bitrush investor deck
TRANSCRIPT
[M]
We invent CryptoBusinesspresented by
BitRush Corporation Mooslackengasse 171190 Vienna
133 Richmond Str WToronto M3H 2L3
www.bitrush.co
Join the BitRush today
BitRush.co∣The Bitcoin Group
Disclaimer
This confidential presentation has been prepared by The Streetwear Corpation purely for the purpose of introducing selected potential investors to The Streetwear Corporation. It is not intended to be a comprehensive description of the project. Furthermore this presentation is neither an offer to sell nor an invitation to subscribe for the securities of the company. The information contained herein, and any opinions and conclusions expressed, are presented in good faith. They are, however, subject to modification.
In particular The Streetwear Corp makes no representations as to their accuracy or reliability. The Streetwear Corporation can accept no legal liability for the consequences of Inaccuracy of any of the data, opinions or forward-looking statements contained herein.
This presentation may include forward-looking information within the meaning of Canadian securities legislation, concerning the business and trading in the common stock of The Streetwear Corporation. The forward-looking information is based on certain key expectations and assumptions made by the company's management. Although the company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the company can give no assurance that they will prove to be correct.
By viewing the investment materials, you certify that you are legally entitled to view the investment opportunities, are an authorized investor and you agree to all applicable terms and conditions, including this disclaimer.
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Part IIntroducingthe Market
Part IIPresenting
BitRush
Part IIITransaction &
Offer to Investors
[M]
IntroducingThe MarketCryptoBusiness
Software will eat the worldMarc Andreessen
Web Pioneer
BitRush.co∣The Bitcoin Group
Computers &PC‘s
Internet & Web
Number ofconnected
devices
Number ofconnectedpeople
1,000
50 billion
5,000
4 billion
Sources: Gartner, Forecast: The Internet of Things, Worldwide, 2013, European Comsission, Digital Economy, Facts & Figures, 2014
1984 20202015
Transformation to Digital EconomyCryptoCurrencies – Replacing FIAT money
DigitalEconomydistributed
Microsoft
Intel DELL
LotusNovell
Yahoo!eBay
Amazon
Dropbox
Fujitsu
Compaq
HP
Apple
Wikipedia CoinbaseXAPO
Wordpress
PhysicalEconomycentralized
CISCO
Real money &FIAT money
Real money &Cryptocurrency
Internet of Things& CryptoBusiness
BitRush.co∣The Bitcoin Group
What we are talking about?
Cryptography ∣techniques for secure communication in the presence of third parties.
Cryptocurrency ∣digital money using cryptography to secure transactions.
CryptoBusiness ∣a business based on cryptocurrency and cryptography.
Bitcoin ∣the leading cryptocurrency with a marketshare > 90%.
Bitcoin Mining ∣Mining is a record-keeping service. Miners keep the block chain consistent, by verifying newly broadcast transactions into so called blocks. For doing that work they are rewarded with new (mined) Bitcoins.
Bitcoin Wallet ∣the Bitcoin software (open source) installed on computers, tablets and smartphones.
Blockchain ∣a public ledger that records bitcoin transactions, a peer-to-peer system.
Peer-to-Peer ∣a network of computers (peers) without central servers or authorities.
BitRush.co∣The Bitcoin Group
Why we need CryptoBusiness!The evolution of the digital world
Decentralized World ∣the modern digital world is highly fragmented and decentralized, often organized in „Decentral Autonomous Organisations (DAO‘s)“ – CryptoBusiness is designed to work as a decentralized and self-organising ecosphere (peer-to-peer);
Algorithm Based ∣a dezentralized world with billions of networked devices and people (Internet of Things) needs algorithm-based solutions. CryptoBusiness is designed to be algorithm based without the need of a central authority;
Security & Privacy ∣central systems can be hacked and destroyed. Decentral and algorithm based systems employing cryptography can hardly be hacked. CryptoBusiness protects privacy and provides transaction security without „big brothers“;
Seemless Global World ∣the digital economy works on a global scale, digital products know no national borders. Cryptocurrencies and algorithm based payment processes are the „native“ means of payment for digital goods;
BitRush.co∣The Bitcoin Group
Wallet
Blockchainclient
BitcoinCryptoCurrency
Unit of AccountMedium of Exchange
Store of Value
Bitcoin WalletOpen Source Software
for peer-to-peercomputing, stores the
information necessaryto transact bitcoins.
Distributed databaseas peer of
the blockchain.
