Analysis of ICO LevelNet
ICO dates: 25.05.2018 - 15.06.2018.
LevelNet is decentralized cyber-security solution based on continuous analysis of data reported from end-users and local antivirus programs which are analyzing by central server. This model has many advantages to traditional system of centralized updates to local user databases:
- More operative answer to threats
- Most flexible system for uploading suspicious content for analyze
- Group usage of information security programs for upraising network security level
- Verification of new published software
- Checking the reputation of files and other objects.
Working prototype of system is available on website. Alpha version will be presented at Q3 2018, final release – in Q2 2019
Tokens issued during the ICO would be used for access to LevelNet system and all its products.
Soft cap is USD 1,5 million, hard cap – USD 12 million.
Business model is based on Software as Subscription principle with free subscription for attracting users up to 2 years before reaching number of users 1 million, and shareware subscription after this with theseestimations:
- 69% free users
- 29% with USD 0,99 per month subscription
- 5% with USD 9,99 per month subscription
- 1% of corporate users with USD 99,99 per month subscription
Business model in WP have detailed calculations of future cash flows and forecasted income, expenses and net profit.
Also WP contains detailed information about business structure of this enterprise. From the weak sides, we can mark very optimistic forecast of sales – 40 million users in Q4 2019? Really?
Marketing strategy based on promotional free subscriptions before reaching 1 million of users and using shareware subscriptions after reaching this volume.
Team is well-presented on website with supporting profiles not only in LinkedIn but in startup community angel.co. All profiles look realistic. Team is well balanced and have relevant experience in cyber-security (including names like Mcafee, Kaspersky Lab etc) and in start-ups development.
The Vision of the Market
WP contains a brief review of cyber-security market volume and compared existing software’s ability to recognize threats based on 2015 data. Also, there is a comparing of subscribe prices of existing software versus LevelNet. There is no word about free antivirus solutions like AVIRA Free (only AVIRA Pro).
Understanding of the Target Audience
Target audience of the product potentially is all community of computer users – corporate and private. Because the subscription will be sold not only on crypto price – this is not product oriented on crypto community only (like many others).
Competitive advantages of analyzed product are:
- Decentralized network principle that can improve speed and quality of reaction on the new threats
- Reputation system for software suppliers and files and other objects
- Price of subscription which proposed 10 times less than existing products.
Project strong sides: innovative idea, deep understanding cyber-security issues, brilliant team, deeply analyzed financial model, existing prototype.
Project weak sides: very optimistic sales plans in financial model.
So our position is positive.