VC-A Autumn 2019 Newsletter

Are banks digging their own grave?

It was engraved in Baby Boomers’ collective unconscious that banks would never lose. During good times, they would be in the first row to reap benefits. During downturns, they would foreclose distressed assets, turn them around and resell them making obnoxious upsides.

The 2007 sub-prime crisis, with its spate of bankruptcies epitomized by Lehman Brother’s, washed this belief to the sea. Tougher regulation, controls and sonorous bank fines stifled even further tottering results already thwarted by low-to-negative interbank offered rates.

And banks retaliated with a swath of new fees: account maintenance charges, ATM charges, money transfer charges, communication charges, notification charges, account closing charges…

According to ADICAE, in 2018, Spanish financial entities charged their customers more than €21,3 billion, 24% of the gross revenue from services rendered.

€21,3 billion for services, which are automated, such as sending emails or clearing transactions.

€21,3 billion and upset customers, who need to spend weeks going through anti-money laundering, counter terrorist financing, know-your-customer, compliance and credit risk related procedures to open a simple cash account.

€21,3 billion is the size of the avenue that banks are opening up to Fintech entrepreneurs.

In 2018, global fintech investment doubled to €43 B. With traditional banks and their very opaque “risk department” playing dumb, fintech startups have jolly days afoot.

In Generation Z’ collective unconscious, banks will remind them of that late industry in days of yore when customers were dumb enough to accept being stripped of their wealth for the mere custody of their money.

VC-A and Fiduscorp are launching a regulated fundraising platform

Value Creation - Alternative Ltd. and Fiduscorp Ltd. have teamed up to launch a fundraising platform in Malta.

The platform will be structured as a SICAV beneath which, will hang Professional Investment Funds (PIF) and/or Alternative Investment Funds (AIF), depending on the size of the fund. The SICAV and the underlying funds will be regulated by the Malta Financial Services Authority (MFSA).
We are designing the platform to enable fundraising through the issuance of Security Tokens.

The Funds will be managed by Mr Mario Buttigieg and Mr Christophe Schwoertzig.

Each Client will have the choice to set up one or several funds and to raise funding either the "traditional way" or through "Tokenisation".

Matías Méndez

Mr Mario Buttigieg joins VC-A as Associate Director

Mr Mario Buttigieg has joined VC-A as an Associate Director and is on the fast track to becoming a VC-A Partner.

Mr Buttigieg is a former banker trained at HSBC where he held several executive positions. He was then Managing Director for Amicorp Group looking after Corporate Funds, Trusts and Corporate Accounts.

Mr Buttigieg is the founder of Fiduscorp Ltd.

Mr Buttigieg is a Certified Public Accountant and owns a first degree in Commerce from the University of Malta.

VC-A M&A SUITE

We have implemented a DomainKeys Identified Mail (DKIM) to take responsibility for all emails sent from VC-A M&A Suite mailing system. In addition to DKIM, we have also enabled a DMARC email policy. DMARC stands for Domain-based Message Authentication, Reporting & Conformance.
Emails sent from our VC-A M&A Suite score perfect 10 / 10 in Mail Tester and have the highest chance to pass anti-spam filters.
VC-A Agent who wish to access the VC-A M&A Suite can submit a request by email.

Review VC-A's value proposition here.

To join VC-A as an Agent register online here.

VC-A Website is now secure

We have moved our website from HTTP to HTTP over SSL, or HTTPS, for secure communication over the Internet.

VC-A website is secured by Thawte SS123 and all communications, including sign-up, are now encrypted. Our principal motivation is to provide authentication of the website accessed and to protect the privacy and integrity of the data exchanged while in transit. Other side benefits are:
  • Improved SEO (search engine optimisation) ranking
  • Increased customer confidence by removing the "not secure" message displayed by some browsers
  • Lower the spam score when referencing the website in emails

The Value Creation - Alternative Network

If you run a business, use this group to share ideas around new business development strategies, alternative sources of money, alternative growth strategies and new business models.

VC-A Members, Investors, Company Owners, CxOs, Directors and Managers are invited to join.