Database
The Blockchain – a public ledgerA cryptographic peer-to-peer network
The Anatomy of CryptocurrencyBitcoin, Blockchain and their components
BitRush.co∣The Bitcoin Group
The Bitcoin Market
Data sources: BitPay, CoinDesk, Blockchain.info, BitcoinPulse, Github, Coin ATM Radar.Figures are cumulative from start of records, except unique bitcoin addresses and media mentions, which are figures for the quarter ending that month.(*) merchants‘ total annual revenue including bitcoin and real currencies
Quarterly Last 12 Months Mar-15 Dec-14 Q/Q Δ Mar-14 ΔBitcoin Commerce
Wallets 8,457,207 7,396,772 14% 4,448,142 2xMerchants 100,000 82,000 22% 52,704 2xMerchants’ annual revenue ($bn)* 180 180 0% 2 78xATMs 374 342 9% 47 8xUnique bitcoin addresses 203,189 157,377 29% 137,342 1x
IndustryAll-time VC investment ($m) $676 $447 51% $164 4xNumber of VC-backed startups 103 89 16% 47 2x
TechnologyNetwork hash rate (billion/second) 346,028,956 313,142,289 11% 41,813,922 8xGithub no. of updated repositories 27,857 23,249 20% 9,915 3x
BitRush.co∣The Bitcoin Group
2013
Bitc
oin
2014
Bitc
oin
1995
Inte
rnet
*$0
$50
$100
$150
$200
$250
$300
$350
$95.8
$334.8
$250.1
Bitcoin vs Early Internet VC Investment ($m)
Investment Opportunity WindowBitcoin 2015 is where Internet was 1996
Sources: CoinDesk, PricewaterhouseCoopers and MezzaCap(*) based on available information
Coinbase:• Founded: 2012• Funding: USD 106 M• Valuation: USD 400 M*
Blockstream:• Founded: 2014• Funding: USD 21 M• Valuation: USD 180 M*
Blockchain:• Founded: 2011• Funding: USD 30 M• Valuation: USD 320 M*
Xapo:• Founded: 2012• Funding: USD 40 M• Valuation: USD 300 M*
21 Inc:• Founded: 2013• Funding: USD 121 M• Valuation: USD 500 M*
Peernova:• Founded: 2014• Funding: USD 19 M• Valuation: USD 80 M*
*Includes first sequence venture deals but excludes late-stage 1995 Internet investments ($257.6m). For additional
disclosure on methodology see www.coindesk.com/following-money-trends-bitcoin-venture-capital-investment/
CryptoBusiness StartupsFounding, Funding & Valuation
Circle:• Founded: 2013• Funding: USD 46 M• Valuation: USD 246 M*
BitRush.co∣The Bitcoin Group
What they say about Bitcoin
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PresentingBitRush Corp
BitRush.co∣The Bitcoin Group
BitRush Core TeamExperienced and passionate people
Peter LukeschCEO
Experienced entrepreneur & manager. Former metals trader in London and in New York. Served on board of public companies. He is an early bitcoin investor.
Elfriede SixtCorporate Adviser
Former partner of Ernst & Youngacting as Head of CorporateFinance Austria.Founder and chairman of the FinTech AustriaAssociation. Runs Bitcoin ExpoVienna.
Joachim KalcherChief Technology OfficerJoachim is an experienced
entrepreneur and co-founder ofseveral tech startups. Worked as
security consultant for leadinginternational companies. Heholds a PhD in informatics.
Werner BoehmBusiness Development
Has more than 15 years of experience as serial internetentrepreneur. Worked asManaging director for IBM andfor European Banks. EarlyBitcoin investor.
Fred DobiasBusiness Development
Has more than 20 years of experience as business angel.He is invested in a broad port-folio of startups . He is an expertin internet payment systems.
Stefan ZapotockyCorporate Finance
Founder and managing Partner ofLPC Capital Partners, a privateequity company. Over 34years experience in the financialsector, including 6 years as CEOof the Vienna Stock Exchange
BitRush.co∣The Bitcoin Group
More than 15% of global Bitcoin Users visit BitRush websites*
[The Situation]
CryptoBusiness (based on Bitcoin & others)• is global and fast growing • is still in its early stages• is „the future of finance“ (Goldman Sachs)
Governments & financial establishment are approachingCryptocurrencies (e.g. NY Bitlicense).
[BitRush‘s answers]• We already built and incubated CryptoBusiness ventures on global scale• We are a smart investor with more than 20 years digital experience• Leading Bitcoin incubator in Central & Eastern Europe (CEE)• We have an excellent track record, a remarkable market share and a convincing strategy
(*) Sources and notes: Juniper Research and Google Analytics . The number of worlwide Bitcoins users is estimated to be between 1.5 to 1.8 million in Q1 2015.
