4. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
Cryptocurrency Investment Is On The Rise
⢠15M+ Americans hold cryptocurrency
⢠8 US Registered Cryptocurrency Exchanges
⢠3 Derivatives Trading Platforms
⢠Global Coin Market Cap is $600B+
AND GROWINGâŚ
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IRS is Coming; Investors Arenât Ready
Authorities are intent on prosecuting tax avoidance and fraud
⢠Only 800 Coinbase users (out of millions) paid taxes on their
crypto investments in 2015
⢠IRS has successfully sued exchanges for user data and they
are deploying ledger analysis tools (e.g., Chainalysis) to
identify people who owe taxes
⢠SEC has started to file fraud charges against ICO issuers
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Investors are poorly-prepared
⢠Uncertain of correct tax treatment of cryptocurrencies
⢠Trading multiple currencies across multiple exchanges
⢠Reports are inconsistent, intimidating, and require manual
processing (e.g., CSV download)
⢠No accounting and reporting standards across exchanges
⢠ICO tracking is entirely manual
IRS is Coming; Investors Arenât Ready
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CPAs are already adjusting to thousands of other tax changes
⢠With the new GOP tax bill, CPAs have lots of moving targets to
focus on and donât have time to learn about cryptocurrencies
⢠The controversial nature of cryptocurrencies, their treatment,
and their uses (including paying for illicit goods) means many
CPAs wonât advise clients at all on these issues
⢠Most CPAs donât understand any of the three layers of the
investment ecosystem: crypto coins, wallets, or exchanges
⢠CPAs donât know what to ask for and investors are unsure
what to provide
CPAs Wonât Meet This Need
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Crypto Hedge Funds Lack Infrastructure
Crypto Hedge Funds are moving at breakneck speed
⢠Many hedge fund managers come from a technology
background rather than from finance and accounting
⢠Lack trading engines, trade execution across exchanges,
basic accounting, risk controls
⢠Lack a way to see trading performance across exchanges and
to report this to GPâs
⢠Lack a way to provide year end tax forms to GPâs
9. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
Timely Market Entry by ZenLedger
Compliance
Risk
Enforcement
looming
Pain Point
Lack of tools &
standardization
ZenLedger.io
10. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
How ZenLedger Works
ZenLedger automates:
⢠Import of BTC, ETH, LTC, and other coin trades
based on public addresses
⢠Integration with major US registered crypto
exchanges and hot/cold wallets to track trades
and positions
⢠Audit and Reconciliation of exchange prices in
USD with timestamped crypto transactions
⢠Tracking and Visualization of cost basis,
appreciation, portfolio characteristics, fees, etc.
⢠Consolidation and Reporting of all activity for
one-click delivery to CPAs or tax authorities
11. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
EarlyProductScreenshot
12. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
Reaching Our Customer Segments
Retail Crypto Investors
15M+ in US
Hedge Funds
125 in US
UHNW Crypto Investors &
Family Offices
CPAs
1.4M in US
1Q2018 2Q2018 4Q2018
⢠Influencer Marketing â
Crypto Whales
⢠Content Marketing
⢠Social Media (FB, Reddit,
Twitter)
⢠Use of ZenLedgerâs
personal and professional
networks
⢠Attending industry
conferences
⢠Use of ZenLedgerâs
personal and professional
networks
⢠Attending industry
conferences
⢠B2B marketing
13. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
Marketing Strategy:
Your go to market strategy
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Roadmap - Here to EOY 2018
* As we move forward and learn from the market, we will adjust our product strategy accordingly
15. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
Roadmap - 2019 and Beyond
* As we move forward and learn from the market, we will adjust our product strategy accordingly
16. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
Competitive Landscape
ZenLedger will win by having the best team, the most customer friendly UI/UX,
the most helpful customer service and support, the most convenient automated
product features for the customer and the CPA, and great Sales & Marketing
⢠Bitcoin.Tax â Poor UI/UX, automation, or marketing
⢠CoinCounting.info â Expensive, poor UI/UX
⢠21.tax â Just a landing page at this point
⢠Node40 â They are primarily selling mining services
⢠Balanc3, Libra Tech â More like Quickbooks for Crypto rather than TurboTax.
SMB offerings rather than targeting the Invididual Investor
17. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
Target Strategic Partners
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Exit Strategy
Mint.com $170M, 2009
TSheets $340M, 2017
TaxACT $288M, 2010
Primary Exit Strategy: Acquisition
Quicken, 2016
* As we move into the market and learn further, we will consider other exit strategies for investors such
as IPO and ICO. We will make these decisions in collaboration with our investors.
19. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
Milestones
Ăź World-class leadership team committed: CEO/CMO/CTO/CRO/CSO
Ăź Have formed Delaware C-Corp with founders, investors, advisors and
employee incentives in place
Ăź Have gained access to wide cryptocurrency marketing channels
Ăź Have formed Key strategic partnerships and alliances with high net worth
families, crypto hedge funds, and âcrypto whalesâ
Ăź Have on-boarded key advisors in tax, cryptocurrencies, finance, technology,
and startup strategy
Ăź Have on-boarded strong and aggressive technical team of 6 developers
Ăź Technology designs for v1 done
20. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
Founding Team
Short Bios of Founding Team
21. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
Advisory Team
Short Bios of Advisors
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Sources and Uses, FY2018
⢠Monthly Burn Rate ~$77,500
⢠Assumes $1M raise between two convertible notes
Uses
1,000,000 Total Uses
480,000 Software Development
250,000 Salaries
100,000 Operating Costs
50,000 Sales & Marketing
50,000 Legal / Accounting
70,000 *Cash Reserve
23. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
Capital Raise
⢠CURRENT Convertible Note
â $XXX total raise
â XX% discount, $X.XM cap
â Minimum investment: $XX
â Expected close Jan 15th 2018
⢠NEXT Financing
â $X - $X million
â Q1 or Q2 2018
Funds v1 launch & marketing push
Funds Alpha/MVP development
24. Š Copyright ZenLedger, Inc. 2017-2018. All rights reserved worldwide.
Legal Disclaimer
The information contained herein is confidential information regarding ZenLedger, Inc. By accepting
this information the recipient agrees that it will, and it will cause its directors, partners, officers,
employees, attorney(s), agents and representatives to, use the information only to evaluate its potential
interest in the investments and strategies described herein and for no other purpose and will not
divulge any such information to any other party. Any reproduction of this information, in whole or in
part, is prohibited. The information contained herein has been prepared solely for informational
purposes and is not, and may not be relied on in any manner as, legal, tax or investment advice or as
an offer to buy or sell or a solicitation of an offer to buy or sell any security or to participate in any
trading strategy. If any offer of securities is made, it will be pursuant to a definitive offering documents
prepared on behalf of ZenLedger. Any decision to invest in the investments described herein should be
made after reviewing such definitive offering documents, conducting such investigations as the investor
deems necessary and consulting the investorâs own investment, legal, accounting and tax advisors in
order to make an independent determination of the suitability and consequences of an investment. An
investment in private company securities involves significant risk, including a complete loss of capital
and conflicts of interest.