Blockchain for Executives, Entrepreneurs & Investors
June 8, 2018
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Introduction
Remington Ong
• Partner, Fenbushi Capital / Advisor, BlockAsset
• Sr. analyst, Merrill Lynch / Sr. Consultant, L.E.K. Consulting
• Experienced entrepreneur with startups funded by global VCs
• INSEAD MBA 2010J / UCLA B.S. Electrical Engineering
• First Asian VC focused on blockchain, founded in 2015
• Build world class companies leveraging blockchain technology
to change the world
• Fund supports 50+ blockchain startups globally
• Diversified portfolio across industries incl. finance, healthcare,
supply chain, consumer goods

Executives
Entrepreneurs
Investors
Blockchain for…

Executives
Entrepreneurs
Investors
Blockchain for…

Why does it matter to me?EXECUTIVES

Financial institutions marching into blockchainEXECUTIVES
Source: CB Insights, Jun. 2017

It’s not just financial institutions
Source: Microsoft Azure, Nov. 2017
EXECUTIVES

1/3 of them are already in production in 2018
74% of large companies across multiple industries see a
compelling business case for blockchain technology
34% of large companies already have some sort form of
blockchain system in production
Source: Deloitte survey in April 2018 of 1,000 respondents from companies with annual sales of >US$500 million in the U.S., China, Mexico, U.K., France, Germany, Canada
EXECUTIVES

Potential applications are endless
Payments
• P2P payments
• Cross border
remittances
• Microtransactions
• Interbank
monetary
accounts
• Securities &
commodities
• Claims
management
• Fraud detection
• P2P insurance
Settlement
& clearing
Supply
Chain
Insurance
Media
• Digital rights
management
• IP attribution
• Authenticity
verification
• Farm-to-fork
tracking
• Machine-to-
machine
communications,
payments
• Autonomous car /
drone management
Consumer
goods
Healthcare
Internet of
Things
Government
• Voting
• Military /
weapons security
• Public records
management
• Audit trail for
company
processes
• Self-enforcing
smart contracts
• Record
management
• Decentralized
storage
• Decentralized
DNS
• Distributed
computing
Legal /
Audit
Identity Computing
Real estate
Energy
… and so much
more …
• Trade finance
• Logistics tracking
• Authenticity
verification
• Title ownership &
transfer
• Mortgage-backed
loans
• Shared ownership
• Zero carbon
verification
• Carbon credits
tracking/trading
• P2P grid
distribution
• Health record
management
• Prescription
tracking
• Pharmaceutical
supply chain
• Know Your
Customer (KYC)
and Anti-Money
Laundering (AML)
• Identity
Verification
EXECUTIVES

ConsultingEXECUTIVES

Consultants need to be aware tooEXECUTIVES

Is a blockchain right for my company?
• Redundancy
• Consensus
• Data sharing
• Automation
• Disintermediation
EXECUTIVES

Is a blockchain right for my company?
• Redundancy
• Consensus
• Data sharing
• Automation
• Disintermediation
EXECUTIVES
Accountability

Why a company should not deploy a blockchain
• Performance
• Security
• Cost reduction
• Cutting edge
EXECUTIVES

Blockchain may only be part of the solutionEXECUTIVES
4g wireless Smartphones
GPS Big data
Analytics
Internet
Internet of
Things
Cryptography
Machine
Learning
Artificial
Intelligence
Blockchain
Blockchain
killer app?

HR considerations
• Hiring blockchain developers is difficult
• Future job descriptions may be redefined
EXECUTIVES

Should I plan to interact with public blockchains?EXECUTIVES

Key takeaways for executives
• Blockchain isn’t a solution to everything
• Blockchain may only be part of the solution, so even if
it doesn’t impact me today, it may tomorrow
• Blockchain may impact my vendors/customers, or
even jobs in my company
• If the decentralized public blockchain is here to stay,
how will my organization need to interact with it?
EXECUTIVES

Executives
Entrepreneurs
Investors
Blockchain for…

Should I do an ICO?ENTREPRENEURS

It’s a lot of money!ENTREPRENEURS

Easier and more money than traditional VC
2017 ICOs Seed/Angel
Total capital raised
(US$bn)
5.6 8.5
Number of deals 435 13,753
Average deal size
(US$m)
12.7 1.0
Median deal size
(US$m)
4.5 0.5
Source: State of the Token Market (2017) Report, Crunchbase Q42017 Global Report
ENTREPRENEURS

