Pngme

Pngme

Mobile finance marketplace connecting lenders with borrowers using blockchain technology

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Security Type
Crowd Note
Categories
Other
Min Investment
$1,000
Offering Date
August 08, 2019
Expected Close Date
November 06, 2019
Target Raise
$500.00K-$1.20M
Deal Notes

Round type: Pre-Seed

Target Minimum: US $500,000

Conversion discount: 20.0%

Interest rate: 5.0%

Note term: 24 months

Closing conditions: While Pngme has set an overall target minimum of US $500,000 for the round, Pngme must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments below $20,000. For further information please refer to Pngme's Form C.

Regulation CF cap: While Pngme is offering up to US $1,200,000 worth of securities in its Pre-Seed, only up to US $1,070,000 of that amount may be raised through Regulation CF. Transfer restrictions: Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered "restricted securities" and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available. Raised to date: US $100,000 US $0 (under Reg CF only)

Company Description

Mobile finance marketplace connecting lenders with borrowers using blockchain technologyPngme aims to be a global mobile finance marketplace connecting lenders and borrowers using blockchain technology. Pngme was founded in 2018 when co-founders Cate and Brendan visited East Africa together. They quickly realized there was an opportunity to lower the cost of credit for businesses in emerging markets by connecting them with capital providers in developed economies looking for high yields. Today, High Net Worth individuals (HNWI) and institutional investors in developed countries have found it challenging to earn a reasonable return on investments over the last 11 years, as US bond yields have been on average below 2.5%. On the other hand, institutional and retail borrowers in emerging economies suffer from a constant challenge to access affordable capital from international capital markets, private sector institutional investors, banks, or Microfinance Institutions (MFI). As a result of the lack of affordable capital and high administrative costs, many institutional borrowers, including MFIs, have to pass on very high interest rates to their borrowers, many of whom are financially constrained MSMEs.There is a clear opportunity to help these institutional borrowers acquire and disburse capital in a more cost-effective manner allowing Pngme to become a platform that serves the $5.2 trillion finance gap affecting 200 million MSMEs. As a result, these borrowers can provide financing to more of the un/underserved population, helping them grow their businesses, while building a stronger economy and future for developing nations. Over the past 12 months, Pngme has built a team of experts and started building scalable technology to tap into this marketplace through institutional partners on both sides of our marketplace. 

Key Deal Facts

Experienced founders with a strong track record: CEO previously founded Constellation Labs and COO was previously at Uber focused on US/CAN driver acquisition
Advisors include a former partner at 500 Startups and current Advisor to the Omidyar Network; former Principal Engineer at Intel and Principal Data Scientist at Target; Senior Director, US Enterprise Business at PLDT
Over 15,000 retail users on our pre-launch waitlist
LOI signed with Nigerian mobile money provider to finance float loans to its network, using the algorithmic credit marketplace that Pngme is building
LOI received for licensing of our mobile app platform to capture lender demand from the Middle East and Southeast Asia

Use of Proceeds

Engineering, Business Development, Operations, Legal, Regulatory, Compliance

Management Team / Advisory Board Bios

Brendan Playford
CEO
Brendan studied Physics at University College London in the UK and focuses his time on the technical design and architecture of Pngme. In 2013, he was bitten by the Bitcoin bug, and after mining Dogecoin, he began mining and distributing Antminer hardware between 2014 – 2015. Seeing the promise that blockchain could bring to the underserved in the world, he forged a career in the blockchain space after founding Constellation Labs, a highly technical 3rd generation Directed Acyclic Graph. With a deep knowledge of the cryptocurrency space, he moved on from Constellation in July 2018 to focus his attention on the consumer adoption of blockchain technology in developing economies and thus, Pngme was born.The inspiration for Pngme came from Brendan’s experience between 2007 – 2014. While working on community biofuel projects, Brendan would lend money to his friend Alan in Tanzania. This helped Alan to build and scale his gemstone business. The cost to send a loan through Western Union was 15-20% of the loan - which was compounded on repayment. Alan was able to grow out of his gemstone mining business and now has a successful online classified ads business (and has taught his wife to code!). When Brendan & Cate went to Africa in 2018, they started searching for a more scalable solution to this process, and when they returned, Pngme was born.

Cate Rung
COO
Cate has spent her career working on driving growth in both B2C businesses and two-sided marketplaces. Having seen success in both of these areas, specifically at Uber where she led driver acquisition using offline marketing channels and led Uber’s rebranded driver onboarding process by streamlining the sourcing, production, and distribution of the driver onboarding kit, she is now using all of the skills she learned to build and scale operations and growth of Pngme’s two-sided lending and borrowing marketplace.Cate is passionate about building a business that strives to have both a positive impact on people’s lives and provides individuals with economic opportunity. After spending 3 weeks in Africa in July 2018 with Brendan, Cate saw first-hand the opportunity to connect lenders in developed markets with businesses in need of lower-cost credit in emerging markets. When she returned from Africa, Cate turned this passion into her career and has been on a mission to push forward their vision for Pngme.

Deal Notes

Round type: Pre-Seed

Target Minimum: US $500,000

Conversion discount: 20.0%

Interest rate: 5.0%

Note term: 24 months

Closing conditions: While Pngme has set an overall target minimum of US $500,000 for the round, Pngme must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments below $20,000. For further information please refer to Pngme's Form C.

Regulation CF cap: While Pngme is offering up to US $1,200,000 worth of securities in its Pre-Seed, only up to US $1,070,000 of that amount may be raised through Regulation CF. Transfer restrictions: Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered "restricted securities" and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available. Raised to date: US $100,000 US $0 (under Reg CF only)

Amount Raised : $125,200
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Security Description

A Crowd Note modifies the typical convertible note so that the crowd does not automatically convert to equity shareholders on the next financing and remain off the issuer’s capitalization table, but the crowd will still participate in any exit as if they had converted to equity. If there is no future financing, the holders of the Crowd Note still have upside, but could miss out significantly.

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