LondonLink

Idea

Introduction

LondonLink aims to become the dominant brokerage for smart money to trade and manage crypto assets. Our mission is to improve the risk-adjusted return of crypto asset investing to deliver higher performance for smart money.

Brokers exist for most assets and LondonLink generates revenue by arbitraging the ‘spread’ between institutions and retail clients. We get institutional pricing for crypto assets and charge a premium for delivering value-added services to a retail client base. We buy wholesale and sell retail.

We think Crypto is becoming mainstream and that the early majority is entering the market. We believe that the 'smart money', 'early majority' seeks risk-adjusted returns rather than outright risky assets. Across other disruptive industries, research suggests that the key to crossing "the chasm" and making the asset class suitable for the 'early majority' is reducing risk and complexity.

According to theory, the early majority segment of any disruptive market is typically 2x the size of the 'innovators' and 'early adopters' phases.

Substantial accomplishments to date

User Ratings:

High user growth and resilient revenue:

• Achieved overall EBITDA profitability between Dec '22- Feb '23*.

• Our overall users grew at 57% over the trailing twelve months (Mar '22 - '23).

• £370k+ of revenue generated over the last twelve months (Feb '22- Feb '23)*.

• Launched Euro trading as well as ERC20 crypto assets (including Ethereum)

The right people are leading the business:

• Experienced founder CEO.

• Highly successful Chairman.

• Experienced advisory board with successful exit.

• Fantastic executive team with high levels of cross-discipline competencies.

We scale with software:

• LondonLink has developed bespoke technology.

• Automated many previously manual processes, through which we aim to reduce staffing costs.

• Reduced the marginal cost of each customer.

We strive for quality risk management and compliance:

• LondonLink is registered in Gibraltar for crypto asset brokerage services.

• The firm keeps and maintains a risk register with appropriate internal controls.

• Worked to streamline compliance processes aiming to minimise risk with lower friction.

• In the future, we plan for Client funds to be 'ringfenced' from company funds.

• Developed in-house proprietary 'Coin Risk Assessment Methodology' to assess the crypto assets we offer to customers.

Multiple awards:

• Bitcoin Brokerage of the Year 2021 - Small Business Awards.

• Cryptocurrency Consultancy of the Year 2021 - SME News.

• 5 Star Score on Trustpilot.

*Based on unaudited management accounts.

Monetisation strategy

On average, each user generates £74 of Annual Revenue (AR). We grow revenues by adding users and increasing our AR per user over time.

In the trailing 12 months, our user base has grown by 57% which we think is a big success!

In the next 12 months, we aim to expand our Serviceable Addressable Market (SAM) by launching self-serve trading and custody of customer assets.

Some voices in the industry suggest only 1% of crypto users are capable of self-custody. By offering custody we believe we will open up access to a large addressable market.

Leads become customers when they register on our site. Try it for yourself here londonlink.io/register

LondonLink’s user base has grown organically but now we plan to grow it faster with outbound sales and marketing.

Our go-to-market strategy:

Now we seek capital from investors to accelerate our plans to grow our user base and therefore, our revenue stream of crypto asset exchange.

Use of proceeds

We plan the following consolidated use of proceeds:

Enhanced product delivery: By hiring more engineers we plan to enhance our trading platform and help launch features faster.

Complete custodial licence: Consultancy expenditure is required to attain various licences and develop our compliance strategy.

New leads from marketing: We intend to hire a CMO and launch our go-to-market strategy to increase our leads.

Generating revenue: The sales team supports the revenue model via our head of sales and dedicated broker team which we are looking to are expand.

Minimising risk through compliance: We plan to increase the size of our compliance team to continue driving down risk. Compliance expenditure also includes regulator fees.

Efficient back office: General and administrative expenditure includes senior management staff, insurance, banking and other overheads.

Efficient tooling: We use various third-party services to keep our teams working efficiently.