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March 10, 2020

Becoming a Unicorn: The funding route of BOTS by RevenYOU explained

BOTS by RevenYOU did not arise overnight. As with other startups, a number of phases preceded this. In fact: BOTS by RevenYOU is still in the middle of the process of becoming a Unicorn. In this article we will share how the funding route of BOTS by RevenYOU evolved.

BOTS by RevenYOU | The funding route
BOTS by RevenYOU | The funding route

Phases

Everystartup that is going to acquire capital, goes through a number of phases withcorresponding milestones. This is no different for BOTS by RevenYOU. Wedistinguish the following phases within our organization:

  • The idea
  • The pre-seed phase
  • The seed phase
  • The pre-series A phase
  • The series A phase (the     Unicorn)
  • The IPO phase (initial public     offering)

During ourlast shareholders’ meeting inthe Philharmonie in Haarlem, we shared our funding route with everyone present.Today we share this route with everybody.

The idea

In 2017,Colin Groos (CCO of BOTS by RevenYOU) shared his idea with Michiel Stokman (CEOof BOTS by RevenYOU). Colin wanted to program a trade strategy. An algorithm toachieve more returns from his investments. In Excel, Colin and Michiel designedtheir first algorithm together. Their first automated trading strategy. Thisstrategy would yield a huge return. At least in Excel. The first bot was born.

Bothgentlemen were convinced of their idea to start trading automatically. Throughtheir network they came in contact with Stefan Bijen (CTO of BOTS by RevenYOU).He programmed the algorithm that Colin and Michiel had worked out. They couldstart trading.

In the realworld, the algorithm designed by Colin and Michiel, did not do as good as theirexpectations. Therefore they concluded: Investing with algorithms definitelyhas the future, but there are people who probably write better algorithms thanthey could do themselves.

ViaCryptotrader the men came into contact with a trader who could double hisreturn on a monthly basis through an automated strategy. After convincingevidence from this trader, his trading strategy was purchased. A bot thatworked the way they had planned.

InitiallyColin, Michiel and Stefan wanted to share this strategy with friends andfamily. And that is where they faced a problem. To trade with such a bot,requires a lot of technical knowledge. Knowledge that not everybody has. Whynot make this easier for everybody? And so the solution to this problem becametheir new idea

The idea: aplatform on which expert developers offer their bots that the user can use(without technical knowledge) for automated trading. Spotify for investing.BOTS by RevenYOU was born.

The pre-seed phase

The idea wasquickly turned into a business plan, and because the business model looked sogood, it seemed to make sense to involve an investor. BOTS by RevenYOU came toan agreement with an investor for € 650,000 against 25% of the shares.

The energyto start working on this idea was enormous with everybody involved. With thisplatform the world of trading could be turned upside down. The best tradingstrategies would now become available not only for the richest 1% of the world,but for eveybody. Everybody could have the opportunity to set up a secondpassive income.

The paymentthat the investor had promised never came. For whatever reason. It was actuallya blessing in disguise, because this strengthened the founders of BOTS byRevenYOU in their believe that they had to keep going forward.

Financingwas provided with the help of family, friends and other interested parties. €650,000 against 18% of the shares. The invested amount was spent on building aprototype and building the app.

Just likewith all start-ups, not everything came naturally. Being an entrepreneur,coming up with ideas and making something, never goes smoothly and without anystruggles. There are always obstacles on the path of an entrepreneur that mustbe cleared.

To overcomethose obstacles, it was decided to organize another investment round. This timeit would be accessible to a larger audience: a crowfund.

The seed-phase

Thecrowdfunding was a huge success. Within a very short amount of time, € 1.6million was raised against a valuation of € 32 million. The presentation ofBOTS by RevenYOU at Business Class by Harry Mens certainly made a very positivecontribution to this.

Alldevelopments within BOTS by RevenYOU accelerated. But with an acceleration ofdevelopments, there is also an acceleration in challenges that come withbuilding a business.

For us, oneof the biggest challenges in this phase was the KYC — Know Your Customer —module. A module that had to be built to comply with laws and regulations ofthe Dutch government.

Eventually,the app could go live on December 1 with a test version of the app. BOTS byRevenYOU was live. The effect of this go-live was enormous. The media took ahuge interest in BOTS by RevenYOU and there were also large investment partieswith a lot of intertest: Venture Capital, Private Equity and Family Offices,among others. All looking to invest in BOTS by RevenYOU.

The proofwas there: BOTS by RevenYOU will be successful. In order to advance tot he nextphase, new investments were needed. To do so, Harry Mens was visited onceagain.

The pre-series A phase

On December8th 2020, RevenYOU visited Business Class fort he second time. All expectationsthat the founders had for this new round of crowdfunding were exceeded. Withintwo weeks, € 2.2 million was raised through crowdfunding. When this secondinvestment round finally closed on January 31st 2020, a total of € 2.65 millionwas raised against a valuation of € 48 million.

BOTS byRevenYOU added 424 new shareholders in that round. The total number ofshareholders is therefore 747.

The lessonfrom Michiel, Colin and Stefan: Dare to think big!

By focusingon € 650,000, they actually made it happen. By focusing on a valuation of € 50million, they can now state that this is the current value of BOTS by RevenYOU.

The nextfocus is the next phase. BOTS by RevenYOU will become a unicorn within 3 years.

The serie A phase (The Unicorn)

BOTS byRevenYOU is not yet a Unicorn, but will certainly be one within three years. AUnicorn is a designation for a tech startup that, through investments andfunding, has reached a market value of at least € 1 billion.

In almostall cases, these companies are all about disruptive technology. For example:Airbnb, Uber and Dropbox. BOTS by RevenYOU will complete this list in 3 years’time.

The IPO phase

The holygrail for all startups is to become an IPO. An Initial Public Offering. If anorganization has a market value of Є6 billion euros or more, we call it an IPO.This phase is still out of sight for now. But the lessons learned also applyhere: Dare to think big.

For now, thefocus of BOTS by RevenYOU is on becoming a Unicorn.

Trading is for everybody

The rich getricher and the poor get poorer. That seems unfair and we want to change that.The disruptive technology and approach of BOTS by RevenYOU will turn this tide.Anyone with a smartphone will soon have access to smart bots that trade on thestock market. Because BOTS by RevenYOU is going to help millions, or maybe evenbillions of people, we will do everything, with your help, to make a Unicornout of RevenYOU.

Do you also want to contribute?

Everybodymust be able to trade. And now this is possible. With BOTS by RevenYOU.Together we will make the world of trading more fair and more transparent. Areyou interested, but your question has not yet been answered? Then have a lookat the English FAQ’s on our website. Orcontact us, we are happy to explain it to you personally.

You can nowdownload the beta version of the app from the playstore. For the ios app youcan visit our website. Download the app today and get anexclusive look into the new world of trading. Help us in the test phase and bethe first to get access to the best bots.

Risk-freeinvesting does not exist. You can lose (part of) your stake.