AM Capital - Results 2022

we started the year with black and white prints of companies, and ended with a platform that is as technologically advanced as fintech products such as Otkritie Bank and Red Collar

#VENTURE

#INVEST

#ВЕНЧУР

It was a tough year for the financial markets - and it was the year we decided to launch a company and a multifunctional investment platform called AM Capital. It was a conscious decision to start in the hardest of times, when everything was falling. Those who grow in comfortable conditions usually don't survive crises, so we needed to be hardened from the start. And we already have something to share - we started the year with black and white prints of companies, and ended with a platform that is as technologically advanced as fintech products like Otkritie Bank and Red Collar (website redesign for VTB Factoring). And now we will tell you about the main milestones we have passed.

AM Capital is originally an international investment company, which is engaged in analyzing and searching for projects at the venture and Pre-IPO stage and investing in them. We have long since moved beyond venture capital, but for now let's go over the successes and failures of our core business.
Why venture and why now?
We analyzed the state of the venture capital market and found that:
- The global venture capital market reached $211.3 billion in 2021 and is expected to reach $584.4 billion by 2027, showing an average annual growth rate of 20.1% during 2022-2027. Even with the bear market and downturn in activity, 2022 will be the second highest investment year in history for venture capital;
- Venture Capital has an average return of 30.54% per annum over the past three years, 25.7% per annum over five years, 19.28% per annum over 10 years, and 28.11% per annum over a 25-year period. Over the same periods, the S&P500 index shows much more modest returns of 10.17% and 9.6%, respectively;
- Venture capitalists now have everything they need to enter on time: lower valuations, better business models, more committed entrepreneurs, the potential for closer relationships with founders and their teams, and more convenient platforms to invest in.
Top Highlights from companies in our portfolio:
Abnormal's success: Over the summer, Abnormal Security posted ~500% growth in its transition from Round B to C, which came as a surprise to many investors due to lack of information and market conditions. Details on further strategy are available to customers who bought lots.
Revaluation of Animoca Brands and OpenSea: Not all companies for 2022 retained their previous valuations - cryptocurrency-related ones were particularly affected. Animoca Brands and OpenSea's capitalization has fallen - and the companies' pre-IPO stock price has fallen with it. We continue to look positively at these companies because we believe in their future-they will show their worth when the bear market is over. Details in the form of separate presentations on these companies are available to clients who bought lots.
Поглощение Gorillas: В октябре мы начали получать первую информацию о финансовых проблемах Gorillas и скором их поглощении. События не заставили себя ждать – в ноябре мы узнали о поглощении Gorillas со стороны Getir. Хорошая новость заключается в том, что держатели pre-IPO акций Gorillas получат долю в Getir (12%).
Gorillas Takeover: In October, we began to receive the first information about Gorillas' financial problems and their imminent takeover. Events were not long in coming - in November we learned about the Gorillas takeover by Getir. The good news is that pre-IPO holders of Gorillas shares will get a stake in Getir (12%).
Yalla! Market is the jewel of our collection
An ultra-fast delivery service in Dubai that exceeds all expectations. Not only have they established themselves as leaders in the local market, the project team, led by Leonid, is going further and creating an aggregator and a full-fledged multifunctional e-commerce platform called Yalla!Hub. It didn't take long for success to take hold:
- Prepared the infrastructure for launch in Saudi Arabia, Oman and Qatar;
- Achieved a reduction in the cost of customer engagement to almost zero, with an emphasis on aggregate marketing;
- Already brought many Russian brands to Dubai and launched VkusVill on the 20th;
Most importantly for you and for us: the Yalla!Market team has developed a new funding and IPO model. If all assumptions hold true, there is only $5 million left to raise before the round closes. After that, the valuation is doubled, and the new round continues to raise $1-2 million each so that investors have liquidity. By the end of the year, the investment lot went up $2,000 and our clients made money, and there will be a new round in February 2023 and the lot price will increase to $20,000.

