October 8–31, 2021

Your chance to shape the future of Aufort

10% of the company on offer
Invested
110 900 €
of 500 000 €
Invest now
Minimum investment per investor
1000 €
Commited investors
37
Lead investors
Gerd Kanter, Asse Sauga, Reimo Metsküll

Introduction

Aufort is an Estonian company with almost 8 years’ experience in selling investment gold and silver in Estonia. With the goal of expanding globally, Aufort is developing the most transparent and easy-to-use platform, which allows gold to be used in several different ways. Aufort's vision is to become the next generation gold bank.

In November 2020, Aufort managed to close its first seed round through private crowdfunding round, in which 61 investors invested €200,000 in the company. With this money injection, the Aufort team manage to finalize the platform and unique digital gold (AufortGold) product solution development, which was launched in June this year (2021). Since then, the customer base has grown by more than 60%, the average monthly turnover has increased about 300% and the average monthly transactions volume as increased around 400%.

BloombergYahoo FinanceMarket WatchAripaevPostimeesTv 3

Aufort has had quite a solid media coverage in recent months.

Problem

In the last few years, more money (currency, i.e. dollar, euro, etc.) has been printed in the world than in all previous history together. The massive inflow of money leads to (hyper) inflation, which leads to significant increases in the prices of most products and services. A large number of people (both in Estonia and in other European countries) have a record number of savings in bank accounts. Due to the massive money printing and inflation, the value of savings (purchasing power), decreases significantly. Many people have thought about investing their savings to protect themselves from the devastating effects of inflation, but unfortunately many have not started investing because in many cases it is not easy and to start doing it.

Precious metals (investment gold and silver) have historically been one of the easiest and safest ways to invest ones savings. However, buying and owning physical investment gold bars can be expensive and troublesome. When buying gold bars and coins, in addition to the world market price and service fee, you also have to pay for the production and shipping. In addition, the production and shipping of gold bars is not an environmentally friendly process. Physical gold bars need to be stored, which can involve both additional costs and security risks.

Solution

Aufort has developed a unique digital product solution, AufortGold: physical investment gold in a digital form that is working on easy-to-use e-shop platform. Aufort allows you to invest in physical gold in digital form cheaper, securely, and more conveniently without leaving home.

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Product / service description

Aufort offers a unique solution AufortGold: a physical investment gold in digital form that is built on a transparent distributed ledger technology and easy-to-use webshop platform. Technically, it is a gold-backed cryptocurrency that can be bought, sold and redeemed as a physical gold bar through a convenient webshop format. Investing in gold with Aufort takes only a few minutes - and it can be done by anyone, even by a grandma. It is possible to invest gold without leaving home from half a gram, approximately €26.

AufortGold can be redeemed at any time as a physical gold bar (already from 1 gram) or resold at the current world market price of gold. According to the terms of use, the gold in the customer's account is owned by the customer, which Aufort deposits in a high-security audited vault on behalf of the customer in Austria. The payment options include a convenient and fast bank link (currently available in 20 European countries), regular SEPA bank transfer, and cryptocurrency (BTC, ETH, LTC, BCH, DASH, and USDT will be added soon).

BitcoinEthereumLitecoinBitcoin CashDashTether

In cooperation with world-renowned gold refiners, Aufort ensures the protection of customers' gold against all risks (except force majeure). In addition, Aufort insures the service offered to mitigate additional risks. The storage fee for gold is 0.002% per day of the world market price of gold and this cost is borne by Aufort - storage is free for the customer. The vaults are audited by a third party (SPS Steuerberatungsges.m.b.H.), and the results are published twice a year on Aufort's website. The latest audit can be found here.

Technologically, AufortGold exists in the Obyte decentralized database, which provides additional transparency and security for both the customer and Aufort.

The technology used gives the customer an opportunity to check how much AufortGold is in his account and also how much gold is in the customer's accounts altogether. Comparing this with the results of the audit, customers can be sure that the gold is physically present in the vault. For Aufort, trustworthiness is the most important aspect.

In addition to the buying and selling of gold, Aufort plans to give gold several more real uses: for example, the opportunity to earn interest on your gold deposit, send gold between users or pay for products / services in gold.

