mercy of foreign judges
- Cheaper - well designed, saves time and money
- More accessible - works with your own attorneys and can be all online
- Enforceable - arbitration awards are enforced in over 150 countries
- More successful - ADR is preferred by over 90% of international lawyers
- Elleeo MVP Elleeo is a platform that connects lenders and borrowers from different countries and opens unlimited opportunities globally. MVP stands for a minimum viable product – a product with just enough features to satisfy early customers, and to provide feedback for future product development.
The most important advantages for borrowers:- The process is more transparent, easier, and quicker than with a bank.
- It gives you the flexibility to tailor borrowing conditions to your requirements.
- It provides you with a large pool of funding from investors who want to see you succeed.
- Comparatively attractive return opportunities compared to standard bank deposits.
- Easy to achieve risk diversification thanks to low minimum investments.
- Automated investment according to investors parameters possibility using our InvestBot function.
- Overall management of the loan arrangement (credit check, documentation, payment processing and collection) is carried out by the platform operator.
- More exclusive options and functionalities that we will announce closer to the launch of the platform.
- PrepayWay Global Trade prototype
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2020 H1
- PrepayWay Real Estate MVP PrepayWay Real Estate is an online contracting and escrow tool that makes the real estate reservation process direct, flexible, transparent, and secure. It minimizes need for trusted intermediaries and prevents fraud losses. Use our valid contract templates to draw up contracts, sign them digitally, choose between fiat and digital currencies, and enjoy full protection of your reservation deposit stored securely on the blockchain.
Benefits for market participants:- There is no need to be physically present at the location of your dream real estate.
- Clients can reserve properties safely and fast from the comfort of their own home.
- Our legal agreement templates in multiple languages save time and money that would otherwise be spent on translations and lawyers.
- Transactions in both fiat and digital currency are supported.
- Security of earnest money deposit. If the property is not as described, or the deal falls through the fault of the seller, the earnest money is automatically returned to the buyer.
- Efficient dispute resolution. Our network of independent certified mediators and arbitrators deliver fair mediation and arbitration services remotely, quicker and less expensive than litigation.
As it is an MVP (MVP stands for a “minimum viable product” – a product with just enough features to satisfy early customers and to provide feedback for future product development), the following functionalities will be implemented at the later stages:- Smart-contract functionality. Smart contracts will be implemented to ensure security of deposits. Smart contracts initiate the release of the deposit automatically only when the contractual terms and conditions are met (upon confirmation of notarial transaction in case of purchase or upon the tenant getting access to the property in case of rent)
- Possibility of global collaboration. Our platform will allow real estate agencies who never did business with each other before to enter into partnerships for referral of clients. Through PrepayWay, brokers and other market participants around the world will exchange information about available properties and refer clients to each other with confidence.
- Automated referral commission payments. Real estate agencies can build networks and safe partnerships with like-minded professionals abroad with commissions for referrals transferred automatically. Self-executing smart contracts verify and trigger commission payments once conditions of the agreement have been met.
- Country-specific legal templates. In all the regions where we will operate our users will have a possibility to conclude a reservation agreement using the language that they understand*.
- Multilingual country-specific legal templates Our legal partner network will prepare a set of agreements for all supported regions so that our clients can enjoy safe, fast, and convenient process of real estate reservation.
- Fiat-crypto gateway framework Our users will have a possibility to safely use fiat money for concluding smart contact based agreements without any risk of cryptocurrency rate fluctuations. The framework will allow traditional businesses to benefit from smart contracts: from an end-user perspective it will look like a pure fiat-fiat agreement.
- Crypto-crypto gateway framework Our users will benefit from a possibility to conclude a reservation agreement in a variety of cryptocurrencies, not limited to InBit or Ether.
- PrepayWay Real Estate MVP
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2020 H2
- Fundraising stage 2 Next equity fundraising rounds are planned for the further development of the products: PrepayWay Real Estate, Elleeo, SmartArb, and Global Trade. Terms, conditions and possibilities of investment will be published on our official webpage.
- Beta version and release of PrepayWay Real Estate In addition to the core functionalities of PrepayWay Real Estate, users will enjoy the benefits of blockchain and smart contracts, and real estate professionals will be able to collaborate globally with confidence in getting their referral commission. The platform will support multiple regions worldwide and will offer reservation and purchase agreement templates in the official languages of the regions supported by the platform.
- Beta version and release of Elleeo Users will be able to enjoy all the benefits stemming from migration to the blockchain.
Both crypto and fiat investments are accepted.
Elleeo will serve as an aggregator, eliminating the need to register on different crowdlending/crowdfunding platforms. Registering on Elleeo alone enables users to participate in the offerings of different platforms.
Integration with PrepayWay Real Estate and PrepayWay Global Trade. - Beta version and release of PrepayWay Global Trade In comparison to the limited functionality of the MVP, the beta version will give users enough flexibility to conclude any deal involving trade in finished products.
- SmartArb regional offices in EMEA, APJ, NCSA SmartArb will open regional offices in all the three regions in order to be able to offer its services globally.
- Fundraising stage 2
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...Further Development (strategic long-term overview)
- PrepayWay Real Estate One of the directions for strategic development the company is considering at the moment is the creation of APIs/plugins for main CMSs/open source platform for real estate professionals for the management of properties for sale/rent. Clients will have a choice to either create their own website or integrate into the existing one. Brokers who work with international real estate will be able to collaborate easily by defining the conditions of collaboration (referral rate) and the specifications of the properties. The platform will show all the properties that match the criteria. The platform will facilitate a smoother reservation process: when all the properties are managed using the same API/Plugin/OSP, a reservation agreement can be created in 2-3 clicks.
- Elleeo We see Elleeo as a place where people can invest and obtain financing in a few simple steps, while having the whole scope of investment/fundraising possibilities at their disposal. It should unify all the investment possibilities available on the market, so it will act as an investor crowdfunding and crowdlending gateway to the main platforms on the market. It is evident to us that the variety of products should be wider: rather than being limited to personal or business long-term loans secured by collaterals, it should include factoring and short-term consumer loans and equity investment. Elleeo will be looking into attracting professional institutions, both investors and service providers in certain regions.
- PrepayWay Global Trade We believe that global trade as a process can be significantly improved. The best case scenario we envision and target is entire international trade deals, from start to finish, facilitated by PrepayWay Ecosystem. We envision a perfect system that, after concluding a contract, offers insurance, reliable carriers, customers brokers, and other supply chain providers, with all the “paperwork” of the process governed by a single contract. This will eliminate the exchange of hundreds of email, bills of lading, letters of credit, etc., since all the participants of the process (which may include more than 30 individuals and organizations) will have a single point of interaction – PrepayWay Global Trade.
- SmartArb We realize that with the coming of new technologies, the ADR process will inevitably evolve. We are committed to dedicating time and resources to R&D in order to improve the current procedures and to develop new approaches to mediation and arbitration, making it more cost and time efficient. In order to achieve that goal, we plan to collaborate with the service developers in order to work out the guidelines/framework for designing new products where dispute submission for ADR would be integrated and done in the most efficient way possible.
- Other services integration We realize that our Ecosystem is far from complete. We are looking into integrating more and more service provides, such as insurance services, financial institutions, carriers, expert agents (oracles), rating agencies, and other service providers.
- Proprietary blockchain At this point, no single DLT (distributed ledger technology) exists that would satisfy all the needs of PrepayWay Ecosystem. If by the time that all the core components of the Ecosystem are up and running such technology still does not exist, PrepayWay may look into the development of its own DLT solution.
- PrepayWay Real Estate