ASSESSING BUSINESS MODEL POTENCY AND INVESTMENT ATTRACTIVENESS
(ARR: Annual Recurring Revenue)
Given that we're building a sustainability ecosystem, there are many components and revenue streams comprising our business model, which will be activated over time. For this task, we want to get your feedback on ONE aspect of our business model which is what has generated our initial revenue to date. This aspect of our business model has TWO key components/parts, as follows:
PT 1: SMART CITY/COMMUNITY DEVELOPMENT (PROJECTS)
We are designing and preparing to execute significant economic development project within small island developing states, leveraging innovative sustainability technology solutions and best practice sustainability management practice. Revenue will be derived from property sales, property rentals, property management, product sales and other related means.
PT 2: SUSTAINABILITY TECHNOLOGY SOLUTIONS (PARTNERS)
We are building a consortium of global partner companies, some startups, some more established, which have developed technology solutions in different sectors like Transportation, Renewable Energy, Aquaculture, Indoor Farming, Freight Management and others, that we can deploy in the sustainable economic development projects we undertake. These companies pay an annual membership fee to join our SM@RT DAC CONSORTIUM, in the same way that companies pay a membership fee to join the Enterprise Ethereum Alliance. The top 3 benefits to the companies who join our consortium, are:
1) They get to have their technology used in our smart city/community development projects, which means they get high volume orders of their sustainability product (whch is significant "traction" for their business)
2) They get the "enhanced market positioning" and exposure that comes from being involved in a high profile development project
3) They get access to major alternative funding in the form of "fractional presales" of their technology product/service solution, through inclusion in our 2020 Security Token Offering (STO). We will leverage a portion of our equity in the smart city/community development project, to facilitate "discounted" preorders of our partner companies' products and services.
STO POINTS OF NOTE
NB. During our STO, in order to get "Revenue Share" security tokens for our development projet, the STO investors will have to pre-order $X,000 worth of one or more partner companies' tech solutions, whether that is a new kind of Wind Turbine, a Shipping Container Farming System, an Electric Pickup Truck, a Sustainable Modular Tiny Home, or some other sustainability tech solution. The STO investors don't have to pre-order the full product, they can purchase a "tokenized fraction" of it. So if For Example, an investor bought say $10,000 worth of the Container Farming System which sells for $100,000, they would receive security tokens that gives them TWO OPTIONAL rights as follows:
- the RIGHT to redeem the tokens against the purchase of the container farming system in the future. This means that in the future if they want to get the container farming system, they would redeem the $10,000 worth of STO tokens, then pay the difference of $90,000 in order to complete the purchase and take possession of the container farming system
- the RIGHT to receive quarterly or 6-month interval revenue share payouts from our sustainable econmic development project, over a period of X years
The key thing to note here is that the STO Investor would not be able to redeem an STO token for BOTH benefits. If he/she chooses to start accepting the revenue share payouts from our development project for their total STO token holding, then they would automatically forfeit the right to redeem those STO tokens for purchase of the partner company's product (in this example, the container farming system) and that product redemption right automatically transfers to OUR company SM@RT.
However, if an STO investor holds 10,000 STO tokens, they could for example, choose to stake 6,000 of their STO tokens to obtain the revenue share from our development project, leaving 4,000 STO tokens available to redeem against the purchase of the partner/consortium member company's product. They just can't exercise/activate both rights for any of the STO tokens, they have to choose one or the other.
We will be selling the STO tokens to raise US$1Billion in capital and the consortium companies will receive some of those funds as the pre-order sales revenue, ranging from US$1M to $37M depending on which consortium membership subscription they have and how many tokens were bought to pre-order their specific product/service.
IMPORTANT NOTE: Our Security Token Offering is not required to fund the smart city development project/s. We already have a major Funding Partner that will fund the development projects. The STO fundraise will allow us to buyout some or all of our Funding Partner's equity shareholding in the smart city development project, as they do not wish to retain the equity in the project long term. They have a "mass/global" social impact focus and mandate, so their strategy is to invest and sell out their equity within a year or two and re-invest those funds into the next social impact project. From an STO marketing standpoint, having a major funder and a sovereign government on board with our development project, will very likely attract many institutional and HNWI investors to our STO.
Here are the SPECIFIC FEEDBACK QUESTIONS we would like you to answer for this task:
FIRST, please review the full SM@RT DAC consortium value proposition and membership pricing on the Consortium promotional website here: https://www.smart-dac.tech. Then please answer the following questions:
(PS. Feel free to be quite frank and direct, no offense will be taken. This is a learning exercise for us and we can't learn what we need to learn if you "sugar coat" your responses.)
(1.) For the various sustainability focused companies globally that are trying to get their new sustainability technology solutions into the global marketplace...
WOULD YOU consider our Consortium Membership Value Proposition to be a compelling one for them?
If Yes, Why?
If No, Why not?
(2.) If you yourself were one of the owners of a sustainability startup with an innovative new sustainability technology solution of some kind...
WOULD YOU be interested in purchasing a consortium membership based on the total value proposition explained on the consortium website and membership brochure, and the available "business" membership pricing/options offered?
If Yes, Why?
If No, Why not?
(3.) As a serious blockchain/crypto enthusiast, knowing what you know about SM@RT's business development plans, our consortium membership revenue model, or sharp focus on accelerating sustainability transformation, and our strategic smart city development projects... IF YOU WERE UNEXPECTEDLY GIVEN THE OPPORTUNITY to privately acquire as little as US$100 worth of shares in SM@RT (or optionally more) at this early stage of the company's development (revenue traction of just over $140K in consortium membership sales to date), where you could "optionally" resell those shares to the company in 6 months for a 50% return or in 12 months for a 100% return (share buyback), and where the company's ability to buyback the shares in 6 or 12 months comes from new sales of consortium member subscriptions...
WOULD YOU be inclined to purchase at least $100 worth of shares?
If Yes, Why?
If No, Why not?
(4.) We would like to have follow up Email or Skype dialogue with some of you regarding your feedback.
WOULD YOU be open to that?
If you would, please send an email with your real name and email contact details to firstname.lastname@example.org, then simply type "YES, COMPLETED" as your answer to this question. If not, simply type NO. (There is no penalty for saying no, in terms of the rewards you will receive here on Crowdholding).
The SM@RT Team
SM@RT INC is a Blockchain and Sustainability Focused, Business/Economic Development Company, working to accelerate sustainability transformation globally. This is being pursued within the ambit of our corporate mandate and mission as follows:
"Financing and Accelerating the achievement of the Sustainable Development Goals"