Business model

Aufort is an online platform that offers solutions directly to end-users (B2C) and businesses (B2B). Customers can use Aufort's products and services directly on the Aufort website. An affiliate program has also been developed, in the framework of which it is planned to start cooperating with several larger online companies, through which customers will use the Aufort platform. Learn more about the partnership program here. In addition, Aufort plans to start working with various cryptocurrency trading platforms (e.g. Coinbase, Kraken, Binance), through which an even larger number of advanced customers will be reached.

Aufort is an online platform, the main source of income is the service fee from the purchase, sale and withdrawal of precious metals. The service fee of Aufort is 2% of the world market price of gold or min €2 per product. The projected additional income streams will come from gold transfer / payment service fees and account management fees.

The Aufort platform is mainly intended for business-to-customer (B2C) and business-to-business- to-customer (B2B2C). For that we use affiliate program, by which we reache new customers through various high traffic web pages and social media influencers. You can read more about the partnership program here.

In addition, Aufort plans to cooperate with various digital asset trading platforms (for example cryptocurrency trading platforms such as Change) and classic financial institutions (for example banks) to reach even more knowledgeable customers.

Timing

At the end of 2019, Deutsche Bank Research published an interesting report for the next decade (Konzept, Imagine 2030), which read as follows:

"...if current trends continue, there could be 200 million blockchain wallet users in 2030."
"...demand for alternative currencies, from gold to crypto, could soar."

Recently, there has been a great deal of uncertainty about the future of the world economy. Over the last few years, countries have printed and issued more currency than has been the case in all of previous history. In addition, the recent global outbreak of COVID-19 is contributing to the situation. Historically, uncertain times have brought people back to gold, which has been a secure financial instrument for centuries.

Demand for gold, and in particular for digital gold, is increasing significantly. In 2003, the overall demand for investment gold was 470 tonnes, of which 400 tonnes was for physical bar and coins and 70 tonnes for digital gold (ETF). In 2010, the general demand for investment gold was 1,700 tonnes, of which the demand for physical bars and coins was 1,300 tonnes and for digital gold 400 tonnes. In 2020, the overall demand for investment gold was 1,800 tonnes, of which 900 tonnes was for physical bars and coins and 900 tonnes for digital gold. If you are interested, you can find more statistics here.

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Market

The global gold market cap is around 10 trillion euros, of which investment gold is around 5 trillion. AufortGold is an internationally scalable product solution that can already be offered across Europe. Technically, it can be offered in all countries around the world, but depending on the legal restrictions on different continents, Aufort's primary focus is currently on the Member States of the European Union. The first two interesting markets are Finland and Germany. In the long run, we also see big potential in Africa (Nigeria), for many good reasons.

Finland and Germany are also extremely gold-minded countries with a high standard of living. In Germany, for example, every second adult owns investment gold. Africa is home to one of the world's largest gold mines, and Africans are generally very gold-minded people. There are many people in Africa who do not have a bank account but have a smartphone, so digital money is important and useful for them. Many African countries have high inflation rates, therefore many people seek protection against the inflation.

Competition

There are several digital gold service providers on the market, but none of them offers it through an easy-to-use e-store platform. Should a customer wish to redeem their gold as a physical bar, in most cases this option is either not available or the minimus or fees are very high for the average person and the retail investor.

The largest and well-known digital gold service providers built on a distributed ledger technology (blockchain) are Tether Gold (USA), PAX Gold (USA), Perth Mint Gold Token (Australia), Meld Gold (Australia) and DigixGlobal (Singapore). The largest digital gold companies built on the usual so-called old-school excel-based database are Goldmoney (USA) and BullionVault (USA) and GoldSilver (USA), the market leader in physical investment gold.

Newest, DAG
by Obyte*
Technology
Quick and easy,
takes just
a few minutes
Account registration and purchase
2 EUR
Min service fee
0
Storage / administration fee
1 g
Withdrawing the physical
gold plate
Europe
Main market
New, blockchain
by Ethereum
Technology
Through exchange, complicated and time consuming**
Account registration and purchase
150 USD
Min service fee
0
Storage / administration fee
13,37 kg
Withdrawing the physical
gold plate
USA
Main market
New, blockchain
by Ethereum
Technology
Through exchange, complicated and time consuming**
Account registration and purchase
0,02 PAXG ~ 40 USD
Min service fee
0
Storage / administration fee
13,37 kg
Withdrawing the physical
gold plate
USA
Main market
New, blockchain
by Ethereum
Technology
Through exchange, complicated and time consuming**
Account registration and purchase
0.13 %
Min service fee
0.13 %
Storage / administration fee
100 g
Withdrawing the physical
gold plate
Singapore
Main market
New, blockchain
by Ethereum
Technology
Through exchange, complicated and time consuming**
Account registration and purchase
0
Min service fee
0
Storage / administration fee
31,1 g
Withdrawing the physical
gold plate
Australia
Main market
New, blockchain
by Algorand
Technology
Through exchange, complicated and time consuming**
Account registration and purchase
N/A
Min service fee
N/A
Storage / administration fee
31,1 g
Withdrawing the physical
gold plate
Australia
Main market

