Investor Update July 2023
Hello All,
We are very excited to share the recent many wonderful things that have occurred since our last Stakeholder Update. Since our last update, LRE has made significant progress toward our goals and will begin another round of fundraising soon.
In this latest memo, we will share, among other things, the following important information:
1. How the company has accelerated brand strategy to maximize launch effectiveness;
2. A summary of LRE’s very important mission and the opportunities we see ahead;
3. Some of our latest big wins;
4. Updates on the progress being made in the areas of strategy, operations, and finance;
5. Some of the things we have learned;
6. Ways in which our stakeholders can support our shared mission;
7. Expressing gratitude for some of the amazing accomplishments of our team members;
8. Fundraising Launch & Investor Video;
9. An introduction to our Vice President of Investor Relations and Digital Marketing; and
10. An introduction to our newest team members.
Please note that we have many other amazing updates that we hope to share soon, and we are committed to providing more frequent updates in the future to our stakeholders. Thank you again for all of your support!
All our best,
LRE Team
RarityX ™
PREPARING FOR LAUNCH WITH A COMPELLING BRAND
An exciting update we can share is our efforts to accelerate brand identity, adoption, and continuity as we prepare for launch. While Liquid Rarity Exchange is an incredible and descriptive company name, our expert advisors, subject matter experts, and marketing team wanted to create continuity with an easy-to-spell, shortened version that instantly enhances recognition and identity.
We are beyond excited to introduce you to:
As surprising as this may be, a fully unified, transparent, patented, and regulated global rarities marketplace for fractional interests in valuable collectibles has not previously existed, let alone in the metaverse, until RarityX. RarityX is the first marketed and patented global rarity purchase and trading platform in the metaverse that seeks to offer most types of fractional interests in valuable and marketable blue-chip tangible and digital rarities. RarityX’s web3 framework is designed to democratize global access to tangible, intangible and digital rarities in a fun, immersive, interactive, educational, regulated, and gamified manner for collectors, rarity specialists, and retail and institutional investors and managers.
COMPANY BRIEF
Mission: Liquid Rarity Exchange, LLC (now RarityX) was founded in 2013 and pioneered the fractional trading and securitizing of high-value rarities, including physical assets by achieving the first patent in the space covering the fractionalization, trading and pooling of tangible rarities. In 2015, we moved into 3D digital rarities such as NFTs in virtual marketplaces, including the metaverse, before most even knew what these were. In 2016, we filed for and then later were awarded a patent on the display, trading and transacting of 3D digital rarities in a virtual marketplace such as the internet or metaverse. We were also awarded several safety and security patents that are designed to protect persons and property, including rarities. We also have several other patents under review by the US Patent and Trademark Office. RarityX’s comprehensive IP portfolio reinforces the mission and vision with 8 patents; legal, statutory, regulatory compliance, and SEC expertise; and a growing team of other experts and specialists.
At RarityX, our mission is to create the next Digital Renaissance™ by becoming the largest primary
issuer and secondary trading marketplace of fractional interests in rarities, both physical and digital.
Opportunity: RarityX is the first patented and proprietary platform that allows anyone, anywhere, to invest in fractional equity interests in high-value rarities through a trusted, SEC-regulated and FINRA compliant marketplace to sell, buy, display, curate, collaborate, and trade assets in compliance with applicable securities laws. The securities are also designed to be held in a securities brokerage account that will be SIPC insured, while the rarities themselves will also be insured. RarityX’s Digital Renaissance™ platform allows financial advisors, investment advisers, turn-key asset management platforms, investors, financial planners, broker-dealers, and individuals equal access to new, high-value rarity assets. RarityX also intends to be the ideal place for rarity owners to fractionalize a portion of the treasures, without them having to sell or part with their precious rarities.
RarityX is unlocking and democratizing the intrinsic value trapped in a previously exclusive, highly inaccessible, and opaque market by fractionalizing physical and digital rarity assets in a way that provides for increased accessibility, liquidity, and transparency. We believe that under the economic principles of supply and demand, if a rarity, that by definition is fixed in supply, is subjected to radically increasing demand through greater accessibility, liquidity, transparency and truthful promotion, the value and price of that rarity should increase dramatically over time. Our platform is designed to provide the opportunity to investors to enjoy this asset appreciation and liquidity in a powerful way.
Here is a link to our video – RarityX The Next Digital Renaissance
BIG WINS
I. Structuring Partnership with Global FinTech & Banking Conglomerate
We have outlined and are working to finalize a relationship with an incredible, fast-growing international banking conglomerate that operates in 188 countries to support the distribution of our offerings. This marketing powerhouse, at the time of the drafting of this update, has 26,584 bankers that will support the ongoing marketing, offerings and growth of RarityX.
II. Mineral Interests Update
We have multiple exciting and promising opportunities involving the monetization of our mineral interests on the horizon. With the price of oil expected to increase in the near term, it is a good time for us to be seeing and exploring these new developments. We plan to share more information regarding these opportunities in the near future.
