KEPLER TEK The Key to Innovation WHITEPAPER Tbiliisi 2018
CONTENTS 1 2 2.1 2.2 2.3 3 4 5 6 6.1 6.2 6.3 6.4 6.5 6.6 7 8 9 10 11 11.1 11.2 12 13 Abstract Introduction Vision Mission Values Problem Description Solution Value Proposition Kepler Network Innovators & Founders Technical Professionals Investors Integrated Startup Incubator within Kepler Network Start up Acceleration using Kepler Network Kepler Network s Consultation Service Kepler Accelerator Kepler Marketplace Kepler News Artificial Intelligence Integration within Kepler Platform Project Development Strategy Phase 1: First Wave Startups Onboarding Phase 2: Kepler Marketplace and News Revenue Model Full Cost Structure 2-3 5-6 6 6 6 8-9 11-12 14 16-20 16 17 17 18 19-20 20 22 24 26 28 30-31 30 31 33 35-36
Abstract
Abstract We live in an era that is increasingly influenced by technological advancements. As the global ecosystem of AI-powered bots, robotics and software grows, and businesses become more dependent on them, the need for a standardized, trustworthy, and an immutable ecosystem grows accordingly. The world s top tech companies are in a race to build the best AI and capture that massive market, which means the technology will get better fast and come at us as fast. Recent explosion in blockchain-based crowdfunding cast doubt on the business models of the traditional funding channels. Instead, decentralized funding models have proven to gain larger financial exposure. Keplertek pioneered to create the world s first decentralized ecosystem backed by AI and blockchain to nurture startups and boost their success rate. Keplertek unites four elements that are crucial to startup success and investor engagement into one platform: Kepler Network, Kepler Accelerator, Kepler Marketplace and Kepler News. From team building, idea development, proof of concept, MVP creation, market feasibility test to consumer market entry, startups will get full support and guidance from the top professionals and experts. In addition, startups can tap into Kepertek s network of 150 tech parks, R&D laboratories and partners around the world. One can approach our platform with merely an idea and embark on his or her entrepreneurial journey. Success will no longer be bounded by who you are or where you are, but it will be determined exclusively by the quality of the idea and the execution capabilities of the given team. The platform will allow talented and gifted minds to link up with the right resources and personnel to bring their ideas to life. 2
Keplertek also sets a new standard of equality, transparency and trust within the community. All investors will enjoy equal investment opportunities based on merit, having an unprecedented opportunity to participate in any startup financing round. The stringent screening process, supported by our AI, ensures only brilliant projects with business potential are listed on the platform. Digital escrow safeguards the interests of investors by releasing funds to the only projects that are on track towards meeting the determined milestones. It also creates a new channel for cryptocurrency holders to diversify their portfolio by investing in tangible projects that yield a great chance of success. Value in the future will likely be created by advancement in technology, and most of the new technology will be created by startups that do not even exist yet. Keplertek aspires to become the shared engine of economic growth and spur innovation in every city in the world. 3
Introduction
Introduction High-tech industry is an important driver of growth for the world economy. This industry advances innovation, employs millions of highly skilled and educated workers and contributes to greater prosperity in communities. The total gross output of high-tech industries, including both final and intermediate products, amounted to more than $7.1 trillion in gross output in 2016 in the United States alone. Tech companies continue to play an increasingly important role in the development of the of the world economy, having dramatically transformed our society. Global venture capital investment hits a decade high of $ 155 billion in 2017 and the value creation of global startup economy is estimated at $2.3 trillion, between the years 2015 and 2017. Even traditional non-tech industries such as oil and gas, food and beverage, postal services and couriers are forced to embrace technology and use it to cultivate their competitive advantage. Robotics and AI industries are currently growing at unprecedented rates and will be the main drivers of the high-tech industry growth in the future. Artificial Intelligence, Drones, Self-Driving Cars, 3D Bioprinting of Organs, Virtual Reality, Blockchain are just a few of the life-transforming technologies. A majority of those exciting technologies are being brought into our life by startups, who are the main drivers within this innovation landscape. However, tech startups also have a notoriously high failure rate. Failure rate is merely a symptom of the causes of startup failure. The reasons why they fail range from lack of market fit to lack of management. Therefore, the need to build an ecosystem that will nurture and boost the development of startups on a global scale has emerged. Keplertek will shape the process of innovation and redefine the funding mechanism for startups. It is an online platform that bridges the gap between ideas, talents and technical resource providers globally. We are building a tightly-knit global community for founders, talented professionals, investors and other technical resource providers to help each other grow and scale. Sharing knowledge and insight have never been easier and one does not need to be in Silicon Valley to be successful. 5