CTIP Launches CTIP-ITIC

CTIP has organised in collaboration with Sinotec, CTIP-International Trade and Investment Projects, a for-profit organisation.
CTIP-ITIP is consisting of amongst others: CTIP-International Trade Exhibition Center and CTIP-International Trade and Investment Center Building Project
The planned ITEC-ITIC concept is typical of a successful World Trade Center where the synergy of having an exhibition and a convention facility complemented by an office commercial building and hotel creates vitality and animation in the complex.

About Malta

You may have heard that Malta is a tax haven and that the investment funds sector is one of the best performing segments of its financial industry, but did you also know that:
  • Malta's capital is Valetta
  • Malta is an island with less than half a million inhabitants
  • English and Maltese are both official languages
  • The cost of living is significantly lower than in the UK or the USA
  • Malta joined the eurozone on the 1st of January 2008
  • It only takes the approval of the MFSA to set up a fund?

 

Some of VC-A current opportunities

OpportunityIdTicketOverviewWho could be interested?
Minority Equity InvestmentUK Family Office€1M+UK FO looking to take minority positions between 1% and 12.5% in companies with good management teams and aggressive growth plansEstablished businesses with an EBITDA greather than £500k
Digital BankDiginacria€7.5M -> €100MA well-established and popular German fintech company is looking to raise up to EUR 7.5m in expansion capital to become the largest fintech bank based in Europe’s single currency area with a truly global reach. Additional assets can be included to build up a strong balance sheet and move into market-makingUHNWI, security traders, VC/PE specialised in fintechs, banks, and financial institutions
Non Performing LoansNPL Fund€5M -> €100MValue Creation - Alternative is looking for investors to set up a regulated non-performing loans fund to acquire bad consumer debt in the kingdom of SpainDistressed funds, hedge funds, HNWI, UHNWI, financial institutions, bad debt recovery entities
Foreign ExchangeFX and Trade Finance€5M -> €100MWe structure finance solutions for international trades involving currency exchange and supplier creditsImport-export agencies, trading companies, lenders
Regulated Funds ManagementCrypto-PIF€5M -> €100MLooking for a partner investor to set up a regulated professional investment fund (PIF) in Malta to raise money through tokenizationEstablished and would-be fund managers, non-EU banks and financial institutions, companies looking to raise funding from institutional investors
Payment ProcessingPSPN/AWe can help you leverage your payments by implementing a payment system platform that will 1) reduce your processing cost and 2) leverage your customer base with cross and up-selling solutions companies processing lots of payment transactions: e-commerce, market places, vending machines, gas stations ... Established PSP looking to upgrade their gateway application
M&A and FundraisingVC-A M&A Suite€250k+We are looking for Strategic Partners and Investors to help us develop VC-A solutions through JV and alliancesHNWI, UHNWI, M&A boutiques, hedge funds, VC/PE, FOs, consulting firms, investment banks
Solar PlantsEMBLITAM€300MWe are looking for investors to develop solar projects in the kingdom of Spain. We have access to a portfolio of more than 12GWp. If you have a solid balance sheet, we can help you monetise itAny company with a strong balance sheet, energy funds, PE
Unicorn StartupsPre-IPO€100k+We trade unicorn shares on the secondary market. Currently on screen: Flexport, Rubrik (Shares owned directly), Kraken (Shares owned directly), BitPay (Shares in an SPV), Eat Just (Shares owned in an SPV), Udemy (Shares owned directly) etc. from $100k investment upMass-affluents, HNWI, UHNWI, hedge funds
You can download a blind list of VC-A leads here.

About Value Creation - Alternative

Value Creation – Alternative is a Strategy and Investment Advisory firm. We help companies to develop their business through acquisition and organic growth. We accompany our clients throughout the entire life cycle of their corporate development programme: strategy definition, target search, due-diligence, negotiation, transformation map, change management and digitalisation.
 
We are a worldwide network of more than 1,000 seasoned professionals with more than 45,000 contacts and have collectively advised M&A projects worth in excess of US$100B.
 
We support complex strategic and operational business decisions with deep analysis and robust processes. Our methodology is a combination of desk research, interviews and application of our internal know how.

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