III. RarityX Trademark, Brand Launch
As mentioned earlier, Liquid Rarity Exchange engaged competent advisors to support the publicized launch of the company. Our advisors highly recommended that we secure a tradename that is easily identifiable, recognizable, and brandable. After an extensive process of vetting and validating various
tradename potentials and brands, we locked in the clear market winner, RarityX. Please be sure to follow, subscribe to and like all of the social media channels we have established.
FORWARD MOVEMENT – PROGRESS UPDATE
The following provides our various areas of additional progress including strategic, operational and financial advances:
Strategic Updates
- RarityX has focused on the flywheel as we execute our GoToMarket Strategy. The company continues to align with state-of-the-art technology partners to deliver the first mixed-reality fractional-ownership platform.
- RarityX has engaged with the leading metaverse platform used by global brands, consultancies, and more. This technology will enable RarityX to accelerate the mixed-reality solution to deliver an entirely unique value proposition to the market.
- RarityX is scoping out and has been in ongoing discussions towards an integration with one of the largest art inventory management systems that would also provide an opportunity to securitize and fractionalize existing assets within the platform.
Operational Updates
- Our rebranding has been completed and we will begin multiple marketing initiatives. We have begun through strategic channels to test markets, messaging, personas, and campaigns.
- We have brought in Michael Bitler as our head of Investor Relations and Digital Marketing. We are so fortunate to work with Michael, who has extensive experience in marketing, leadership, business development, investing, and finance. We have included his bio below.
- RarityX also hired a graphic designer, Jose Chang, who has experience in fintech, metaverse, and NFTs.
- RarityX has brought in Flor Alotinto to lead our social media efforts.
- We have engaged leading advisors to help accelerate the vision and mission of RarityX. We are fortunate to work with the world’s best advisors including Joel Comm (NFT and Branding Expert) and Stuart Newton (Global Wine and Blockchain Consultant and Expert) who have been instrumental in preparing for our launch.
- RarityX has engaged Newcoast Media to support our CRM build and marketing funnels. We are also in the process of exploring the engagement of a multi-national digital agency as our agency of record.
Finance Updates
- We have initiated our next financing round.
- We have revised our PPM in support of the capital raise.
- RarityX is pulling together an equity investment to, among other things, accelerate post-commercialization product development, fully utilize our exclusive patents and intellectual property, and drive aggressive market entry. Please see our related video below.
DECISION MODEL – PERFORMANCE DRIVERS
As RarityX continues to accelerate, the organization is structuring for performance by aligning with organizations and opportunities that directly align with and support our key performance drivers:
1. Strategic, Influential, Vetted and Certified Specialists with Audiences
2. Investment Bank/Fund Structure with Securities Offerings
3. Blue-Chip Assets, Notable Collections, and Investment-Grade Assets
4. State-of-the-art, tech-enabled solutions that increase stakeholder value and democratize access for all
5. Scalable, duplicatable structures and models
LEARNINGS
- We spent several weeks engaging a rare-wine opportunity that was misaligned with our performance drivers, as mentioned above. After attempting to overcome the gaps in the relationship, we determined it did not align at this time with our strategy moving forward. After this experience, we vet every relationship to focus only on opportunities that align with our performance drivers.
ASKS
Please share with us your thoughts and comments by contacting Nathan Slafter at nslafter@liqrx.com or Michael Bitler at mbitler@liqrx.com.
- We are actively seeking partners that touch one or more elements within our performance drivers. For example, if you know of any blue-chip rarity owners that are interested in liquidating all or a portion of their rarity asset’s value through our platforms without selling the entire asset, we would be very interested in connecting with them.
- We are also looking for introductions to any investors or anyone else you think might be interested in transforming the $460B+ collectibles market while also participating in the expected trillion-dollar future market growth of the metaverse.
Creating the Digital Renaissance™ for creators and owners of high-value assets.
SINCEREST GRATITUDE
We are so grateful to all our incredible stakeholders. During the last two months, we have reoriented to drive strategic, operational, and financial excellence and appreciate all involved.
- Another shout out to Primoz Peterlin, our Marketing Director, who has been instrumental in the rebrand.
- Jose Chang, our new graphic designer, has been extra supportive as we prepare our social media communication, brand refresh, and content.
- Thank you, Michael Bitler, our head of Investor Relations, for delivering a unique structure that better incentivizes early stakeholders.
- Thank you, Jeff Smith, our CEO and Co-Founder who led the partnership with a global banking conglomerate, and who continues to initiate and progress multiple strategically valuable and critical relationships that will help us to more effectively and efficiently achieve our stated milestones!
FUNDRAISING
We have kicked off our fundraising process with a target closing date in September 2023.
Please let us know if you are interested in learning more.
About Michael Bitler, Vice President of Investor Relations & Digital Marketing
Michael Bitler is a seasoned entrepreneur with 37 years of experience in sales, marketing, operations, and finance, and 30 years in Sr. Management in the fields of Automotive, Financial Services, Healthcare, Beauty, and E-Commerce.
