BnkToTheFuture’s board member, Adam Vaziri went LIVE for an AMA with Vinter Capital’s CEO, Jacob Lindberg to discuss the Vinter Capital funding round (https://app.bnktothefuture.com/pitches/vinter-capital). Followed by a live AMA session to answer questions from the live chat.
Company: Vinter Capital – A regulated Crypto Index Provider aiming to make crypto investing safe, simple and compliant for institutional investors.
Type: Equity (available for non-US investors only).
Purpose: Vinter Capital attempts to make crypto investing safe, simple and compliant for institutional investors.
Problem: Many people find It difficult to buy and store crypto assets but easy to invest in crypto with exchange-traded products (ETPs and ETFs). Although the market is young, over $1B is invested in exchange-traded crypto products as of today. This speaks to the popularity of these products.
However, the large pool of capital is not held by retail but by institutional investors.
More than half of all institutions want to allocate at least 0.5% of their portfolio to crypto but have not done so because they need regulated index products. To do this, asset managers must comply with the Benchmarks Regulation and partner with a regulated index provider.
Solution: Vinter Capital is the regulated crypto index provider, asset managers can partner up to create financial products that institutional investors want.
1. Index investing in stocks and bonds has risen from a market share of 0% to 50% in the last 30 years. The indexing trend is strong.
2. The Benchmarks Regulation is new. Many asset managers have not yet partnered with an index provider.
3. Crypto market is growing. Prices of many cryptocurrencies are up ~2.5x since January 2019. In 10 years, the market value of crypto assets grew from zero to over $300B.
Competition: None of the three large index providers (S&P, MSCI, FTSE) is competing. They profit more from their existing products with 97% customer retention and 70% EBITDA margins. Vinter claims to be the only crypto index provider based in Sweden where more than 90% of European crypto ETP capital resides. Vinter claims their geographical advantage will help them close clients.
Market size: They estimate the current size is $1B and they believe the future size should at least be $70B. Assets under management (AUM) in regulated crypto products within the EU is currently estimated at $1B.
The AUM of the largest EU asset managers is estimated at $27 trillion and if half of them allocate 0.5% within 5 years, then about $70B shall be invested into crypto. Thus, capital inflows from asset managers buying crypto in the future are expected to be at least $70B.
Revenues: Index providers are paid based on AUM, usually a tenth to a third of the total product fee at 3%.
Vinter claims their revenues are in a 1:1 relationship with crypto prices: if they rise 10x, their revenues would also increase 10x.
The Benchmarks Regulation requires asset managers by law to use a regulated index provider for creating a financial index product.
The first round’s capital was raised to:
1. Obtain a regulatory license from ESMA so that their indices could be used by asset managers in the EU across all asset classes.
2. Launch their product with live prices on Refinitiv (Thomson Reuters) so that all financial institutions can easily get their index values.
Jacob Lindberg: CEO
– Worked at Nordea’s trading floor and investment banking division.
– Triple bachelor degrees: finance at SSE, mathematics at Stockholm Uni, statistics at Uppsala Uni.
Håkan Holmberg: CTO
– Developed index platforms for the Government of Sweden.
– Master’s degree in mathematics from Stockholm Uni.
Marco Poblete: Head of Legal
– Worked at Lindahl Law Firm.
– Master’s degree in Law at Stockholm Uni.
Vision: To become the largest crypto index provider in the world.
PITCH TYPE: Equity
MINIMUM INVESTMENT AMOUNT: $1,000
TOTAL RAISE: $1,181,700
EQUITY ON OFFER (Post Money): 18.18%
SHARE PRICE: $0.9192
*Disclaimer: The above information including the numbers, claims, & project analysis have been shared by the Vinter Capital team. BnkToTheFuture recommends all its investors to do their own research before making an investment decision.
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