The JOBS Act, signed into law on April 5, 2012, promises to revolutionize the U.S. capital markets in the same way, and for the same reason, that Amazon revolutionized the retail market, Uber revolutionized taxi market, and Airbnb revolutionized the overnight lodging market. That’s because for the first time in history, the JOBS Act allows private companies to raise capital using the Internet.
The Internet allows entrepreneurs and borrowers to connect directly with investors, bypassing the inefficient, expensive, opaque networks that have dominated the U.S. capital markets for 80 years. In the consumer lending space, Prosper and Lending Club have already taken about $10 billion of business per year away from banks, while in the private capital market, sites like Fundrise, FundersClub, and AngelList will collectively raise more than $1 billion in 2015, having started from zero on September 23, 2013.
But that’s a drop in the bucket. The entire U.S. capital market – a multi-trillion dollar market – is ripe for disruption, as the Internet pushes traditional middlemen to the side, drives down costs, and creates new centers of financial power and wealth.
YOBI Capital Fund will occupy a position at the center of the new Internet-based capital markets, with a two-pronged approach:
Using patented technology, we will create the best-in-class intermediary (portal) for all three classes of securities transactions permitted by the JOBS Act – Title II, Title III, and Title IV – offering services that nobody else provides in a way that nobody else can provide them. Our portal will be available to all sponsors in all industries.
We will create industry-specific affiliates to originate loans that will be listed on the intermediary, in effect creating our own customers. We currently plan affiliates in the equipment leasing space and the real estate lending space. Others will be added over time – and each will be best-in-class.
Our two-pronged approach coupled with “ubiquitous technology” enables us to secure significant market penetration. Below is an illustration of our distinct business servicing model.
Like eBay, YOBI FUND is a high-technology company architecting an extensible digital investment platform that could virtually support any investment transaction across all JOBS Act Regulations, across all industries, and across all debt and equity Securities Classes.
Our technology platform is built upon a proprietary Investment Management Architecture (IMA) comprising three layers: (1) CORE Investment Portal Engine, (2) COMMON Investment Sector modules, and (3) UNIQUE Industry-specific components:
The CORE Investment Portal Engine has a library of plug-and-play software consumable across all industry-specific websites supporting each Investment Sector – Venture Capital, Real Estate, and Lending.
The COMMON Investment Sector Modules extends our standard investment portal design and features specialized software logic tailored specifically for Venture Capital, Real Estate, and Lending Issuers.
The UNIQUE Industry-specific components further extend their associated Investment Sector Module and include more detailed and applicable components, metadata, attributes, and computational logic needed support niche-market websites such as Residential Fix-and-Flips, Commercial Real Estate Investing, Venture Crowdfunding, Equipment Leasing, and Consumer Financing.
Regardless of which industry-specific website originates the deal, investors will register only on YobiFund.com, providing a standardized user experience across all investment categories.
We received a $2.6 million infusion at a $14 million pre-money valuation to fund our patent acquisitions, IT Infrastructure, Web Development, and IT Support costs.
We have established a leasing program for MEGANET Corporation to finance their Jammers, Surveillance Drones, Interceptors, and other Anti-Terrorism Military and Protection Equipment for their domestic and international customers.
We have identified over 80 equipment dealers, similar to Paper Trail Office Solutions that have expressed interest in financing their customer orders through Yobi Leasing due to our more innovative and rate competitive financing solutions. We expect to generate over $100 Million in financing deals annually from these dealers once they are converted to our platform.
After we close this investment round we plan to open another investment round that takes advantage of the recently updated Regulation A exemption (sometimes referred to as Regulation A+). The Regulation A+ exemption requires us to submit an offering statement to the SEC for review and qualification, but once qualified, we will be able to offer and sell fixed income debt securities or equity securities to the general public from our website.
You can think of a Regulation A+ offering much like a scaled down version of a registered offering. We are referring to this offering as a PRE-IPO offering.
NASDAQ has already reserved our ticker symbol, YOBI, for trading. After we build solid momentum we plan to take advantage of the Regulation A+ option to list with a National Stock Exchange. We anticipate listing with NASDAQ as a development stage IPO during the Fall 2016.
Oct 2015: Close Private Placement Investment Round
Jan 2016: File Regulation A+ IPO Offering Statement with the SEC
Mar 2015: Launch Subsidiary Websites for Dealer Registration
Mar 2016: Anticipate receiving SEC Regulation A+ Qualification
Apr 2016: Launch YOBI FUND to General Public (PRE-IPO)
May 2016: Crowdfund and Finance Subsidiary Deals
Sep 2016: Anticipate Listing on NASDAQ as Development Stage IPO