POP Criteria Score: UrbanGate Capital

The Centrifuge community has reviewed the POP for UrbanGate Capital, based on the 10 criteria, and the result is: :seven: / :ten:.

SCORE

For each criteria, either a :zero: (criteria not met) or :one: (criteria met) will be given.

Below you will find the results of the individual criteria:

Business Years in Operation: :one:
Off-Chain Institutional Investors: :one:
Strong Pipeline: :one:
Volume Originated last 2 years: :one:
Historical Loan Tape: :one:
TIN Tranche: :zero:
DROP Tranche: :one:
Pool Value at Launch: :zero:
Pool Value in 1 Year: :zero:
Asset Maturity: :one:

RESULT

:white_check_mark: This proposal meets the threshold of >66% and has passed step 2.

NEXT STEP

Step 3 will be to get a recommendation from the Centrifuge DAO and the result will be published here on the Forum.

If you want to see all the steps of Stage 1 of the POP process, you can check this post here .

I think although this has passed, there needs to be a discussion around size of the Pool at launch and the lenders involved.

  • Capital relationships and how much you will bring through Centrifuge KYC to invest in either senior or junior tranche of your pool: We are talking with our investors about this now. As mentioned above most of our investors are old school type wealthy individuals so I don’t have a specific $$ amount however I would estimate approx. $500k - $2MM at first and grow this over time as we earn trust.

This was a good answer in a previous post, but I think that size, even with bringing off-chain investors on-chain, is still a bit too small to make this successful.

Again, I applaud the approach and thoughtfulness, but would request we take some time to hear how this could grow before moving any further and faster on it.

What $$ amount in soft commitments from our investors would you think is necessary to make this successful?

Also, I have some questions on the the fee structure, legal docs/structure, and the details on the tranches. Would it be possible to set up a meeting with someone on the team or would it just be best to post my questions in this forum?

Based on scoring above, I think the key gaps here are on numbers 8 and 9 related to capital commitments – less than $10M at launch, and less than $50M over 12 months.

Fees proposal and discussion can be found here: RFC: Additional CFG Token Utility

Legal structuring is done by the Issuer (UrbanGate in this instance) and some open-sourced docs can be found here: https://docs.centrifuge.io/learn/legal-offering/

And of course tranch information is in the docs: https://docs.centrifuge.io/learn/drop-and-tin/

Thank you for the response!

If we could obtain $1MM in Commitments at Launch and expect to be at $10MM within 12 months and a goal of being at $30MM by three years would that be enough in your eyes for this to be successful?

We could continue with the POP approval process however agree that we would only receive a clear to launch under the condition that we have $1MM at launch and have reason to believe we could reach $10MM in 12 months.

And thank you for the additional links, I just read through nearly all of the educational content you guys have online and I found it very helpful.

Hey I just wanted to follow up on my response below. Have you guys given this some thought? I’m happy to hop on a meeting to discuss if that would be helpful. Our goal is to do $30MM in loan volume by 2023 and would love to grow with you guys.