white lion global ventures initial coin offering - walnuts · pdf filewhite lion global...

Page | 1 Version 1.01

Table of Contents

1. Executive Summary .............................................................................................. 2

2. Introduction ........................................................................................................... 2

3. Current Market Challenges & Need ...................................................................... 4

4. ICO Goals ............................................................................................................. 4

5. Walnut Tokens ...................................................................................................... 9

6. Estimated Returns .............................................................................................. 11

7. Funds Utilization ................................................................................................. 12

8. Follow-On Fund .................................................................................................. 12

9. Future Roadmap ................................................................................................. 13

10. Investments Till Date (Pre-ICO) .......................................................................... 13

11. ICO Timeline ....................................................................................................... 14

13. Assurance & Legal Compliance .......................................................................... 14

14. References ......................................................................................................... 14


1. Executive Summary White Lion Global Ventures (WLGV) Fund is Asia’s first Coin Traded (CTF) and Coin Managed Fund

(CMF) focused at investing in high-tech startups leveraging Cryptocurrency, Blockchain, Artificial

Intelligence and Machine Learning technologies. The money raised via ICO will be utilized to fund

early stage startups in the India and South East Asia (I-SEA) Region leveraging these technologies to

build and strengthen the ecosystem.

Startups based out of India and South East Asia (I-SEA) have been doing amazing work in the area of

Cryptocurrency and Blockchain but the infrastructure to support their growth is missing. The WLGV

Fund aims to invest in these startups as well in the ecosystem/infrastructure required for the growth of

these technologies.

The team leading the fund has an exceptionally strong understanding of the startup ecosystem and

has been instrumental in building and scaling technology startups in the region. White Lion Ventures

has already made seed investments in six (06) startups leveraging Cryptocurrency and Blockchain

with exceptionally encouraging results. The WLGV Fund will act as a catalyst to fuel and amplify the

positive impact created by at least 20 such startups directly and 130+ indirectly in the ecosystem.

2. Introduction White Lion Global Ventures Fund is aiming to solve the key issues plaguing the incubation and growth

of tech startups focusing on cryptocurrency and blockchain in the I-SEA region. The WLGV team has

been involved with the startup ecosystem in the region for more than 20 years now and with

cryptocurrency since last 4 years and has a first hand experience of problems faced by these

startups. This fund is a sure-shot attempt at solving these problems.

The Problem:

India and South East Asia (I-SEA Region) have been a hotbed of tech startups for more than two

decades now. After the United States & UK, India is the third most active ecosystem for startups

[Ref 1]. Majority of the startup funding in the region happens via the traditional funding options of

equity dilution (selling company shares/diluting ownership) and raising debt (Business/Project loans).

Almost all the traditional funding by the investors happens as per their age-old rules and biases. This

makes it difficult for the investors to make bets on emerging, high-potential technologies and startups

leveraging these technologies find it tough to raise funds. [Ref 2]

“The main goal of the ICO is to integrate the world of crypto-

currencies to the world of venture capital equity funding of early

stage startups and disrupting the way early stage startups are

funded in India and South East Asia Region.”

“Asia’s first Coin Traded (CTF) and Coin Managed Fund (CMF)”


The Solution:

WLGV Fund is a Coin Traded (CTF) and Coin Managed Fund (CMF), which will not only invest in the

tech startups leveraging the key technologies listed above, but will also use block-chain to track and

manage investments and their growth in its investee companies. The structure of the fund, selection

of the investee companies and investment in these companies is managed in such a manner that it

provides complete transparency to all the stakeholders in the chain.

The team backing the ICO and managing the fund has extensive experience across:

Building and growing tech companies across India and South East Asia,

Managing investments in startups,

Mining Cryptocurrency,

Managing Cryptocurrency and Blockchain based startups.

WLGV Fund aims to tackle this problem of startups starved for funding and struggling to grow

because of lack of infrastructure by not only creating an alternate source of funding, but also by

helping in strengthening the ecosystem and act as an enabler and catalyst in helping these startups

grow exponentially.

WLGV fund has already made seed investments on six (06) startups and has further committed USD

250,000 for investment. This experience gives the team an unbeatable edge over traditional investors

in understanding this space and making intelligent bets while investing.

