We analyse the 3M$ investment by Millennium BlockChain in Robot Cache from a corporate finance point of view.
We analyse the 3M$ investment by Millennium BlockChain in Robot Cache from a corporate finance point of view.
Robot Cache is the first decentralised video game distribution platform created in January 2018 by Brian Fargo, an American video game designer, producer, programmer and executive. The young company, located in Santa Cruz de Tenerife, allows for the first time the digital purchase and sale of video games, using blockchain technology. Let's remember that blockchain technology allows any type of transaction between two or more people without the need for intermediaries, through the Internet in a secure way.
In this way, Robot Cache will allow the resale of second-hand games and the exchange of games, which until now has always been done in physical form. In this way, when reselling digital games, the Robot Cache user will receive 25% of the money and the title company will receive 70% (publishers who wish to receive less than 70% so that the user who resells the game can take more money) of the price at which the title is sold on the second-hand market. In return, players will receive Iron, a digital currency that can be used to buy new games on the platform.
The currency is designed to maximise economic benefit and security for players and publishers. It is based on the ERC20 token, so Iron is universally compatible with platforms that allow the creation of smart contracts based on the blockchain model, such as Ethereum.
Millennium Blockchain is an international company focused on the co-management and investment of companies in the technology industry. Blockchain and Cryptocurrency. Millennium BlockChain currently has an investment strategy focused on three markets: healthcare, renewable energy and video games.
On the investment side, it will be one of the most high-tech transactions as Millennium will commit 3M$ to Robot Cache. In return, Millennium Blockchain will receive 10,526,315 Iron tokens, issuing 6 million shares to Robot Cache at an estimated price of $0.50 per share. The Company also issued several three-year cashless warrants at exercise prices ranging from $0.75 to $5.00 per share to Robot Cache. These warrants have the potential to carry Millennium Blockchain up to 7M$ in additional equity if exercised. In addition to the Iron token rights, Millennium Blockchain secured a right of first refusal to purchase up to 3% of the equity in the first round of Robot Cache shares.
The following table shows five operations of companies related to the video games sector carried out this year. Of particular note is the amount received by the Asian company Douyu TV, a platform online for videos that allows people to play live, which has reached 1,127,827,857$.
| Company | Country | Description | Total Income | Date of operation |
|---|---|---|---|---|
| eCaring | United States | eCaring is a company that offers a monitoring service on any member of the family through a website. | 3,5M $ | 16/04/2014 |
| SmartPeep | Singapore | The company was founded in 2017 and monitors patients, where nurses act in case of emergency. | 120K $ | 27/10/2017 |
| Living Independently Group | United States | As the name suggests, Living Independently Group is a company dedicated to video surveillance of those elderly people who live alone or away from their families. | 8.5M $ | 12/09/2008 |
| Janasense | France | Janasense is a start-up that reinvents the way we care for the elderly to achieve their wellbeing. | 177K € | 30/10/2017 |
| 140K € | 01/07/2017 | |||
| 120K € | 02/01/2017 |
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