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By Tomer Sofinzon, CEO and Founder, 20|30 Group
Today we are in the midst of something akin to a Cambrian explosion in emerging technology. Artificial Intelligence, Machine Learning, Blockchain – are shaking up ever sector and no market is immune to disruption. Digital advancements are addressing major challenges head on by removing friction, reducing costs and improving both lives and economies all over the world.
It’s never been easier or cheaper to launch a technology start-up. A new product does not have to be perfect to test and validate an idea. But to develop the technology, scale-up, and hire all the talent required to manage the sales, branding, legal requirements and so on, significant capital and more important, market access, is critical.
- It is our goal for 20|30 to be compared alongside global titans such as, Alphabet, Amazon and Alibaba in scale, value and reputation in the next decade
- Collaborated with the London Stock Exchange Group in April 2019 in a successful equity tokenisation test as part of the FCA Sandbox
- Estimate 20|30 Group revenue by 2023 to be in the region of £100 million
Why we created 20|30 Group – we saw a gap in the venture capital stack
Entrepreneurs generally turn to the repetitive, distracting and severely time-consuming process of traditional VC capital investment, often taking as much as 80/90% of the time constantly chasing funds. Others turn to accelerators, which has a supportive ecosystem and plenty of fresh early stage funding to nurture new companies. But it comes with a shelf life, and the stark reality is the majority need a much longer incubation period. Billions of investment opportunity is wasted every year as a consequence. Truly industry-transforming businesses need something different to the traditional VC avenues available to them. This is why we founded 20|30 Group.
We provide the rocket fuel entrepreneurs need to succeed extremely fast
20|30 is a hybrid of a private equity firm, venture capitalist, accelerator and corporation. We acquire, not invest and remove all of the capital raising pain from an entrepreneur, simultaneously providing them with the market access and expert ecosystem they need to transform their ideas from concepts to world leaders.
Bold and revolutionary ideas leveraging blockchain to solve global real-world problem
We are building a fast-growing, diverse, yet complementary portfolio of companies, all with one common theme – bold and revolutionary ideas leveraging decentralised technologies to solve global real-world problems. We also build our own products and solutions in-house. We nurture big ideas, beginning with small experiments to test, validate, scale or close them. We embrace failure, recycling IP, design and coding – liberating talent through ultimate creative freedom.
And over time as 20|30 portfolio companies flourish, 20|30’s experts will parachute in at any time to provide the support they need to accelerate their next growth phase, whether that is a new product, new market, or to flesh out a new business idea entirely. 20|30 is a long-term business incubator fuelling an upward spiral of growth for our portfolio companies. We will also augment existing portfolio companies, adding capabilities and synergetic businesses to market centres of excellence.
Estimate 20|30 Group revenue by 2023 to be in the region of £100 million
All of our portfolio companies are acutely focused on sales, heavily supported by 20|30 Group’s commercial team who provide expert sales advice and market access to accelerate revenue potential. Each portfolio company has a vested interest in the success of the Group with CEOs and key team members having share options in 20|30. The Group’s leadership teams’ interests are 100% in sync with those of our investors – to drive revenues and become highly profitable, fast.
Today our portfolio is initially weighted towards Fintech. We believe in deep collaboration and cross-pollination of our portfolio companies and are highly attracted to businesses which complement our fast-growing market centres of excellence.
Since our last capital raise in March 2019, three businesses we have signed exclusivity agreements to acquire, through introducing the entrepreneurs and proactively leading collaboration, are in advancing lucrative six and seven-figure sales conversations with the same major global retail bank, proving our model has the potential to amplify sales opportunities for all portfolio companies.
Looking ahead, based on our current portfolio composition and the millions of pounds in revenue already being discussed, we expect high growth quickly and estimate projected revenue for 20|30 Group by 2023 could be in the region of approximately £100 million.
