Plan to cope with reduced funding
Over the last month, the price of ETH has dropped from a high of 380USD to 195USD today. This is severely impacted the amount of funds raised, which currently stands today at about 1M USD.
Our team is aware of the situation. To proceed with FYN, we have made significant adjustments to our priorities. We will place much stronger focus on revenue and are scaling back on costs significantly. This is to ensure an 18 month runway, where we will look at doing a second round of ICO.
Focus on Revenue
The main priority for us is to drive revenue to our platform. Even before the fundraising has ended, we have already actively sourcing for projects to join our FYN platform. We currently have 4 confirmed projects planned to be launched in Q4 2017, with another 15 more potential in the pipeline. We are looking at helping raise at least 10m by end of Q1 2018, which will mean around 500,000 USD in revenue. The additional revenue will go a long way in helping the business become more sustainable, and we are constantly sourcing for new projects to on-board. If you have any projects in mind that you want to crowdfund for, do let us know firstname.lastname@example.org
There are 3 measures we are taking to reduce our costs
1) Development & Labour Cost
Our initial plan was to expand our onshore development team in Singapore, since we have managed to get sufficient funding. However, we are delaying this till at least late Q4 2017, until we have more visibility on our incoming revenue. We will continue to work with our existing technology partner based in India. The development cost in India is at least 50% cheaper than that in Singapore. We will have regular trips to India to meet & manage the offshore team. Certain non-core requirements to the platform such as profile ratings for users and the internal trading marketplace, are likely to be simplified, or pushed back to a later date. More info will be revealed after the end of the fundraising once we know exactly how much funds we have raised.
2) Cutting Down on Fixed Cost
Initially we catered for a larger office space due to an expansion of the onshore team. As we are scaling back on onshore hiring, this also means that we need a smaller office space and there will be less rental, fixed overhead costs and equipment purchases.
3) Employee Compensation using Tokens
We have created an employee token pool (about 7% of the token supply), from the remaining tokens that were not sold. This token pool will be used to ensure that we can still continue to attract the best talent, and while keeping the monthly salary payment to a reasonable amount.
With these 3 measures, we expect our costs to fall significantly by about 20%-40%. We plan to keep our salary and fixed costs below 45K USD a month until we have more clarity on the incoming revenue.
At the end of the fundraising, we will be cashing out ½ of the ethers raised to fund the company for the next 6–12 months, and the remaining amount will be kept as Ethers for the time being.
If you have any questions, do contact us on our slack chat.
Kenneth, Co-Founder, FYN