Vision Move humanity forward by combining ideas, skills and resources with the limitless power of AI. Mission To deliver an AI platform where innovators, professionals and investors join strengths to create value for humanity. Values Professionalism - Professionalism is the representation of responsibility, integrity, accountability and excellence at all times which is vital to the long-term success of a company. Personal development - Continuous learning and growth is the only way to adapt to the ever-changing modern environment. Empowerment - Empowerment fosters a culture of involvement. It enables people to contribute and develop to their full potential. Creativity - Solutions to complex problems require creative thinking. We strive to create an environment where thinking outside the box is rewarded. Harmonization of humans and AI - We believe that AI technology is and should only be developed for the goal of enhancing humanity. Value creation - We aim to create value for every stakeholder in the ecosystem and bring positive impact to the entire society. 6
Problem description
Problem description The technology sector is bustling with innovation and evolving at an unprecedented pace. We have seen explosive growth in the number of startups. However, not all entrepreneurs will taste success. According to various studies, even venture-backed startups still see failure rate that is as high as 75%. Failures often come as a mixture of numerous factors and they are all closely intertwined. From the perspective of an idea generator or a startup founder, an all-star team is half the battle. Talented professionals with the right skill set are hard to find. Especially with the lack of communication channels, team building is often restricted by location. Same goes for the technical professionals, they do not have the right channel to look for interesting projects which fit their interests and passion. And even after a team is assembled, it is difficult for them to get access to the necessary resources, be it financial or technical resources. Many startups struggle to find funds at the initial stage as they do not have the connections to the right people. There is very limited technical support and resources as most people are not granted the access to R&D laboratories and tech parks. The accumulated bureaucracy not only limits the efficient utilization of resources, it is also hurting the operation of such facilities. Studies also suggest that the lack of entrepreneurial experience and expert guidance also contributes to the failure of startups. Investors on the other hand find challenging to find secure and transparent investment opportunities. Retail investors face higher barriers in terms of investment options. Venture Capital funds ( VCs ), boutique investment firms and local environments are traditional channels for investors today. For example, VCs have long been viewed as pioneers of the early stage investment ecosystem in the USA. VCs centralize most of the global capital in a single fund and use available resources to fund startups and growing companies by raising their own funds from high net worth investors. VCs then decide which startups are most worthy to invest. However, numerous ideas and innovation potential is lost by the sheer fact that entrepreneurs could not find right team members and adequate guidance to be even considered by traditional funding institutions. There is also no mechanism to monitor progress and to ensure that the development of the startup is on track. 8
In the past year, a new alternative funding source has arisen that empirically proved the potential of decentralized VCs. This alternative, known as an Initial Coin Offering, (ICO) has disrupted the early stage funding ecosystem, effectively racing to replace VCs as gatekeepers. Technology startups have used ICOs to crowdfund their Non-Governmental Organizations ( NGOs ), projects and businesses, raising substantial levels of digital funding to finance their development and growth initiatives. Globally, investors can now bypass VCs and digitally participate in the funding of any startup they believe in, within a more liquid marketplace. The new startup funding mechanism offers great potential and an alternative way for investor engagement but presents many challenges. A key obstacle for investors is to identify the most promising startups while avoiding potential scams of fraudulent projects. Even the lowest net worth investors should have ability to invest in high-potential startups. There is a clear need for a platform that solves these issues for all three users involved. 9
Solution
Solution Our solution to address these problems is Kepler Platform, the world s first AI and blockchain powered professional network, accelerator and marketplace - specially developed for the high tech startup ecosystem. The purpose of the platform is to eliminate barriers to entrepreneurial creativity such as geographic location, lack of network, lack of funding, lack of guidance, etc. The platform will be the main communication channel for the members of the ecosystem, namely innovators, talented professionals, investors and technical resource providers. With blockchain technology, Keplertek will also be able to create a fair, simple and transparent investment environment for the investors. Kepler Platfrom will assist innovators in finding an all-star team with the help of our AI. Our AI will ensure that the founders have the right tools to build a team which will have the right skills and will be an adequate fit for their project. Apart from suggesting the right candidates, Keplertek will also provide the founders with a search engine to find potential team members that they think is the best fit for their project. Conversely, technical professionals will be able to find the projects that fit their skills and passion. Our AI will record the data generated by the users since the moment of registration to optimise their experience on the platform. Based on the preferences and needs of technical professionals, the AI will match technical professionals with the projects that fits them best. The project teams will also need financial and technical resources at the initial stages of the project. Resources are needed for the development of the prototype and further project development. Financial resources will be provided by the investors and project teams will be able to tap into our network of over 150 Tech parks, R&D laboratories and partners around the world. 11