Collaborated with the London Stock Exchange Group
We are already partnering major global names in the industry to bring our game-changing products to market. TokenFactory, for example, is using blockchain to reinvent Capital Markets and completely revolutionise the way today’s global stock exchanges operate. In the process unlocking trillions of dollars of currently illiquid assets, and vastly increasing the volumes of trades.
TokenFactory made history in April 2019 when, in collaborating with the London Stock Exchange Group, it successfully tokenised and issued 20|30 Group’s equity in the UK financial regulator’s FCA Sandbox (Cohort 4). TokenFactory has proven that it is possible to use tokenisation to raise finance faster and cheaper and will officially launch before the end of the year under a new brand name.
Building a new $250 trillion Global Token Economy
The market opportunity for TokenFactory is exponential. By using blockchain technology to tokenise their debt or equity, a company can avoid the expensive and time-consuming traditional route and instead issue securities efficiently over the blockchain.
For issuers it will provide greater certainty of execution and for investors, who are grappling with steadily declining interest rates, illiquid markets and an urgent need to discover higher yielding alternatives, direct access to a greater range of assets across the credit curve.
Some estimates suggest a new tokenised economy could reach $24 trillion by 2027. Bolder estimates indicate the size of the future new market could be as large as $250 trillion. Whether you take a conservative or bullish view on the outlook, one thing is very clear, the opportunity is extraordinary – with TokenFactory on the front line pioneering its creation.
We have a blockchain solution which can substantially reduce Global Billion Dollar KYC costs
Know your customer (KYC) is a common challenge for almost every industry, draining time, money and resources. Moreover, it is becoming increasingly complicated, costly and constantly changing. Business compliance costs have soared to breath-taking highs, with banks alone typically spending in the region of $500 million a year on KYC due diligence. This issue is of equal concern to any business which holds financial, credit or personal data on an individual – from retailers, insurers, airlines and utilities to social media platforms.
One of our wholly owned portfolio companies is blockchain identity management specialist, IDWorks. IDWorks has built a powerful identity solution and is rolling it out across all sectors, starting with high street banks, to manage and protect the way digital data required by businesses is processed, stored an analysed.
IDWorks is to identity what Uber is to transport, or Airbnb to accommodation.
It’s an incredibly exciting business proposition.
20|30’s diverse portfolio lowers investor risk
Whilst we are heavily involved in disrupting financial services today, we are radically open-minded about which tech segment future portfolio companies may come from. There are no limitations. We are looking into all of the largest industries in the world and where we see friction, we consider whether blockchain or decentralised technologies can have an impact producing solutions that solve those problems in a cheaper or faster way.
We acquire businesses we are incredibly excited about which could lead to a new portfolio market centre of excellence alongside financial services, from healthcare to education or even fashion. Every sector is ripe for disruption.
By investing in 20|30, your level of risk is lowered thanks to the breadth of this diversification. Investing in a portfolio of 100s (potentially thousands) of small to medium sized businesses from all over the world is like buying multiple lottery tickets for the price of one.
Building a Global Innovation Group
We are not shy to admit we are extraordinarily ambitious. It is our goal for 20|30 to be compared alongside global titans such as, Alphabet, Amazon and Alibaba in scale, value and reputation in the next decade.
Over time, 20|30 intends to own a large portfolio of decentralised technology businesses across varying levels of maturity, from early stage start-ups, to those we have accelerated to success and have become global leaders.
Our headquarters is in London but our portfolio is global. As at October 2019, our portfolio comprises eight main businesses, 10 if we include two products which have the potential to be spun-out into independent portfolio companies with a geographic split of 80% Europe (UK) and 20% North America. We travel the world to discover game-changing businesses and expect our future portfolio to include start-ups, SMEs and large companies from mainland Europe, Asia-Pacific, the Middle East and Latin America in the near future.
To learn more about 20|30 Group and our investment strategy, please visit [insert link to microsite] or contact us at invest@2030.io
