Is it a return based investment or just investment for social cause ?
Either way I don't see any investor making back that 300,000 or more, specially when they ahve competition and any company can take them out.
Either way I don't see any investor making back that 300,000 or more, specially when they ahve competition and any company can take them out.
i agree.
though i have (sneakily: not revealed) seen some potential.. i just want to hear some key words from Coin corner to see that they have not just grabbed numbers out of the air, and instead have done the maths (i secretly done but not revealed) to show how they can manage it..
Hi franky1,
Answers below in bold
Dragon:
"so 1% of £1mill of customer transactions is £10,000 net FEE income. my question to you is after 1 year you have made only £10k. with 6 employee's, what is your current financial status"
CoinCorner:
"well we paid out 6 employee's wages at an average £30k/year, so thats £180k wage spend. then their is the office, equipment and utility costs.. thats another £40k.. totalling £220k.. so take £10k income from the £220k outgoings and we are at about £210k debt"
As seen in our video, we self funded the company with £50,000 from founders, we then gained Angel Investment of £150,000 from the co-founder of CostaBingo.com and BGO.com. We have no debt, thanks to the commitment of founders to work for a large portion the first 12 months salary free, enabling us to grow to the team we are today.
Dragon:
"well i can see that you are in need of £300k to get out of debt and have some £90k surplus to expand. but tell me. how can you valuate your company at £4million, based solely on £10k income(before costs)"
First, we need to get the numbers correct, it would be £300k to expand with as we have no debt. Secondly valuations for tech startups are infamously difficult, they can be based off traction, sweat equity, potential and more. The Bitcoin and Blockchain industry is a brand new exciting industry with the capabilities to disrupt not just the financial world, but a wide variety of industries. CoinCorner is looking to be a core part of the infrastructure for developers and entrepreneurs to build their idea's around via our API/App store. We of course appreciate the traditional way of valuing a company based off revenue and to some extent agree, but take in to account many tech startups aim for traction before utilizing the userbase with a full monetization plan. We did exactly this, we have monetization plans which is the key part and will be looking to expand on these as we grow.
CoinCorner:
"we hope to expand into europe and get 1million customers in a year"
We are expanding in to Europe and with the funding this will help accelerate our growth to an estimated 100,000 users within 12 months.
Dragon:
"ok 20,000 customers got you £10k. so a million customers gets you £100k.. of which you think we deserve only £6,710(6.71%) if we asked for that money before your own wages/office costs. because im pretty sure. that with £220,000 costs leaving you minus £120,000 we sure as hell wont see any return, if taken after costs."
Hold on Mr Dragon
if 20,000 users gets us £10k, a million customers would be 50x not 10x, so it would gain us £500k.Another dragon:
"as investors we look to make profit within 3-5 years. which at 6.71% return, you would have to have received nearly £5mill in fee's or processed nearly £500million in customer transactions. can you actually see you scaling up from £10k fee's to £5mill fee's within 3 years"
As mentioned previously and in our write up, we have multiple revenue streams to help monetize our userbase, which have not yet begun. With the alternate revenue streams a side, we have also done our calculations and we have a rough TAM of 44,000,000 people in the UK and Europe alone. As banking eases up and we continue to make it easier for people to access bitcoin we can easily see £500 million being transacted within 3-5 years.
Third dragon:
"highlighting that 20k customers nets you £10k(before costs) that averages out to needing 10million customers to net you £5mill in fee's.. the simple question is. does the bitcoin UK/Europe community have 10million users to fill your earning requirements, as i dont think 1mill customers is enough"
This has really already been answered with previous replies.
So Dragons our bank details are...
I hope this clarifies things - please feel free to ask if you have any more questions
