|Asset Type||Revenue Based Financing (RBF) Assets|
|Pool Sumary||Fortunafi 1|
Please give a brief history of the company and, if applicable, group structure.
Fortunafi is a fintech startup that has been in stealth since early 2020. The founding team at Fortunafi has deep experience in operating, scaling, and investing in fintech & defi startups. Fortunafi was incubated by Space Whale Capital, a proprietary investment firm that manages a discretionary liquid trading strategy and actively participates and invests in DeFi.
How many full-time equivalent team members do you have and what do they do?
We have remained a very small & nimble team. We currently have 2 founders and are hiring a number of roles over the next 6 months. Our first asset originator partner (Corl) has a full team to go to market and originate and underwrite all assets.
Have you sold equity? Are you venture funded, if so please describe the previous rounds, money invested, and lead investors.
Fortunafi was incubated by Space Whale Capital who led their pre-seed round in October 2020.
Is your business sustainably profitable or well funded with sufficient cash runway?
Fortunafi is well funded and plans to be profitable within the first 12 months.
Describe the asset collateral that you seek to finance.
Revenue Based Assets or Revenue Based Financing (RBF) is a type of financial capital provided to small or growing businesses in which investors inject capital into a business in return for a fixed percentage of ongoing gross revenues, with payment increases and decreases based on business revenues, typically measured as monthly revenue. Usually the returns to the investor continue until the initial capital amount, plus a multiple (also known as a cap) is repaid.
Describe your previous track record related to this business proposal.
Our founders have been involved in fintech & crypto since 2013. Nick started off in fintech at Wells Fargo’s Tech & Venture Group, then led finance & strategy for several venture backed fintech startups. He started investing & trading digital assets in 2016 when he met our other co-founder, Jason (a software engineer and trader). Then in 2018 they partnered up to launch a proprietary investment firm that manages a discretionary and quantitative liquid trading strategy and have been actively investing and partcicipating in DeFi since the inception. Additionally, our partners Corl, has helped government agencies and corporations effectively deploy capital from venture funds with over $100 million, generated portfolio returns in excess of 25% annualized, and helped support dozens of businesses obtain growth capital without giving up ownership or control. In 2020, Corl has partnered with Fortunafi to bring its real-world royalty assets to digital markets to allow individual investors to benefit from their technology and participate in their returns.
What is the average collateral asset size?
Mean asset size: ~$150,000
Describe the risk of the assets you are proposing. How do you evaluate and manage that risk?
FortunaFi will be focused on underwriting the asset originators that we partner with. All asset originators will undergo our internal underwriting process. Our first partner, Corl, utilizes a proprietary underwriting algorithm that predicts the future performance of a business. The investment algorithm generates a score on [0,1000]. An investment score is calculated for all businesses that pass our minimum elegibility for funding (minimum 6 months in revenue, minimum $10k in monthly revenue, at least 30% gross margins). Scores above 740 are considered for final diligence and potential investment. They aggregate and analyze 10,000+ data elements and attributes related to a business, its owners, its industry, and key markets that are reflective of that business’ financial and credit performance. We connect to a business’ bank accounts, accounting systems, payment processors, marketing APIs, and additional services that provide unique data for us to assess the growth potential of a business.
Please describe any conflicts of interest or potential conflicts of interest or any relationship that could compromise or be viewed to compromise the decision making of the company
Are there or have there in the last 10 years, been any criminal, civil, regulatory or administrative proceedings against (i) the Company or any of its principals or (ii) the product in any similar such matters including reparations, arbitrations, and negotiated settlements? If so , please describe.
Are there any further disclosures that interested party should be aware of?