The First Mover Advantage:

India, the third largest economy in the world [Ref 3] and the biggest economy in South East Asia, has

aggressive plans for creating a completely cash-less economy in next 10 years. The Digital India

initiative by the Government of India under the leadership of Prime Minister Narendra Modi aims at

actively promoting the growth of cashless transactions as well using technology for the transparent

tracking of these transactions. [Ref4] Most of the government transactions can currently be done

using virtual currency. In-fact the government is actively chasing and penalizing transactions done via

paper currency (cash). The government is collaborating with various private players in a major push

towards the use of virtual currency. The Reserve Bank of India (RBI) is in the process of forming

regulations around Cryptocurrency and aims to finalize the same by end of this year. [Ref 5]

Other major economies in the region also plan to follow suit and give a boost to digital currencies and

online transactions. WLGV aims to become one of the pioneers in helping build the required

infrastructure by strategically investing in startups for the growth and acceptance of and crypto

currencies.

“Highly transparent investing and investment management

process.”

“WLGV aims to become one of the pioneers in helping build the required infrastructure by strategically investing in startups for

the growth and acceptance of and crypto currencies.”


3. Current Market Challenges & Need

India and South East Asia (I-SEA Region) has shown a strong potential for disruptive technologies

over past two decades. The startup ecosystem in the region is extremely robust and entrepreneurs

are always willing to experiment with new ideas and leverage new technologies for both B2B and B2C

offerings. For a new technology or offering to pick up, it requires support in the form of financial

investment and support ecosystem. Unfortunately, both have been lacking for Cryptocurrency,

Blockchain, Artificial Intelligence and Machine Learning in the current scheme of things.

The traditional means of investment lack at two levels:

The traditional investors do not understand the dynamics of the market and thus not willing to

invest their money

Even if the investors are ready to invest money, the startups require mentoring and business

support to scale and grow

In the end, lack of support on both fronts is hurting the growth of startups and the ecosystem itself.

4. ICO Goals

White Lion Global Ventures has come up with the Walnuts ICO with a focus on investing in startups

focusing on the growth and development of Cryptocurrency and Blockchain Ecosystem. The fund will

be focused on investing in startups working in areas crucial to the development and growth of

Cryptocurrency.

The key focus of the fund will be to:

Increase awareness about Cryptocurrency

Build framework that facilitates mining and trading of Cryptocurrency

Build payments and banking services infrastructure using Cryptocurrency and Blockchain

Seek and deliver business services via frameworks built using blockchain

85% of the funds raised via ICO will be used to fund the early-stage Venture Capital fund managed by

a professional team with extensive experience not only in building and scaling tech startups across

India and South East Asia but also in Cryptocurrency mining and practical business use of

Blockchain. The more business users are engaged with the ecosystem, the higher are the chances of

Cryptocurrency becoming the mainstream methods of managing payments.

The target markets (India & South East Asia) have the biggest and high density chunk of world’s

population [Ref 6] and a very strong potential for building a vibrant and thriving ecosystem around the

emerging technologies selected for investment through the fund [Ref 7].

Figure 1: The following figure gives a high-level view of ICO subscription by users across the globe,

creation of the Investment Fund and investing in selected startups.

“Lack of ecosystem and investment sources hurting the growth of cryptocurrency and blockchain startups.”


Fig 1: Investment Funds Flow

Focus areas identified for investment are:

A. Mining & Trading Platforms:

Mining of the coins is a very crucial element for building the robust ecosystem around

Cryptocurrency. The fund intends to focus on investing in startups and entrepreneurs working in

the area of mining the currency as well as creating infrastructure for mining. Similarly, post the

mining; the owners of currency need to be able to trade the currency on easy to use and

accessible platforms. The fund intends to either incubate startups or fund startups for building

these platforms.

B. Cryptocurrency Payments Ecosystem:

Along with mining and trading the Cryptocurrency, the next big area of focus is to create more

acceptability of the currency in the day-to-day life. This is possible by building a framework that

promotes the ease of accessing and using Cryptocurrency as a payment method for daily

transactions. The more people use this currency for transactions, the more robust the system will

be.

C. Predictive Analytics & Machine Learning:

As it is rightly said that data is the oil of the 21st century. Analytics and big-data itself is becoming

a very crucial area for businesses to focus and invest their resources. More and more businesses

are banking on data and analytics for making business decisions. One of the key areas where

Blockchain is finding a robust use is predictive analytics. The WTGV Fund intends to not only

invest in startups focusing on using data for predictive analytics, but also using Blockchain for

business decision-making and managing end to end execution of these business decisions.


