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© Finix Solutions, LLC, All Rights Reserved OUR MISSION: Delivering the Finix Platform as The Blockchain Standard for Wealth Administration
© Finix Solutions, LLC, All Rights Reserved
OUR MISSION:
Delivering the Finix Platform
as The Blockchain Standard
for Wealth Administration
Disclaimer
The forward looking statements included in the presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements address the financial conditions, results of operations, business and initiatives of the company in the current year and beyond and are subject to certain risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.
Please refer to the Company’s due diligence materials for more information on the risks and uncertainties that could cause results to differ materially from these forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of the delivery of these materials.
Nothing said by the Company is, or should be relied on as, a promise or representation as to the future performance of the Company. No person has been authorized to give any information or to make representations in connection with the offering made other than the information and representations made in the due diligence materials and, if given or made, such other information or representations must not be relied upon as having been authorized by the Company. Each investor must conduct and rely on its own evaluation of the Company and the terms of the offering, including the merits and risks involved, in making an investment decision with respect to the securities.
The information presented by the Company is confidential and proprietary to the Company, and is
being submitted to potential investors solely for such investor’s confidential use with the express understanding that, without the prior express written permission of the Company, such persons will not discuss the information presented by the Company for any purpose other than evaluating a potential investment in the securities offered.
This presentation should not be construed as a general solicitation.
Agenda
• Industry Tailwinds
• Opportunity
• Technology
• Organization
• Appendices
– Opportunity Case Study
– Opportunity Sales Pipeline
– Organization Capitalization
– Deal Structure
– Technology Roadmap
Tailwinds – Alternative Asset Market
Alternative
Assets
Stocks, Bonds, ETFs,
Mutual Funds
Cash &
Equivalents,
U.S. Treasuries
Liquidity
Diffic
ulty o
f A
dm
inis
tra
tio
nH
igh
Promissory Notes
Private Equity
Social Finance
HighLow
Low
Crypto Currencies
Traditional
Assets
Real Estate
Tailwinds – Alternative Asset Opportunity
Social Finance
• Crowdfunding: $1.2T AUM
• Peer to Peer Lending: $1.7T AUM
Growing IRA
• Total IRA: ~46M Accounts
• Self-Directed IRA: ~2.5M AcctsAnnual Private Placement Market
• Growing at 15% CAGR
• 30,000 Reg D Offerings
• ~250k Investors
Registered Investment Advisors
• 25,000 RIA nationally
• 10%+ AUM Growth
• Fastest growing channel in the industry
Crypto-Currencies
• Fastest growing asset class
Sources: Goldman Sachs, Deloitte, KPMG, et al
Tailwinds – Accessible Market
Early Adopters:SD IRA
($500M)
Initial Target:All IRA, PE, RIA,
Social Finance
($3.5B)
DLT Year Target:Distributed Ledger Technology
as a Service
($26B)
Platform as a Service (PaaS) Distributed Ledger Technology
as a Service (DLTaaS)
Ac
ce
ssib
le M
ark
et
Accessible Market (technology & fees) for
Alternative Asset Administration:
$30B (estimated)
Opportunity – Current State
Custodians &
IRA Admins
External
Integrations
Issuers & Funding
Platforms
Financial Advisors
Investors
Custodians &
Administrators
Too much paper
Too many touches
Too much time
Too many errors
Custodians &
Administrators
Service
Providers
Opportunity – The Solution: Finix Network
Issuers & Funding
Platforms Investors
Financial Advisors
Reduce Friction
Enable Compliance
Reduce Time
Reduce Errors
Opportunity – Revenue Model Example
Service
Providers
1 2
1
1112
x Party Accounts x Finix Revenue
$12
$60$60
$12 $12 $12
$18
• Meet Investor A, a high net worth individual who invests via a self-directed IRA (SDIRA.)
• Custody and administration are provided by a custodian who specializes in SDIRA.
• Investor A invests in 2 hedge funds, a real estate property, and student loan debt instrument
through a Marketplace Lender.
• They get advice from their Registered Investment Advisor.
