Presale Ventures. Virtual Decentralized Venture Fund and Seed Accelerator for Blockchain Start-ups. February 2018

Transcription

1 Presale Ventures Virtual Decentralized Venture Fund and Seed Accelerator for Blockchain Start-ups February 2018 Ver /02/ Digital Assets Corporation. All rights reserved Page 1 of 43 Pages

2 Table of Contents 1. Abstract Introduction Why Presale Ventures? Value Proposition Background Bitcoin & Cryptocurrency The Blockchain and DLT Start-ups Initial Coin Offering (ICO) Crowdfunding, Private Equity & Accelerators Purpose Presale Ventures - A Blockchain Startup Accelerator Why Focus on the Presale Stage? The Crypto Community Harnessing the Wisdom of the Crowd Impartiality, Neutrality and Objectives Planning for the 'Peak' Key Virtues of Presale Ventures Ver /02/ Digital Assets Corporation. All rights reserved Page 2 of 43 Pages

3 7. Ecosystem The Platform For Presale Ventures' Members For Start-ups Acceleration Long-term Goals Roadmap Economy Terms Cycle & Workflow Outcomes for Start-ups Use of Funds EVENT Tokens Allocation after Successful IMO About Us Founders Team Members Conclusion Disclaimer and Limitation of Liability Ver /02/ Digital Assets Corporation. All rights reserved Page 3 of 43 Pages

4 1. Abstract Presale Ventures' unique model is based on the experience of over 50 worldwide seed capital fundraising events for more than 1,500 start-ups, a blend of business, commercial and legal proven methodologies. The Presale Ventures Virtual, Decentralized Venture Fund and seed accelerator incorporate a unique business model into a Members Only single, state-of-the-art online platform. By harnessing purchase group buying power, Wisdom of the Crowd, in-house acceleration fund and a remarkable token ecosystem Presale Ventures provides a safe, smart, platform for Crypto investments in emerging Blockchain start-ups during their initial coin offering ( ICO ) presale stage. Presale Ventures provides exclusive early-bird investment opportunities for its members, enabling the astounding financial prospects, previously reserved for highly-networked and affluent investors, to be more readily available to a far broader demographic. By utilising Presale Ventures' hybrid, algorithm based, expert and crypto-community screening and due diligence processes, Presale Ventures' members are shielded from malicious fundraising practices and become privy to exclusive, highly-discounted and Blockchain-backed investment opportunities, before their ICO event. Unlike other ICO models, where the link between a start-up and its newly issued tokens is severed after the completion of the ICO and the value of the tokens has almost nothing to do with the performance of the start-up, Presale Ventures backers and contributors will appreciate our innovative incorporation of a tokens as a license model and the continued use of the tokens as an integral part of the platform, even once the ICO is over. Presale Ventures EVENT tokens ( EVENT ) 1 are utilised to validate members eligibility to take part in astounding investment opportunities and as the preferred payment mechanism for the purchase of startups newly issued tokens. This constant use of EVENT tokens through the platform will make a significant difference in the life expectancy and value of our EVENT tokens - and any other tokens out there. Presale Ventures is committed to maximally reducing members investment risks and increasing their return on investment (ROI) with innovative and supplementary programs. 1 EVENT is an ERC-20 standard-based Ethereum token Ver /02/ Digital Assets Corporation. All rights reserved Page 4 of 43 Pages

5 2. Introduction The rise of e-commerce has undoubtedly left an overwhelming impact on the global financial community. It presents new investment possibilities for ambitious early adopters, but is accompanied by a certain degree of risk, which can be rather intimidating. The introduction of Cryptocurrency and Blockchain technology into the financial industry added further challenges to the mix, particularly for first movers. The world has gotten used to conversions between various kinds of currencies and has grown to accept the value of storage devices. However, while most consumers are now familiar with Bitcoin and Blockchain, other forms of Cryptocurrency continue to challenge investors and entrepreneurs. Satoshi Nakamoto first introduced the concept of Blockchain 2. It enabled a shifting of authority from the traditional centralized database to a decentralized consensus - and created a new order for transactions. The next step was the Ethereum platform, created by Buterin, further revolutionizing the field. Democratization, decentralization, and automation have enabled the public to handle its own contractual procedures, cutting out the middleman. Traditional 3 parties such as banks, mediators and rd other official institutions, may find themselves cast aside, in favor of these new technologies and innovations. 2 Satoshi Nakamoto White Paper at Ver /02/ Digital Assets Corporation. All rights reserved Page 5 of 43 Pages

6 Nevertheless, as one can imagine, there is more to this new decentralized financial realm than potential and opportunity. With advances and innovation come added stress, tension, competition and conflict within the global currency exchange community. Cryptocurrency and Blockchain have fundamentally changed the makeup of essential and elementary services, from payment to asset ownership and business development. Conventional methods are now perceived as old-fashioned, slow, possibly biased, corrupt and ineffective in comparison to the latest developments. And once financial innovators determine how to reduce the existing high overhead costs, these old practices will likely and ideally be replaced by the new, Blockchain-based services. Financial and regulatory systems have yet to adapt to this shift in investment technology and practices. As a result, start-ups and other investment projects are left without sufficient security measures, failsafe procedures, legal protections, or expertise. Most start-ups lack the necessary resources to achieve optimal exposure and attention from the financial community. Start-ups need a sound commitment from investors before their first and only chance at a token offering and both parties seek validation that requires a transparent and continuous collaboration process. To restore trust and assurance among all involved parties and resolve the structural problems related to Blockchain-backed start-up investments, a solution that demonstrates predictability, stability, transparency and above all, maximum effectiveness in minimum time, must be developed. Presale Ventures took all of these fundamentals and integrated them into a single process, reducing investment risks and increasing the likelihood of a positive and significant return. Ver /02/ Digital Assets Corporation. All rights reserved Page 6 of 43 Pages

