VALOREM FOUNDATION

We’re building a platform for multi-party transactions

across industries.

VALOREM IS CREATING A PLATFORM FOR

MULTI-PARTY TRANSACTIONS ACROSS

INDUSTRIES

LENDING INVESTING PAYMENTS

2

PURCHASING POWER OF

THE U.S. DOLLAR 1913-

2013

THE PROBLEM

$1

1913 1923 1933 1943 1953 1963 1973 1983 1993 2003 2013

$0,5

$0

The value of fiat currency has declined over the

decades.

Millennials don’t trust traditional financial markets.

The dollar may lose its sole reserve status.

Transactions between parties are complex and time-

consuming, while technology has raced ahead.

Millennials want an easy, decentralized system that they

can trust.

1913: Federal

Reserve is created

1933: FDR’s executive

order makes it illegal

to hold gold coin,

bullion or certificates

1944: Bretton Woods

established the USD as the

world’s reserve currency

1971: Nixon closes

“gold window”,

end of Bretton

Woods, beginning

of the modern-day

fiat currency

system $0,05

2

THE SOLUTION

ONE

PLATFORM

THAT ALLOWS

USERS TO

A new blockchain-based platform that allows users to

exchange value via smart contracts.

Borrow/Lend

Invest

Transfer Money

…and much more

3

HOW DOES CRYPTOCURRENCY

WORK?

Blockchain – distributed ledger recorded and

copied in 1000’s of places simultaneously –

impossible to hack or manipulate.

Smart Contract – lines of code with if-then statements

that are required to happen on the Blockchain. “If Bobby

sells Susie Lemonade, Susie will pay Bobby $1.”

Token – unit of value used to fuel and exchange

value in the smart contract.

Bitcoin – The first cryptocurrency, it was

not developed with Smart Contracts. 4

THE FIRST PHASE OF VALOREM: HOW

DOES LENDING WORK?

A user posts a

request for a loan.

The community sees

it and responds with

offers.

The borrower can have

as many lenders as he

wants.

This allows for trust to be built

platform-wide, while also

stabilizing value.

When borrowers take out

loans, lenders can hedge

their default risk by buying

insurance via the platform. 5

𝑀𝑜𝑛𝑡ℎ 𝑋 =𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 × 𝑇𝑜𝑡𝑎𝑙 𝑀𝑜𝑛𝑒𝑦 𝐵𝑜𝑟𝑟𝑜𝑤𝑒𝑑 𝑖𝑛 𝑚𝑜𝑛𝑡ℎ 𝑋

12

THE UNIQUE CONCEPT:

VALOREM RESERVE LENDING

𝐴𝑉𝐺 𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝐿𝑒𝑛𝑑𝑒𝑟 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = 𝐴𝑛𝑛𝑢𝑎𝑙 𝐿𝑒𝑛𝑑𝑖𝑛𝑔 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠

24

𝐴𝑛𝑛𝑢𝑎𝑙 𝐿𝑒𝑛𝑑𝑒𝑟 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = 𝑆𝑢𝑚 𝑜𝑓 𝑎𝑙𝑙 𝑚𝑜𝑛𝑡ℎ𝑠

Our fractional lending platform allows users to make deposits

and issue loans to other users.

6

VALOREM RESERVE LENDING CONCEPT

Valorem reserve lending is based on a formula that allows multiple reserve

loans to take place throughout the platform simultaneously.

As the value of the reserve account decreases, it shows how soon the

contributions must be made in order to show maximum returns for each loan,

as well as showing when later contribution is needed. 0 𝑉𝑎𝑙𝑜𝑟𝑒𝑚 𝐹𝑜𝑢𝑛𝑑𝑎𝑡𝑖𝑜𝑛 𝑇𝑟𝑢𝑠𝑡 𝑅𝑒𝑠𝑒𝑟𝑣𝑒 𝐴𝑐𝑐𝑜𝑢𝑛𝑡 = 𝑋 − 𝑇𝑜𝑡𝑎𝑙 𝑀𝑜𝑛𝑒𝑦 𝐵𝑜𝑟𝑟𝑜𝑤𝑒𝑑

𝑇𝑜𝑡𝑎𝑙 𝑀𝑜𝑛𝑒𝑦 𝐵𝑜𝑟𝑟𝑜𝑤𝑒𝑑 = 𝑆𝑢𝑚 𝑜𝑓 𝑅𝑖𝑠𝑘 𝑃𝑟𝑜𝑓𝑖𝑙𝑒

Based on our formula and the updating of the risk/trust profile, we can estimate the viability of hedging portions

of each loan so that default risk is minimized.

𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑅𝑒𝑠𝑒𝑟𝑣𝑒𝑠 = 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 % 𝑥 𝐷𝑒𝑚𝑎𝑛𝑑 𝐷𝑒𝑝𝑜𝑠𝑖𝑡𝑠

𝐸𝑥𝑐𝑒𝑠𝑠 𝑅𝑒𝑠𝑒𝑟𝑣𝑒𝑠 = 𝑅𝑒𝑠𝑒𝑟𝑣𝑒𝑠 − 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑅𝑒𝑠𝑒𝑟𝑣𝑒𝑠

We call this the Valorem Reserve Loan. A loan made by the reserve before it becomes a real loan.

These loans produce pure profit for Valorem at the full interest rate.

7

TARGET MARKET/OPPORTUNITY

8

Our blockchain-powered platform provides access to a global pool of lenders and borrowers.