• Two of the investments were placed through a Broker Dealer.
• Their accountant and attorney review and advise on every transaction.
Channel Annual Fee Tax IDs Total
Custodians $12 1 $12
Issuers $60 2 $120
Broker/Dealers $12 2 $24
Advisors $60 1 $60
Auditors $12 1 $12
Attorneys $12 1 $12
Payment
Integration
$18 1 $18
Total 9 $258
YR 1
Net Revenue Projections
YR 2
YR 3
YR 4
Opportunity – Pro Forma Financials
• Platform as a Service (Annual Recurring Revenue-
”ARR”)
• Distributed Ledger as a Service (ARR)
• Other (Professional Services, transaction fees, etc.)
$29.6 millionEBITDA: $6.2 million
$100.9 millionEBITDA: $31.0m
$6.0 million
EBITDA: $660k
$66.6 millionEBITDA: $14.2m
Revenue Sources
YR 5 $149.9 millionEBITDA: $49.4mAccount Growth
0
500
1000
1500
2000
2500
3000
3500
4000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Tho
usa
nd
s
YR 6 $232.2 millionEBITDA: $83.0m
Technology – Finix Distributed Ledger
Finix is the Distributed Ledger for Wealth
AdministrationBottom Line
Organization – Growth Roadmap
Stage 1: Wave 1
Market
• Become de facto
standard for
Alternative Asset
Administration
• Continue building
out Distributed
Ledger
Stage 2: Scale
DLT
• DLT-Enable larger
ecosystems
• Create initial set of
necessary DLT
Services;
Stage 3: Assure &
Comply
Stage 4:
DLT AppStore
• Integrate local
regulations as they
become available
• Continue scaling
the set of DLT
Services
• Create an
“AppStore” for DLT
Services to enable
choices for
subscribers
Use of Capital
Platform Development
Business Operations
Human Capital
Marketing & Administrative
Total
Project
Extend existing DLT with Hyperledger and build full portals for Issuers/Sponsors, Family Offices,
Investors, Auditors, et al.
Professional Services, Client Success, Technology Support, Development Operations
Key Employees – Management, Development, Sales, Marketing, and Administrative
Legal, Marketing Collateral, Insurance, Finance
Description
$16,750,000
$7,500,000
$8,500,000
$2,750,000
$50,000,000
Amount
Working Capital 10% working capital $5,000,000
Platform Infrastructure
Information Security, Instantaneous world-wide scaling, Dedicated Application Operations
$9,500,000
Finix Security Token Offering - STO
:
• Target raise: $50M hardcap, $2M softcap
• SEC compliant security token – FiniCoin
• FiniCoin receives share of revenue (15%) and
backed by company’s assets.
• At time of STO: 1 FiniCoin = $1
• Minimum purchase: $10K
Organization – The Team
Connor SillerySales
Gregg RosenbergCustomer Experience
Aleks ButermanCEO
Mary MohrExecutive Director,
RITA USA
Mark BrennanAlternative
Investment and Capital Markets
Matt MayersAngel Investor,
Attorney, and IRA Admin
Nina RowlandPlatform Support
Leadership: Seasoned entrepreneurial team combines deep industry knowledge,
enterprise scale, and prior successful exits
Advisors: Industry Consortia, Retail Clients, Institutional Clients, Private Equity and RIA
Quinn TranCOO
Tommy ChanthathepProducts
Doug ThielChief Architect
Rick ReuterFinance
Mike GardnerFormer Head of
BNY Mellon Innovation Center
Wim RoelandtsVeteran SV CEO, Xilinx, HP, Applied
Materials
With Your Support
OUR MISSION:
Establish the Finix Platform
as the Blockchain Standard
for Wealth Administration
Appendices
• Appendices
– Opportunity Case Study
– Opportunity Sales Pipeline
– Technology Roadmap
– Organization Capitalization
– Deal Structure
Opportunity – Early Customer Case Study
Problem: The custodian was scrambling for market share but struggling in the
labor pool and trying to stay profitable…
Finix Solution: Implementation of the Platform allowed for:
• lower costs per investor account through decreased “touches” and
increased automation;
• which allowed for more competitive service pricing and greater market
share potential.