But it won’t always be this easyENTREPRENEURS
Source: CB insights (April 2018)

Which type of token fits your startup?
Crypto-
currency
Utility
Token
Access
Token
Security
Token
Asset-Backed
Token
Bitcoin Ethereum Binance Tzero Digix Gold
• Singular purpose
– medium of
exchange / store
of value
• Irrelevant for
most startups
unless you have
innovative new
features (e.g.
stablecoin,
privacy,
scalability, etc.)
• Token is central to
platform’s utility –
e.g. securing
network,
purchasing
computing power
• Very few tokens are
true “utility tokens”
• Token economic
model/ governance
is critical
• Token allows
access or
discount to
service –
discounted fees
on Binance
• Technically
unnecessary –
can pay with
other currencies
• Most “utility
tokens” fall under
here
• Token is similar to
equity – trade it like
a stock
• Evolution of equity
crowdfunding –
small businesses
can “get listed”
• Not just for
blockchain startups
• Be sure to follow
regulations
• Can tokenize
everything from
gold, real estate,
commodities
• Increase
accessibility to
range of
investments for
retail investors
• May impact
business processes
(e.g. supply
hedging)
ENTREPRENEURS

Not every blockchain startup needs an ICO
Crypto trading app
Bank consortium
Enterprise software
Supply chain
Financial settlement
Supply chain provenance
Internet of things
Consumer crypto apps
Tax / accounting compliance
Supply chain finance
Smart securities
Remittances
ENTREPRENEURS

Why are you doing an ICO?
• Should not be the motivation
• Not as easy as 2017
• Aftermarket headaches
Easy money?
• Having a token ≠ network effect
• ICOs are not a shortcut to marketing
• Most investors are speculators
Access to
users?
• Utility - Does my product really need a specialized token?
• Access – How will this complement my GTM strategy?
• Security – Will my customer base benefit from having an
ownership stake in my company?
Type of token?
ENTREPRENEURS

Executives
Entrepreneurs
Investors
Blockchain for…

Blockchain for investorsINVESTORS

…yet crypto-assets still only account for a tiny
portion of the global financial market
Tremendous growth, but still tiny
Global Derivatives
$630T
Global Debt
$217T
Global M2 Supply
$90T
Global Equity Markets
$71T
US M2 Supply
$13.7T
Global Gold Supply
$8T
Apple MarketCap
$870B
All Crypto-Assets
$346B
The market cap of all crypto assets
has already grown 2035%
from $17B on 1/1/2017 to $346B on 6/8/2018…
Comparison of global asset classes (2017)
Market Cap of All Crypt0-assets (2017=2018YTD)
Source: Coinmarketcap, CIA Factbook, Federal Reserve, Google Finance, World Gold
Council, World Federation of Exchanges, Bank for International Settlements
INVESTORS

VolatilityINVESTORS
Source:s S&P Global, Citi Private Bank, Bitcoincharts

Investment strategiesINVESTORS
Traditional
Correlated assets
Short term
Trade on volatility
Leveraged
Margin trading
• Suppliers – e.g.
NVDA, AMD, supply
GPUs that mine
crypto
• Public Funds – e.g.
GBTC, ETHFUND,
funds that track
crypto prices
• Private funds –
Accredited investors
can invest in private
funds that invest in
blockchain/crypto
• Liquidity – be aware
of existing supply/
demand or be the
market maker
• Timing – Crypto is a
24/7 market, so be
aware of key trading
sessions
• Arbitrage – Crypto is
easily migrated
between exchanges
& liquidity pools, so
be aware of
opportunities
Long term
Buy & HODL
• Due diligence – like
any early stage
startup, team
matters
• Diversify – If you’re
long term macro, it’s
too early to tell
which will win
• Support – dapps rely
on community to
grow, so evangelize
and use the product
• Extremely high risk –
experienced traders
can explore
platforms like
Bitmex for margin
trading

Warnings
• Any level of crypto investment is a high risk investment
• Like any investment, do your own research
• Invest only as much as you’re willing to lose
INVESTORS

contact@fenbushi.vc
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THANK YOU!