Introduction of Suretly
Among the plethora of decentralized products and services. Suretly is here with a non-decentralized service and yet promises to serve with an out-and-out new form of investment alternative (known as crowd-vouching). Suretly, with the capability to perform all around the world, has planned to serve with a system which will assist in turning the process of loan distribution much easier and more approachable.
Comprehensive Detail of the Product
To overcome the limitation of country’s legal restrictions, Suretly team has plans on setting up a separate legal entity in each country (just like Russia, Kazakhstan and USA) which will support them in continuing their operations without any restrictions. Currently functioning to pass Starta Accelerator program in New York, Suretly team already holds the title of generation’s finalists (which is Europe’s largest accelerator) and have participated in LendIt in March 2017.
- The project is supported by Higher School of Economics in Russia.
- Thru interest from around the world and 275 investors’ participations, Suretly accomplished its presale campaign of 50741 preSUR tokens on 16th May 2017, which assisted them in raising ETH 1612, 21; BTC 65, 22; LTC 340, 73; Waves 1652, 36.
Unlike P2P lending, Suretly users are not the ones who will lend money. However, they do guarantee to repay to the lender in case a borrower fails to return. Basically, Suretly users work here as a collective mind deciding whether the loan should be approved or not. In the case of loan approval, the amount will be raised by the big pool of Surety users.
It won’t be wrong to mention that, Suretly is trying to connect the three (borrower, lender and Suretly user) by providing them benefits like
- decreased loan interest rate for the borrower
- expanding the loan portfolio with an increase in loan approval and eliminated default risk for the lender
- providing investment opportunity to the Suretly user
In simpler words, this system works exactly the way peer-to-peer lending works, other than the part that customers do not lend money directly.
Facts related to Funds and ICO
The initial exchange rate of 1SUR equivalent to 0.1ETH or equivalent in Bitcoin, lite-coin or waves.
The ICO is still in process (11.07.2017 — 11.08.2017) and team plans on raising somewhere between $1.5 – $10 million USD by selling 15% of its share. Suretly has introduced themselves in the market after being pretty sure of how they wish to distribute their tokens. As a point of fact, the company has decided to issue additional 10% to the option of the pool for rewarding current and future employees and a 2% bounty for the people who will assist them with the marketing, if campaign ends successfully.
Understanding How It Works
Suretly users can relax as it’s not just the borrower’s appearance they have to judge from, rather it’s their complete financial history which will assist in making a final decision. To be more precise, on the app borrowers are divided into seven different categories depending upon the level of trustworthiness their profiles represent. And while Suretly users will get a maximum commission (maximum limit is $1.5) if they vouch for the borrower with the higher risk factor, Suretly charges 3% commission on each approved loan, regardless of whether the loan is repaid by its main borrower or not.
The minimum and maximum volume of the collection have been suggested as $1,500,000 – $10,000,000 respectively, also the fund will be returned to investors in-case indicated amount is not achieved. As per white paper, funds will be stored by the third party (Escrow), nevertheless, facts related to who exactly this third party will be have not been mentioned.
As per few words from team members, “Our audience is made of gamblers, people who like high-risk investments,” Lobachev said. “Our most popular product is surety for a borrower involving average risk and average returns, and in second place is surety for the riskiest borrower with the highest return.”
Website – https://suretly.com/en
With Headquarters in New York, this privately held company of 2 to 10 employees was founded in Russia in the summer of 2016. And even though only the demo version of the product is available in U.S, the team is already grounded in New York, Moscow and Novosibirsk. Developed on high level, as per most experts, this project has surprisingly significant prospects for scaling.
Finding professional experience, especially on most common and relevant platforms is not that difficult. In simpler words, the team is not anonymous and is quite active on various social networks. Thence below facts exemplified about the team are based on the information provided on the official website and team LinkedIn profile. However, we can add to the list that, Suretly has focused more on key participants, with quite a little information about the team on the whitepaper.
Eugene Lobachev – (CEO, Founder) – engaged in promotion and developments of start-ups, ‘LOANS ONLINE SERVICE’ was the project Eugene was working on before Suretly. He completed his masters from Russian Academy Of Entrepreneurship in 2010.
Anna Paulova – CMO – with more than seven years of experience in the field of marketing and design, Anna Paulova holds no experience on this managerial position. However, we cannot miss the fact that she holds the past experience of working with SMM promotions and contextual advertising of the Yandex.ru.
Svetlana Eydelman – CFO – with MBA degree from the City University of New York, Svetlana embraces work experience with some of the well-known companies such as New York Stock Exchange and J.Streicher Capital, LLC. Experienced in finance, she deals with the expansion of Suretly in US market while developing financial plans and growth strategy.
Eugene Kovalev – Regional Director for Russia and CIS – graduated from Siberian State University of Telecommunications And Informatics, Eugene holds a strong understanding of Russian banking market with the support of his executive experience gained while working with one of the top banks in the industry. He is involved with online fin-tech activity related to online credits, scoring and micro finance technologies.
Konstantin Vishnivetsky – Lead Developer – with no approach to various social links, Konstantin holds the experience of 14 years in the field of developing software products using C++, Java, and SQL.
Vlad Zubarev – Business Development and Advising – obtained MS from the State University of Nizhni Novgorod, Vlad holds 15 years of experience in software development. Founder of XenZu technologies LLC Company, Vlad has past work experience with Cisco System in 2000 (in start-up phase).
We have no doubts that this project has been implemented with high quality, neither do we have any questions related to qualifications of the management and personnel. However, there is always the factor of risk which can frighten the potential investors. After all, this project has based borrower’s risk profile as the deciding factor of revenue for the guarantor. As a matter of fact, the guarantor plays the most important role in this whole system, and if there is no guarantor, there will be no money for the borrower. Also, if there is only one guarantor he’ll be 100% responsible for the non-repayment of the debt. Moreover, the guarantor only gets to send paid anonymous SMS in order to get fund repaid, as neither the option of filing a court complaint is provided (the company is still working on this feature) nor the borrower number (identity) is disclosed.
Our take on project
In spite of the risk we have mentioned above, it is assumed that the financial model of the project will increase 50% of the given loans with the aid of Suretly platform quarter by quarter. Moreover, while it is true that lending market is large, the part containing ‘people surety’ is yet not developed. Also, we must take into consideration that Suretly is not bound to any Blockchain architecture and neither the same works around the crypto community, which means the idea of using token might not look viable to many.