When we invest in Prosper and Lending Club loans, we are lending overwhelmingly to individuals usually for Debt Consolidation purposes. On the Bitcoin based loan platforms, my loans are mostly to businesses. It's actually a sizable peer to small business lending environment but it just so happens that these businesses are BTC based businesses and operating within the Bitcoin economy/ecosystem.
For example, one of my borrowers is Jose, who is bringing Bitcoin adoption through his exchange to both Mexico and Argentina. I think that's pretty cool. Another is Eric, who is bringing Bitcoin ATMs nationwide and is the only company in this area fully compliant with US money service business and FINCen standards. Also, very cool. Another two are Ian and David, 2 of the biggest BTC introducers to both merchants and individuals in Australia. All people with interesting and growing BTC based businesses that are part of the BTC economy.
Companies in this ecosystem need funding and they need help. My new service, BitFinControls, will help them.
Why BTC Businesses Need BitFinControls
Companies and projects in this new economy need to show they are serious about building a business. In the USD world, when a company is seeking private equity (PE) or venture capital (VC) funding or seeking to go public, they usually have to go through an Audit by a private outside firm that goes through all kinds of things from financial statements to operational controls. When a company goes public, its a requirement. In fact, there is a special type of public company audit they have to go through in order to insure that the information presented to investors is an accurate reflection of the condition of the company.
The BTC world has had nothing equivalent to this for project funding or PE/VC funding, until now. Whether seeking funding from a VC or listing a project on Coinsortium, Havelock or Cryptostocks, you need to show investors that you are serious about building a successful business, not just that you have a cool idea.
What Is BitFinControls?
BitFinControls is a verified service where projects and companies seeking funding through project platforms or VC/PE companies can show investors that they have various controls in place for their companies and projects. These controls will inspire confidence in investors to invest in the project as well as show investors that the owners are thinking about how to build their product/idea/service into a full fledged continually operating profitable company. Ideas are only part of the puzzle. How you execute on those ideas is the difference between being profitable and not.
The form with all the questions and request for verifications is right here.
My team of assistants, accountants and myself will verify all the project information given on the form as we ask 48 questions. These questions are divided into 4 categories:
- Administrative Controls
- Financial Controls
- Operational Controls
- Marketing Controls
Examples of Controls Important to Investors on BitFinControls
Here are 2 questions that are examples of some of the kinds of controls that investors would want to see.
1. Is the project wallet for this project a multisignature wallet? This is important as a financial control to limit the possibility of embezzlement. If more than one person has to sign off on withdrawals, then the possibility of one person making off with all the Bitcoin invested goes way way down. No project specific wallet would be a lack of a control and a project specific wallet that was not multisignature would a 'partial' control in place since at least we can track the revenues and expenses for the project in the wallet.
2. Do you have expenses in fiat (USD,EUR,GBP, etc)? and if so, do you have a fiat bank account for this project/company? This is an important operational control because having accounts where funds match the currency of expenses means that you are eliminating BTC price volatility from the equation of how much your expenses are. Who would want to invest in a project where a $250 expense could overnight become a $350 expense? Not me, and not most investors as that is no way to control risk.
What Does It Cost?
While in the beta stage, the charge for this service is 2.5 BTC (currently ~$950). If you want to pay in USD, you should email me directly at Stu AT p2plendingexpert.com to talk about arrangements. The cost is based on the number of manhours we put in to confirm and verify as much of the data as possible that is provided to us.
After all our systems are in place, the price will increase to 3.5 BTC. We will also have an affiliate program (I Hope) for project and company referrals.
Any questions about this program, please email me directly and I look forward to helping more BTC based companies get more funding and be successful