A Business Concept for Tokenizing Real Estate Development

1. Project
Cappuccino
Tokenizing Real Estate Developments

2. Contents
Market
Product
Business Model
Next Steps
The Opportunity
Team

3. 209 billion USD
Private equity investments in real estate
in the United States in 2018

4. The Opportunity
Investors look for opportunities and developers for capital
Retail Investors
Aim for the best risk-to-reward ratio for
their investments
Real Estate Developers
Aim to grow their portfolio by raising
cost-effective capital
Make roughly 25% returns
Currently face exorbitant
costs for raising capital (2-
3%)
A majority of Investors
favour RE as an asset
class
Can we create a platform which links medium-scale developers with retail
investors who want higher returns and exposure to RE?
34%

5. ● Companies like CADRE, Prodigy Network, and Fundrise offer platforms for
crowdfunding new constructions
○ Buy-ins range from $10,000 to $500,000
○ Minimum holding period from 3-6 years
● Blockchain platforms like ALT Estate, Atlant, and Meridio only focus on already
developed real estate projects
○ Offer lower capital gains than new developments
● By combining these two approaches, we can provide a platform where:
○ Retail investors can buy tokens for as little as $5
○ Construction projects have a yield as high as 25%
○ Developers have easy access to cost-effective capital
Market
Stand out from competition by tokenizing new developments

6. Project Cappuccino
A blockchain-enabled investment platform for real estate developments

7. A Glimpse

8. Pre-approved
Real Estate
Developer comes
with land and
project plans
Due Diligence &
Approval
Tokenize the
project through
blockchain
network
Call the
Investors to
raise capital
PropertyspecificCoins
How Does it Work?
Typical listing flow diagram

9. Lean Business Canvas
Problem:
Investors:
- High barriers to invest
in RE (expensive buy-
ins, long holding
periods)
Developers:
- Exorbitant prices for
PE capital
Solution:
A mobile platform to
buy and sell tokens
representing equity in
a RE Development
Key Metrics:
- # of investors on the
platform
- $ amount of
transactions
- # of projects listed
Unique Value
Proposition:
The only platform
which is trying to raise
money for new
developments and give
investors the
opportunity to enjoy
capital gains
- Robinhood for Real
Estate
Cost Structure:
- Advertisement costs
- Technology costs
- Legal costs
- Real estate developer onboarding costs
Unfair Advantage:
- Founders have the
perfect blend of tech
and RE background
- Founders come from
real estate developer
families
Channels:
Web App and mobile
application
Customer
Segments:
- Retail Investors aka
middle class people
with interest in
investing money in
Real Estate or any
other liquid
instruments
- Small and medium
aspiring developers in
major cities
Revenue Stream:
- Listing Costs
- Subscription fee from Investors / a small transaction cost from
investors

10. The Team
A Perfect Blend of Technical Skills and Real Estate Expertise
Kushagra Aggarwal“We (Sumeet and Kush) as a team are equipped with the right
technical skills and business experience along with a strong
network of people both in real estate and technology. Our
analytical approach to solving problems along with the
essential understanding of blockchain technology gives us
an upper hand in conquering our ambitious project.
“

11. Next Steps
IBM Blockchain Accelerator can help us strengthen our technical capabilities to come up with a
MVP
01 Consult with blockchain experts to build blockchain protocol and architecture.
02
Raise capital to start platform development and engage lawyers to define the
legal structure.03
Consult with corporate partners to fine tune the platform and gain market
insight.