The BlockScope Group (BSG) is a multi-jurisdictional group of companies specialised in blockchain and cryptocurrency software development. The group was launched in January 2018 and generated over €1.2M in revenue in its first eleven months of operations. The Group is raising €5M in Series A funding at a €20M post money valuation in order to:

  1. Expand its sales and account management teams
  2. Fund two major product launch campaigns
  3. Accelerate product development.

The group has expanded to a headcount of 10, with 70% of payroll belonging to the development team, ensuring a high revenue per employee ratio. Marketing and sales make up the remaining 30%.

The BlockScope group has developed and launched three significant software platforms. The primary platform is RefToken.io, a decentralised affiliate platform. This software stack powers the ICO Launch Malta ICO and STO platform which has been the driver of revenues to date, as well as RefToken Payments, a fiat to token payment gateway that facilitates the sale of tokens, bypassing the need for an exchange. The BlockScope group is one of the few profitable startups in the blockchain space, and has not had a negative quarter since inception despite being born into a bear market that has resulted in an 80% contraction of the sector. We have won the prestigious Startup of the year award at the Malta Blockchain Summit, and have been featured in most major crypto news outlets. Our CEO is a fixture on the European Blockchain Conference speaking circuit, establishing us as thought leaders in the space.

The BlockScope group is targeting three major sectors:

  • The affiliate marketing sector with a total addressable market size if $6.8B
  • The security token offering sector with $10T in projected offerings over the next two years
  • The blockchain payment sector with a forecasted value of $1B in the next two years

ICO Launch Malta

Our ICO Launch Malta division wins the startup of the year award at the Malta blockchain summit.

Meet the RefToken devs team

Behind the scenes with the team as they prepare to launch the next iteration of the RefToken Platform

We have established ourselves as thought leaders in the sector

Investment Opportunity

Overview

The Blockscope Group is looking to raise €5M in Series A funding at a €20M pre-money valuation which will be used for:

  • Expanding the business development team and expand client acquisition activities
  • Expanding the development team to deliver additional products and accelerate delivery of current projects
  • Expanding trading activities for RefToken’s native token
  • Pursuing new opportunities that may arise from time to time

Investors will receive a security token which will entitle them to a pro-rata share of dividends on an annual basis, Additional rights will be limited to drag-along rights and buyout rights at 5 years profit payments calculated off the average of the last three payments.

Total addressable market

RefToken

The affiliate marketing sector is forecasted to grow to $6.8B by 2020, whilst the global blockchain technology market size is expected to reach USD 7.59 billion by 2024, according to a new report by Grand View Research. The RefToken platform is positioned at the nexus of these two high growth sectors which are interdependent on each other for survival. Developers are traditionally poor marketers, while marketers require a flow of fresh and exciting products to promote to their audiences. RefToken connects the two, via its affiliate platform, charging 5% on gross revenue. The platform is built around the platform’s native token (REF), offering a further capital appreciation opportunity as tokens will be sold via the Payment Gateway on site at market price which will slowly appreciate should the company opt to not release the tokens it charges as fees onto the open market.

RefToken Payments

As of August 2018 ERC20 tokens (the Ethereum blockchains native token protocol) have grown to 40% of Ethereum’s market cap. There are over 1,500 ERC20 tokens in existence, with a median 24 HR trading volume of $2M which comprises of both speculative trading, as well as users buying tokens for use on platforms and platforms re-selling them for ETH or BTC. The Payment Gateway will charge a percentage (still to be determined) fee on all transactions. For benchmarking purposes, PayPal charges a 2.9% +$0.30 fee per sale.

ICO Launch Malta

Despite the bearish market the according to a joint report from consulting firm PwC and the Swiss Crypto Valley Association, ICOs are booming despite the price collapse of cryptocurrencies. Per the report, between January and May 2018 alone, ICO volume is already twice as much as it was during the entire year of 2017. PwC Switzerland writes:

“In total, 537 ICOs with a total volume of more than $13.7 billion have been registered since the beginning of the year. In comparison, in 2017 there were a total of 552 ICOs with a volume of just over $7.0 billion. Also, the average size of an ICO has almost doubled from $12.8 million to over $25.5 million since last year. “

On the security token front, the REIT and bond markets are the most obvious candidates for migration to the blockchain, as the greater liquidity and price discovery will enhance these market’s efficiency. The STO sector is forecasted to grow to $10T in the next two years as more securities move to the blockchain and the Nasdaq integrates blockchain technology into its core offering. (Nasdaq referenced ICO Launch Malta as leaders in the space in this article).

The pricing structure for the ILM platform is fixed for both ICOs and STOs, however includes a 2% fee on gross raise from STOs.

Fund Allocation

Funds raised will be utilised to expand revenue driving teams and activities. Successful closing of this funding round will provide the company with a three year runway, as well as reserves to operate at a strategic, rather than tactical level.

Why are we raising capital?

The bear market of 2018 has wiped out 90% of our reserves at a point in which we need to accelerate spending to fuel growth.

What are we going do with the raised capital?

  • Create sales and revenue driving teams
  • Fund marketing campaigns for product launches
  • Expand development team

Key milestones for 2019

  • RefToken full product launch
  • RefToken Payments full product launch
  • STO dividend issuing platform public launch
  • Asset-backed token management platform public launch

Key Hires

With a fully rounded product offering, it is time for BlockScope to expand its Sales, Marketing and Account Management teams in order to drive growth. Forecasted hires are:

  • Two account managers
  • One marketing exec (reporting to head of operations)
  • One JR Blockchain developer

Do we sound like the right fit for your portfolio?

Lets get a deal going.