With over 25 years of experience in the digital sales and E-commerce space, he is widely known in the E-commerce community and is a frequent speaker at events and webinars. Utilizing a highly organized system of local and online staff, his model of repeatable, scalable procedures has enabled his highly trained staff to provide him with the ability to be the visionary and creative force in his businesses, resulting in multiple 7 figure startups.
Mr. Bitler earned a B.S. in Economics from Bowling Green State University in 1985, and received his MBA from National University cum laude with specialization in E-Commerce and Economics in 2009. He has previously held a Series 6, 63, 65, and 7.
He moved his family to Puerto Rico in 2016, where he runs his management consulting company. Specialties: Small and Mid-Sized business Management consulting specializing in Sales and Marketing, E-Business, Finance, Operations, and Internet Digital Marketing.
About Adam Istvan, Advisor
Adam is a proven change leader in both global organizations and startups with large-scale impact. Adam has an MBA, Design for Six Sigma (DFSS) and is a Certified Scrum Master. He has led Web3 initiatives for EY, Deloitte, State Farm, P&G, Intel, Chicago Cubs, Sephora, iHeart & others; taking them from Web2 to Web3 in a way that aligns with their existing business strategy, ultimately providing a fun, engaging and viral user experience.
In the case of State Farm, he was able to help them get 1.3 million digital footballs picked up in just 4 days and getting over 50,000 users on the platform – 60% of users came from someone sharing it with them. Web3 can revolutionize the brand to consumer/fan experience that delivers a true value exchange for every party involved.
AREAS OF EXPERTISE.
Adam has a unique background in both enterprise-grade Web3 solutions, as well as more traditional NFT projects. He has worked with some of the biggest brands in the world, helping them build Metaverse experiences, always-on virtual offices, custom digital wallets and NFTs with engagement and gamification elements.
About Stuart Newton, Advisor
Stuart is a Silicon Valley veteran and with an expertise in helping clients and employers increase revenue in a shorter period of time. He has an outstanding track record of success. He recently retired from Deloitte, where he led business development nationally for the Blockchain and Digital Asset Practice as well as globally for the Wine Practice. Additionally, he was the Relationship Leader for certain Private Select key accounts including Gallo and impossible Foods as well as the Portfolio Success Leader for select numerous private equity firms and their portfolio companies.
A consummate networker, his favorite thing to give is a referral. His connections within Blockchain, wine and influencer networks are vast. He has relationships with C-Level executives, category experts, thought leaders, service providers and hundreds within the Deloitte ecosystem.
He is skilled at setting and achieving goals averaging 266% of his annual target over his 12-year career. Through prospecting, presenting, closing and leading pursuits, he accounted for more more than $300M in revenue to the firm.
Stuart loves to share what he learns with others and created the Four Weeks for Success sales training program. He personally trained over 700 people at Deloitte to build their skills and confidence to develop relationships in the marketplace. The program has been expanded nationally.
Personally, he is energized by supporting the success of others and working on social impact projects. He co-founded MoveMe Studios, which creates inspiring media that compels action. He is leveraging his business acumen to support profitable social impact. He is the visionary behind Abundant Village
in South Africa and Zimbabwe. Addressing the biggest challenges in a region, Abundant Village provides water, food and energy security, education, childcare, wellness care and career opportunities. He and his team are scaling the model to help hundreds of villages and communities around the world.
Stuart is a mentor to more than a dozen businesses and social impact leaders. His blend of strategy and execution allows those he works with to scale their models and achieve their revenue targets. His vast network allows him to provide referrals to potential customer, vendors, service providers
and others who can support the continued success of their ventures. He and his wife of 30-years live in San Juan, Puerto Rico, an adventure they started in 2022. Other than being a great dad, being a great husband is his favorite way to spend time.
About Joel Comm, Advisor
Joel has been building online businesses since 1995. His first website was amongst the first 18000 sites in the world, and his efforts have brought experience in creating and selling websites, licensing content, affiliate marketing, Internet marketing, blogging, podcasting, online video creation, social media marketing, joint ventures, mobile app creation and marketing, authoring books, public speaking, conducting live training events and more.
Joel hosted and produced the world’s first competitive Internet reality show, The Next Internet Millionaire. He also created a #1 best-selling iPhone application which became one of the most talked about novelty iPhone apps of all time.
Joel is a New York Times best-selling author of 15 books, including The AdSense Code, The Fun Formula, KaChing: How to Run an Online Business that Pays and Pays and Twitter Power 3.0. He is a contributor to Forbes, Inc, GritDaily, Entrepreneur and the Social Media Examiner, and his work has appeared in The New York Times, on Jon Stewart’s The Daily Show, CNN, MSNBC and Fox News.
In July 2017, Joel and Martech leader Travis Wright went down the rabbit hole of blockchain technology. They took their excitement and channeled it into the creation of The Bad Crypto Podcast. The show, heard in 180 countries around in the world, is one of the top crypto-related shows in the world. With over 10 million downloads to date, the show provides an informative and entertaining take on the Blockchain revolution that is changing the world. The pair has also pioneered NFTs, having minted over 1.5 million NFTs of original intellectual property. Joel is an advisor for numerous top blockchain projects and is a co-founder on Sylvester Stallone’s