envoy - trade finance evolved€¦ · trade finance permeates nearly every aspect of the products...
TRANSCRIPT
Trade Finance Evolved
© 2019 NEB Tech OUAll Slides v1.5
Executive Summary
Major Pain Points:
Transactions still run on manual paper-based systems
Slow, cumbersome and costly processes
Large scale of fraud, errors, and delays
Increasing banking compliance requirements
Considerable cost and finance risk
Trade Finance Industry Facts
Global merchandise imports totalled $17.6 Trillion in 2017
On average, a company uses 70% of working capital to fund imports
Global TF requires over $5 Trillion of external finance
Substantial funding gap of over $1.5 Trillion
Without trade finance the world as we know it would grind to a halt.
Trade finance permeates nearly every aspect of the products we use, from raw materials production, manufacturing, assembly, packaging, distribution, shipping, wholesale, and retail/resale.
We are well aware of the issues the current crypto industry faces with ICO’s, low usage, volatility etc. but we believe proper use of blockchain can solve significant problems plaguing the industry and unlock immense opportunities.
Envoy Brings to the Table
An enterprise grade, end-to-end, business platform Unparalleled commercial abilities and reach Agreed partnerships with the best in class solutions to deliver a
platform and ecosystem ready to hit the ground running Substantial institutional funding secured, removing the need for an
ICO© 2019 NEB Tech OU
Global Trade Finance
Sources:• WTO• ICC Global Survey on Trade Finance 2017, ©International Chamber of Commerce (ICC),
Pg 56, https://www.wto.org/english/res_e/statis_e/wts2017_e/wts2017_e.pdf• https://cdn.iccwbo.org/content/uploads/sites/3/2017/06/2017-rethinking-trade-finance.pdf
Line/Bubble colour represents 2016-20 CAGR / Source: BCG Trade Finance Model 2016 / Note: Forecasts are at constant FX rates
$17.2 trillion worldwide exports
$17.6 trillion worldwide imports
$36 billion world trade finance revenue in 2016
Projected 4.7% annual revenue growth to $44 billion in 2020
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Image: World Economic Forum Report
The Financing Gap
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Our Vision for Trade Finance
Stakeholders are silo’d and the complex cross-border
network is difficult to navigate with restrictions to
data flow resulting in decreased trade.
Envoy is an end-to-end trade finance solution. It is a single source solution utilizing DLT innovation and distills down complex networks into the
essential processes.
Technical solutions are hard to come by and slow to be
adopted. Pace of innovation has stagnated and very little
is being done to remedy.
Envoy is a first mover within the innovation-starved trade finance sector. It’s scalable and poised to immediately benefit from an untapped
trillion dollar industry.
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Our Vision for Trade Finance - Lending
Deploying new digital solutions in banking is slow
due to significant regulation. Information is restricted so
cooperation is low and innovation is stagnant.
Envoy’s platform bypasses the need for traditional
lenders and leaves behind the antiquated and
restricted marketplace to bring innovative solutions.
The trade finance gap is in the trillions. Local banks lack
necessary correspondent relationships to finance
international trade.
Envoy’s platform token, NVOY allows financiers to
partially fund contracts and opens the pool of
correspondent relationships to each lender/contract.
Banks force sellers to take a significant haircut on their profits due to fees and commissions. Bank governed Letters of Credit are slow and expensive to issue.
Financing is highly transparent and credit can be instantly extended. Contracts can be set designating the maximum acceptable finance risk threshold. Envoy’s risk database
rates users for more informed decisions.
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Our Vision for Trade Finance – Logistics
Current manual processes are paper-based and are
therefore error prone, costly, and creates fraud and
compliance risk.
Verified records are tamper-proof and immutable. Saving
records on Corda network ensures records are
cryptographically secure and access is permissioned.
Centralized data systems are vulnerable and easily compromised or lost.
Retrieving data from third parties can be time
consuming.
Data housed on the Corda network is more secure than traditional cloud or in-house data storage. Data access is
restricted and/or permissioned only to the
appropriate parties.
Traditional trade finance incurs a high cost for verification. Documents must be separately audited by each stakeholder to verify authenticity and accuracy.
Smart records created by Envoy are immutable and trustworthy since they are only created when triggered by a smart contract. Significant time and cost savings through
customs clearance, lower time in warehouse, and automatically verified records.
