Rene Bernard shares the exciting story of LuxTag at pitchIN Issuer Preview #39


You guys please imagine a world where
trust and honesty could be bought. Where we could really buy things and trust in them because we are all somewhat challenged, aren’t we? Challenged with the
questions “Are these things real?” We usually only assume the origin of items. Sometimes we might feel that we live in a fake world. You can purchase Malaysian fake graduation certificates for less than US$ 300.
You pay US$ 50 more and they wash it and sundry it for you and put it behind a
glass frame. Luxury products are being faked Even more dangerous We see medicine products being faked. Then looking forward in the LuxTag solution, what we do Actually, LuxTag is coming from “luxury product tagging” to do anti-counterfeit, ownership tracking, track & trace and while doing all this we
generate valuable business insights. How do we do this? We create digital representations for physical products for single unique products. This can be a strip of medicine. This can be a university graduation certificate or even your product, a luxury watch. We create not a standard paper certificate for warranty or for authenticity, but we use the blockchain technology to put these certificates into the digital world. Why do we use blockchain technology? Because then it can become truly not copyable, and this blockchain technology has another feature of making datasets immutable, as in tamper-proof. But when I say blockchain, please be aware that we are not using financial aspects of it. We are using the non FinTech features of
blockchain tech. We create “phygital” elements. Phygital as in physical/digital, that is actually what the Industrial Revolution 4.0 is about. Our mobile application is here in view, and in the interest of time I continue It’s not only me, I have two other co-founders. This project is born in Malaysia. Actually, like YB said, he mentioned MaGIC, the incubation and co-working space in Cyberjaya, this is where LuxTag was conceived in 2017, and we have now a wonderful team of around 20 people headquartered in Cyberjaya, but a few branch offices and representatives around the world because we don’t target
only Malaysia for our customers. What we do? We look at the problems or challenges
of our customers, which is businesses, manufacturers, brands, and we have an
approach how to solve their problems. This is one of them. Chronoswiss luxury watches in Switzerland. We even put sports apparel with a unique ownership certificate into a blockchain database system where final consumers can interact with the product and get a lifetime warranty for their
socks. US$ 25 bicycle racing socks, for example. Fake diplomas We launched in 2018 with IIUM University for the first batch of around 200 students. This year, we are putting between 5,000-10,000 Malaysian students onto our system. The Ministry of Education is supportive of this effort, so that is a very good validation here in Malaysia, and we are already contracting customers
as of now from Russia and from the Czech Republic. The industry is shaping using
blockchain technology for IP matters and product security, and even here on the
left side we see that a Chinese Court admitted blockchain-based evidence at
the court as the evidence. We are earning money. We are a for-profit, obviously, we are charging our customers either a system development implementation fee or a product tagging fee, possibly even a hybrid between both of these. And mainly and I’m interested in the long term corporations with businesses, not only one time develop and let it go, but have ongoing engagements. We are launching still in 2019 a system for self-onboarding. This LuxTag Papyrus platform would
allow small manufacturers to create their own authenticity certificates
themselves and pay as they go. LuxTag fulfills all the criteria in this
wonderful table, whereby, a disclaimer, I created this table, so we have all these ticks. But this is not to show that there are competitors and competitors are confirming this business case. So what we are doing is into the right direction it is not that we are the only one in the world doing it, we believe we’re doing it a bit better but there are others. We started our journey in early 2017, and we are looking now in mid of next year to have the first US$ 1 million of revenue achieved, whereby in 2019 we are at the early stage
revenue around US$ 250,000. What else can I tell you? Our target is most probably a joint venture or maybe a majority stake acquisition by a product security company, IT company, Something in the sector where we are active Because we believe that partnerships are very important to bring us forward. So where are we now? Maybe we can call it a J curve. As an innovation driven enterprise, we are spending money to in the future earn big money. It’s not that we are now making bread, purchasing flour and having the immediate revenue and immediate break-even. No, we will break even only
next year. That is why we are right now open for the next is fundraising round via the crowdfunding pitchIN. In the last year we did our seed funding round of US$ 600,000 with an American VC company. I had to black out most of this here if you were seriously interested I can show you our deal pipeline, our sales pipeline, Where we are lining up several projects for 2019-2020. We have purchase orders in the book, we have already systems developed. It’s not that we are only talking but we are already doing it. We have few strong partners, clients, we are growing the number of partnerships with universities, with larger IT companies in Malaysia and
abroad. This is just to check the 2019. Right now I’m very proud to implement the system with the Penang Port under a logistics provider called
Gerakselesa. This is for document security of container movements inside the
terminal of the port. It is contracted, yes, this business is coming right now. Sportslog, it’s a system to track sports achievements and put your medals for running events and similar into a digital, shareable and secured system under your account. This is supported by the Ministry of Youth and Sports. The other one up there with IAT, IIUM (International Islamic University Malaysia) and the MOE (Ministry of Education), that’s the University diplomas. These projects we are being already
paid for right now. And next year, in the first quarter of next year we plan to do the large launch of the upsell for the luxury watches project, which so far was
an unpaid pilot, and 2020 we will convert into hard cash. We are fundraising right now and have 40% already committed from the efforts in 2019 now, from the crowdfunding. And we are looking at a minimum entry ticket price of MYR 1,550. We are receiving almost
daily now, the first pledges. We are now with pitchIN for a bit more than a month, and I’m happy to see the progress there. These slides are available at
that link if anybody wants to refer to it later, and I would like to call you to Let’s shape the future of products together with LuxTag, and you can now be a part of LuxTag’s success story. Thank you for your attention!

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