ICO Analysis: Invox Finance Platform

Invox Finance Platform is offering a decentralized invoice financing solution.

The Invox Finance Platform is essentially a marketplace that connects three main parties: sellers, investors, and buyers.

Sellers are able to sell their outstanding invoices to Investors to accelerate payments and cash flow. Investors can seek higher rates of return and diversify their investment portfolio. Buyers will receive extended invoice payment periods and get rewarded for verifying invoices.

A report on corporate insolvency by the Australian Securities and Investments Commission found that 40% of businesses had inadequate cash flow or high cash use.

The current market is estimated at$ 2.85 trillion USD.

Traditional invoice financing involves a financier buying an invoice from a seller and essentially gambling on a buyer they don’t have a direct relationship with. The financier is only able to trust the information provided by sellers, who will paint a much more appealing picture than the reality of the buyer situation. This exposes financiers to a considerable amount of risk, who will in return price their terms accordingly. The Invox Finance Platform team wants to create a decentralized platform that connects all parties in order to provide a high degree of visibility and confidence. 

Token

The Invox Tokens will be built on the Ethereum network using the ERC-20 standard and will give users the utility of providing access to the platform through a Trusted Member Program, reward work performed for the program (invoice verification, payment of invoices, and settlement of invoices).

The project’s token distribution is as follows:

  • Marketing: 45%
  • Investment Fund: 20%
  • System Development: 19%
  • Miscellaneous: 1%

The tokens are offered at a rate of 1 INVOX = .0001 ETH, with a max cap of 20,000 ETH (roughly $17 million USD). There is a pre-sale cap of 2,941 ETH (roughly $2.5m USD)

The Invox Finance Platform team aims to roll out their platform in a series of geographic regions. Their primary focus is to further establish their stronghold in Australia and New Zealand, and then the United States and Singapore, then UK, France, Germany, and finally the Netherlands, Poland, and Russia.

Team

The team behind Invox Finance Platform has experience running an invoice financing company in Australia called ABR Finance Pty Ltd (www.abrfinance.com.au). ABR has been in business since 2012 and helped with around $30 million AUD in invoicing in a variety of industries ranging from IT, wholesale, construction, transport, engineering, equipment and labor hire, publishing and professional services.

The founding team aims to have seeded over $500,000 AUD from their own capital by the completion of the ICO.

 

Verdict

Invoice is a compelling project with many strengths. The size of the global invoice financing market alone makes this project a high-value proposition for investors looking for a low-risk, high-reward opportunity.

Risks

  1. While the team does have the edge of experience, the token is a simple ERC20 that doesn’t provide a substantial barrier to other competitors in the market. -1
  2. Similarities to the Populous platform. Although the whitepaper explicitly outlines how the Invox Finance Platform is different from Populous, the differences could be overcome with a simple pivot in algorithm. -2
  3. Uphill marketing endeavor. While the majority of the token proceeds will be devoted to marketing, being based in Australia does pose some substantial challenges for the Invox Finance Platform team to grow out of it to the specified countries on its roadmap. -2

Growth Potential

  1. One of the main advantages here is that it’s still early enough to get in on the presale, which launches in a few days. Earning a 30% bonus (or lower depending on when you enter the token sale) on your investment gives this a  gives you an edge off the bat. +4
  2. The invoice financing global market valued at approximately $2.85 trillion USD. That’s a fairly large opportunity for a product that seems to have an edge in facilitating the flow of transactions and improving relationships. +4
  3. I like the tiered membership programs, which are essentially yearly subscription fees paid in Invox Tokens. Each tier entitles the subscriber to different levels of funding. +2
  4. Invested team. According to the whitepaper, it seems the founding team is putting 500,000 AUD into the project, which seems integral to their parent company’s business model. +2

Disposition

We arrive at a +7 out of 10 for Invox Finance Platform. The team’s incentive seemed very aligned with the success of the project. The Invox Finance Platform team will have some difficulty in growing past Australia, but if it’s able to pose a substantially feasible alternative to the current invoice financing methods

Investment Details

The Invox Finance Platform ICO pre-sale starts on March 15th and lasts until March 24th.

You can find more information on their site here and their whitepaper here.

  • Project Type: Utility
  • Symbol: INVOX
  • Platform: Ethereum
  • Pre-Sale: Mar. 15, 2018
  • Public Sale: Mar. 24, 2018
  • Hard Cap: 20,000 ETH
  • Payments Accepted: ETH
  • Minimum Investment: 0.1 ETH
  • Countries Barred from Participating: United States, China

Featured image courtesy of Shutterstock.

Author:
Alex Moskov is a writer and entrepreneur with a passion for building and creating awesome things. Alex has experience in music tech startups, digital marketing, and cryptocurrency investing.