9 Common Queries Investors Have About Konzortia Capital

When donning the investor hat, I recognize that, akin to the fact that excellent technology alone does not guarantee a successful business, a remarkable business model requires more than just cutting-edge technology. It necessitates adept founders and a team, a scalable framework capable of generating the requisite revenue to sustain the company's organic expansion. This can only be accomplished with a product that addresses a genuine need within a sizable target market, presenting a clear competitive advantage over existing players.

?

As we have been in communications with new investors, that have recently gotten involved, as well as with those users signing up for our InvestHub beta release we have received great insights on our product, and have been able to address the typicall questions asked by potential investors.

?

Most investors have the same general questions, some with more of a tech background have some more specific questions, however I wanted to summarize the most frequently asked questions and share them with you:?

FAQs from Investors

?

1. What makes you different from existing competitors in the market??

What sets us apart from existing competitors is our comprehensive model that encompasses all the steps and requirements of capital raising and allocation within a unified solution. Utilizing AI, ML, and Distributed Ledger technology, we provide transparency, access to reliable data, precise deal discovery tailored to each investor's needs, thorough due diligence, and seamless deal completion, while also offering access to a well-defined exit strategy – all integrated into a single solution.

2. Do you wonder if there's market fit?

We've successfully engaged with a diverse range of investors, spanning from individual accredited investors to Family Offices, Venture Funds, PE firms, broker dealers, and companies at various stages, from idea to large corporations with substantial revenue seeking funding or an exit strategy. This engagement has allowed us to gather early feedback during our development phase. The consensus among these stakeholders is clear – there's a genuine market need to address the inefficiencies in the Private Capital Markets industry, and InvestHub, with its well-crafted pricing model, robust technology, and innovative features, is poised to effectively tackle these inefficiencies.

?

3. Is the team capable of performing?

My co-founder and I strongly advocate for maintaining a lean and highly efficient team. One of our key strengths is our ability to attract and retain top-notch talent. Our compact yet high-performing team not only brings extensive experience in their respective fields but also shares our vision and commitment to establishing InvestHub as the long-awaited market leader in the Private Capital Markets industry. We firmly believe that strategically expanding our team, driven by genuine needs for increased productivity, while maintaining a thoughtful approach to our budget, is undeniably the right strategy.

??

4. Who is your target and how is that applied to your go-to-market strategy?

InvestHub is strategically positioned to serve various segments within the private capital market industry, catering to the diverse needs of allocators, intermediaries, and issuers. We recognize that different age demographics exhibit varying levels of comfort with technology, with those under 50 years old generally displaying greater proficiency and openness to digital solutions. However, we understand that long-standing practices within the industry, such as conducting deals through face-to-face meetings, may lead to initial resistance to technological adoption, particularly among established firms with decades of experience in Private Equity and Mergers and Acquisitions (PE & M&A).

To overcome these challenges, we are committed to establishing InvestHub as a reputable and trusted partner within the industry. While targeting VC deals represents low-hanging fruit, once our reputation has been established, we aim to expand our reach to encompass other segments such as Private Equity and Mergers and Acquisitions. Our value proposition lies in providing an intuitive, secure, and efficient platform that enhances decision-making processes and fosters collaboration among stakeholders

?

5. How will you acquire critical mass?

Our company is committed to achieving revenue within the first 6 months of operations, with the aim of reaching the break-even point within the first 12 months. We firmly believe that validation is crucial for gaining critical mass. To achieve this, we are actively cultivating partnerships with reputable companies serving our target segments. Additionally, we're leveraging partnerships with incubators and accelerators to secure high-quality deal flow from issuers. Drawing from analyses of both successful and unsuccessful referral programs, we are confident that a well-crafted referral program can significantly impact our acquisition costs and accelerate our growth.

Our confidence in the market need for our offering stems not from mere belief but from a proven model. Prior to acquisition, Paraforge demonstrated significant revenue generation through their designed directory alone. Building on this foundation and informed by our deep market knowledge, we are equipped to tailor our messaging to resonate with each audience through specific channels, facilitating swift engagement. By employing well-designed messaging, a robust sales funnel, and a comprehensive press strategy, we are poised to exceed our targets in terms of user acquisition, cash flow, and revenue.

?

6. What are the revenue streams?

Our revenue model operates on two fronts: a Software as a Service (SaaS) model with a subscription base and a success fee model, akin to investment banking. In both cases, fees are paid by the issuers.

Given our primary focus on the US market, we've identified a lucrative opportunity by expanding our reach to international startups. Countries like India and regions such as Latin America present fertile ground, with startups seeking funding likely to find immense value in accessing our extensive directory of over 800,000 investors for a nominal subscription fee.

Confident in our model, we anticipate that within our AI & ML powered marketplace, deals will transpire more efficiently, allowing us to capitalize on collecting success fees. To facilitate this, later this year we will start the process of registering as a Broker-Dealer with FINRA.

?

7. Is the tech developed in-house?

Yes, we have our own development team. After acquiring Paraforge’s AI engine, which was primarily focused on connecting GPs and LPs, we've been diligently enhancing their directory. This includes creating a more user-centric UI/UX and redesigning all features to better suit the specific needs of VC, PE & M&A participants.

In August 2023, we signed a partnership with the Indian development company Tecxar. They specialize in AI, ML, and blockchain development tailored for both public and private markets. Tecxar boasts several success stories, having developed products for startups that rapidly achieved unicorn status. Since the agreement, they have been working on integrating new AI and ML capabilities into InvestHub. The deal was structured with a significant equity component and a smaller cash component.

We anticipate launching InvestHub's first release within the next month, with a final release expected by the end of the year

?

8. Where do you see your company in 5 years from now?

We possess a clear understanding of how to achieve sustainable growth. Drawing from our collective experience, we are well-versed in the steps necessary to accomplish our goals. While maintaining our focus on the present, we have outlined a clear path forward, complete with key performance indicators (KPIs) to guide our progress.

In five years, we envision Konzortia Capital emerging as an industry leader, driven by our subsidiary, InvestHub. We anticipate achieving significant market penetration, establishing ourselves as the standard-bearer in Private Capital Markets for primary transactions. Furthermore, through InvestHub OTC, we aim to dominate the secondaries market. InvestHub Terminal is poised to become indispensable for brokers operating in the secondary market, while our aggregators for primary and secondary transactions will unify what is currently a fragmented market.

In essence, our vision is to transform private markets, ushering in greater transparency, efficiency, and accessibility, mirroring the characteristics currently prevalent in public markets.. We are dedicated to staying at the forefront of innovation, thereby establishing significant barriers to entry for potential competitors. We believe this strategic approach reflects the secret sauce of multi-billion-dollar companies that emerged from humble beginnings just decades ago.

?

9. Exit Strategy?

With the establishment of InvestHub’s OTC, characterized as a secondary market registered as an ATS but with all the features of an exchange, our investors will gain access to liquidity through secondary transactions. However, we do not rule out the possibility of an IPO in the future. Moreover, once we have secured a significant market share and have made substantial impact, it's probable that major players in the investment banking industry will approach us for a buyout, which we will consider on a case-by-case basis.

To learn more click the following link to access our Pitch Deck: https://docsend.com/view/d9ibua4apqwz79i3