[MUSIC] Cool, thanks guys. And so I've got a couple of questions and I think the best way maybe is start with the legal question. So how much research have you done into whether this token is a security under South African law? >> Sure, so not that much to be very honest with you. We have investigated a few ways we could structure this. But honestly access to legal advice is expensive, so we're very limited in that respect. >> But with regards to our occupation process, we will be meeting up with some lawyers through the French Tech lab, so that's something, that's a question that we really want to focus on for the beginning stages so that once we stop building we have formed that foundation. >> So I think that that may be a big challenge for you. I think that you potentially selling an unregulated security to sort of an unsophisticated investor who may not fully appreciate the risks, being sort of maybe the lower middle class of sort of newly come into money. And now you're sending them a a token of a cow that they may not fully appreciate the risks involved with purchasing cattle for example death, flooding, weather events, etc. So it would be just to make sure that that you that that isn't an issue and that obviously could affect the business model if it is. My sort of next question is to drill down a little bit further into who is the investor? So I know you said about South African investor. I know you said South African middle class. My question would be is that not quite an aspirational type of person so you know, someone who's received quite a bit of money and would actually prefer to invest into formal asset classes and perhaps not a more traditional asset class that they would have in the past. >> Sure, so, together with that, we are actually looking at institutional clients as well. And we believe that perhaps by getting to institutional clients, we will then target those professionals as well, aspiring as you just said. But then also have access to the rest of investors as well. So that is our goal. But we're also looking at institutional clients. >> So why would an institutional client invest through this platform and not invest in the stock of a agrotech company or agricultural company that has access to a commercial cattle farmer? So with regards to that question is, the stock market is very highly correlated. And by investing in an asset like this, such as cattle, it's uncorrelated to the market. So I think it's a very good opportunity for institutional clients as well. >> Okay, so that I mean, admittedly, that didn't come across but that might be a very interesting angle to investigate further. The other question is my and my big concern is that the blockchain has to disintermediate trust. The example you used earlier was a friend, maybe a founding team member that managed to invest through a trusted party. However, a lot of the trust is going to come to well what is the quality of the cattle that I'm investing into. >> Yes. >> And I know your IoT device is sort of the missing piece in solving that trust but that appears to not have been solved yet. So for example, I'm by no means a vegetarian or sort of understand cattle, the cattle market to sort of the nth degree but we know is it just the health of the cow? Is it the weight, is it the grass area that they have access to, the pasture lands, the veterinary services they have access to, the abattoirs they have access to. All of that influences the outcome. How do we ensure that if you sell the calf for 7,500 rand to an abattoir that it actually wasn't for 10,000 rand and there's been sort of a deal on the sly. I know that the blockchain is immutable, that it's secure. How do you verify the rest of that to create a truly trustless transaction as much as possible? >> Sure, so initially one big thing we are focused on is vetting our farmers. We're not just going to let any farmer come onto the platform. And through that vetting process we are going to try look at a few of the factors that you have mentioned. Such as like the farm does, what type of land like maybe if we have any information historically what has happened to that farm or that area and how successful they've been. And also in terms of the farmer and trust, they are receiving a portion of the proceeds from each calf sold. So they are incentivized to obviously act in the best interest because obviously if they don't that would just be sort of platform. >> But what stops them from cheating? >> Sure. So we will have to also form relationships with the slaughterhouse perhaps or have some form of verification. Maybe also get basically the amount received directly from the abattoir. >> Then there it's still a peer to peer system? >> Sure. So I mean, inherently peer-to-peer is very difficult in this case and in South Africa law especially credit providing peer-to-peer is is quite difficult. >> So besides the IoT device it is also useful in seeing if is the cow alive life. Today is tomorrow is it around the farm and you're also thinking of doing images where the farmer takes pictures of the cow on a continuous basis. So that will help us actually monitor that it's still the same cow and you can use data science just to sort of make sure that is a specific cow. Yeah, so those are the types of rules that we were looking at. >> And then, the farmers that you targeting, so you mentioned that you're not targeting the commercial farm, you're targeting more, maybe I can come in communal farmers. Do they have the facility and the funds to install all of this software and this tracking? Are these not more informal farmers or what is their sort of sophistication level? >> So initially we were thinking of something like beginning with pictures, and in that case they just have to have access to a smartphone. Obviously not everyone does. So that is a bit of a limiting factor. But then also I think that's just speaks to the way we develop the IoT side like hardware and software. We're going to need to make it make sure that they are going to be comfortable with it and not have too many barriers, that they actually want to use the product. >> And I think that for more better farmers, since we are also like institutional clients, so that would be where the bulk of our revenue comes from. And then it means that we can service more farmers. And then also just with taking our opportunity relationships before with the farmers, having community groups or community agent who can then communicate with the farmers on a regular basis. So to have sort of that on the ground sort of relationship with the farmers will be quite important in seeing that the whole process is seen through the end. And also just to find out whether they're struggling with anything, can they use it. And just for the IoT devices, should those be there. >> I think it's very interesting because you're presenting an opportunity for institutional money or institutional funds to access to asset classes perhaps they didn't have access to before that isn't correlated to the stock markets. I think that that is a very interesting way of going about it, but that target market is very different to the perhaps more rural farmer and the perhaps more sort of lower income investor. And I think those two are potentially almost different business models completely, although maybe trying to achieve the same thing. So it might be worth considering in a lot more detail which one of those target markets you going after. [COUGH] The institutional of course is harder but at the same time institutional be dealing with a commercial farm, you potentially have more money, they understand the risk and then you can introduce riskier assets sort of later on in being a more rural farmer. But those two business models and the go to market strategy of those two consumers, one is sort of a business to business player, one's more business consumer, they're completely different. So I feel like there's just a bit of a maybe it's bit unclear in your own minds as to which one you're exactly going after. And, perhaps that's because you haven't taken this to market truly and tested it yet. So it might be worth really considering that when you go to market. That could be very helpful. And then so this sort of goes into how to ensure that the the RFID tags aren't manipulated when you take that tech. And I feel that if I had to go to the team, my one comment would be that it appears that you guys are perhaps missing some agri skills. Who's the person with the connection to the farmers with the understanding of how the cattle business works, years of experience or sort of knowledge of that and I'm not sure how you're planning to fill that hole in the team. >> So I have a colleague, has quite a few connections with farmers but also at French Tech labs we do have some mentors there who do have some connections with farmers as well. So we're really looking into taking in some of that knowledge from there as well. And maybe hiring someone else at a later stage once we've gone through the incubation process, who knows a lot more about the market. >> Okay, I would consider that because that for me, this is as much as a fintech play it's also sort of an agritech play. So it's the mergent of both and I feel that you potentially as a team are missing the skills and then, maybe missing in sort of the knowledge of some of those skills would provide. And then, sort of lastly, it was perhaps a little unclear what the true size of the market was and that's perhaps because you don't quite know which market you're going into. Of course South African investor, of course the black emerging middle class, but that's a fairly disparate group of people. Why would they if they're aspirational target go back to investing in cattle, if for they first time have access to investing in the stock markets, etc? And I feel like and then also how much investment are you going to enable? That there was a disconnect between you talked about the African investor and I don't know maybe if you have this information but you talked about the African investor. And you talked about the number of cattle farmers but you didn't say how many cows the African investor will invest in to grow the cattle. Make sense? >> Yeah, sure I think we definitely still need to figure that out, yep >> Cool, perfect, otherwise yeah. >> Cool. >> That's all. >> Thank you. >> Yeah, sure, no problem. [MUSIC]