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Why Blockchain (DLT)
Partner API for end to end supply chain
Digital LC, BoL, and other documents
Anti-fraud protection, KYC, and validation
Permissioned private ledger
IoT 3PL (logistics)
Credit risk scoring and data analysis
Low cost and fast cross-border payments
Immutable records with full audit trail
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Rejected Trade Finance Transactions (By Region)
20%
Americas region accounts for roughly $300 billion of the global trade finance gap
SMEs and small cap companies make up a significant portion of this gap
The LATAM finance gap is a severely underserved and untapped market opportunity
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LATAM Market Opportunity
Finance Contract Type Estimated trade volumes Y1($M)
Estimated trade volumes Y2($M)
In Ground Financing $189M $245M
In Warehouse Financing $315M $385M
At Refinery Financing $189M $245M
In Transit Financing #1 - Land $450M $700M
In Transit Financing #2 - Sea $450M $700M
Envoy is already partnered with large commodities traders who are keen for innovation and eager to embrace new technology.
Our partners have long awaited a modern trade finance solution.
Currently active in the Latin America commodities trade
Conducting significant trade in the LATAM region
Agreements in place to begin migrating operations to Envoy immediately upon launch
Ready to launch test trades upon release of beta platform
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Envoy Use CaseConventional Business Process Flow
Supplier provides goods under contract
Debt assigned from Buyer to Seller upon invoicing
Factor agreement made between Financier and Seller
Seller sends notice of assignment to Buyer
Buyer’s debt is transferred to Factor
Factor posts collateral to prepay invoice at agreed price
Buyer repays debt as per the invoice terms
Factor pays remaining discounted invoice balance to Seller
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Envoy Use CaseEnvoy’s Blockchain Based Solution
Supplier provides goods under contract
Debt assigned from Buyer to Seller upon invoicing
Supplier lists on Envoy’s p2p marketplace for financing
Multiple finance proposals presented to supplier
Supplier chooses the most advantageous rates
Financiers bid on available contracts. Partial contract bids are pooled. Risk rating calculated from
past transaction history Credit rating provided
from traditional rating agencies
Pooled financing accepted and settlement process follows traditional workflow but with enhanced transparency, increased security, and real-time updates for relevant parties
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Envoy Ecosystem
Financier co-pays on behalf of Buyer and takes title
Seller sends goods
Goods arrive at destination
Smart contract releases goods
Buyer pays balance and fees
Smart contract releases full payment to Seller
Financier pays remaining discounted invoice balance to Seller
All fees settled on platform using NVOY tokens
Buyer pays initial deposit (NVOY)
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Complete End to End Trade Finance Workflow
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Secure, Scalable, and Reliable
Data-at-rest encryption, support MS SQL always encrypt
Data-in-transit encryption, firewall, TLS
Hybrid deployment – cloud and on-premises simultaneously
DLT high availability (HA) – support upgrade in a live network
API gateways, connectivity
Certificate revocation and renewal
Real-time DLT health monitoring – CBMon
Inter-ledger connection (available soon)
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Technical Framework
Corda Enterprise 4.0
Web Services Frameworks: Spring Boot, Spring Security, Spring Cloud
Frontend Frameworks: Angular JS/React JS
API Architecture: REST/gRPC microservices
Programming Languages: Java, Kotlin
Deployment: Amazon AWS
CI/CD: Jenkins
© 2019 NEB Tech OU
Highlights and Features
Utilizing best-in-class third party solutions to facilitate connections with legacy users for a true end-to-end solution Single-source document repository for customs
clearance, insurance, duty and audit trail
Oracles for legacy ERP/SAP connectivity
Off-chain document retrieval and conversion (including BL, invoices, etc.)
Third party logistics, IoT goods validation and audit checks
Multiple financing, settlement, and logistical solutions Digital finance/logistics documents including Letters
of Credit, Bills of Lading, etc.
On-platform collateral, payment, and settlement
AR Financing/Factoring
Forfaiting
Repurchase (Repo) Financing
Warehouse & Invoice Financing
Supply Chain Financing
Confidential Discounting
Invoice Discounting
Platform usability and flexibility Risk data oracle plugin & insurance development
Enhanced custom GUI functionality for each user type
Simple document upload and retrieval
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Feature Rich and Flexible
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Marketplace Liquidity
Enigma fund is a $2 billion dollar fund created to operate exclusively on the Envoy
platform Provides liquidity to funds contracts on the
platform
Creates a stable marketplace and ensures access to all participants
Semi-automated trade fund monitored by active professional fund managers
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The Enigma Fund
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Investment Structure
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Exchange Listing Strategy
© 2019 NEB Tech OU
Tech firm digitising bill of lading to a new era in
supply chain
Innovative blockchain team for logistics and trade
Bolero delivers secure, end-to-end, cloud-based services that digitise trade processes and transactions, providing greater visibility, transparency and control making it safer, smarter and faster to trade.
