The funding route of BOTS by RevenYOU: This way we become a Unicorn
BOTS by RevenYOU did not arise overnight. As with other startups, a number of phases preceded this. Even better: BOTS by RevenYOU is still in the middle of becoming a Unicorn. How the startup funding of BOTS by RevenYOU went, we tell you today in this article.
Every startup that is going to acquire capital goes through a number of phases with associated milestones. This is no different for BOTS by RevenYOU. Within our organisation, we distinguish the following phases:
- The idea
- The pre-seed phase
- The seed phase
- The pre-series A phase
- The series A phase (theUnicorn)
- The IPO phase(initial public offering)
During our last shareholders meeting at the Philharmonie in Haarlem we shared our funding route with all those present. Today we share it with everyone.
In 2017, Colin Groos (CCO of BOTS by RevenYOU) shared his idea with Michiel Stokman (CEO of BOTS by RevenYOU). Colin wanted to program a trading strategy. An algorithm to get more return on his investments. In Excel, Colin and Michiel designed their first algorithm together. Their first automated trading strategy. This strategy would yield a huge return. In Excel at least. The first bot was a fact.
Both gentlemen were convinced of their idea to become automated. Through their network, they came into contact with Stefan Bijen (CTO of BOTS by RevenYOU). He programmed the algorithm that Colin and Michiel had worked out and the trading could begin.
The gentlemen's algorithm did not do as well as expected. Conclusion: Investing with algorithms definitely has the future, but there are people who probably write better algorithms than they can write themselves.
Through Cryptotrader the gentlemen came into contact with a trader who was able to double his monthly return through an automated strategy. After convincing proof of this trader his trading strategy was bought. A bot that worked the way they had figured it out.
Initially Colin, Michiel and Stefan wanted to share this strategy with friends and family. And that's where the crux came into being. This requires a lot of technical knowledge. Knowledge that by no means everyone has. That had to be easier. This crux became the eureka moment.
The idea: a platform on which desky developers offer their bots that the user, without technical knowledge, can use to act automatically. Spotify for investing. BOTS by RevenYOU was born.
The pre-seed phase
The idea was soon turned into a business plan, and because the earnings model looked so good, it seemed logical to involve an investor. BOTS by RevenYOU came to an agreement with an investor for €650,000 against 25% of the shares.
The energy to get this off the ground was enormous for all involved. With this platform, the world of investment could be turned upside down. The best trading strategies would now become available not only to the richest 1% of the world, but to everyone. Everyone could have the opportunity to set up a second passive income.
The payment that had been promised to the gentlemen remained behind. For whatever reason. The investor did not cross the bridge. A lucky accident, because this strengthened the founders of BOTS by RevenYOU in the thought that they now had to go through with it.
With the help of family, friends and other interested parties, funding was provided. €650,000 against 18% of the shares. The invested amount was spent on building a prototype and building the app.
As with all startups, not everything went by itself. Entrepreneurship, inventing something and making something, never goes without a fight. There are always obstacles on the path of an entrepreneur that need to be overcome.
It was precisely in order to overcome these obstacles that it was decided to organise another investment round. This time it would be open to a larger audience: a crowfund.
The seed phase
The crowdfunding was a huge success. Within a very short time €1.6 million was raised at a valuation of €32 million. The presentation of BOTS by RevenYOU at Businessclass of Harry Mens certainly made a very positive contribution to this.
All developments within BOTS by RevenYOU accelerated. But with an acceleration of developments, there is also an acceleration of the challenge.
One of the biggest challenges in this phase was for us the KYC - Know Your Customer - module. A module that had to be built in connection with laws and regulations of the Dutch government.
In the end the app could go beta live last December 1st with the test version of the app. BOTS by RevenYOU was live. The effect of going live was huge. Not only was there a lot of media attention, there were also major investment parties: Venture Capital, Private Equity and Family Offices among others. With a lot of interest to invest.
The evidence had been provided: BOTS by RevenYOU is gold. Time to move on to the next phase. And that required new investments. Time to go back to Harry Mens.
The pre-series A phase
Last December 8th RevenYOU sat at the table at Business Class for the second time in a short period of time. All the expectations the founders had were exceeded. Within two weeks, €2.2 million was raised through crowdfunding. When this second investment round finally closed on 31 January 2020, a total of €2.65 million was raised at a valuation of €48 million.
BOTS by RevenYOU acquired 424 new shareholders in that round. This brings the total number of shareholders to 747.
The lesson of Michiel, Colin and Stefan: Dare to think big!
By focusing on €650,000 this was actually raised. By focusing on a valuation of €50 million, this is now the current value of BOTS by RevenYOU.
The next focus is the next phase. BOTS by RevenYOU becomes a Unicorn within 3 years.
The series A phase (the Unicorn)
BOTS by RevenYOU isn't Unicorn yet, but it's going to be. Within 3 years. A Unicorn is an indication for a tech startup that, through investments and funding, has reached a market value of at least €1 billion.
In almost all cases, this is disruptive technology. Think of Airbnb, Uber and Dropbox. In 3 years BOTS by RevenYOU will complete this list.
The IPO phase
The holy grail for all startups is to become the IPO. An Initial Public Offering. If an organization has a market value of Є6 billion euros or more then you speak of an IPO. For now, this phase is still out of sight. But here too: Dare to think big. So who knows.
For now the focus of BOTS by RevenYOU is on the Unicorn.
Investing is for everyone
Everyone should be able to invest. And now they can. With BOTS. Together we are going to make the world of investment fairer and more transparent. Are you interested, but your question hasn't been answered yet? Take a look at the FAQs on our site. Or contact us, we will be happy to explain it to you in person.
The BOTS app is now live
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.