Pynk leverages Crowd Wisdom, Artificial Intelligence and Expert Analysis to power Social Investing.
- 27.5k Crowd predictors across more than 180 countries
- Rose AI accurately predicts market direction 74.5% of the time**
- Winner of best AI startup (AIBC) and Web Summit semi-finalists
- Partnered with Royal Bank of Scotland and National Westminster
Learn more about convertible campaigns.
Please note, the above video was made prior to the Covid-19 crisis. As such, statistics mentioned may be outdated, please refer below for up to date figures.
Everyday investors have just lost a lot of money (again). It seems that most individual investors, whether amateurs or professional fund managers, cannot outperform the market over a consistent period of time.
The solution is Pynk - a new model for investors the world over.
Rather than rely on any one individual subject to bias, we take the predictions and forecast data from our Crowd. Our AI then identifies who to listen to, at any point in time, for any given asset.
This creates the world’s first Crowd Wisdom 0% fee managed portfolio.
The power of Crowd Wisdom is well documented. It's the underlying idea behind Google's search engine, Wikipedia, and is used by private investment firms and hedge funds.
*Invest not live yet.
How does it work?
By making short term price predictions and long term forecasts on financial assets, active Pynksters qualify for access to our 0% Fee Managed Investment Portfolio i.e. commission FREE investing.
Furthermore, Crowd members earn Wisdom Points in return for their accurate predictions, which can later be exchanged for investments in the managed portfolio. Pynksters become better at making investment decisions and are 'learning by doing', becoming super-predictors over time.
Pynk aggregates the super-predictor data and runs it through our 'Rose' AI to give accurate trading and investment signals. Our experts overlay technical insight before making the final call. This 'Crowd Wisdom system' powers the investment side of the business, which aims to be a high return and low risk fund available to all.
Our decentralized platform brings the power of Crowd Wisdom to everyone, empowering the Pynk community to decide how and where capital is deployed.
Substantial accomplishments to date
Our proudest achievement is recruiting our >27,000 strong Crowd from over 180 countries. Crowd Wisdom requires diversity in the crowd and so we welcome 'Pynksters' from all walks of life. Our early adopters are extremely passionate supporters, and result in Pynk having the strongest social engagement of any fintech (beating Monzo and Revolut).
It's the data from this international crowd that powers our AI, 'Rose'. Part of the secret to our success is knowing when and when not to be in the market. 'Rose' AI tells us to trade 20.1% of the time, and when we are in market our latest machine learning algorithms correctly predict the direction a financial asset will move 74.5.% of the time**. This is our competitive advantage when it comes to investor returns.
In terms of awards, we won 'Best AI' startups at the AIBC Blockchain Summit in Malta and were nominated for Best Fintech at the same event. We won the 'Great Pitch' battle at Wolves Summit, Poland, and were noted by Business Insider top 12 startups to watch from Money 20/20. Most recently we were given the honour of presenting on the centre stage of Web Summit, the world's largest tech event with 70,000 people in attendance.
** Please note, the figures stated refer to the past, and past performance is not an indicator of future results. Figures are based on price direction prediction performance as measured from 01/05/2019 through to 28/01/2020. The above information is based on information provided by management and has not been audited.
You can view our websummit pitch here: https://www.youtube.com/watch?v=dOkoAGnlIbQ&...
We are also partnered with the worlds' leading accelerators. We were selected by Founder Institute into their elite 'Select' programme, making us top 2% of 3,500 startups. We are part of 360 Lab accelerator beating 930 startups into one of four positions. Finally, we are part of the London fintech accelerator programmes with National Westminster and Royal Bank of Scotland.
Active Pynksters, who make one prediction per week, will qualify for access to our 0% Fee Managed Investment Portfolio i.e. commission FREE investing. This offering is designed to maximise the size of our Crowd and prediction data fuelling our AI ‘Rose’. We charge non-predictors (retail) and private investors a monthly management fee. As such a key metric for us is AUM and our KPI is £1.92bn by year 5 (in line with competitor benchmarks).
B2C active predictors gain access to our Investment Portfolio for FREE. Non-active we charge 0.12% of assets under management per month.