D. Business Services and Tools:

As we move ahead into the future, a lot of large businesses are going to become irrelevant and

small businesses are going to play an important part. These startups, small businesses and

freelancers are going to need business services and tools on an ‘on-demand’ basis for running

their businesses. The WTGV fund intends to carefully select and invest in startups building tolls

and delivering business services to their businesses. The larger focus again will be to ensure the

growth of Cryptocurrency for seeking and providing these services and using Blockchain to ensure

end-to-end predictability and transparency for delivering the service and tool functionality.

E. Marketplaces for Entrepreneurs and Freelancers:

The rapidly growing numbers of freelancers and professionals opting out for entrepreneurship

require platforms to seek business from prospective customers. WTGV Fund is marking a certain

percentage of the fund to be invested in building platforms for entrepreneurs and freelancers to

bring them closer to customers seeking their services. This ensures that the ecosystem we are

striving to build provides enough business opportunities to the entrepreneurs for ensuring a

constant flow of business.

F. Content Delivery Platforms:

With consumers having access to one or the other form of media screen all the time, the

consumers demand content to be available in the form they want (text, images, video, sound etc.)

and at the time they want. WTGV Fund intends to invest in platforms, which are working on

creating an ability to predict and provide content to consumers as per their preferences on content

and time of delivery.

G. Live-streaming Platforms Using Blockchain:

While a part of the investment will go into funding the new-age smart content delivery platforms

another part is earmarked for investment in startups and entrepreneurs producing the content.

WTGV intends to invest in startups building mediums for making it easier for consumers and

businesses alike to make it easy to live stream high quality content from wherever they are with

the whatever device they have and at all the data speeds available.

Investment Fund Team Structure

The Investment Fund works like any other VC fund and will be managed by a very lean team of

professionals with exceptional credentials in understanding the startup ecosystem in the I-SEA

Region as well as with proven capability of ensuring above-the-market-average returns to the

investors. The structure of the team is kept very lean as the WLGV intends to use technology

intervention for sourcing and evaluating deals.

A Managing Partner owning the P&L and the overall performance of the investment fund will lead

the team. The partner also is the key decision maker in both the investing and harvesting cycles of

the fund over its lifetime. The Managing Partner is also the external face of the fund and will be a

key element in establishing partnerships and alliances with key partners and stakeholders. The

Managing Partner also performs the key role of marketing the investments made by the fund to

help bring additional investors to co-invest in the next rounds of funding in the portfolio companies.

The Investment Principal and a team of two Investment Analysts support the Managing Partner in

sourcing deals, making investments and overseeing the growth of investee companies.


Figure 2: The following chart represents the Investment Fund Management Team:

Fig 2: Investment Fund Management Team Structure

Investment Structure

The Investments from the WLGV Fund will be made in the following selected areas (or startups

aligned to these areas):

Cryptocurrency

Blockchain

Artificial Intelligence

Machine Learning

The selection process will be very stringent and executed by the investment team with hands-on

experience in these areas as well as in building and scaling tech-startups at the global stage.

The fund will be utilized to invest at seed and early growth stage and will be invested in three waves:

1. Maiden Investments: These will be the first investments made in the ventures and will be

mostly at idea and early growth stage. 20% of the total funds are allocated to maiden

investments. A total of approximately 20 investments will be made from this quota.

2. Follow-on 1: Out of the 20 maiden investments, approximately 12 ventures that show

promise will be selected for bigger, follow-on1 investments. Not only the funds from the

WLGV Fund will be used for the follow-on 1 investments, but, additionally co-investors from

across the globe will be invited to invest in the second round.

3. Follow-on 2: As in the case of second round of funding, the third investment (follow-on 2) will

be made in approximately 8 ventures that have the potential to become super-successes.

Owing to the high-growth nature of the business as well as extremely strong potential of the selected

markets, follow-on 1 & 2 give WLGV a chance of exiting or partially exiting at an average exit multiple

of 20X-25X.


Figure 3: The below representation shows the selection process and investment rounds in the

selected ventures.

Fig 3: Investment Process

The initial selection process is based on a stringent selection criterion to ensure the alignment of

investee ventures to the mission of the WLGV fund for creating a robust ecosystem. The fund will

fund 20+ startups in the maiden round with an aim of creating 8-10 super successes out of these

investments over a period of 12-24 months. Additionally, WLGV intends to indirectly impact 130+

additional ventures by creating an ecosystem for them to incubate, grow and flourish.


