Fintech & DeFi

> Shaping the Future of Finance

DESSMI IFI - 1st Semester 2023/24

Course designed by Benoît Courtois

 Introduction
“Many of life’s failures are people
who did not realize how close
they were to success when they
gave up”

- Thomas Edison

Course designed by Benoît Courtois

 Course Modules
01 Intro & Fintech 04 Blockchain & DeFi

02 Blockchain Basics 05 Crypto AM

03 Blockchain Apps 06 Risks & Regulations

Teaching Style:
Face to face
Online
Online Async
Course designed by Benoît Courtois
 Course Modules
07 Crypto Valuation 10 Future of Finance

08 Fintech & DeFi

09 Blockchain in A&A*
Teaching Style:
Face to face
(*): This module may vary based on the instructor's expertise. Online
Online Async
Course designed by Benoît Courtois
 Learning Culture
Rules:
● There are no stupid questions. Ask your questions.
● Dare to take risks. “No risk no return”.
● Respect is key. We are all playing in the same team.
● No one will be left behind. We are all supportive.
● Please be careful about plagiarism and deadlines.
“A person who never made a mistake never tried anything new.”
- Albert Einstein

“Only those who dare to fail greatly can ever achieve greatly.”
- Robert F. Kennedy

Course designed by Benoît Courtois

 08
Fintech & DeFi:
Group Project
> By Benoît Courtois

IFI – Fintech & DeFi – Week 8

Course designed by Benoît Courtois

 Asynchronous Session?
What does it mean?

In this session, you will engage in both individual and

group learning, utilizing the course material provided.

Main instructions:
● Review the course slides thoroughly before initiating
your project.
● The project submission will be assessed.
● Project presentations are scheduled for Module 10.
● Seek clarifications, if needed, during Module 9.

Course designed by Benoît Courtois

 Fintech Projects
Fintech startups thrive on innovation but face fierce
competition. A captivating pitch deck is crucial, turning
potential investors into believers and securing vital
funding for growth.

“If you can't explain it simply, you don't understand it

well enough." - Albert Einstein

“The success of your presentation will be judged not

by the knowledge you send but by what the listener
receives.” - Lilly Walters

Course designed by Benoît Courtois

 Fundraising Ecosystem
Startups have various options to raise funds and further
their projects within the expansive fundraising ecosystem.
The right source of funding often depends on the
company's stage, sector, goals, and potential for growth.

Main actors:
● Venture capitalists (VCs)
● Business angels (BAs)
● Private equity firms (PE)
● Crowdfunding
● Accelerators
● Banks and financial institutions

Course designed by Benoît Courtois

 Venture Capitalists
Investopedia: “A venture capitalist (VC) is an investor who
supports a young company in the process of expanding
or provides the capital needed for a startup venture.”

Main features:
● Very high return on investment (ROI) expected
● Target: Early to late-stage startups
● Investment: Equity and board members

Course designed by Benoît Courtois

 Business Angels
Investopedia: “An angel investor is an individual who
provides initial seed money for startup businesses, usually
in exchange for ownership equity in the company.”

Main features:
● Very high return on investment (ROI) expected
● Target: Early-stage startups
● Investment: Equity and convertible debt

Course designed by Benoît Courtois

Source: Capitalibre
 Private Equity Firms
Investopedia: “Private equity firms manage investment
capital obtained from institutional investors or high-net-
worth individuals (HNWIs) to acquire equity ownership of
companies through a variety of strategies.”

Main features:
● Medium to high return on investment (ROI) expected
● Target: Mature companies
● Investments: Complex leveraged buyouts to venture
capital

Course designed by Benoît Courtois

 PE & VC Structure
PE firms and VCs operate under the leadership of a
general partner (GP) who gathers funds from multiple
investors (Limited Partners or LPs) and directs the capital
by making strategic investments.