7 3. Why Presale Ventures? Much time, effort and resources go into the launch of any new start-up. Most start-ups are in great need for funding to develop and produce their proposed project. This is especially critical in the shortterm, to be able to run and implement operations and launch global marketing campaigns prior to the ICO stage. New start-ups also need the help and experience of industry veterans, to facilitate ameliorate and accelerate development processes and ensure their products are of superior quality and extremely safe, so that consumer and investors will want to buy in. This pertains to all things needed to enable the start-up to start off on the right foot from project tweaking and amending to aiding with Blockchain technology, the issuing of tokens and writing smart contracts, enabling communications with members of the Crypto-community and prospective contributors, to whitepaper writing, website building, marketing and more. With the assistance of industry experts, the start-up s project can garner maximum awareness and increase the chances of the start-up experiencing a successful ICO. On the contributors side, before any initial investment in a start-up can be made, there is a great need for assured lowered risk and a secure, fraud free ICO, which can be enabled by having a professional and impartial entity govern the critical initial fundraising stages. Contributors want to gain a better understanding of the start-up s project market. They want to receive pertinent information in layman terms and obtain expert opinions on how their bottom line might be affected by investing in the startup. It is no secret that contributors wish to pledge to a start-up that has a higher chance of success. And it wouldn t hurt if they could receive a higher discount on their tokens purchase. Ver /02/ Digital Assets Corporation. All rights reserved Page 7 of 43 Pages

8 As the market is literally inundated with new start-ups readying for launch, fairness, transparency and a legitimate, fraud-free ICO are essential principles to which any business seeking to optimize innovation realization must adhere. The market needs these start-ups to provide as much information on their brands and offerings as possible, which would facilitate a greater understanding of how successful they are likely to be. The market also needs more contributors to fund projects. Increasing a positive awareness of Blockchain technology and its benefits for the start-up world is a step in the right direction. Presale Ventures attends to the needs of start-ups, contributors and the market with a single, state-ofthe-art online platform. The Presale Ventures platform shields contributors from malicious fundraising practices and reduces contribution risk through an hybrid expert screening and due diligence processes. Our innovative practices and supplementary programs enable highly-discounted and Blockchain-backed opportunities, generate exclusive token generation terms and increase start-ups odds at success. Ver /02/ Digital Assets Corporation. All rights reserved Page 8 of 43 Pages

9 4. Value Proposition With Presale Ventures, the whole is truly greater than the sum of its parts. The integration of our new, exciting and innovative methodology and focus with a tokenized economy will most certainly add unprecedented value to the Blockchain community, investors, start-ups, regulatory bodies and eventually, the global economy! The Presale Ventures Virtual, Decentralized Venture Fund utilizes an augmented model to incorporate several proven business and commercial models into a single ecosystem a one-stop-shop, holistic and transparent online crowdfunding platform. Our virtual decentralized venture fund harnesses the Wisdom of the Crowd, purchase group buying power, a utility tokens licensing model and a tokenomics ecosystem to drive smart, Crypto investments in the start-up. Our hybrid screening algorithm drives a comprehensive presale evaluation process implemented by Presale Ventures experts and the Crypto-community, for a safer, more successful ICO. Presale Ventures tailors its focus on a specific cutting-edge niche: the presale stage, to be able to provide investors with the greatest discount on their token purchases (investment in the start-up). We additionally focus our efforts on innovative Blockchain concept and technology developments, to ensure every investment is accounted for and secure. License models, as referred to in the software world, are like keys. They enable legal use and redistribution of the copyright protected product. When issued tokens are implemented as a floating license across users, end users (in our case, investors) are granted unique permission to use the Presale Ventures platform. Without EVENT tokens, a potentially interested investor cannot access the platform Ver /02/ Digital Assets Corporation. All rights reserved Page 9 of 43 Pages

10 or contribute to start-ups. And as the tokens are secured via Blockchain technology the Tokens-as-a- License model makes the funding of start-ups and their projects extremely secure and beneficial for all parties involved. The transactional ease and high level of protection afforded by a token economy are the driving force behind the incorporation of tokens as an integral part of the Presale Ventures platform and ecosystem. EVENT tokens are directly connected to the system s operation and are used to purchase young startups newly-issued tokens. For precisely these reasons, Presale Ventures members must hold a minimum amount of EVENT tokens, a mandatory members card, to be able to use the Presale Ventures platform and services. Ver /02/ Digital Assets Corporation. All rights reserved Page 10 of 43 Pages