5. Walnut Tokens The Walnut Tokens (WXN) has been launched by the White Lion Global Ventures to be issued to

subscribers of the Walnuts ICO. The tokens serve as a ‘certificate of membership’ in the White Lion

Global Venture Capital Fund. This is akin to the Limited Partners in a traditional VC fund.

500,000,000 WXN Token would be available on www.walnuts.tech at an opening price of 750

Satoshi per WXN token. The tokens would be available in blocks of 1,000 Tokens. The holders of the

tokens will be eligible of receiving dividends from the returns on the investments made in startup from

the WLGV fund.

The WXN tokens are backed by real cash flows from the investments made from the WLGV fund.

Each investment made from the fund is completely transparent, traceable and accounted for. WLGV

has appointed external auditors to audit each and every transaction. Besides being completely

transparent, WLGV also ensures to be legally complaint by all means for ach and every investment

done from the fund.

WLGV is already in advanced talks with major exchanges to list WXN tokens within 3 months of the

ICO. WLGV will ensure that WXN tokens are tradable on a minimum of 1 major exchange (although

our goal is 3-5 leading Cryptocurrency exchanges).

Additional Information on the Walnuts ICO:

The total supply of WXN Tokens is pegged at 1,201,200,000 out of which only 500,000,000 are

available for ICO.

The below table gives additional details about the WXN Token and its issuance in the ICO:

NAME

Walnuts

SYMBOL

WXN

ALGORITHM Scrypt TYPE PoW / PoS

TOTAL SUPPLY 1,201,200,000 AVAILABLE FOR ICO 500,000,000

ACCEPTED CURRENCY BTC/ETH STARTING PRICE 750 Satoshi

MINIMUM

TRANSCATION

1000 WXN MAXIMUM RETAIL

TRANSCATION

1,000,000WXN

The WXN Currency

To ensure that WXN becomes a widely used currency for daily transactions by customers, WLGV is

already in talks with 14 major payment gateways and wallets to create a framework for use of WXN

as a currency for daily transactions.

Some of the key areas identified for creating the ecosystem of payments with WXN currency are:

Utility Bill Payments

Travel Websites

Ecommerce

Payment Gateways

Dining

Offline Retail

http://www.walnuts.tech/


Figure 4: The following representation shows the planned WXN Currency Ecosystem

Fig 4: WXN Currency Ecosystem

Allocation of WXN Tokens:

The WXN Tokens are assigned maximum limits of percentage per the category of the investor. The

following chart represents the estimated percentage allocation of WXN tokens to the participants.

Please note that this is an approximate representation and the percentage points for actual allocation

may differ.

Figure 5: Distribution of WXN Tokens for allocation

Fig 4: WXN Token Allocation


6. Estimated Returns

The WLGV Fund is being managed by a team with immense knowledge of Cryptocurrency and

Blockchain as well as building tech startups in the region. As the investments will be in high-growth

tech startups based on these technologies, thus the return on investments will be much higher than

the traditional investments made by venture capital funds.

Investing and harvesting:

The fund life is assumed to be three years out of which the first 1.5 years will be for investing in

startups and the second half will be for harvesting the returns from these investments.

Fig 5: Fund Lifecycle

Returns:

Although the WLGV Fund operates as a traditional VC Fund, the nature of investments and the

experience of the team managing the fund ensure that the returns are much faster and bigger than

the traditional investments.

In the best-case scenario, the investment gives estimated returns of 25X to 30X of the investment and

15X-20X in the worst-case scenario over a period of 18-36 months.

Additional Value Creation:

Besides the monetary returns expected from the investment in the startups, the additional value by

strengthening and growing the complete ecosystem in the region by:

Making Cryptocurrency popular and widely accepted

Educating people about Cryptocurrency and Blockchain

Creating transparent platforms for payments and banking solutions


7. Funds Utilization The WLGV Fund will be divided into four major parts. 85% of the fund will be utilized for investing in

selected ventures in three rounds of funding:

a) Maiden Round: 20+ Investments

b) Follow-On 1 Round: 10-12 Investments

c) Follow-On 2 Round: 6-8 Investments

10% of the fund will be utilized for running the operations and funding the team salaries, 2% for

Research and 3% for Legal and Secretarial activities.