B2B we charge high net worth and sophisticated investors a fee for assets under management per month.
B2B we intend to partner with financial institutions to white-label our app to gather crowd wisdom from their employees.
B2B we intend to partner with challenger banks to offer their customers a new investment opportunity based on a share of profits model.
B2B we intend to sell our data stream as a clean qualified market sentiment feed to trading desks.
Use of proceeds
We are raising now to give us a runway for 2020 and first half of 2021. This runway will be used to prove out key metrics ahead of our Series A raise (second half 2021).
The KPIs are:
1. Launch retail investor wallet 2020 Q4 (regulatory solution already in place so anyone can invest in the portfolio).
2. Recruit £10m AUM by end 2020 (private and retail money).
3. Cost of Acquisition < £50.
In order to do this we need to build out the team, tech stack and fund marketing and sales. Today there are 5 co-founders and a total team of 10 that make up Team Pynk. This raise will help us build out the team further across finance, tech (developers), marketing and business development. The raise will also cover fund set up and regulatory costs.
For our investors through Seedrs who ALSO sign up to our platform waitlist, we offer additional rewards based on amount invested:
£25 - ‘Seedrs Investor Badge’ for Pynk community.
£250 - the above + top 1000 waitlist place + matched fee free investing for one year.*
£500 - all of above + Pynk t-shirt + first invite to investor wallet when opens (jump the waitlist).
£1,000 - all of above + entrance to the investor competition (3 winners, £500 total prize pool).
£5,000 all of above + virtual dinner with co-founders.
£20,000 all of above + London dinner with co-founders (post Coronavirus, meal and drinks paid for by Pynk).
£50,000 all of above + private invite to Pynk monthly investor update calls.
*Matched fee free investing means however much you invest, we will allow you to invest the same amount into the Pynk managed portfolio fee free for one year
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
The key terms that apply to the Pynk advanced subscription agreement are set out in the Key Terms Document attached to this campaign in the Documents section and a summary is set out below.
Conversion of the advanced subscription agreement will take place:
• On a Qualifying Equity Fundraise of £1,000,000 or more, at the lower of (i) a 25% discount to the share price paid by investors in the Qualifying Equity Fundraise, or (ii) the price per share set by a £10m valuation cap (and is not subject to the Discount).
• If no Qualifying Equity Fundraise has occurred, on the “Longstop Date”, (which will be 12 months from the date of the agreement), or a winding up event, conversion will happen on the Longstop Date or the winding up event at a share price which equates to a company pre-money valuation of £8m, or if higher, £0.000001 per share.
• If a change of control or IPO occurs prior to the above events, conversion will automatically trigger at a price per share which is the lower of (i) the lowest price per share issued or sold as a part of an IPO or change of control, discounted by 25%, or (ii) the price per share set by a £10m valuation cap (and is not subject to the Discount).
EIS and SEIS Relief
This investment round is being raised by way of a convertible equity investment instrument, in this case an "advanced subscription agreement" (or ASA) - which is structured to meet HMRC requirements for EIS relief eligibility.
Investors who intend to seek EIS relief on this investment should note that HMRC has recently published new guidance on claiming EIS relief on an advanced subscription agreements/convertible instruments.
The guidance provides five key requirements; no refunds; no variations, cancellations, or assignments; no interest bearing on the instrument; no investor protections; and that the agreement, must contain a Longstop Date. It also states that the Longstop Date is "expected to be no more than 6 months from the date of the agreement".
We have structured this advanced subscription agreement to meet all five of the requirements, but the Longstop Date will be 12 months from the date of the agreement.
It is important to note that this statement from HMRC is guidance only and there is no requirement in the rules or legislation that an ASA must have a 6 month longstop date. This is relatively new guidance which has not yet been tested with HMRC, so we do not have certainty on how it will be applied in practice.
We intend to claim EIS relief on the instrument upon conversion and establish that the investment meets the necessary conditions for EIS relief. However, there is a risk that EIS relief will be denied by HMRC.
Please also note that the first £125k of investment in this campaign is intended to also be eligible for SEIS relief. Investors will be allocated this in the order that they invest in the Seedrs campaign. The above notice also applies to SEIS relief.
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