* DAG (directed acyclic graph) is a newer type of distributed ledger technology, which solves a number of blockchain scalability issues such as environmental friendliness (energy use), transaction speed and network fees.
** Normally 1-2 business days for a new user's first transaction.

Achievements

Almost 8 years of experience in selling physical investment gold and silver in Estonia

In total, sold more than 138,000 grams of gold and silver

1700+ customers

Tehnopol startup incubator program 2020-2021

Turnover in 2021 from January until now (October) approx. €300,000

Operating licenses: purchase and wholesale of precious metals and stones (FVV000117) and virtual currency related services (FVT000038)

Cooperation agreements with internationally recognized precious metal wholesalers and refiners

Launch of new digital product AufortGold in June 2021

Team

Bert-Ken Raudberg
Founder and CEO
LinkedIn ›
Erik Karu
Co-founder and Head of Affiliates
LinkedIn ›
Rene Sildvee
CMO
LinkedIn ›
Julia Mozberg
CTO
LinkedIn ›

Advisors

Kadri Tammai
CEO of Tehnopol Startup Incubator
LinkedIn ›
Asse Sauga
Entrepreneur
LinkedIn ›
Reimo Metsküll
Entrepreneur
Website ›
Hardik Khatri
Hardik Khatri
Entrepreneur
LinkedIn ›

Aufort has already been trusted by 65 angel investors, among others:

EstbanChangeTehnopol

The use of money and timeline

The aim of the second capital raising round is to raise up to €500,000, which will be directed mainly to sales and marketing activities, in addition to team expansion and further product development.

Sales and marketing: 55%
Team: 30%
Product development: 15%

In the last quarter of the year, we plan to launch digital silver product solution AufortSilver and take the first steps to expand into the Finnish and German markets. In 2022 and 2023, Aufort is planning additional funding rounds for a large-scale expansion.

Estimated turnover
2021 – 500,000 euros
2022 – 20 million euros
2023 – 200 million euros

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Goals, profit and exit

Aufort's vision is to become the next generation gold bank. This ambitious plan requires both capital and a strong team to further develop the platform and product / service and to expand actively in foreign markets. The first successful capital raising round took place in November 2020, when Aufort was trusted by 61 angel investors who invested €200,000 in the company. This round of funding is the second and we are planning the third in 2022. Each funding round significantly increases the value of the company. Aufort does not plan to distribute profits over the next few years - all revenues will be reinvested in active expansion and growth, which will increase the value of the company significantly. Aufort also plans to allow public trading of the shares in 2022, for example on Ignium or Funderbeam platform. This will give the opportunity to the investors in the first two rounds to sell their shares.

The (pre-money) valuation of the company in the second funding round is 5 million euros and after the financing round (post-money) the valuation of the company is approximately 5.5 million euros. Planned third funding round valuation is min. 10 million euros. Example: if everything goes according to plan, then when investing €1,000, the expected value of the investment after the third funding round is €2,000. Please be sure to read the risk warning below as well.

A longer-term exit plan is to sell Aufort to a larger financial institution that wants to integrate Aufort with its existing systems.

Investment conditions

The aim of the second funding round is to raise up to €500,000, for which 10% of the company (in SMI Group OÜ) is offered. The investment is made through SPV (special purpose vehicle), Aufort Invest II OÜ, which acquires an ownership in SMI Group OÜ. The SPV is a special legal entity set up for a specific activity, which aggregates investments through converted bonds into share capital. The investor acquires the bonds issued by the SPV, which can be converted into share capital at any time by the decision of majority of investors. The sole purpose of the SPV is to acquire a stake in the company involving the investment SMI Group OÜ, the SPV has no other business activities or objectives.

