For each criteria, either a (criteria not met) or (criteria met) will be given.
Below you will find the results of the individual criteria:
Business Years in Operation:
Off-Chain Institutional Investors:
Strong Pipeline:
Volume Originated last 2 years:
Historical Loan Tape:
TIN Tranche:
DROP Tranche:
Pool Value at Launch:
Pool Value in 1 Year:
Asset Maturity:
RESULT
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.
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.
I think a 10M mark probably makes the most sense at this point in time.
My sense is you’ve been able to achieve that off-chain, which is good. Perhaps there’s a way to bring some of those off-chain capital partners on-chain?
We’d love to grow with you too, but right now, even with a 30M mark in your sights, it’s simply a bit too unclear how and who that growth and financing comes from.
Yes in the last year we have raised approx. $12MM and we have had a loan volume of approx. $23MM off chain. Our plan of attack would certainly be to bring some of those investors on chain. We raise from wealthy individuals not institutions so it would be a matter of calling our list of investors and getting soft commitments in order to invest through this protocol.
I think we could get $1MM in soft commitment through our current network however you are correct that to get to $10MM would be a bit unclear on exactly where the financing would come from. The transparent answer would be that we would raise the capital by doing podcasts, networking, and calling our network which I think would ultimately be good for you guys because we would be mentioning Centrifuge on all of our social media and discussing it with each capital partner.
I am curious, is there a downside to you guys if we onboarded at $1MM and hovered around $3MM - $7MM for 12-24 months? That is what it seems like most of the other pools have done outside of New Silver who by the way does the exact same thing we do just in a different market which shows there’s a ton of capital that is interested in our type of investment product.
I understand where you guys are coming from in terms of wanting us to have capital committed up front for this type of investment and I know we can get to the point where are a large enough pool for it to be worth it for you guys however we would just need some time to grow and ultimately raise capital for the pool which in the long run will be a positive for you guys in order to get your name out there.
Howdy @ctcunning thanks for hoping on a quick call with us today.
Our team huddled up and we wanted to clarify two points just to make sure you knew where we are coming from.
We are not seeking to launch a pool on Centrifuge in order to tap into yalls capital sources. We have been very successful with raising capital over the last few years and we are willing to take on the burden of raising capital and bringing our off chain capital on chain. Currently we have a book of about $10MM investors and we will do our absolute best to bring that off chain capital on chain although we know it will be a difficult task.
We are interested in launching a pool on Centrifuge in order to lower our cost of capital because we will have the ability to put paid off capital back into the pool and not have to pay interest on our unutilized capital. The way our current fund operates we have to pay interest on all of our raised capital which puts pressure on us to lend out the capital. By being able to put paid off loans back into the pool and only pay interest on the utilized capital actually makes us a more responsible lender because we don’t have the pressure of deploying 100% of our capital.
Hi ctcunning,
Just for my understanding, following are two questions:
What is exactly the reason not on-boarding UrbanGate? Because of the expected on-chain volume of 10m? I see factory on their biz more delicate than that one of RWA backed projects.
In case the answer for question one is the costs of on-boarding how is it with factory’s pools which are below 10m as well. Why do we have Altair on-boarding such type of projects with a promising future?
There’s not a reason to not on-board. It’s not really my decision. I think a vote could be put to the community or other community members could comment on this thread.
Re: Altair - I’m not really sure how/if that could be used for such a use case.
Finally, most of our documentation is available and our code is open source. The assistance and guidance here comes down to scaling the pool and making that work.
It’s not a simple answer, but would be curious what/if other community members think of this opportunity.
I can’t assess this question either because I am no financial expert but in my opinion if the community wants to give the potential issuers the chance to present their business (in form of an informal presentation or a whole Pool party), this should be possible because the POP is a decentralized process to introduce and onboard new pools
And of course the opinion of the newly created Credit Group has value and should be taken into consideration
While I like the idea of us doing a presentation or a Pool Party I have started to agree more with the guidance that @ctcunning has given us. In order for the pool to be successful we need to have more on chain capital.
I would like to apply for a revolving line of credit from Maker for the senior Tranche in order to have access to more on chain capital. We would do a detailed “MIP6: Collateral Onboarding Application” similar to what New Silver (@prankstr25) did. Here’s their MIP6 (Link)
With a line of credit from Maker for the senior tranche and then combination of UrbanGate’s own funds & individual investors that would allow us to have enough on chain capital to make this worth it.
I’d love any guidance from the community and especially @prankstr25 & @ctcunning on best practices for submitting a MIP6 with Maker so that we have the highest chances of success.
A quick side note: Our loan business has been really picking up lately. We are averaging about $1.5MM in loans per months right now. We are actively raising additional money from traditional investors and it would be timely for us to be able to source additional capital from DeFi as we are in a positions right now where we have more deals than capital!
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(criteria not met) or 
(criteria met) will be given.
This proposal meets the threshold of >66% and has passed step 2.