PHASE 1 OF DEVELOPMENT

Rent Payment & P2P Networks:

Customers: Renters/Landlords/Management &

Associations/Affiliations/Businesses

Providers: Valorem Community, Users

Online Volume: As of January 2017, an

estimate 61% of all millennials pay rent online.

Microloans (Loans up to $5,000)

Customers: Small Businesses, Personal Loans,

Single Parents, Education, Agriculture

Providers: Valorem Community, Users, Small

Banks, Credit Unions

Market Capitalization: As of 2009 an estimated

74 million people held microloans that totaled US

$38 billion. All Microcredit loans are unsecured,

tax deductible and have a repayment rate of 95-

98%.

Student & Car Loans

(Loans up to $5,000):

Customers: Students & Car Buyers

Providers: Valorem Community, Users, Small

Banks, Credit Unions

Vendors: Car Dealers, Schools and Institutions

Market Capitalization: As of 2014 student loan

debt was estimated to be over $1.2 trillion.

REVENUE MODEL/FINANCIALS 3YR PROJECTIONS

10

Year 1 Year 2 Year 3 Year 3 End Summary

Total New Users 3,900 000 4,290 000 4,719 000

Total

Transaction

Volume

$ 1,310,400,000 $ 4,916,340,000 $ 5,407,974,000 $11,634,714,000

Valorem

Revenue (1% of

each)

$ 13,104,000 $ 49,163,400 $ 54,079,740 $116,347,140

SEO & PPC

Opt-In Email Lists

Authoring Books/Print Media

Supporting/Sponsoring Events

Press & Public Relations

Thought Leadership

Community Building

Influencer Outreach

Blogging

Public Speaking

Earned Social Media

Word of Mouth & Viral

Marketing

Content Creation & Marketing

Organic App Store Visibility

Video Content

MARKETING/SALES STRATEGY

13

Responsible

for 90%+ of

clicks on the

web

Lower avg

cost to acquire

a new

customer

Inbound

Marketing

Earning attention

organically, without

interrupting

anyone's path

Powered by

creativity,

talent, & effort

Generates

momentum,

making future

efforts easier

TARGET MARKET/OPPORTUNITY

14

More Fiat

Currency Based

More Affordable

Limited Quantity of Currency

More Millennial

Appeal/Decentralized

More Sharing

Economy Focused

Less Affordable

Unlimited Quantity of Currency

Less Millennial Appeal/

Centralized

Less Sharing Economy

Focused

Less Fiat

Currency Based

HARD MONEY LENDING

CREDIT UNIONS

REGIONAL BANKS

TEAM

VAL KLEYMAN

CEO & FOUNDER Grand Leisure Travel, FedEx

Corporate Sales, Enterprise Rent-A-

Car, eB2B Commerce, Sales,

Marketing, Operations, Real Estate

Investing & Management

Degree: Operations Management,

Real Estate & Law from Baruch

College, New York

HARINDERJIT SINGH

Head of Web & Design

Development PHP, MYSQL, HTML, CSS, JS,

JQUERY, Squarespace, Wordpress,

Infusionsoft, SuiteCRM

Degree: MSC(IT) from Punjab

University

NAVDEEP GARG

Head of Platform

Development IOT, Ui/Ux, cloud, web and mobile,

machine learning to brand equity

using offline to online strategies,

smart contract security auditor

Degree: IT Policy/EPS Solution

from National University of

Singapore

ANURAG MAKOL

Lead Developer of Valorem

Platform Sr. PHP Developer, Blockchain

Architect

Degree: Engineering, MBA/IT

from Lovely Professional

University

YARON VILOSNY

16 years in Business

Development, Strategy, E-

Commerce, Logistic

JARED RAIA

7 years in Commercial &

Residential Lending & Real

Estate Development

JOHN KLEPPINGER

10 years in Auto, Home,

Business, Casualty,

Liability & Life Insurance

KENT WALLGREN

20+ yrs in Wealth Mgmt,

UI/UX creation,

Algo, AML, KYC, R & C

PAYAL JAIN

7 yrs in Digital & Online

Marketing Strategy,

Advertising and Social

Media Development

JOSEPH YOO

10 yrs in IT and Specialized

Network Infrastructure,

Security, and Server

Development

DENNIS KIM

5 yrs in Building Code

Consulting, Direct Sales,

and Marketing and

Business Development

HWAN NAMKUNG

2 yrs in Pharmacy

Operations and

Pharmacy Technician

JOSEPH DANIELS

Legal Adviser Joseph Daniels is Co-

Chair of the firm’s

Venture Capital &

Emerging Growth

Companies practice.

Valorem Platform Development

30% Sales & Business Development

25%

Marketing & Advertising 15%

Contingency 10%

Contractors 10%

Admin 10%

BUDGET

16

Max $15,000,000 TOTAL

o Dev, Eng, Design: 30% of budget

o Administration: 10% of budget

o Marketing & Advertising: 15% of

budget

o Sales & Business Development:

25% of budget

o Contractors: 10% of budget

o Contingency: 10% of budget

TIMELINE

&

ROADMAP

17

Pre-

development

/Code Testing

Back End

Development/

User Platform

& Wallets

Whitepaper

Development

/Advisory

Group ICO/VLR

Coin is Live Platform

Is Live –

Limited

Features

Phase 1

Development

Phase 2

Development

Phase 3

Development/

Code Testing

Back End

Development /

User Platform Improvements Product

Expansion

9

PHASE 2 OF DEVELOPMENT BUYING AND SELLING, BUSINESS INVESTING, CROWDFUNDING

PHASE 3 OF DEVELOPMENT INSURANCE AND CHARITY FUNDING