We decided to launch this direction practically from the start - it is the most highly profitable with the lowest entry threshold and extremely promising.
We created our own Launchpad in order to conduct ICOs and IDOs, giving our clients access to buy tokens before they go public. Despite the difficult market situation, we managed to attract some promising projects and close some good deals. But after the collapse of FTX crypto exchange we decided to freeze this direction - we suspended the search for new projects and postponed the development of tokenomics for our token AM Coin. The collapse of FTX has greatly frightened all institutional investors, exposed many of the structural problems of the industry, stopped the flow of new users and simply made it toxic and unpromising to invest in the industry until at least mid-2023. Nevertheless, cryptocurrency remains in demand and highly profitable in the long term - and we will definitely return to it when the situation stabilizes, the risks of cascading liquidations are gone, and the industry has recovered.
*All current projects remain on the launchpad, and my clients and I look forward to launching their tokens, whose yields may surprise in a good way.

We have analyzed the Dubai real estate market:
- It has shown rapid growth since the beginning of this year, with average apartment prices up 8.5% and villa prices up 13%; October this year accounted for more than 72.5% of transactions compared to October last year;
- The price growth was boosted by a 133.5% increase in off-plan sales in the primary market and 29.4% in the secondary market following the emigration of Russian businessmen to Dubai due to the announced mobilization;
- According to the UBS Global Real Estate Bubble Index 2022, the Dubai real estate market is currently considered fairly valued. Moreover, for the first time after seven years of decline, the Dubai real estate market is showing a recovery - only now the market has reached 2019 figures and is still 25% below the peak of the second quarter of 2014;
- The Dubai market leads the world's top 25 luxury real estate markets, according to a Knight Frank report. Prices are expected to rise 13.5% in 2023.
And we concluded that Dubai's real estate market is just beginning to accelerate and will continue to grow in 2022 - that's why we've launched the real estate destination now.
We gave our clients two participation options:

1. The classic option of buying/renting a property of interest. You contact our support and we find you a property based on your request;
2. A joint transaction option with the purchase of an investment lot. You buy a lot (a part of the object) on our platform in a joint transaction with our other clients in our carefully selected properties. The main advantage of this investment option is that you jointly own several unique properties with a lower entry threshold than buying one whole property for little money.

We calculated it all out and achieved a 71% return on the investment lot option (valid through January 15):
- We, using interest-free mortgage leverage from the developer, purchase with our clients a townhouse in the Damac Lagoons - Ibitza project at 2022 prices for 42% of the full value of the property;
- We wait 9 months, sell for full price and have ~71% yield.

We have seriously increased our visibility and media presence - ranking at the top of search results for key queries.
We transformed our website and telegram channel from a news portal on our products into an analytical think-tank with broad market analysis and expert analyses of specific industries, so that our clients could understand the macroeconomic and financial context.
The result of our work is that our platform AM Capital won prizes in 2 categories on Tagline Awards, one of the largest digital competitions in Europe and the largest in Russia!
We took:


Bronze in the "Best International Digital Service" category
Bronze in "Best Fintech Project" nomination.
In terms of technological effectiveness, we became competitors of such large companies as Otkritie Bank and Red Collar (redesign of the site for VTB Factoring). This is our first experience of participation in a contest of this scale - and we are already bronze in two nominations, and we are already listed as VTB's competitor!

It was a difficult year, both in terms of internal organization of business processes and external economic circumstances, not without mistakes, but we got through it successfully and achieved a lot, becoming the best version of ourselves at the start.

Finally, let us share with you our plans for 2023:

1. Develop a full-fledged real estate business;
2. Realize at least 6 properties in 2023;
3. Participate in at least 6 new venture capital deals;
4. Open a new branch (most likely Kazakhstan);
5. Launch an office in Turkey;
6. Pass the milestone of 1,000 clients (currently 289).

We want to express our gratitude to those customers who believed in us as a company and in us as a team: Thank you for your trust, we won't let them down and we will try to increase this year's results in the coming year 2023!