11 5. Background 5.1. Bitcoin & Cryptocurrency Nothing is as powerful as an idea whose time has come (Victor Hugo) Seven years have passed since the renowned 10,000 bitcoin pizza delivery took place. These days, that very same amount of Bitcoin equals to over 100,000,000 US dollars! which is enough money to pay for pizza deliveries to residents of the entire city. Any city, tip included. At this rate, Bitcoin could potentially dominate the foreign exchange currency arena within the next seven years. A brief review of the benefits of Bitcoin: Bitcoin eliminates the need for 3 rd parties such as governments, banks, and other financial mediators. A Bitcoin transaction is virtually untraceable (tracing flaws have been further corrected in second generation Cryptocurrencies) and is therefore at a lower risk for fraud, exploitation and 3 rd parties interception. Transactions are easily verified and extremely difficult to counterfeit. Bitcoin transfer is inexpensive and straightforward there are no cancellations or refunds and since no 3 rd parties are involved, there are no arbitrary intermediary fees. Ver /02/ Digital Assets Corporation. All rights reserved Page 11 of 43 Pages

12 Global recognition of Bitcoin is expanding rapidly. The European Central Bank recognized bitcoin as a convertible and decentralized virtual currency 3. Japan has already legitimized it as legal currency 4 and Russia is not far behind 5. Some of the most prominent international companies have already implemented Bitcoin, such as Microsoft, Dell, Expedia and TIME. In the past 2-3 years, digital currency exchanges have been completely revamped, first restructured by Bitcoin and then populated by alternative Cryptocurrencies. Some of the new tokens provide dual purposes. Their value is thus based on different types of evaluations. A token s practical value (beyond simple exchange) is derived from its corresponding Blockchain application The Blockchain and DLT Start-ups Blockchain technology jointly manages and updates Bitcoin, Ethereum and other Cryptocurrency platforms' transaction databases across a distributed network of computers, establishing a decentralized global consensus. It is the digitally shared ledger that gathers transactions records, as they are continuously and simultaneously updated throughout the systems. This protocol opens the door to a new market niche - distributed ledger technology ("DLT") applications Ver /02/ Digital Assets Corporation. All rights reserved Page 12 of 43 Pages

13 The Blockchain was introduced alongside Bitcoin in 2009, providing a solution to the decentralized consensus challenge. Once a transaction is validated on the Blockchain, it cannot be altered, corrupted, hacked or deleted. Today, Cryptocurrencies and their tokens are created and exist purely on Blockchain ledgers. The technology is also applied to other channels, such as to facilitate unique contractual mechanism between parties across the network, like with Ethereum, Ripple and other platforms. Ethereum, for example, allows developers to create their own unique tokens and decentralized Blockchain applications. Most Cryptocurrencies aim to replace the 3 rd party mediator by facilitating currency exchange and charging a small percentage for each transaction made. But a token is no longer restricted to acting as a currency; it is also a functional part of Blockchain software applications. The speculative value and stability of an individual Cryptocurrency is naturally determined according to the popularity and demand of its associated Blockchain application, as the currency spreads throughout the global network Initial Coin Offering (ICO) We are already familiar with the notion of an initial public offering (IPO), during which shares of a private company are offered for sale for the very first time. Similarly, an initial coin offering ("ICO") is an event during which newly created Crypto tokens are offered for sale, in exchange for legal tender and/or existing Cryptocurrencies such as Bitcoin or Ethereum. The process of minting a new token is usually called a token generation event (TGE) and it is commonly paired with the ICO. Ver /02/ Digital Assets Corporation. All rights reserved Page 13 of 43 Pages

14 Since ICO tokens are sold as digital assets or utility tokens rather than as financial currency, the sale is not regulated and is more like a private crowdfunding event than an IPO. However, as current safety and preventative measures are generally limited to banishment and gatekeeping, these sales events increase the risk of dishonest management, fraudulent activities or the production of an inferior product. Much like any other legal tender, ICO tokens are purchased, traded, sold or held as an investment. As with Bitcoin, Cryptocurrencies cannot be subjected to traditional regulations. Evidence indicates that it will be a while before the U.S. Securities Industry and the Financial Markets Association 6 (SIFMA) manage to regulate Cryptocurrency exchanges effectively. In the meantime, it may be up to independent organic and decentralized entities to take initiative and ensure safety of operations, which could prove to be an overwhelming task. It is safe to say that Blockchain technology and successful first-mover Blockchain ventures are here to stay. As such, the value of Blockchain cannot be overlooked or underestimated. Lately, the total market cap of Cryptocurrencies is over $500 Billion U.S. Dollars 7 (all dollars in this document are USD). Bitcoin represents roughly half of that sum. In 2016, ICOs generated $100,000,000. The estimated sum for 2017 is over $5,000,000,000, from over 1,000 projects 8. 6 Financial Industry Regulatory Authority on ICO industry CoinSchedule Statistics Ver /02/ Digital Assets Corporation. All rights reserved Page 14 of 43 Pages

