Invox - Peer to Peer Invoice Financing
What is Invox?
The Invox Finance Platform is a decentralised peer-to-peer invoice lending platform that will allow sellers, buyers, investors and other service providers to directly connect, interact, share and distribute information.
What does this really mean?
It means they are creating a p2p decentralized form of factoring or invoice financing.
If you're not familiar with invoice financing it is when a business allows a third party to purchase the rights to money they are owed (for product or service) at a discount.
The benefit to the business is that they receive money immediately which allows them to do things like make payroll, purchase additional supplies, acquire more jobs.
Invoice financing is a huge business globally because many businesses have to wait up to 90 days to receive payment for their products.
Give me an example.
A chair manufacturer, Chair Co., sells an order of $1000 worth of chairs to J. Dudley Furniture to fulfill a customer order. J. Dudley will not pay the chair company until the 30 day return period for the retail customer has been exhausted.
Meanwhile, Chair Co. has been offered another contract by B. Bubbles Designs for $2000 worth of chairs. Since Chair Co. is currently lacking cash due to the investment in supplies and lack of return on their first shipment they will have to decline the contract.
Or they can seek invoice financing via Invox. Chair Co. would digitize the invoice, with the permission of J.Dudley, into a Dynamic Invoice Smart Contract and offer it for sale on the Invox Platform.
The terms of the invoice loan would be placed in a Loan Smart Contract and when purchased the funds will be directed to the Chair Co. At the end of the loan cycle (30 days in this example), J. Dudley would then pay the smart contract which would distribute to the loan financiers.
What is the Invox platform?
The Invox platform is a complex ecosystem of buyers, sellers and investors. These parties all conduct business on the Invox platform that is composed of:
Dynamic Invoice Smart Contracts
Converts a paper invoice into a smart contract that is logged onto the blockchain. The smart contract will allow a diverse set of changing data to be stored within the invoice. Any changes will be logged on the blockchain and fully viewable by all parties.
Loan Smart Contracts
These contracts contain all loan terms and data pertaining to the distribution of funds. These contracts allow for the fragmentation of loans.
User Access & Processing Hub
The is the user interface and hub where buyers, sellers and investors will conduct the business of creating, verifying and purchasing loans.
Bank API Integration
Integrates the system with Invox banking partners. This will allow loans to be in Fiat and to be repaid in Fiat.
What is the Invox token for?
The INVOX token has two main utilities.
- Sellers are required to use INVOX to pay for year subscriptions that allow them to sell their invoices.
- Rewards for buyers and sellers for the verification and repayment of invoices.
Who will use Invox?
Invox is targeting small and midsize enterprises as buyers and sellers and non-retail investors as the purchasers of invoices.
Buyers and sellers will be motivated to move to Invox because of lower fees, increased security and possibility of rewards.
Initially the platform will only allow non-retail investors to participate in the investment platform. These include large businesses, individuals that invest more than $500,000 AUD, or those investors with net assets of at least $2.5m AUD or with gross incomes of at least $250k AUD. This is a much different approach than a similarly focused project (Traxia) that allows any investor to purchase invoices.
Over time INVOX will allow retail investors to participate in funding.
What is the revenue model for Invox?
The Invox Finance Platform will generate revenue by charging fees to the sellers and investors. Buyers are not charged for using or accessing the Invox Finance Platform, nor are third parties who provide value to the Invox Finance Platform.
Sellers will pay a 1.1% fee (in INVOX) to list invoices for sale. Of this fee, .1% will return to Invox Finance and 1% will be returned as rewards.
Investors will be charged a 1.1% fee to purchase invoices.
Tell me about the team and partners.
The team is Australia heavy with a focus on both finance and blockchain tech. Compared to other teams they appear to be solid.
Team members include:
Alex Mezhvinsky - Co-Founder
Adam Mezhvinsky - Co-Founder
Daniel Tang - Co-Founder
Victoria Mezhvinsky - In House Legal Counsel
Jose Luis Ramirez -Lead Software Engineer
Lucas Cullen - Lead Solidity Developer - Contractor
Henry Sit - Business Development Manager
The advisors include individuals from blockchain projects including the Founder of the Celsius Network, the CEO of CanYa and Cofounder of Loki. Advisers also include legal experts and venture capitalists.
Advisors include:
Alex Mashinsky - Strategic Advisor
David Lu - Investment Advisor
JP Thor - Crypto Advisor
Confirmed partners include SelfKey and the Celsius Network.
Social
The Invox Telegram group has 2500 members. It is actively moderated and team members to show up to answer questions.
The Medium blog is average in quantity and is mostly used to announce partnerships, key dates, and updates.
There has not been a lot of FOMO around this project although Celsius Network (partner/advisor) is a highly hyped project but relatively new to the scene. No FUD has been found.
ICO. Give me Details.
The ICO begins it's presale on March 15th. Presale participants receive a 30% discount and have a 1 ETH minimum purchase and no max. The presale cap is $2.5 million.
The crowdsale opens April 15th and will have a .1 ETH minimum with no individual cap. The bonuses for this round start at 20% and decrease to zero by the end of the sale.
The overall hardcap is 20,000 ETH and the maximum total supply (if max bonuses are allocated) is 464 million INVOX.
Token distribution is as follows:
Tokens will be transferable two weeks after the end of the sale. Team and board members have half of their tokens locked for 180 days, the other half are not locked.
For more info visit:
Invox Website || Telegram || Whitepaper || Medium
Overall
Project is a good use of blockchain and smart contracts and will allow businesses to create fully auditable invoice financing histories. The ability to create fragment loans from the loan smart contract is a great tool for loan financiers to mitigate risk. The team appears solid and well connected in the space.
Info Sheet