With Keplertek, the success of a startup depends exclusively on the quality of the startup idea and the execution capabilities of the team. The platform provides guidance and support for startups, from the creation of an idea to mass market entry in a seamless manner. Investors will be able to take advantage of a fair, transparent and secure investment environment provided by the platform. Investor of any size will be able to invest in high quality startups. Additionally, investors will have a mechanism to control the progress of the startup they have invested in. To deliver these benefits to the users Keplertek unites four elements that are vital to startup success and investor engagement into one platform: Kepler Network, Kepler Accelerator, Kepler Marketplace and Kepler News. Product Beta 12
Value Proposition
Value Proposition Keplertek strives to bring innovations to the market faster by bridging the gaps between ideas, talented professionals and resources. The AI-powered Kepler platform will be the central communication hub for the members within the high tech startup ecosystem. It is equipped with vast resources such as research papers, academic journals, tutorials, etc. to accelerate the learning of process of the team members and improve the probability of project success. Innovators who come to the platform with ideas will be able to leverage the capabilities of our AI. It will assist the founders in assembling teams and bringing their ideas to life. With the guidance and support offered by the platform, one does not need to have business knowledge to start their project. Technical professionals will be exposed to quality ideas and will be able to find one that fits their skills and passion. For both innovators and technical professionals, the platform offers great opportunities for constant professional and personal development. Our AI will also rank their projects according to various criteria. For example, the higher the experience of the team in a certain field, the higher the ranking. Innovators and technical professionals will also be able to build an extensive network with the members of the ecosystem where they can interact and exchange knowledge freely. The platform provides equal investment opportunities to all types of investors. They will be able to access the pool of high-quality startup projects with high level of transparency and, at the same time, they will be able to choose to invest in projects at any stage of development. Projects on the platform will also be rated by our AI using a scoring system and recommendations will be made according to the investors profiles and preferences. In addition, the platform enables direct communication between the investor and the project team. Nonetheless, the platform does not seek to influence investment decisions. Keplertek safeguards the interest of investors by providing digital escrow using smart contract, where the invested funds will only be disbursed to the team upon meeting predetermined milestones and objectives. 14
Kepler Network
Kepler Network Keplertek is the first company that unites the key players in the high tech startup ecosystem on a single professional network. Founders, developers, engineers, investors, entrepreneurs, innovators, data scientists, etc. will be able to interact and exchange insight freely. We divide the user base of Kepler Network into three major segments, namely innovators, technical professionals and investors. At the moment, these segments are very much segregated. By building a tightly-knit community, Kepler Network enables the distribution of ideas, expertise and resources across different parts of the world. Our AI, as well as, multiple other tools will be made available to guide team building, development of the idea and subsequent funding. The platform will significantly increase the probability of success of the newly-born startups, contributing to the creation of truly disruptive and innovative projects. Innovators & Founders In this segment we consolidate individuals who are the drivers of each project. They add spark to each project by introducing new business ideas based on their background in artificial intelligence, robotics and other technological fields. Founders register on Kepler Network and share their business ideas accompanied with all pertinent background information such as experience, education, special qualification, prior project descriptions, etc. As the creators of the idea and project leaders, developers are granted autonomy in building teams according to their project requirements and specifications. Developers are free to engage any available technical professional, expert with matching qualifications from Kepler Network. Our AI will also be generating recommendations for suitable candidates depending on the project. However, the final decision of choosing to assemble the team lies in the hand of founders. They will also be able to approach a certain number of investors for seed funding. 16