15 Based on return distribution models, the ICO market yielded some impressive results, enabling investors to enjoy an annual growth rate (CAGR) 9 unparalleled to that of Venture Capital 10 or stock market 11 growth. In 2013, start-ups like NXT struggled to obtain $20 thousand in funding. Today. NXT s market cap is above $60 million, with % ROI since its ICO. In June 2017, Block.one raised $185 million in five days 12. Bancor raised $153 million, of which $83 million were raised in one hour 13. Exciting opportunities created by crowdfunding, as leveraged by Blockchain technology, have demonstrated the enormous impact that mass innovation has on a global scale. Examples of return on investments on top 5 tokens since ICO 14 NXT launched 28/09/ ,659,483% ROI IOTA launched 25/11/ ,080,647% ROI Ethereum launched 22/07/ ,115% ROI Neo launched 10/01/ ,432 % ROI Block.one ICO Record 13 Bancor ICO Record 14 ICO stats numbers as of 19/12/2017, Ver /02/ Digital Assets Corporation. All rights reserved Page 15 of 43 Pages

16 5.4. Crowdfunding, Private Equity & Accelerators Decentralization, a central concept with respect to Blockchain technology, already exists in some capacity on the internet, particularly in relation to funding and investment. The history of internet crowdfunding can be traced back to platforms like IndieGoGo and Kickstarter, on which entrepreneurs, businesses, or individuals can run crowdfunding campaigns by pitching their product prototype, business vision or creative project. Funds are pledged by internet contributors in exchange for perks, incentives or products. If a minimum goal is met, the funds are used to realize the project (apart from the reduction of an operations fee by the crowdfunding platform s operators). Platforms such as WeFunder more closely resemble a direct investment model, through which pledgers are enabled to obtain equity on a start-up at a future date, should the start-up go public. Unlike private equity market investments, a pledge is made without an initial evaluation process 15 and is secured solely by a Simple Agreement for Future Equity ("SAFE"). Private equity investments have traditionally been reserved for highly networked, high net-worth investors and funds. They have served as a means for acquiring profitable assets at a lower cost, before they are made available to the public. The WeFunder 16 model was one of the first to transform private equity investments into a publicly accessible field. Start-up accelerators and incubators guide and support start-ups during their early stages. They are also an extension of the private equity industry. Accelerators and incubators provide start-ups with opportunities to connect with investors and funds, typically via privately held gatherings like workshops, 15 Save for a valuation cap, the relevance of which will be expanded upon later Ver /02/ Digital Assets Corporation. All rights reserved Page 16 of 43 Pages

17 presentations, strategy meetings and networking events. These have also migrated to the public domain, through platforms like Y Combinator 17, for example. Y Combinator offers support for start-ups willing to relocate for the duration of their incubation phase. This methodology successfully accelerated Airbnb, Stripe and Dropbox. Y Combinator is also the original developer of SAFE. 6. Purpose 6.1. Presale Ventures - A Blockchain Startup Accelerator Ethereum Founder Says 90% of Token Startups Will Fail 18 (Vitalik Buterin) As ICOs continue to grow in popularity (in 2016 there were less than 100 ICOs, nowadays hundreds of ICOs are launched every week) the relative ease in which money can be raised has opened the door to dishonest actors and scammers. The market has become flooded with questionable start-ups. Presale Ventures resolve this challenge and provide a much-needed and valuable service to investors and start-ups. In creating an early-bird Blockchain start-up investment system, Presale Ventures is able to increase an investment's safety, return on investment (ROI), and the likelihood of a fruitful ICO Ver /02/ Digital Assets Corporation. All rights reserved Page 17 of 43 Pages

18 6.2. Why Focus on the Presale Stage? Presale is a process, or a set of activities/sales normally carried out before a customer is acquired... The sale of service or goods before its release date generally has a discount rate greater than 50%; this is done as the producer wants to assess the market's willingness to pay and buy the product due to the risk factor being very high. 19 (Wikipedia) Presale Ventures aims to increase an ICO s return on investment through its Members Only platform for ICO presales, by linking visionary and anticipative investors with promising Blockchain-related startups. The heterogenic nature and geographical spread of the investment community, necessitates the formation of a truly effective investors association. Presale Ventures believes that membership through a collective purchase group successfully realizes this goal. Presale Ventures' model is therefore based on a unique blend of business and commercially proven methodologies, an augmented screening process (opinions of experts and Wisdom of the Crowd ), a contractual mechanism, an online platform and multiple perks for investors and start-ups. Where Investors are given access to early-bird purchases of Crypto-assets at a pre-determined discount Ver /02/ Digital Assets Corporation. All rights reserved Page 18 of 43 Pages

19 6.3. The Crypto Community The millions of devoted global Bitcoin and Cryptocurrency followers virtually meet and communicate over dedicated websites, forums and chat platforms. Some channels are intended for general discussion (bitcointalk.org), others for following and discussing the release of new ICOs (coinschedule.com) and still others to obtain the latest industry news and updates (coindesk.com). Crypto community members prioritize technical, moral, and regulatory issues. Being able to provide a practical, simple and efficient design and adhering to the philosophic principles of Cryptocurrency is a challenge for Crypto-innovators and early adopters. It keeps the design process in line and assures technological integrity and quality, without compromising on innovation. The critical guidelines of the Crypto community no longer require potential Crypto businesses to achieve consensus, though it does remain a crucial stepping stone on the path to achieving market growth. Instead, vital support with much less control can be provided via the Crypto community and its members Harnessing the Wisdom of the Crowd Presale Ventures believes in the power of the Wisdom of the Crowd. As such, we enable the presale screening and evaluation process to include this unique evaluation capability. Presale Ventures screening and evaluation process is a fundamental part of its system. Screening candidates saves members time and resources, while increasing the probability of uncovering hidden golden opportunities. Ver /02/ Digital Assets Corporation. All rights reserved Page 19 of 43 Pages

