equityEquity
Capital at risk
£1.5m
Valuation
20.0%
Equity share
Capital at risk
Ownership
Minimum investment is £5,000
Ownership share

The Blockchain movement is a significant milestone in the progression of capitalism and the wider internet— here is your chance to be a part of it! FinBlocks, a new FinTech start-up, is a payments and compliance system helping the traditional financial service sector leverage the benefits of Blockchain. They are one of the first companies to develop a software solution which will result in better compliance, security, and more efficient data management in the crypto space.

Bridging traditional financial services and the crypto world

With the raise of crypto currencies, financial institutions need to ensure that they are making themselves future-proof— this is our aim at FinBlocks. We are part of the next big step in the development of the internet, targeting a sector valued at $4.2bn and set to grow $8bn per year. We offer access to the crypto currency market for traditional financial institutions, where there is currently more than $500m in liquidity. This will allow hedge funds, for example, to issue a token (which is like a share) to allow people who own crypto currency to invest in something more tangible. Setting up a distributed transaction ledger will be made easier, and we also perform KYC and AML checks on all users, ensuring heightened security. Third parties can use the system, too, to set-up accounts which can hold client funds in a secure and compliant way.

The service will be marketed and sold to other financial service companies: initially, digital payment systems, crowdfunding platforms, robo-advisors, wealth managers, and peer-to-peer lenders are all business that will form our client base. We will then look to support larger financial service companies such as banks. We have modelled our projected success on what separates us from our competitors, such as MangoPay, a client funds management system, or CheckVault, an escrow system. These platforms aren’t built with a BlockChain at their core and so their technology is soon to be obsolete, therefore creating an opportunity for us to provide superior technology. What makes us unique, then, is our ability to offer future-proof services while supporting more traditional sectors and over the longer term will operate like a Blockchain enabled business bank.

The business will generate revenue through a transaction fee for funds in the system, plus a set-up or on-boarding fee. We aim to generate on average £6,000 per client on an ongoing basis. The system will be further improved to potentially be a full crypto exchange and payments system similar to ‘Circle’, a new Goldman Sachs crypto start-up that just raised $110m.

This new technology benefits financial services and the customers who use them because their data is less vulnerable when replicated numerous times in a decentralised system. It also promises to be a healthy investment as we predict that our client base will grow to 150 financial firms; this is when investors will be repaid as FinBlocks sells the technology into a larger institution such as a global investment bank. In the future, we will develop this into forms of currency. This is a great time to invest exclusively on Crowd2Fund as we continue to evolve the financial sector.

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Equity - product type
Maximum
£ 300k
Raised
£ 300k
Investors
23
Estimated close date
Funded 1 month ago in 10 days

Where will the funds go?

Strategy and planning
£60,000
Design and architecture
£39,975
Software engineering
£100,050
Quality assurance
£39,975
Sales and on-boarding
£60,000

Key people

Chris Hancock
Founder
Simon Rae
Designer
Red cup

Investor rewards

T-shirt and launch event

If you invest £5,000 - £9,999
Get an exclusive, limited edition FinBlocks T-Shirt and get invited to the launch event with other investors. Run your own initial coin offering (ICO) through FinBlocks after the software has launched.

Founding investor

If you invest £10,000 - £49,999
Become a founding investor, receive regular company updates, and learn how to build a Blockchain company. Access exclusive company R&D work to learn about the new sector. Plus the above.

VIP attendance to Global Blockchain conference

If you invest £50,000 - £99,999
Come along with the FinBlocks team to the Global Blockchain event either in Malta or Singapore. Be part of the founding team and help shape the company. Plus the above.

Be a FinBlocks advisor

If you invest £100,000+
Sit on the advisory board for FinBlocks and help shape the future of the company. Plus the above.

A. HMRC specifically say that SEIS does not apply for Financial Service companies or companies holding client funds. There would be ways to work around this legally however does not seem appropriate given that we will be a regulated company. It is likely that the raise will meet its target without this government relief.

A. After some analysis, due to the constraints that SEIS would place on the business and there being some possible restrictions for the type of business we will be conducting we have decided not to apply for pre authorisation. We believe there is enough demand to achieve the target without SEIS for investors.

A. We're working with a design team from Sydney and also have identified 2 Blockchain advisors who have been advising on the design of the system architecture. We're building the system in London and are in the process of hiring one engineer who has payments experience to build the first iteration and help architect the system. After the system has been build an operational and sales team will be put in place that consists of 3 people, including an operational engineer.

A. Yes I will send our business plan, we would also be delighted to speak on the phone.

A. Yes I will send our pitch deck, we would also be delighted to speak on the phone.

A. After some analysis, due to the constraints that SEIS would place on the business and there being some possible restrictions for the type of business we will be conducting we have decided not to apply for pre authorisation. We believe there is enough demand to achieve the target without SEIS for investors.

A. Hey, thanks for your comments. The budget allocations may change depending on the progress of the project. Quality assurance will be an ongoing activity after the product has been launched.

A. The campaign has been put live today and an email alert will be sent next week to the database followed by external activity.

A. The SEIS pre-authorisation is with our lawyers and we are hoping to have the SEIS approved within 6 weeks.

A. The founders of FinBlocks own the remainder of the company currently. However, we expect to bring on additional partners and investors as the firm grows.

A. There aren't many companies focused on Crypto compliance, which is where we believe there is a huge gap and opportunity. Revolut and Coinbase have very different customer propositions to the business-to-business service FinBlocks will be offering. We aim to help modernise the financial service sector through BlockChain.

A. The target valuation is £300m over a number of years. As a start-up it is very difficult to forecast valuations however we believe with the growing market, demand and ambition of the team this can be achieved.

A. The minimum investment is £5000 to ensure that the number of investors is managed as 300 potential investors becomes too many investors to manage, especially with a business to business platform. We hope you decide to invest.

A. The appropriate resources will be put in place to ensure both companies are run and managed correctly. Chris’s involvement will mainly be required at the start to kick-off the project but plans to oversee both companies with the support of a management team with the correct skills.

A. The target market for the service offered by FinBlocks is significant. The clients will be online marketplaces and other crowdfunding platforms initially. Crowd2Fund will potentially use FinBlocks and will benefit significantly as fees will be lower than the current 3rd party payment provider and better security, in addition to giving Crowd2Fund crypto capability in the longer term.

A. We are looking to launch the campaign over the next week or so. We are just waiting to hear from our accountants with regards to SEIS pre authorisation.

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Business brand

London, UK

"Bridging traditional financial services and the crypto world"

Incorporated
0 years, 6 months
Investment strategy
Target valuation
£300,000,000
Target share value
200.0x
 

The target valuation is not a target return on your investment but simply indicates the desired and forecast growth of the platform. If the target valuation is achieved then your shares would need to be sold at this valuation for you to realise the investment.

Investments like these involve risks including loss of capital.
Please see our risk section before making an investment decision.

Risk warning

Investments like these involve risks including loss of capital. Please see our risk section before making an investment decision