Technical Professionals Technical professionals are technically sound individuals with background in AI, Robotics or other fields who are motivated to contribute to the creation of high tech products, be it independently or through teamwork. A technician has demonstrated knowledge and expertise, he or she can be a student, professor or professionals who are willing to dedicate time to meaningful long-term projects. After registration on the Kepler Network, technical professionals will be able to search for teams and projects uploaded by founders. They can either offer their services or be approached by the founders. In the case when they already have a product in mind and want to work independently, they can proceed to source for prototype as well as product building material at the marketplace and subsequently list their creations on the platform for sale. Kepler Network will provide all technical support to ensure easy navigation and prompt communication among team members. Investors Investors are individuals or entities who seek to finance projects that have been submitted on the Kepler Network. With both the project evaluation team and notable advisors worldwide, investors will gain access to a series of vetted and approved start-up projects. The projects displayed to the investors will be chosen from the top business and engineering schools worldwide. This way, they ll be able to gain assurance that the projects they will be investing in have a higher chance of success than regular projects. Investors will also be able to see the progress and performance of the startups they have invested their money in. They are entitled to agreeing milestones with the startups and disbursing funds only if the startup has met the milestones. This is how the platform safeguards the interest of investors and provides them a fair, reliable and transparent investment environment. 17
Integrated Startup Incubator within Kepler Network Kepler Network will guide startups through the process of concept creation, pre-mvp development and securing seed funding. This is where angel investors, who seek to be the early backers for promising projects, interact with the founders and teams. Startups can engage any R&D laboratories and tech parks around the world to collaborate via Kepler Marketplace. Nonetheless, it is open to startups at any stage to participate. The incubator is integrated in Kepler Network, where idea generators(founders) can assemble their teams from ground-up, they will be able to access a global talent pool and get recommendation from AI. Technicians, engineers, developers, marketing specialists, mentors, legal professionals can create profiles, upload their resumes, work-experience, recommendations to showcase their specific skill sets and increase their visibility for better career prospects. They can either apply to startups that are in team building stage or be invited by startup founders for collaboration. Kepler Network s major goal is to work with teams that are determined to work together on meaningful long-term projects. Unlike freelancer platforms, users are incentivized to join because they will be a part of the newly-born startups instead of a per-hour hire. Once teambuilding is finalized, the smart-contract legally binds members together. Upon passing the screening and evaluation, Keplertek s incubation process assists teams to develop concept, formulate IPO grade business plan, financial revenue model, build MVP, conduct market feasibility research and legal due diligence. Due to Keplertek s long-term partnership with Big 10, startups will have the benefit of paying less for their services. Keplertek will assign mentors to each startup, tailored to their specific needs, it can be a technician, developer or data analyst and one experienced Big 10 manager. Startups will have an opportunity to work one-on-one in workshops with Keplertek s management team. Keplertek will organize digital lectures and workshops on startup focused topics ranging from general management to business development. These mentorships and advisory support aims to nurture a more entrepreneurial culture and bring more aspiring ideas onboard.
Start up Acceleration using Kepler Network Kepler Network s decentralized social accelerator program will be a main a medium of operation for start-ups in concept creation, pre-mvp development phase, angel investors who seek the be the early backers for promising projects and teams and R/D laboratories and Tech Parks around the world to collaborate. Accelerator will work as a social network where idea generators(founders) can initiate global team-building process, adding missing pieces and even assembling their teams from ground-up. Technicians, engineers, developers, marketing specialists, mentors, legal professionals register on this medium, make profiles, upload their resumes, work-experience, recommendations and either apply to startups that are in teambuilding stage or are invited by startup founders for screening. Kepler Network s major goal is to work with teams that are determined to work together on meaningful long-term projects. Unlike freelancer platforms, users are incentivized to join because they will be part of newly-born startups and not a per-hour hire. Once teambuilding is finalized, the smart-contract legally binds members together. Acceleration process requires teams to develop concept, MVP and IPO grade business plan, market feasibility research and financial due diligence, before they apply for screening and evaluation and leave Kepler Accelerator medium. Kepler in partnership with Big four will provide startups with consultation on legal documentation at significantly subsidized cost. 19