20 It is only reasonable to assume that there will be members whose expertise exceeds that of the core Presale Ventures' team, such as analysts, advisers, researchers, interviewers and others. Such brainpower, knowledge and skills, known collectively as the Wisdom of the Crowd will provide support to Presale Ventures experts evaluation and provide all members with a more comprehensive and considerable influence within the Crypto community. Presale Ventures primary role is to carefully select the most promising, profitable and safe start-ups, in which its members can invest. Presale Ventures therefore aims to remain neutral and run an algorithmbased hybrid screening and evaluation process based on transparency and integrity. Prospective startups undergo a rigorous compliance and screening process, which includes the assessment of standards such as personal character, business concept, reliability, legitimacy and more. These issues and others are directly addressed through communications with interested members, in an attempt to persuade cautious investors on the viability of their business. Once the screening and evaluation process has been completed and the start-ups received their mark, members are given the final word as to which start-ups are worthy of their trust and funds through the purchase of their newly issued tokens during the presale stage. Adhering to the notion of a decentralized community, Presale Ventures will continue an ongoing exploration of ways to leverage its unique screening impact for crowdfunding and crowd-growing purposes. Ver /02/ Digital Assets Corporation. All rights reserved Page 20 of 43 Pages

21 6.5. Impartiality, Neutrality and Objectives The most critical part of Presale Ventures method is its ability to remain impartial, neutral and objective while endeavoring to maximize successful presales. A start-up that ranks high, but eventually fails and disappears may put a considerable dent in Presale Ventures validation capability and credibility. Presale Ventures impartial screening methodology aims to reduce the risk inherent in any investment through a number of processes. The most valuable way for Presale Ventures to support start-ups is not necessarily to present them in the most favorable light - Presale Ventures reviews these start-ups under the largest spotlight. Broad exposure is a significant and desirable advantage for start-ups and is highly appreciated by investors, as it reveals investment contenders strengths, weaknesses, risks and opportunities. Presale Ventures effective fundraising creates a safe and urgency-free space for start-ups and investors, reducing hasty decision making and the effects of misleading sales tactics Planning for the 'Peak' The most important stage for upcoming start-ups is the ICO. But before the ICO is reached, a successful presale is held, potentially influencing the future success of a start-up's ICO - and beyond. Presale Ventures primary purpose and critical vision of its culture and philosophy (in its mission as an enabler and mediator of the presale ecosystem) is to help start-ups achieve their highest possible ICO peak. The presale process is start-up s 'conditioning' for the ICO, much like an athlete trains and conditions before a big competition. Ver /02/ Digital Assets Corporation. All rights reserved Page 21 of 43 Pages

22 6.7. Key Virtues of Presale Ventures Presale Ventures serves several primary functions for its members: Enables a significant discount on start-ups' ICO-offered token price. Creates a group buying scenario, for greater group purchase power. Runs a hybrid screening and evaluation, algorithm based process. Provides an in-depth analysis of start-ups' qualities, strengths and weaknesses. Facilitates an exclusive virtual boardroom. Engages in conceptual vision and business justification. Justifies and validates upcoming ICO terms and conditions. Ver /02/ Digital Assets Corporation. All rights reserved Page 22 of 43 Pages

23 7. Ecosystem 7.1. The Platform Presale Ventures is issuing its unique ERC 20 token, named EVENT, to be used within Presale Ventures own platform. Use of the token will provide members with exclusive benefits, such as: Access to early, exclusive ICO presale events. Significant and exclusive discounts on issued tokens. A lower risk of investing in fraudulent start-ups. Being part of and benefiting from the Wisdom of the Crowd decision-making process. A higher likelihood of a fruitful investment. Access to an extensive, up-to-date database of information, lucrative opportunities, discussions and news. Presale Ventures membership can be obtained holding 100 EVENT tokens. Presale events will be held to present token purchase opportunities for attractive start-ups. Depending on the level of interest, demand and market conditions, the amount and duration of these events may grow to multiple events in a single week. Ver /02/ Digital Assets Corporation. All rights reserved Page 23 of 43 Pages

24 7.2. For Presale Ventures' Members Only Presale Ventures members can participate in ICO presale events and be awarded up to 60% off on ICO token prices. These discounts are comparable with the elite rates previously reserved for the privileged few, such as: funds, companies and institutions. The initial purchase of EVENT tokens during Presale Ventures own presale and Initial Membership Offering ( IMO ) stages, presents contributors with significantly greater value rewards with respect to pre-screenings, networking, early bird access and a highly discounted token price. To assure secure conversion of EVENT tokens into future start-ups tokens, Presale Ventures shall use SAFT 20, the Simple Agreement for Future Tokens a modified version of the SAFE, or other equivalent legal tools. To participate in Presale Ventures' activities, receive exclusive investment opportunities and enjoy an oriented, scam free environment, Presale Ventures members must hold the minimum amount of EVENT Tokens acquired during Presale Ventures' IMO or purchased from the market under the EVENT tokens' licensing terms and conditions. The mandatory minimal EVENT token ownership gives members the right to access presale events. Access is enabled so long as the required amount is maintained or restored. 20 Simple Agreement for Future Tokens Ver /02/ Digital Assets Corporation. All rights reserved Page 24 of 43 Pages

