SteamPawn - Investor Proposal
SteamPawn is planning to launch in the upcoming months, but we’ll need a sizable war-chest of funds to loan out to customers. We’re raising these funds from investors and can give you a sizable return on your investment.
We’re planning on issuing our first bond. The funds received from investors will be loaned out to SteamPawn clients and 75% of profits will be returned to bond-holders. The remaining 25% of profits will be allocated to Steam Pawn for purposes such as share buyback, operating costs, marketing, and development.
When we need more operating capital to make more loans, we’ll put up another bond for sale and buy back the shares of the first bond in order to not dilute dividends.
Users who wish to receive a loan will first log into the site through Steam OAUTH in order to get statistics about their account for fraud prevention and inventory purposes. The user can then select which items they wish to pawn.
We will price inventory items by determining the average value across several trading markets and offer users 40% of the resale value of their inventory. If any items are practically worthless, we won’t accept it in pawn but we will let them gift it to us in exchange for more favorable loan conditions or to extend the repayment deadline.
Without gifted items or adjustments due to risk factors, the loan terms are expected to be 30 days at 18.95% interest.
Users can also attach social media profiles and perform additional verification tasks to lower their interest rate.
Users can also perform marketing activities such as tweeting about the site or sharing it on Facebook in order to receive extended loan deadlines.
Users who do not pay back their loan in time forfeit their inventory items. We intend to hold the items for a few more days to let the user buy the items back for an additional cost, but within a week we’ll sell the items on various trading markets.
Eventually we intend to have our own public marketplace where users can purchase games and items for a discounted, but still profitable price.
Exact profit margins are difficult to calculate without knowing the percentage of borrowers that will pay back the loan or choose to let their inventory go.
There are other risk factors, such as the fluctuation in the price of Bitcoin as well as the fluctuating prices of games and items. While we are planning for countering potential fraud, there is always the risk of users selling games purchased with illicit funds that get removed from inventory or users filing false reports of invalid trades.
Despite the risk factors and unknowns, we believe that we will average a monthly return of at-least 20% to our investors.
Of course, the standard disclaimers apply. An investor may get back less than the amount invested. Information on expected performance, where given, is not necessarily a guide to future performance. The investments and services offered by us may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from an independent financial adviser.
We are building an investment platform to enable this process. You will be able to purchase shares in the IPO. Once the IPO is closed, you’ll start receiving dividends on a regular basis. You will also have the ability to sell your shares back to SteamPawn or to other current investors if you choose to.
Please sign up for our newsletter on our main webpage to be informed when we’re ready.