Peer-to-Peer Lending with Bitbond

The #unbank

Source: KPCB Internet trends 2015

The digital economy continues to grow

E-commerce

Real estate

Transportation

Knowledge

Freelance work

Food

E-marketplaces today cover many industries

...and many more

To grow, entrepreneurs need financing for:renovation, cars, computers, equipment

To grow, entrepreneurs need financing

for:inventory,

production, storage

facilities

Marketplace entrepreneurs need financing

Global funding gap of SMEs according to the World Bank

Reasons → lack of banks’ scoring capabilities, retail loan volumes often relatively expensive to serve for banks, lack of presence of

banks in some regions

$ 2 trillion

Small businesses sell and operate digitally but banks don’t keep up with the change

Bitbond is the first global marketplacelender for small business loans

We connect small business owners whoneed a loan with fixed-income investors

We have a proprietary scoring mechanism and use bitcoin for payments to enable efficient cross-border lending

Bitbond connects borrowers and lenders globally

SME loans are attractive fixed income assets

Unsecured small business loansLoan amount: up to $10,000

Term: 6 weeks to 5 years

Repaid in monthly installments

Interest rates: 10% to 35% p.a.

Scoring via read access to borrowers’ business accounts (eBay, Amazon, MercadoLibre, PayPal etc.)

Denominated in USD or EUR, paid out and repaid via bitcoin

Retail and institutional lenders fund the loans

Expected gross return in a diversified portfolio

13% p.a.

Asset managers

Microfinance funds Banks

Retail lenders

Institutional lenders

Individuals

Scoring is done based on business account data

PSP Accounting

reads applicant’s data through API connection

Example

Account typeMarketplace

continuous data evaluation improvements via machine learning in cooperation with

Business owner

conducts identification (via partner Identity TM) and

fraud checksCredit score and debt capacityBased on

● Identification documents

● Revenue and feedback on marketplace accounts

● Transactions in payment accounts

● Business standing based on internal accounting

● (Absence of) fraud indicators

● Data which banks mostly don’t consider

grants account access

Paym

ent

rem

inde

r ty

pes

reminder letter mailed to the borrower’s postal address every 8 days

emails

SMS

automated calls

manual calls

letters

automated reminder SMS sent always 12 hours after an automated email

manual reminder phone calls depending on status of communication with borrower

automated email every 4 days plus manual correspondence by admins

automated reminder phone calls via text-to-speech API every 4 days

Overdue loans get collected professionally

Loans that remain overdue for 90+ days are passed to an international debt collection agency

FX risk is avoided by USD and EUR based loans

Value is kept constant in US dollars

Payment in bitcoin fluctuates with the BTC price

Loans are paid out in the digital currency bitcoin

Borrowers convert BTC to local currency to make a purchase or they pay with bitcoins directly

Repayment value is fixed in US Dollar or Euro to avoid bitcoin FX risk

Borrower buys BTC at the due date to make a payment

Bitbond helps with conversion by integrating 3rd party exchanges

There are 3 good reasons to use1.2.3.

Global cross-border lendingBitcoin transactions are completed within seconds globally and are nearly freeUsing wire transfers or other payment networks on a global scale would be prohibitively expensive

Low feesOther marketplace lenders need an expensive banking partner which makes them charge high

fees

Bitbond runs on open-source bitcoin infrastructure, is bank-independent and therefore cost effective

Financial inclusionGlobal internet penetration via smartphones is currently surpassing bank account penetration

Users from around the world reach Bitbond via the internet and don’t need a bank account to get a loan

Countries with funded borrowers, 38 are emerging

markets

We originated over 1,200 loans and grow fast

1,200+

$ 530 k

Originated loans

Total originated loan volume to date

(average loan today ~$1,200)

64

Cross-border lending

Countries active

Total USD raised

Loan typesp2p

installment loans

p2p installment loans

credit line credit line credit linecredit lineand term

loans

DE, UK, US

1 m 600 m 31 m 130 m IPOed 273 m

global UK, USDE, PL, ES,

UK UK US

—✔ — — — —

Bitbond operates globally while competitors don’t

Svetlana, e-commerce entrepreneur from the UK - WellDone Store

“I manufacture and sell cosmetics – hand made. It is quite popular and I am happy how it goes. I would like to start 9 new positions but I need to buy some ingredients and what is more important, some equipment for that.”

Claudia, fitness products entrepreneur from Colombia - Fitness Plus

"Bitbond is helping people who want to grow their business. Besides, it is evolving with life, everything is done through the internet nowadays. I admire and love the fact that it is also breaking the barriers between countries.

I love being able to check the status of my loan from my cell phone on my way to work instead of waiting on the phone for hours or going from office to office as we have to do when applying for a loan with a bank."

Antonio, e-learning entrepreneur from Brazil - Intelligente

“I have applied for a loan through Bitbond because the interest rates are attractive and also for the possibility of long term loans, such as 12 months or even longer.”

Francisco, artisanal soap maker from Venezuela - Savon 2i

“The loan will be used to buy machinery and raw materials for my business, such as induction burners,

steel pots, oats, exfoliant, sulfur, lard, some plastic racks and more

molds.”

We create impact for entrepreneurs globally

Bitbond reaches and serves the small businesses that banks don’t

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