| . | . |
|---|---|
| Company Name | Paperchain |
| Website | https://paperchain.io/ |
| Asset Type | Short Term Spotify Streaming Revenue Financing |
| Pool Summary | [Issuer] Paperchain Series 3 |
Company
Please give a brief history of the company and, if applicable, group structure.
Operating at the intersection of media, finance, and technology, Paperchain connects to the largest media streaming platforms and offers creators a non-dilutive funding model via innovative use of media data streams & investment products.
The Paperchain team brings a variety of media, data and technology backgrounds, coming from companies such as Datalicious (acquired by Equifax), Soundcloud, Digital Asset, Backlash Solutions (acquired by Exactuals), Songtrust, Downtown Music Publishing, Jammer, Platform.sh, Limetray and Ambit Energy.
Paperchain is an alumni of Techstars, participating in the Techstars Blockchain Accelerator program in NYC in 2019. Beyond Techstars, our investors include executives in the music industry and finance industry.
Organization
How many full-time equivalent team members do you have and what do they do?
Paperchain has 5 full-time team members split between engineering and sales functions.
Have you sold equity? Are you venture funded, if so please describe the previous rounds, money invested, and lead investors.
Paperchain has raised a $555,000 USD pre-seed venture round, led by Techstars.
Asset Details
Describe the asset collateral that you seek to finance.
Short Term Spotify Streaming Revenue Financing
Describe your previous track record related to this business proposal.
Paperchain has been issuing advances of this nature since September 2019 with a 0% default rate.
What is the average collateral asset size?
Average Loan Size: $25.000
Describe the risk of the assets you are proposing. How do you evaluate and manage that risk?
Paperchain issues advances of streaming revenue to artists, but the artist is not the counterparty risk here. Upon origination of the advance, the artist redirects their revenue payment to Paperchain – making the payor (such as Spotify) the counterparty.
Paperchain uses a multifactor risk model that looks at both the borrower and the payor when determining the quality of the deal. The quality level from the risk model determines the advance rate to the borrower.
Disclosures
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.
None.
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.
No.
Are there any further disclosures that interested party should be aware of?
No.