Global security goods validation. World leading inspection, verification, testing and certification company
Focus on Supply Chain Partners
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Technology Partners
Stellar based NVOY token provides fiat anchors and lighting transaction speeds for payments
Data oracles, logistics oracles and SWIFT blockchain payments
Enterprise grade marketplace engaging banks, corporations, and tech community to aid development of trade finance and supply chain
CorDappinteroperable partner marketplace to engage off-chain plugins for trade finance and supply chain
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IBM’s Trusted source of information and digital identity that simplifies KYC and accelerates supplier onboarding, reducing time to first transaction
Financial integration tech team with 10+ years of hands-on experience. A founding member of the Linux Foundation’s Hyperledger with SWIFT integration experience and partnership Blockchain projects, including Ethereum Smart Contracts
A technology company focusing on developing, deploying, and operating Blockchain systems in the financial services industry.
Innovative financiers with a vision to bring blockchain enhanced business to a new era of trade
Embracing innovation in Oil and gas trading. This team bring their field of corporate energy trading into blockchain by supporting blockchain enhanced trade.
Estonian and Scandinavian legal 500 team specializing in logistics, supply chain and blockchain. Feel secure knowing Njord’s tier 1 legal support is behind Envoy
Financier Partners and More
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Providing liquidity and optimal execution strategies for digital assets
Greensill, latam banks &
funds
Beta test
Roadmap
Sign $12.52 million deal with Alcedo Tech Fund
Q2 2019
Supplychain partner
build
Q2 2019
Sign Latam commoditie
s tradecontracts
Q3 2019
Test tradeLatam
Q3 2019 Q3 2019 Q4 2019 Q4 2019 Q4 2019 Q4 2019 Q4 2019
LaunchNVOY
token onexchanges
stage 1
Add eBL, Logistics and
othersuplychainplatform
enhancingfeatures
LaunchNVOY
token onexchanges
stage 2
Test tradeAfrica
Sign Africacommoditi
es tradecontracts
CompleteEnvoy MVP
Q2 2019
© 2019 NEB Tech OU
$120,000 User Case Partners
$140,000 CEO
$2,500,000 ADV
$7,500,000 Equity Partners
$100,000 Friends & Family
Currently Committed Investments
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Use of Funds
20% Founders and Exchange Listings 10% Enterprise growth & marketing 25% Working capital & Operational setup
10% Legal & compliance 15% Advisory and team 20% Working capital, R&D
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Envoy (NVOY) Discount Table
© 2019 NEB Tech OU
* DISCLAIMER ON HYPOTHETICAL VALUESNVOY Is not an investment product. NOVY is used for access to the Envoy platform and services. Since NVOY is limited in supply, the nominal price to access the platform may fluctuate over time.The figures shown above are for illustrative purposes only in order to help gauge the potential expenses required for participation.
Terms and Valuation
© 2019 NEB Tech OU
Series A, Round 1
2 lots available*
Seeking $3.13m cash investment
In exchange for 7.5% equity stake in NEB
Tech OU
$3.13m worth of NVOY tokens valued at $0.22/NVOY**(3.75% of total supply of 250m NVOY)
Valuation Factors ADV investment brings on
board significant use case partners
Average trade size: $4.49m
Contracts per year: 1,200
Platform contract valuation: $5.26b
NVOY total supply initial valuation: $55m
Series A, Round 2
3 lots available*
Seeking $3.13m cash investment
In exchange for 5% equity stake in NEB Tech
OU
$1.375m worth of NVOY tokens valued at $0.22/NVOY** (2.5% of total supply of 250m NVOY)
Profit & LossAll figures in $USD
Financial Projections
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Financial Projections (continued)
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Envoy Equity & NVOY Token Projected Valuation
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100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
Series ARound 1
MVP Series ARound 2
NVOY TokenRelease
Test Trade Beta Envoy Launch Enigma Launch eBL, Risk, InsuranceConnected
Region 2 Connected ValidatorsConnected
Total Combined Valuation
Company Equity Value (Envoy)
Token Market Cap (NVOY)
Core Team
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Trade Finance Team and Advisors
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THANK YOUNEB Tech reg:14740692
Email: [email protected]
www.linkedin.com/company/envoytoken/
www.envoychain.iowww.nebtech.tech
© 2019 NEB Tech OU