25 7.3. For Start-ups A successful presale event results in an immediate, measurable and positive outcome for a start-up. To be considered for a presale, start-ups will undergo a Know Your Startup process, similar to the better known Know your Client (KYC) procedures. The start-ups founders will have to present documentation (whitepaper, business plan, justification), participate in interviews (face-to-face or through other technological means) and provide personal and other relevant information. In the event that some flexibility in the pre-screening process is allowed, members will be notified and instructed to consider this factor during the presale. Preparation for a successful ICO is extremely intensive, scattered and requires a meaningful investment of time and marketing efforts. This can prove to be very stressful for first-time entrepreneurs, as it can cause confusion, lack of focus and sometimes lead to missed opportunities. Collaborating with Presale Ventures can reduce a great deal of stress, while providing significant added value for entrepreneurs: Effective time management start-ups can devote their full time and attention towards areas of personal expertise, instead of spending precious time recruiting investors. Problems and hiccups that may appear during presale can be addressed at a lower level of urgency than with the direct-to-ico approach. When a start-up achieves a maximum presale goal and/or a high hybrid review rating, it can become a potential candidate for additional funding from a pre-determined budget taken from Presale Ventures Acceleration Fund and held in a publicly visible wallet. Such injection of capital would yield two major benefits: Ver /02/ Digital Assets Corporation. All rights reserved Page 25 of 43 Pages

26 o Maximize raising of the start-up s successful ICO capital. o Subsidize increased presale discounts for members Acceleration Presale Ventures added value extends beyond funding. It creates a virtual home for the startup. Communication channels are immediately opened with the start-up s first potential investors, who are considerably more lenient and accessible. The start-up is enveloped with support, advice and answers to burning questions and challenging issues beyond its areas of expertise. If a start-up identifies multiple issues during the presale, it can depend on the full cooperation, expertise and abilities of key Presale Ventures personnel. All involved parties share a common interest in the start-up's success. Technically, the relationship between a start-up and Presale Ventures officially terminates at the end of the ICO, once Presale Ventures members have received their presale-purchased tokens from the startup. However, Presale Ventures (and the platform) continues to influence start-up investment success beyond the presale period. A start-up that has come out of the Presale Ventures acceleration program tends to receive higher valuations, as it has been carefully evaluated and validated by Presale Ventures hybrid screening process and received the Crypto community s thumbs up. This stressful period of a start-up s launch can at times birth internal conflicts between the start-up s members. Relationship management and mediation support are inherently provided during the presale period and can continue during a start-up's ICO and beyond. Presale Ventures personnel always remain attentive and available, keeping a close relationship with start-up companies, as necessary. Ver /02/ Digital Assets Corporation. All rights reserved Page 26 of 43 Pages

27 There is an additional incentive for start-ups that demonstrate remarkable initiative and competence during the presale: In certain cases where start-ups are specially marked by Presale Ventures hybrid screening and evaluation process, they become eligible to receive an additional payment from Presale Ventures' designated acceleration fund, to be used for ICO preparations. The extra budget will be allocated according to what will deliver the highest return for Presale Ventures members. This special capital injection from Presale Ventures acceleration fund will add an additional safety layer and increase the start-up s momentum as it enters its ICO stage. Presale Ventures goal is to safely and successfully fundraise for each start-up. By default, all funds deposited by members during the presale event are transferred to the start-up, after the deduction of operational expenses. In the future, Presale Ventures intends to implement several changes to the start-ups' token purchase process, as well as to the platform, enabling deposited funds to be held until the end of the ICO and controlling the start-up s use of such funds. These changes shall provide members with two advantages: o Presale Ventures control and direction of deposited funds should yield a better ICO success rate. o In case of an ICO failure, all funds deposited during the presale stage shall be reimbursed to members, apart from the funds transferred to the start-up prior to its ICO. Ver /02/ Digital Assets Corporation. All rights reserved Page 27 of 43 Pages

28 7.5. Long-term Goals Presale Ventures vision is to create a comprehensive, sustainable ecosystem, dedicated to investments and incubations. Further plans and process enhancements that are yet to be integrated into the platform include: Presale token purchase within a flexible time frame based on members feedback and requests, as well as start-up buy-ins. Successful replacement of the use of SAFT with smart contracts for the exchange of EVENT tokens21. Creation of an internal Presale Ventures Crypto Futures Exchange Following the presale event, start-ups will be able to list their soon-to-be-issued tokens on Presale Ventures Crypto Futures Exchange as futures. This will enable members to trade tokens while providing valuable indication of the start-up s upcoming ICO s success rate In case 70% of required funds are raised 22 In case 90% of required funds are raised Ver /02/ Digital Assets Corporation. All rights reserved Page 28 of 43 Pages