Kepler Accelerator will provide funding, mentorship and support programs for the worthiest projects, accelerating them to become a great crowdfunding participation opportunity. Accelerator s network will include relevant experts which provide advisory services to accelerator program participants. Kepler Accelerator medium will be a transparent, collaborative framework between startups and their mentor teams that is beneficial for all parties involved with the aim to build sustainable business solutions. Kepler Network s Consultation Service Keplertek offers each accelerator participant consultation on how to fund operations and lunch successful startup. Keplertek s in house team of experts in partnership with Big four work with startups on strategic planning and creation of necessary IPO level documentation for successful fund-raising campaigns. Documents include: business plan, market feasibility study, financial revenue model and legal due diligence. Keplertek will assign each startup mentors: one technologist, one developer and one experienced Big 10 audit firm manager. Startups will have opportunity to work one-on-one in workshops with Keplertek s management team. Together consultation will provide advisory services and tailor-made solutions for the unique situations each startup faces. Keplertek will organize digital lectures and workshops on topics ranging from general business development and management on startup focused topics. 20
Kepler Accelerator
Kepler Accelerator After Kepler Network, this is the venue where clearly defined projects get additional funding. Only those projects which have passed the IPO grade evaluation and those that have an MVP will be eligible for Kepler Accelerator. At Kepler Accelerator, individual investors, institutional investors and centralized venture funds will find post-seed and development startups which are ready to grow and scale. Kepler Accelerator taps into a large and diverse market, backed by blockchain technology. It provides its participants a liquid marketplace where investment can be liquidated at successive fundraising rounds, which is otherwise unavailable to the traditional startup investor. Startup founders benefit in a relatively quick and smooth manner to raise capital for their project without ceding strategic control. Screening requirements in Kepler Accelerator guarantees that startups do not over-fund themselves, rather they only raise the very amount that is necessary to meet the objectives within the given round. Successive funding rounds will require issuance of additional shares at a new valuation to current shareholders and new investors. This creates a clear path for continuous financing as the startup begins to scale. Furthermore, Kepler Accelerator will enforce a high standard post-investments and milestone reporting to all stakeholders for full disclosure of investment performance. With digital escrow, invested fund will only be released to projects that have achieved the predetermined objectives. Investors will have exclusive digital access to market research reports, due diligence transcripts, post-funding financial and milestone standings, etc. The reporting system is automated through the platform and it will be developed by Keplertek and its strategic partners. With this, Keplertek is setting a new standard in transparency and traceability in the ecosystem. 22
Kepler Marketplace
Kepler Marketplace Kepler Marketplace serves as the resource bank for the startup ecosystem and the gateway for startups to consumer market entry, and it plays an integral role in the startup development process. Tech parks, laboratories, vendors and merchants can list various hardware materials as well as offer their facilities and services. Our AI will be able to match the nearest available resources to startups requirements. Startups that have successfully finished product development can reach global consumer market by listing their products on the marketplace. The platform will become the go-to channel of consumers who are looking for new high tech and innovative products. Special discounts will be given when transaction is done in KEP, hence encourage the use of our token. There will also be a bidding section under the marketplace where any entity can place an order for the development and creation of product with their specifications and a budget. This will help to spur innovation and creativity in any corner of the world. 24
Kepler News
Kepler News This space provides startups free media exposure to targeted investors and there is also an option to promote their projects at a fee. News regarding industry breakthrough and development within the high-tech ecosystem will be featured, which is important for the professional development of founders and technical professionals. In addition, there will be specific tools designed for investor community, such as technical data, charts and analysis of startups to keep investors updated about their development progress. Investors will be well-equipped with the necessary knowledge to make informed investment decisions. It will be available for all viewers across the globe at no charge. 26
Artificial Intelligence Integration within Kepler Platform