Figure 6: The following chart represents the percentage distribution of the funds allocated for

investment:

Fig 6: Investment Funds Utilization

8. Follow-On Fund WLGV is a first fund of the investment fund series we are raising for investing in early and very early

stage startups. As mentioned in the Section 8, the current fund will be used for making approximately

20 early stage investments, 12 first follow-on investments and approximately 8 Second follow-on

investments.

WLGV will be initiating the process to raise a second fund and utilize the same as an Early-growth

and Growth Fund to help in taking the ecosystem to the next level of maturity.

WLGV is already in talks with 5 large global VC funds for ensuring the next rounds of funding for its

portfolio investments. The participation of the large global funds will strengthen the support system

even further and ensure the success of the invested companies. In the end, the planned structure of

the fund and the investments will ensure that the startups WLGV invests in ensure very strong returns

for all the stakeholders.


9. Future Roadmap

The WLGV Team has carefully chalked out the future roadmap of the fund and its activities to

strengthen the ecosystem for Cryptocurrency and block-chain.

Figure 7: The following chart details the key activities planned for the fund for the next 6-18 months

and the impact that it has on the WXN value.

Fig 7: Future Roadmap

10. Investments Till Date (Pre-ICO) WLGV fund is deeply committed to creating a robust and vibrant startup ecosystem and has already

started investing in startups based on Cryptocurrency and Blockchain.

Over the last one year WLGV has invested in the following startups:

1. LeanFlo (www.leanflo.co) is an Artificial Intelligence and Blockchain powered platform that

helps startups and small businesses to access all the business services that they do not

intend to execute in-house.

2. White Paper Ventures (www.wpv.co.in) is a platform that funds small business that are

working on B2B solutions using Blockchain Technology

3. We Do Mining (www.wedomining.com) is an Altcoin Mining setup that has started operations

in July with 5 machines.

4. We Do BlockChain (www.wedoblockchain.org) will work towards educating people in the field

of Cryptocurrency and Blockchain in the first phase and in the second phase we will setup a

Research & Development Team for using Blockchain in different B2B operations.

5. We Trade Crypto (www.wetradecrypto.in) is a Cryptocurrency Trading Lab that will serve as a

platform for supporting the trading of Cryptocurrency.

6. My BitCoin Cafe (www.mybitcoincafe.com) is conceived as first of its kind café in the World

that would not only have the decor on Bitcoin Theme but will accept payments in Bitcoin and

major Altcoins. It would also promote Cryptocurrency by various events.

http://www.leanflo.co/

http://www.wedomining.com/

http://www.wedoblockchain.org/

http://www.wetradecrypto.in/

http://www.mybitcoincafe.com/


11. ICO Timeline The Walnuts ICO is divided into two parts 1) Pre-Launch & 2) ICO Launch. The Pre-launch starts on

29th August and the ICO is planned for launch on 23

rd September. The ICO Closes on 22

nd December.

12. Legal Compliance

o White Lion Global Ventures: The legal entity managing the investment fund has been

registered in Singapore and the team is currently in the process of obtaining the

necessary approvals and compliances from the respective authorities in the country

for funds to flow from Singapore into startups in India and other SEA countries.

o Investee Companies: The target investee companies will be based out of India and

SEA, the team is currently in the process of obtaining approvals in all the major

economies in SEA so that the investments made in the startups are legally complaint.

Besides the statutory legal compliances, the WLGV fund is planned for the scheduled audits by

external global auditors.

13. References` o Ref 1: http://www.nasscom.in/knowledge-center/publications/start-report-momentous-

rise-indian-start-ecosystem o Ref 2: http://www.marketwatch.com/story/bitcoin-venture-capital-money-hasnt-kept-

up-with-buzz-2014-04-28

o Ref 3: https://data.worldbank.org/data-catalog/GDP-PPP-based-table

o Ref 4: https://www.forbes.com/sites/wadeshepard/2016/12/14/inside-indias-cashless-

revolution/

o Ref 5: http://www.business-standard.com/article/economy-policy/will-govt-regulations-

help-indian-bitcoin-exchanges-grow-117050800264_1.html

o Ref 6: https://latitudes.nu/introduction-to-southeast-asia-11-countries-593-million-

people/

o Ref 7: https://e27.co/look-back-2016-state-southeast-asias-tech-startup-ecosystem-

20170216/

white lion global ventures initial coin offering - walnuts · pdf filewhite lion global...

Documents