29 7.6. Roadmap Presale Ventures has experienced many milestones along its path to providing start-ups and investors with an easy-to-use and extremely secure platform. From the formation of the Presale Ventures core team to launch of the Presale Ventures platform, the road to enabling EVENT tokens to fund and fuel new start-ups has never looked so promising. Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Core team formation, expert advisors added. Smart Contract completed. Whitepaper completed. Whitepaper, Terms and conditions, License and other related documents, first version release. Website soft launch. Start of presale stage. Website, White Paper, Terms and conditions, License and other related documents, final version release. Presale Ventures International corporate infrastructure completed. Start of Initial Members Offer stage. International infrastructure for Cryptocurrency-legal tender conversion completed. EVENT tokens added to selected exchanges. Portfolio of "hand picked" high-potential start-ups with high potential built using the Presale Ventures Acceleration Fund. First version of Presales Ventures platform using EVENT tokens launched. Legal compliance infrastructure for non-regulated countries completed. First start-ups being presented. Addition of Visa, Mastercard, bank transfers & fiat deposits from non-regulated countries to the platform. * Ver /02/ Digital Assets Corporation. All rights reserved Page 29 of 43 Pages

30 Following a minimum 60% of required funds raised Q Q Q Legal compliance infrastructure for regulated countries completed, including the US. Adding Visa & Mastercard & bank transfers, allowing fiat deposits into the platform from Regulated Countries. * WIX style constructor launched. Following a minimum 90% of required funds raised Q Q Futures Exchange established. Turnkey incubator for start-ups looking to adopt Blockchain technology set up. *Fiat deposits will have significantly lower presale discount Ver /02/ Digital Assets Corporation. All rights reserved Page 30 of 43 Pages

31 8. Economy 8.1. Terms Cycle & Workflow Presale Ventures issues EVENT tokens to the public, raises a substantial initial capital base and finalizes the development of its platform and recruitment of all needed personnel, experts and advisors. Investors holding the minimum required EVENT tokens gain access to the Presale Events Platform. Those who acquire fewer EVENT tokens benefit from their value and gain access to certain information and activities held by Presale Ventures or on the Presale Ventures website. The initial application process for start-ups is intended to raise funds and test the level of public interest in what each start-up has to offer. Once scheduled, a start-up's presale is activated on the Presale Ventures platform and a designated wallet is set up for Ethereum and EVENT token purchase. If the presale minimum investment goal is not achieved - all tokens used for crowdsale purchase are returned to the members. Start-ups reserve a certain percent of their ICO token supply to Presale Ventures. If the minimum fundraising goal does not succeed, investments are refunded. 23 The latest terms and conditions of the EVENT tokens sale governs the presale and IMO stages are stipulated in the agreement published on Presale Ventures website Ver /02/ Digital Assets Corporation. All rights reserved Page 31 of 43 Pages

32 Anyone who wishes to participate in a presale event should provide an Ethereum wallet address. The wallet should have a minimum required amount of EVENT tokens inside. The Presale Ventures platform verifies that the minimum EVENT tokens are available in the investor wallet, prior to every presale event. This verification is performed before every presale event to assure that only investors with the required minimum amount of EVENT tokens can access the event. As a presale event participant, members are provided with all necessary information about the startup and its token purchase opportunity. During the presale event, an initial purchase shall be done with a certain amount of EVENT tokens. These tokens will unlock purchase options, enabling remaining payments to be made with EVENT tokens or Ethereum. The ratio between Ethereum and EVENT tokens depends on EVENT token availability and other member benefits. As Presale Ventures matures as a platform, only EVENT tokens will be used for presales. Following a successful presale event, Presale Ventures will receive its commission from the start-up; an agreed percentage of the raised amount (typically 10%). The commission will typically be used for the following purposes: o 70% of the charged payment shall be allocated towards Presale Ventures revenues. o 30% of the charged payment shall be transferred to the Presale Ventures Acceleration Fund. Ver /02/ Digital Assets Corporation. All rights reserved Page 32 of 43 Pages

33 8.3. Outcomes Although very cautious not to over-promise, Presale Ventures firmly believes that higher discounts will result in more significant raised capital for start-ups. What s more, as Presale Ventures brand value rises, it will become more attractive to start-ups, not only as a means for reaching early-bird investors, but also to receive the desired seal of approval - validation by Presale Ventures and the wisdom of the Cryptocurrency community will mean greater interest future ICOs Use of Funds Presale Ventures estimates that the funds raised through its IMO and future earnings will be used as follows 24 : 18% towards technology development 30% towards business development 20% towards operations 16% towards the Acceleration Fund 6% towards legal 10% for reserves 24 The actual allocation of funds shall be updated from time to time based on the relevant operation needs. Ver /02/ Digital Assets Corporation. All rights reserved Page 33 of 43 Pages