Course designed by Benoît Courtois

Source: Feedough
 Fundraising Stages

Course designed by Benoît Courtois

Source: SVB
 Summary: BA, VC & PE

Course designed by Benoît Courtois

Source: Velocity
 What About Crypto Projects?
Yes… How can they raise capital?

Crypto projects have several options to raise capital,

using traditional and/or crypto methods:

● Initial Coin Offering

● Equity sale

Crypto projects can utilize one or both methods to

maximize their fundraising potential. They often begin
with an ICO and sell equity at a later stage.

Course designed by Benoît Courtois

 ICO vs Equity Sale
Method Pros Cons

ICO - Accessibility: Open to all investors - Price volatility: High market fluctuations
- Liquidity: Potentially high post listing - Regulatory uncertainties & evolutions
- Ownership: No equity dilution - ROI: Uncertain (demand vs supply)
- Control: Full control on the project
- Regulation & Compliance: Often less
strict

Equity Sale - Price volatility: Low fluctuations (if - ROI: Uncertain, high risk
not listed) - Not accessible to all investors
- Established legal & regulatory - Liquidity: Low until exit or IPO
framework - Ownership: Equity dilution
- Control: Decrease, new board
members etc.

Note: Pros and cons can vary depending on whether you're viewing them from the
perspective of the investor or the project owners.

Course designed by Benoît Courtois

 Did You Say Pitch Deck?
Yes… I mean the project presentation.

A pitch deck is a presentation (e.g. Power Point) that is

used to pitch an idea, project or company to potential
investors such as venture capitalists.

Main features:
● Problem
● Products/Solution
● Business plan and model
● Projections
● Market
● Team, etc.
Course designed by Benoît Courtois
 Pitch Deck Structure
Pitch decks often follow a similar structure to facilitate
project comparisons by investors.

Common structure:
1. Team and context
2. Problem
3. Solution
4. Market size
5. Business model
6. Competition/Positioning
7. Projections and traction
8. Fund raising and fund utilization
9. Roadmap, etc.
Course designed by Benoît Courtois
Source: SlideModel
 Best Practice
Let’s have a look at best practice to enhance your pitch
deck's effectiveness:

● Clarity and brevity: Stay concise and avoid jargon.

● Visual impact: Prioritize design and imagery.
● Evidence-based: Support claims with data.
● Story telling: Craft a compelling narrative.
● Rehearsing is key: Practice your pitch regularly.

Course designed by Benoît Courtois

Source: ZoomBlog
 Group Assessment
Objective: Collaborate as a team to prepare an
impactful pitch deck, and present your project in Module 10.

Instructions:
● Leverage Fintech or DeFi/Blockchain for a climate action
solution.
● Your project must relate to finance.
● For projects based on blockchain, include slides
dedicated to tokenomics, token allocation, etc.
● Use the pitch deck guidelines (readings).
● No project valuation required.
● Length: 15 slides max.

Course designed by Benoît Courtois

 Group Assessment

Instructions (continued):
● Presentation (Module 10): 5 minutes per group.
● I will answer questions (if any) as from 28/11/2023*.
● Deadline: Please submit your pitch deck by email before
04/12/2023*. Email subject >> RN/RS G# (1-4) + Team Name.
Any delay will negatively impact the assessment grade.
● Please be careful about plagiarism.
● Ensure that all sources are properly cited.
Grade: This assessment will account for 60% of the Continuous
Assessment grade.
(*): Dates may vary according to the instructor (i.e. Sébastien).

Course designed by Benoît Courtois

 Course Opening
The Blockchain revolution will radically transform the financial
sector:
● Banking
● Asset Management
● Insurance
● Audit and Accounting
● Trading
● Laws and Regulations
● Real Estate
● Private Equity
”Earth provides enough to satisfy every man’s need, but not every man’s
greed.”
- Mahatma Gandhi
Course designed by Benoît Courtois
 Thank you!

Course designed by Benoît Courtois