Dear Konkrete shareholders and partners, as we close out the first half of the year, I wanted to give you all an update on the latest progress at Konkrete.
Technology Milestones:
Tech development is moving on schedule. We have v2 and v3 of the blockchain tech ready which involves internal payment processing and decentralized voting and transparent fund distribution. What this means in plain english is:
- We can now track not only share movements but people can also pay on our platform instead of that being tracked offline. This also works in reverse where dividends to hundreds of investors will now be paid out a click of a button reducing friction significantly and bringing down admin costs further. We are doing this using AUD pegged stable coins initially. Eventually other stable coins can also be used such as Facebook’s Libra and Maker Dai.
- Investors in a particular offer on the Konkrete platform have visibility into how funds are being deployed post raising, and can have a vote in that. This also goes a long way in reducing audit costs as it means real time continuous disclosure for various offers.
We believe this puts our tech in the most advanced globally in this domain.
Business Model Milestones:
However tech alone does not suffice, and our focus remains on growing distribution. Our key benchmark is number of unique investors investing every month. We have been putting significant thought into how we can grow that in a scalable manner.
Moresh has put down our thoughts on our approach which I will encourage everyone to read:
https://medium.com/konkrete/the-road-ahead-45d21386487
Rent rolls in particular seem like a strong bet and we have started some early testing on it. We have already identified a couple of rent rolls to purchase as well as property managers we can partner with to manage them.
The reasoning behind Rent Rolls as an investment product for Konkrete.
Rent Roll Income Trust Marketing Deck
Ladder, our mid-long term investment offering, where we help to achieve presales for developers by pre-funding first home buyer deposits, is also showing good traction during our testing.
In a two week testing period we collected over 50 leads and have an agreement in place with a large development in Melbourne’s west.
Once we achieve strong distribution we can reopen the platform to 3rd parties with suitable checks and balances, but for now, the strategy is to only promote offers we fully control in order to ensure a good experience and returns for early investors.
As always, we have a busy few months ahead and look forward to bringing you more updates as they come.
Sean Qian
Co-founder and COO, Konkrete
28–06–2019
