The valuation is the true amount they are raising. They are saying "if you give us $3 million, we will give you 1/5 of the company. This means that what we have contributed so far is worth $12 million." In other words, they are really saying that they are raising $15 million, but that they are personally contributing something worth 12 of it, leaving 3 more for the public.

The Bank will provide the infrastructure, while we provide all the customer service AML/KYC/SAR online Banking Platform, Debit Cards. The company will be regulated locally.
We have put in place the assets required for the company to become fully operational at more than $10 million in assets required for an International Bank.The $3 Million dollar will cover about $1.5 Million in 1st year operational cost, Office, Banking Platform, 24 Hours Customer service, tech support, accountants and a many Compliance agents, about 30 full time employees. The other $1.5 Million will provide liquidity at several Banks around the world where it will allow our customers a faster way to deposit and withdraw funds from their accounts. So if you are in the U.S you will be able to use ACH or SEPA in Europe, saving cost on International Wire Transfer. You will send funds to our Bank account with those Banks and we will be able to credit you immediately on your account with our Bank locally. Saving Time and Cost.

I guess I'm not following because I believe you said that you are not registering as an International Bank in Panama, yet you have placed 10 million in assets to become an operational bank? Are you saying that the bank referenced in the post above is an existing institution owned by you?

Anyway, forgive my frankness, but I think you should provide significantly more detail about your plans, partners, and finances. This is all a bit vague, and while I certainly see a need for this kind of service, your business is much more complicated than the typical mining IPO, and therefore requires more thorough disclosure.

I'll leave that to you and any other potential investors to hash out. Best of luck.

Ask any real investor. Ideas are a dime a dozen. An idea has absolutely 0 value until it has shown it is viable in the real world. People come up with excellent ideas all the time that fail due to lack of knowledge and/or execution issues. Therefore, they are saying that the equity (at this point nothing at all) is worth $12 mil. They are bringing nothing to the table right now but an idea. Thus they are saying that they are effectively raising 15 million. Were they to have documentation showing $12 million in true assets this would be different, in that they would still be "raising" 15 million but THEY would be fronting the first 12 of it prior to going public (leaving 3 million left for investors). This simply isn't the case.

Far too many people on these forums are investing in crap without any knowledge of how anything works other than saying "OMG I CAN THROW IN MONEY AND I MAY MAKE MORE" and then they get pissed off when they lose money as a result. It's a little disheartening, to say the least.

And there lies the difference. One is a real company with tangible assets. Thus their contribution is worth $10 million. In essence they are "raising" $15 million but are contributing 2/3 of that on their own with existing resources. The investors are asked to contribute the other 1/3.

I guess it really depends on how you look at it. The best way is to view it is (Company Value = Company's Investment, Investor's Amount = Investment, CI + I = Company Valuation = Total Raised).

Seems overvalued at $15m as a startup. Unless some oversight over market research, company valuation reasoning, budget and other operational details are shared I can't see it's even worth half of current claimed value.

Sounds like he means they have determined the amount that would be required of an international bank.

Not that they are becoming one, just a comparison. They will be transferring money similarly to a bank,
but without investing their account holders' money.

Good idea + powerpoints = $12 M.

You said:
"The Bank will provide the infrastructure, while we provide all the customer service AML/KYC/SAR online Banking Platform, Debit Cards. The company will be regulated locally.
We have put in place the assets required for the company to become fully operational at more than $10 million in assets required for an International Bank.The $3 Million dollar will cover about $1.5 Million in 1st year operational cost, Office, Banking Platform, 24 Hours Customer service, tech support, accountants and a many Compliance agents, about 30 full time employees. The other $1.5 Million will provide liquidity at several Banks around the world where it will allow our customers a faster way to deposit and withdraw funds from their accounts. So if you are in the U.S you will be able to use ACH or SEPA in Europe, saving cost on International Wire Transfer. You will send funds to our Bank account with those Banks and we will be able to credit you immediately on your account with our Bank locally. Saving Time and Cost.
"



Am not in the banking business, but I got through college, so maybe there is something I am missing. You also said you are not loaning out money to make money, as most banks do. So, from my understanding of what you wrote, this "bank" is not really a bank, but a financial exchange services which will affiliate itself with an existing bank. It sounds like you are going to find some way to offer international credit cards, ACH->SEPA, SEPA->ACH exchanges, and other services banks provide. 

Guess I will read your Havelock prospectus now. If ANYONE can get a credit up and running that is back by a deposit of bitcoin, but is recognized by the existing Credit Card network, they could have something interesting. If anyone figured out a way to easily transfer money between SEPA and ACH, they could have something I would be interested in.

The problem is bitcoin financial institutions tend to be incestuous. They loan for bitcoin businesses which are primarily either mining or ASIC manufacturing. Until a bitcoin based bank finds a way to make loans for real world, non bitcoin projects, it will go nowhere.

Most of the immediate questions I had after reading the Prospectus were already posed in this thread (though not answered in detail of course), except one.

@Crypto Financial - What's your name and background?

It's a fairly simple question, and realistically it's one I shouldn't have to ask given you're looking to build an international financial services company. I'd expect someone serious about this venture to be completely wholehearted, upfront, and honest with any questions, comments, or concerns about their idea. What you're looking to build requires a team of experienced people, not to mention a lot of time and effort.

Other than that, I do like the concept...but this plan is holier than Swiss cheese...or a colander...or something else that has a lot of holes in it. I'll probably write up something brief addressing a few questions I have, but I'll try to keep it to one question at a time so I can tell which ones you answer and which ones you avoid. There were a number of good questions already posed so far, but all I've seen are copy-paste responses from your Prospectus, or just avoidance altogether.