BitLendingClub Investor Presentation

BITCOIN CROWD-LENDING
LIKE NEVER BEFORE!
Kickstarter for Bitcoin loans
bitlendingclub.com founders@bitlendingclub.comangel.co/bitlendingclub

Kiril Gantchev
• CEO of BitLendingClub
• Entrepreneur
• Software Engineer
• Startup Boot Camp,
AdGooroo, Trading
Technologies, Navigon
• linkedin.com/in/kgantchev
• angel.co/kgantchev

Yasen Yankov
• CTO of BitLendingClub
• Entrepreneur
• Software Engineer
• eCommera, CISCO,
Axway, Komfo
• linkedin.com/in/yyankov
• angel.co/yasen-yankov

What’s so difficult about Bitcoin
Loans?
Anonymous
• Who am I
lending to?
Unsecured
• High risk of
default
International
• Difficult to
collect

Difficult is not impossible!
Identify users
• Verify
Identity
• Connect via
Social and
Trusted sites
Empower
Investors
• Information
• Competition
• Security
Secure Loans
• Smart
Property
• Smart
Contracts

What have we done?
Built the MVP.
Achieved
product/market
fit.
2300+ users
23% market
share
Demonstrated
revenue.
589 Repaid
Loans
Merchant
Fees
Built a team:
CEO/CTO
2
Developers
2 QA
Engineers
1
Support/PR

The Competition: BTCJam
Advantage
• Venture funded for $1.2
million
• Early mover advantage
• Larger market share (77%)
• Bigger feature set
• Higher profit margin (4% vs
2%)
Disadvantage
• Fees taken upfront
• No secured loans
• Inefficient interest rate
discovery
• Poor communication with
community
• Bad interface

How is BitLendingClub better?
• Fees collected from loan payments (2%)
• Secured loans: integration with
merchants/manufacturers
• Interest rates discovered through free market
• Stellar communication with community
• CEO focuses on business, CTO on technology
• Better interface
bitlendingclub.com 8angel.co/bitlendingclub

But really… how much better?
BTCJam since 2012 BitLendingClub since March 2014
19% ROI/Year
90% Repayment
N/A Average APR
$1.2 million funded per month
4,000+ loans repaid
23.5% ROI/Year
96% Repayment
440% Average APR
$347K funded per month
594 loans repaid
bitlendingclub.com 9angel.co/bitlendingclub

Current Market: Loan Volume
BTCJam:
over 4,000
loans
repaid
BLC: over
591 loans
repaid
4,591
loans
repaid

Current Market: USD
Volume/Month
BTCJam:
$1.2 million
funded per
month
BLC: $347K
funded per
month
$1.547
million
funded per
month

Focus on GROWTH!
Acquisition
Activation
Retention
Revenue
Referral

Acquisition Statistics
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Monthly User Visits
0
50,000
100,000
150,000
200,000
250,000
Monthly Page Views

Acquisition Sources
Feb 1, 2014 – Aug 1, 2014
New Users
Direct
38.9%
Organic
36.8%
Referral
13.3%
Social
10.9%
Jul 1, 2014 – Aug 1, 2014
New Users
Direct
44.9%
Organic
31.2%
Referral
15.2%
Social
8.7%

Activation Per Month
0
100
200
300
400
500
600
April May June July
New Users
0
500
1000
1500
2000
2500
April May June July
Total Users
angel.co/bitlendingclub bitlendingclub.com founders@bitlendingclub.com

Retention Per Month
0
10
20
30
40
50
60
70
April May June July
New Borrowers
0
20
40
60
80
100
120
140
April May June July
New Lenders

Revenue Statistics
8.927 BTC
from loans
($5,200)
2.5-5%
from
integrated
loans
> 8.927
BTC

Other Statistics
838 Funded Loans
(1470 BTC)
594
Repaid
Loans
(897 BTC)
296 Loans
Funded in
July
(1031 BTC)
33 Late
Loans
(46.86
BTC)
7 Repaid
Late Loans
(3.3 BTC)
3.93 %
Default
Rate
3.12 % BTC
Loss 0
100
200
300
400
500
600
700
800
900
April May June July
Average APR
(44.66% Mining
& 12.05% ATM)

24 Months Funding Needed
1.25
Million
USD
Sales
MKTNGDev

US Based Sales: Merchants and
Manufactures
Develop a partner
acquisition pipeline
Engage suitable
merchants/manufacturers
Close key contracts

Overseas Dev Team
Feature Roadmap
Alternative
Revenue
Insurance
Marketplace
Notes
Marketplace
Fraud
Prevention
More tools
for Investors
Fraud
Detection
Systems
API &
Features
Users Merchants

US Based Marketing and PR
Marketing
• Run Advertisement
Campaigns
• Attend Bitcoin Conferences
• Generate Marketing
Materials
PR
• Increase Brand Recognition
• Establish Relationships with
Media
• Generate Higher Quality
Content

Revenue Sources
Repaid
Loans
2% fees
Partners
2.5-5%
fees
Insurance 1% fees
Notes 1% fees

Market Outlook
• $269 million worth of mining hardware/year
– Funding 10% of the mining is 540K in revenue
– 2% partnership fee yields just over $1 million
– Total: 1.54 million/year
• Over 10 Bitcoin ATM manufacturers:
– BitXATM alone sold 1000 ATMs at $6,000 per ATM
– 2% of that is $120K in revenue just from BitXATM
– 4% BTC partnership fee results in another $240K
– $360K from each of the 8 of the 10
– Total: $2.88 million/year
• Total: $4.42 million/year

Additional Sources of Revenue
Dev Effort Only
• Insurance
• Notes
Sales and Marketing
• ATM Floats
• Arbitrage (e.g. LBC)
• Derivatives Exchanges
• Business Loans

Current vs Expected
Current Cost and Revenue
Current Cost
• $360 K/year
Current Revenue
• $144 K/year
Expected Revenue in 2 Years
Expected Cost
• $625 K/year
Expected Revenue
• $4.42 mil/year

Contacts for BLC Team
Company
angel.co/bitlendingclub.com founders@bitlendingclub.com
Founders
Kiril Gantchev (CEO):
kiril@bitlendingclub.com
Yasen Yankov (CTO):
yasen@bitlendingclub.com

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