BitRush numbers are based on active users per month
1.5 Mactive Bitcoin
users worldwide*
up to 250,000visit BitRush sites*
BitRush.co∣The Bitcoin Group
What to expect! BitRush drives a highly scaleable business model
ConsolidatedRevenue
inUSD `000
Time2014 2015 2016 2017 2018
Growth Drivers:• growing user base along with growing market• new services for growing revenue• enforced penetration of BRICS and CEE
Bitcoin‘sPoint of
no Return
36 510*
1,530
4,590
10,200
(*) based on existing business and already signed contracts & LOI‘s
mezzacap.com ∣the-streetwear.co
Reported Business SegmentsPortal & Incubator Business with high scaleability
BusinessSegments*
B1:BitRush Portal
B2:Incubator &Investment
Bitcoin enabledConsumer Services
Entertainment, Gaming & Payment
Start-it.coIncubator Platform
Build & Develop promising startups
(*) as stated in sector 4 of the Listing Statement (Form 2A) for Canadian Securities Exchange (prospectus)
Synergies
BitRush.co∣The Bitcoin Group
BitRush Corporate AssetsTechnology – Domains - Shares
Assets
BitCoreTechnology
Domains &Websites
payment engine
gaming engine
32 Domains
17 Websites
2.8* M
(*) based on URLrate.com as of April 2015(**) applying industry multiples to projections(***) investment into technology to date
10** M
Investments
LuckySymbols Ltd (51%)
JokerTimes Ltd(51%)
4***M
Coinfinity (LOI)www.coinfinity.co
BitRush.co∣The Bitcoin Group
We Deploy a Proven Business Model*Excellence based on CryptoTechnology
BitCore Technology FrameworkPayment – Gaming
BitRush.LandPortal
Start-itIncubator Platform
Entertainment Svcs Payment Svcs
Entertainment Startup Payment Startup
(*) Compareable to Amazons business model with Amazon Retail (BitRush.Land) and Amazon Web Services (Start-it)
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BitRush.landThe Portal
BitRush.Land – The Bitcoin PortalThe cryptocurrency lifestyle place!
FlagshipSites
FlagshipSites
AffiliatedSites
AffiliatedSites
AffiliatedSites
The Mission: Build the leading* Bitcoin enabled Lifestyle & Entertainment portal for the cryptocurrency ecosphere
The „Affiliate Approach“ BitRush‘s own flagship sites AND affiliated sites (start-it startups & other affiliates)
The Services Cryptocurrency Payment Services Entertainment Merchandising
(*) leading in terms of unique users, registered users and revenue
BitCore Technology FrameworkPayment – Gaming
BitRush.co∣The Bitcoin Group
„Start-it CryptoBusiness Incubator Platform“Infrastructure – Finance – Know How – Resources
Startup Junior* Startup Junior* Startup
Build a Cryptocurrency EcosphereScreen market – Support Startups – Invest
BitRush „Start-it Platform“ (www.start-it.co) opens in July 2015
Sales & MarketingCorporate ServicesHosting Services
1 & 1 (Munich)
FinTech Academy (Vienna)
Made Simple Group (London)
(*) a „Junior“ is a startup we are incubating or we are invested in
BitRush user base& ad broker site
[M]
March to June 2015
Real-Time StatsJune 28, 2015, 9.45 am
JokerTimes Data:
• Nearly 400,000 Unique Users from more than 200 countries worldwide• More than 100,000 registered Bitcoin users• Alexa Ranking 160,000 within 20 weeks• One of fastest growing websites worldwide• Estimated Valuation: USD 3 – 5 Mio*
Source: Google Analytics, Alexa(*) based on USD 30 – 50 per registered user
JokerTimes Milestones until YE 2015:
• Launch of fee premium services• points of sale in physical stores
should result in:• Top 20,000 in Alexa Ranking• More than 750,000 Unique Users• More than 200,000 registered Users• More than 50,000 paying users
Introducing Project „JokerTimes“Bitcoin Entertainment and Gaming
Source: Google Analytics
Source: Google Analytics Real-Time Statistics
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March to June 2015
Real-Time StatsJune 28, 2015, 9.48 am
PinkTussy Milestones until YE 2015:
• Launch of fee premium services• Merchandising with affiliate program in partnership with Spreadshirt
should result in:• Top 10,000 in Alexa Ranking• More than 1,000,000 Unique Users• More than 300,000 registered Users• More than 50,000 merchandising customers
Source: Google Analytics
Source: Google Analytics Real-Time Statistics
PinkTussy Data:
• More than 580,000 Unique Users from more than 220 countries worldwide• More than 120,000 registered Bitcoin users• Alexa Ranking 50,000 within 18 weeks• One of fastest growing websites worldwide• Estimated Valuation: USD 3.5 – 6 Mio*
Source: Google Analytics, Alexa(*) based on USD 30 – 50 per registered user
Introducing Project „PinkTussy“Bitcoin Entertainment and Merchandising
BitRush.co∣The Bitcoin Group
Source: Google Analytics
BitRush‘s websites have a dominant market shares in BRICS & Central & Eastern Europe (CEE), a fast growing user base in US and Asia Pacific Region, strong brand names within the ecosphere
BitRush‘s Daily Statistics:
• Own and incubated websites• 200,000 – 250,000 Unique Users• 1.5 Mio Page Views• 3 – 5 Mio Bitcoin (micro)transactions• Estimated 15% market share in global Bitcoin market
Leading Sites to build on
Brands, power and trafficof existing BitRush‘s websites are thekey success factors for a BitRush.Landportal site and Start-it incubatorplatform
BitRush – Snapshot and Status QuoA driving force in the Cryptocurrency Ecosphere
Russia
Ukraine
U.S.