The contract is put together by the well-known and reliable Estonian law firm RASK. The investment platform is Ignium, which is leaded by Sorainen's partner Reimo Hammerberg, who has almost 20 years of experience in the legal industry. The minimum investment per investor is €1,000, which means that only up to 500 investors can participate in the second round. It is possible to invest until 31.10.2021 or until the maximum target of €500,000 is reached.

In this funding round is meant for Aufort's clients, cooperation partners, first round investors, selected VCs and people who have received a personal invitation.

There are three leading investors in the second round of financing
Gerd Kanter

Olympic gold medal winner, certified leadership coach, motivation trainer and coach. Gerd has been 18 years as a top athlete that has brought him 11 medals, including both the 2008 Olympic gold medal and the 2007 world champion title. After retiring from being a professional athlete, Gerd has been the coach of the Polish national team. Gerd has also made some successful investments in the field of real estate.

Reimo Metsküll

Reimo has long-term experience in residential and commercial real estate development since 1999. He is the head and one of the founders of the real estate development group Retori Estate. Reimo has been accompanied by a sport throughout his life - he has become the champion of the “Tallinn Leader” team in the Estonian Volleyball Championship. Reimo also participated as one of the biggest investors in the first funding round.

Asse Sauga

Asse is Estonia's leading blockchain expert, entrepreneur, author, trainer and consultant. Asse has more than 15 years of experience in IT, blockchain technology and psychology. In addition to several other exciting challenges, Asse has been the head of IT development at the Estonian Ministry of Finance, a blockchain banking expert at LHV Bank and the founder of the Estonian Cryptocurrency Association. Asse was also the lead investor in the first funding round.

The SPV created for current investment is "Aufort Invest II OÜ", registry code 16322970, address Viru väljak 2, Tallinn 10111. The members of the management board of which are investors' representatives Asse Sauga, Reimo Metsküll and Gerd Kanter and Aufort's representative Bert-Ken Raudberg.

Additional bonus for investors

For every €1,000 invested, Aufort gives the investor 1 gram of AufortGold as a bonus. At the current world market price of gold, this makes the investment a so-called discount of approx. 5%.

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Risks and their mitigation

Please read the general risk warning below

The purpose of the risk warning is to draw attention to the potential risks associated with investing. We recommend that a novice investor seek the advice of an investment advisor or a specialist.

It is advisable to hedge the risks associated with investing by investing only a part of your available funds and balancing it with safer and more liquid investments.

Liquidity means how easily shares of a company can be sold after purchase. It may not be easy to sell parts of a start-up or active business. In addition, it is not known whether or when the company's shares are listed on a regulated market (primary or secondary market), such as Funderbeam or the Tallinn Stock Exchange. It is not possible to earn a regular return on investment (dividends) by investing in an unlisted private limited company (i.e. with a capital investment).

Dividends are payments that a company makes to its shareholders to distribute the company's profits. Companies are not obliged to pay dividends to their shareholders, as this is decided at the shareholders' meeting and a majority of shareholders is required to make such a decision. Start-ups or young companies rarely pay dividends to their investors in the early years, as most of the capital is reinvested in expansion.

The materials published as part of the campaign may not be comprehensive and may not reflect all the risks associated with the company's operations. If desired, it is also possible to read the company's documents in more detail before investing.

Many start-ups or small businesses are not successful or do not develop as planned and therefore investing in these companies can involve significant risks. The possibility of losing part or, in extreme cases, your entire investment, must be taken into account.

Event

Introductory event for investors

If you feel that you want to be a part of Aufort's success story, but still want to think about it, get more information or meet the company's founders and team. The event will be held in Estonian.

October 14, 2021
18:00-20:00
Online
Registration until October 13, 2021
Pre-registration is required
Register now
For any questions, contact us investor@aufort.gold

Aufort × Ignium

Aufort, a fast-growing and innovative company, collaborates with Ignium — a platform that allows companies to raise capital from customers without intermediaries.

More about Ignium ›
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Company name
SMI Group OÜ
Registration code
12517949
KMKR
EE101657307
Address
Viru väljak 2, Tallinn 10111, Estonia
Telephone number
+372 56902890
Email
info@aufort.gold
Aufort © 2014–2021. All rights reserved.