SwissBorg Series A - Introducing community-driven Dynamic Valuations

At SwissBorg, we take great pride in the subsistence of our values and their incorporation into the heart of our endeavours. We aspire to design all our products with the same unwavering goal - to democratise wealth management by making it fun, fair & community-centric. Our community fundraiser follows these same principles. The long term vision has always been to make SwissBorg a project for the community, by the community. The Series A has allowed us to facilitate the communion of ownership and community. 

Valuation is a significant component in any equity investment decision, and so it is our aim to maximise the value for our newfound community shareholders. In the venture capital world, valuations are traditionally set by a "lead investor", determining the value of a company for the rest of the investment consortium. While we initially employed traditional valuation methodologies, SwissBorg’s leadership team envisions a future of finance that is less beholden to such conventions.

Today, we are proud to be disrupting the status quo once more by allowing SwissBorg’s first Series A to be valued by a large and diverse community. We are innovating the concept of community-driven dynamic equity valuations. 

What are the advantages for all partners with this Dynamic valuation?

Today, we are rewriting history by taking a further step to solidify our core principle of being community-centric. 

1) Protect from the Downside: With an attractive valuation in the event where SwissBorg will need to raise additional money in an never ending bear cycle.

2) Maximise the upside: Offering more upside potential for the future equity rounds 

What are dynamic equity valuations?

Dynamic equity valuations harness the collective wisdom of an entire community by linking the final valuation of the company as a direct proportion of the total demand generated during the fundraiser.

In concrete terms, as the proceeds of the fundraise will be used to acquire SBorg SA’s shares, this means that the valuation of SwissBorg will be directly proportional to the success of the fundraiser. The more investment that is generated, the higher the amount invested in SBorg SA will be and the higher the valuation of SBorg SA will rise - ultimately reaching its set cap of 500M CHF (Pre-money) at 100% subscription level. Conversely, if only 50% of the target is reached at the end of the fundraise, the final valuation of SBorg SA will be set to 250M CHF (Pre-Money Valuation).

What does that mean for the SwissBorg Partners?

SwissBorg Community AG, through all SwissBorg Community Partners, will acquire 9.53% of SBorg SA equity (the main holding company of the SwissBorg group) regardless of the total amount raised during this Series A. The biggest advantage of dynamic valuations is that through it we maximise the value distribution to all investors at every subscription level in a fair and community centric manner. 

Investors will now benefit from a bonus on their indirect ownership of SBorg SA compared to the previously agreed valuation of 500M CHF. The bonus is dynamic and adjusts based on the achievement of our targets in both the public and private sales.

In table 1 we provide the benefits that our investors will receive if the goal of achieving 100% of our fundraising target is not achieved. If, for example, we were able to achieve 40% of the goal in the public sale every investor would increase his or her indirect ownership in SBorg SA by 2.5 times!. Please be advised the figures presented in the table are merely indicative and not binding. The multipliers are based on estimations and may be subject to small adjustments.

All in all

We envisioned this fundraiser to set a standard in what community centrism truly means; to align our community with SwissBorg at the most fundamental level - ownership. 

The aim is to grant 9.53% of SBorg SA’s equity to our community in an innovative manner that factors in the current market conditions and offers as a result a more robust downside protection. 

We do not see the fundraiser as a negotiation but rather as a tool to enhance synergy with the community and, in doing so, have them participate in the decision-making process that will dictate the future of SwissBorg. Our community's participation is the single most crucial purpose of this exercise. With that in mind, we have thus concluded that nothing justifies granting any less ownership just because the collected amount of funds does not align with the valuation calculated by industry-standard models. 

We engineered dynamic valuations to value our company in a way that follows the compass of our own values. We are proud to keep pushing the boundaries of community centrism.