BitRush.co∣The Bitcoin Group
2014 2015 2016 2017 2018
0%10%20%30%40%50%60%70%80%90%
100%
Consolidated Revenue Streams*
InvestmentServices & FeesAdvertising
Revenue Streams Now and ThenAdvertising – Service - Investment
(*) Revenue of MezzaCap, BitRush‘s own projects and startups
BitRush.co∣The Bitcoin Group
Development of Revenue StreamsThe evolution of our business model
Revenues
Time2014 2015 2016 2017 2018 2019
Advertisingrevenues
Service & feerevenues
Investmentrevenues
Traffic GeneratingWebsites
Fee basedweb offers andmerchandising
InvestmentTransactions
Build user base,offer free services
develop userbase, expand Start-it platform
evolve withthe market
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Transaction &Offer to
Investors
BitRush.co∣The Bitcoin Group
The StreetwearCorporation
(TSC)
MezzaCapLtd
BitRushCorporation
(MZC)
MezzaCapLtd
ShareholdersMezzaCap
Ltd
ShareholdersTSC
68%32%
100%
The TransactionReverse Takeover on CSE*
Board Members:• Peter Lukesch• Fred Dobias• Warren Hawkins• Andrew McQuire• Franz Kozich
Directors:• Werner Boehm• Fred Dobias
(*) Approved by AGM on June 26, 2015
BitRush.co∣The Bitcoin Group
Valuation MZCBased on business plans and multiples
Valuationin USD Mio
Time2014 2015 2016 2017 2018 2019
Traffic GeneratingWebsites
Fee basedweb offers
InvestmentTransactions
255075
100125150175200225250
Advertisingrevenues
Service & feerevenues
Investmentrevenues
Business plans are available upon request
BitRush.co∣The Bitcoin Group
The Privat Placement Offer
Capitalization before Private Placement
• Common shares issued and outstanding YE 2014: 26.6 million • Shares issued upon the acquisition of MezzaCap: 83.3 million • Concurrent Financing: 10 million• Finders Fee: 5 million
Private Placement offer:• 10 million shares at a price of CAD 0.05 (plus full warrants at CAD 0.10 per share)• Represents up to 8% of the fully diluted capital• Proceeds: up to CAD 500,000
20%
68%
4%
8%
Percentage
Old Share-holdersMezzaCapFinders FeeConcurrent Financing
BitRush.co∣The Bitcoin Group
Use of ProceedsWe invest to grow!
Bitcoin Gaming App(LuckySymbols)
Invest into Startupsin Canada, UK, CEE
JokerTimes(Entertainment)
Acquire Payment Platform
(Coinfinity)
ProceedsCAD
500,000
CAD50K
CAD100K
CAD150K
CAD100K
Corporate, organization &Infrastructure
CAD100K
[M]Thank You for Your Interest!
Contact us for a copy of our Business Plan and the Private Placement Memorandum. Contact Peter LukeschCEO| DirectorContact Werner BoehmEVP Business Development
The Streetwear Corpation133 Richmond Str W, Suite 403Toronto Ontario M3H [email protected] | [email protected] Streetwear Corporation is listed on the CSE in Toronto under the symbol ARPand on Deutsche Boerse in Frankfurt under the symbol 0XS.