34 8.5. EVENT Tokens Allocation after Successful IMO 60% of EVENT tokens will be distributed to the public. 12% of EVENT tokens will be distributed among advisors and strategic partners25. 10% of EVENT tokens will be distributed among the founders and the team26. 16% of EVENT tokens will be allocated towards the Acceleration Fund. 2% of EVENT tokens will be allocated towards a bounty program. 25 Advisors and strategic partners shall commit to a 12 to 24 month vesting period and a 3-months cliff, providing further assurance to Members on Presale Ventures interest with the medium and long-term goals of the project. 26 Founders and team Members shall commit to a 12 to 24 month vesting period and a 3-months cliff, providing further assurance to members on Presale Ventures interest with the medium and long-term goals of the project. Ver /02/ Digital Assets Corporation. All rights reserved Page 34 of 43 Pages

35 9. About Us 9.1. Founders Sergey Ost 27 Chief Executive Officer A businessman, IT specialist, entrepreneur, and patent holder. Sergey oversees the Presale Ventures team of analysts, experts and programmers and liaises with external advisers. Presale Ventures is his brainchild. The Founder & CEO of one of the first hosting companies in Israel (up.co.il, exit 2003 and the former Co-Founder and CEO of the UK Mobile Virtual Network Operator (MVNO) working under the brand of "World8" as a Free Roaming Sim card distributed through 600 Post Office branches with over 100,000 customers (World8.co.il, exit 2016), Sergey s knowledge of start-ups is vast. Aviv Eilon, Adv. 28 Legal Counsel Aviv received a Bachelor of Laws degree from Oxford Brookes University, England, and a Master of Laws degree from the Tel Aviv University and the University of California, Berkeley s joint program. In 1999, Aviv established the foundations of his boutique law firm Aviv Eilon & Co, which provides legal counsel and litigation services, specializing in technology & internet law, as well as corporate, commercial and intellectual property law, in national and international environments. For the past 20 years, Aviv has worked with a variety of organizations throughout their corporate life cycle and has provided counsel to innovative ventures and start-ups making their first steps in the business world. 27 Sergey Ost LinkedIn 28 Ver /02/ Digital Assets Corporation. All rights reserved Page 35 of 43 Pages

36 David Hava 29 Chief Business Development Officer Through his acceleration network at Marketing Innovation Worldwide, David, a natural-born investor and tech expert, has attracted various contacts who are applying to run presale events on the platform. The Founder of Marketing Innovation Worldwide, a tech start-up accelerator with a rich portfolio that crosses NY, San Francisco, New Delhi, Munich, Dusseldorf, London, Moscow, Johannesburg, and Rio De Janeiro, David has a keen eye for stellar business opportunities. Timur Shemsedinov 30 Chief Technology Officer A top software architect, university lecturer, and project leader, Timur leads a team of researchers and developers linked to the Kiev Polytechnic Institute in Ukraine, appointed to develop the software stack and infrastructure for the Presale Ventures platform. Timur has devoted over twenty years to IT. Altogether, he has (1) developed distributed corporate applications & systems architecture, (2) become an expert in Node.js, JavaScript, C#, Delphi, etc. and (3) mastered cybernetics, programming, production automation, network servers & protocols. 29 David Hava LinkedIn 30 Timur Shemsedinov LinkedIn Ver /02/ Digital Assets Corporation. All rights reserved Page 36 of 43 Pages

37 9.2. Team Members Tal Eilon Organization Development For the past 15 years, Tal has specialized in emerging start-ups, developing and managing innovative platforms to accommodate their operational, HR and online marketing growth in an ever-changing environment. Tal holds a BA degree in Communications and an MBA in Management and Business Psychology. Eytan Ashtamker Marketing Director A marketing specialist, business consultant and coach for start-ups and established businesses, Eytan has a rich background in assisting clients analyze, implement and evaluate business projects to meet performance expectations. Tzofia Gaash Customer Relationship Manager With two years of experience in managing retail sales and three years of customer success management for large clientele in the financial industry, Tzofia knows exactly how to ensure Presale Ventures customers are satisfied. Vitalik Daliloff Early Investor A Managing partner and surgeon at the Orchid Clinic (Pl.,2001), Vitalik is an independent, strategic and operational planning advisor in a number of Ukrainian, Polish, Australian, Canadian and other companies. Currently, Vitalik is invested in several medical start-ups. Ver /02/ Digital Assets Corporation. All rights reserved Page 37 of 43 Pages

38 Yuri Snigur IT Adviser An IT project management professional, Yuri works with system integration, analytics and business processes. A specialist in re-engineering, complex automation systems implementation and support, Yuri has more than ten years of experience in solution managing for the following fields: geospatial and GPS systems, medical information systems, asset tracking, mobile applications, computer games, financial and corporate systems. He has also developed software for RTIntel, ITAdapter, Alien Technology, SinceTV and other businesses. Alexey Orlenko Alexey is a specialist in high load network protocols, including Node.js Core Collaborator. He is one of the key developers of Metarhia technology stack and an expert in JavaScript, C, C++, Rust, React, Node.js, RPC, TCP/IP, IPC, Linux/Unix, WebSocket, parsing, serializing and de-serializing and performance optimization. Mykola Bilochub A specialist in the development of server APIs for high load web and mobile applications, Mykola is one of the key developers of the Metarhia technology stack. He is also an expert in JavaScript, C, C++, Go, Node.js, TCP/IP, Linux/Unix, parsing, serializing and de-serializing, information systems security and data protection. Ver /02/ Digital Assets Corporation. All rights reserved Page 38 of 43 Pages