Current State Growing with Finix
$2.9m
$1.8m
Customer Engagement & Contracts
• Pipeline strong, although meeting
headwinds with some expected
contracts causing delays
• New Clients: iPlan Group, Crypto
Futura Fund, Chainstarter, Crix
Exchange, INDX Fund and others
• Strong demands from Crypto
platforms has translated into new
clients
• Seeing strong demand from Angel
Groups. New addition to top
prospects Mi-12 Angels (York, PA)
• BNY/Mellon conversations have
progressed to Proof of Concept stage
• Finalizing Partnership Options with
Caneros Bay for other Fortune 500
Clients
• New DAPP for international KYC/AML
2 2 12 6
3 22
2
1 1
2
14
1
11
6214
x Pipeline
x Customers & Partners
Opportunity – Sales Pipeline
IRA Administrator, New York, NY
Custodian,
Albuquerque, NMAssess
ClientQ1
2017
Q2-4
2017Q1
2018Q2
2018Q3
2018Q4
2018Q1
2019
Q2
2019
Go Live Operate
IRA Administrator, Sacramento, CA
Contract Assess Go Live Operate
Contract Assess Go Live Operate
Crowdfunding Platform, Los Angeles, CA
Contract Assess Go Live Operate
Custodian, Las Vegas, NV
Contract Assess Go Live Operate
IRA Administrator, Roseland, NJ
Contract Assess Go Live Operate
Custodian, Cleveland, OH
Contract Assess Go Live Operate
Custodian, Onaga, KS
Contract Assess Go Live Operate
Custodian,Oakbrook, IL
Contract Assess Go Live Operate
Custodian, Oakbrook, IL
Contract Assess Go Live Operate
IRA Administrator, Boise, ID
Contract Assess Go Live Operate
Crowdfunding Platform, Las Vegas, NV
Contract Assess Go Live Operate
Custodian, San Carlos, CA
Contract Assess Go Live Operate
Custodian, San Francisco, CA
Contract Assess Go Live Operate
$400kRevenue Milestones$1.1m $7.6m $12.3m
Technology – Finix Platform Roadmap
Common Distributed Ledger
Investors Advisors IssuersFamily Offices
AuditorsBroker Dealers Attorneys Administrators
Technology – Distributed Ledger Roadmap
CORDA (Consortium) & Hyperledger (IBM)
Architecture Principles
Participants know where the asset came from and
how its ownership has changed over time.Provenance
For a transaction to be valid, all participants must
agree on its validity.Consensus
No participant can tamper with a transaction after
it’s been recorded to the ledger. If a transaction is in
error, a new transaction must be used to reverse
the error, and both transactions are then visible.
Immutability
A single, shared ledger provides one place to go to
determine the ownership of an asset or the
completion of a transaction.Finality
Auditability
• Traceability of transactions and their origins.
• The same contracts for the same transactions apply
to everyone
• Companies can issue their own contracts to
customize contracts for their customers.
• If a transaction is on the ledger, meaning it was
digitally signed by all appropriate parties, no one
can say there is no record of the transaction.
• Contract code can be cryptographically secured
• Savings for institutions and investors alike
• Whitelisted and secure accounts with which to
transact
Non-
Repudiation
“Within Hyperledger, content confidentiality is
achieved by encrypting the transactions such that
only the stakeholders can decrypt and execute them.
In addition, a piece of business logic (realized by a
smart contract) can also be cryptographically
secured (if confidentiality is required by its
stakeholders) so that it only gets loaded and
decrypted at runtime.”
Confidentiality
• Distributed Ledger membership governance: how is Know Your Customer, Anti-Money Laundering, Countering the Financing of
Terrorism (KYC/AML/CFT) handled at the membership level?
• Distributed Ledger network/technology governance
• Distributed Ledger data governance
• Distributed Ledger smart contract governance
• Distributed Ledger transaction management governance
Governance:
OPEN
☐