Artificial Intelligence Integration within Kepler Platform The value that Keplertek delivers will be directly tied to AI. We aim to use machine learning algorithms to offer a better job-candidate match, giving both startup founders a better chance of hiring the right tech professionals, and the candidate a better selection of relevant job opportunities. Unstructured data that will be generated on Kepler Platform will be used to implement a more user-centric experience. The data will be recorded from the moment the users register up until they fully develop their projects. Our AI will use this data to reduce the time it takes to engage new staff and find investors. There are also particular uses of AI on Kepler Platform. The biggest benefits that investors will get is ranking of the projects. The AI will rank the projects according to the probability of success of these projects, which will be determined using many criteria. For example, these criteria include static elements (such as data generated by the users upon registration) and dynamic elements (such as user habits and frequency of visits to the platform). As a result, investors will be able to see the quality of the projects and make better-informed investment decisions. This way, the AI will facilitate the delivery of the ultimate value Keplertek strives to provide: bring innovations to the market faster. 28
Project Development Strategy
Project Development Strategy Phase 1: First Wave Startups Onboarding Keplertek team will launch the beta version of Kepler Ecosystem by Q4 2018 for testing. Of which, the first wave of startups in pre- and post-mvp development phase will be onboarded after the end of Private Sale in Q4. Keplertek has established partnerships with IE Business School, one of the top 10 business schools in the world from Spain, to direct award winning startup projects to join our platform. With the partnership, all investors will get equal opportunity to invest into world-class ideas. At the same time, our international community managers are actively looking for innovative startup team to join the platform. Along with Keplertek s reputation and international branding, there is organic growth where multiple startups have approached the platform to be featured. Keplertek has an ongoing agreement with Georgian Innovations and Technology Agency (GITA) to co-finance the hire of the best Venture Capital Analysts from Silicon Valley to come to Georgia for evaluation and screening of startups. The final launch of beta platform will coincide with the announcement of 10 startups which has passed the stringent evaluation and screening process. Keplertek will finance their acceleration and subsidize the creation of IPO level documentation. Keplertek team will accelerate these startups in partnership with Big 10 and feature them exclusively for the successive funding rounds on the platform. 30
Phase 2: Kepler Marketplace and News Data collection over Phase 1 is crucial for the improvement of AI, with more examples and real applications, Keplertek can get better algorithms and higher prediction accuracy. The foundation building for Kepler Marketplace and Kepler News runs concurrently with Kepler Network. Keplertek will build global partnership with engineering service providers as well as IT hardware merchants and vendors. Their goods and services will be listed and made available to all platform users. The database will also register various services that are provided by tech parks and R&D centres in different regions. 31
Revenue Model
Revenue Model Keplertek envisions the platform to be self-sustainable and have separate revenue models. Investment Commission: Keplertek will charge 1-5% commission on the invested amount depending on its size. Equity: Keplertek will own between 2-5 % equity of each startup. This is regarded as long-term asset and is illiquid in nature. Freemium model: All users will get free access to Kepler Network. For innovators and technical professionals, they can subscribe for premium features at a monthly fee of $30. Listing Fee: Keplertek will charge vendors a $30/month listing fee for featuring their products on Kepler Marketplace. Sales Transaction Fee: Keplertek will charge vendor a 1% transaction fee on the sales amount. Advertising Revenue: Keplertek will charge fee for sponsored content on Kepler News. 33
Full Cost Structure
Full Cost Structure The funds received during ICO will be allocated to following purposes: 40% Platform Development: Development of Kepler platform according to product roadmap. Bulk of the expenses will be allocated to the incorporation of AI and server infrastructure. 25% Strategic Partnerships and Business Development: Bring new startups, foundations, technical resource vendors & merchants and fundraising organizations to Keplertek, expand our global footprint. Secure partnerships with other players in the blockchain ecosystem to increase our token usability. Collaborate with existing network of successful startups to use Kepler Platform for their fundraising campaigns. Contract specialist law firms regarding regulatory and licensing frameworks for the ICO operations, as well as other matters related to the fundraising tax deduction compliance. 20% Communication and Marketing: Invest in PR and marketing campaigns to increase platform awareness and token adoption. Run educational campaigns to provide guidance to startups, investors and other users on platform navigation. Build strong local and global communities to encourage the sharing of knowledge and insight to help each other grow and scale. Target crypto influencers and develop marketing strategies to make Keplertek go viral. 10% Overhead, Operation and Administration: All costs associated with our headquarters and international offices. 5% Internal Exchange: Development of an internal exchange is an important part of our project. This amount will be allocated to structuring the internal architecture, security enforcement, setting up customer support team, etc. 35
Platform Development Strategic Partnerships and Business Development Communication and Marketing Overhead, Operation and Administration Internal Exchange 40% 25% 20% 10% 5% Overhead, Operation and Administration 10 % Internal Exchange 5 % Platform Development 40 % Communication and Marketing 20 % Full Cost structure Strategic Business Development 25 % 36