# Summer 2024 Investor Update | Tradefox, Inc. - Canonical URL: https://wefunder.com/feed/173945 - Entity ID: wefunder:feed_item:173945 - Published at: 2024-06-11 13:35:05 UTC - Updated at: 2025-12-06 00:05:18 UTC ## Author Chris Yerbey ## Subject Tradefox, Inc. ## Content Dear Investors,It's been quite a while since I've provided a long-form update, but as there is quite a lot going on this will have to be a long one. :) Please set aside about 5 - 8 minutes to go through this update and thank you in advance for your time. Wefunder Campaign ResultsI am pleased to share the results of our WeFunder campaign. Over the past 12 months, we raised over $1.1 million. A significant portion of this amount, $947,491, came from our existing investors who chose to reinvest. We are very pleased with these results! As you might recall, we put in the extra time and effort to launch an equity crowdfunding campaign to provide our existing investors an opportunity to invest regardless of their status as accredited or non-accredited investors. So the fact that so many investors were able to add to their investment makes the effort worth it. We also welcomed 49 new investors, who contributed $157,509 to the campaign. This mix of new and returning investors demonstrates broad support for our efforts to innovate and improve the recycling industry, highlighting a growing commitment for impactful investments.Regulation D Round Open for Accredited InvestorsHaving closed the Regulation CF round we opened a Regulation D round at the beginning of May. We are offering an additional $500,000 of equity in the form of SAFE agreements to accredited investors and plan to close this round in 8 weeks.Update on Horizon Europe Grant ApplicationWe are thrilled about passing Stage 1 of the European Commission's Horizon Europe Grant next year and being invited to prepare for Stage 2 (application deadline October 31st) This grant is solely focused on firms that expert examiners evaluate to have disruptive and transformative technology, with huge potential for scalability.If awarded, this grant would provide an injection of $1.3 million on a $2.2 million project development budget, which would be important funding to enhance the platform through AI driven data analysis on newly integrated KYB/KYC and market pricing datasets.Positive Feedback from EIC ExaminersWe have been so thrilled by the positive feedback provided by the EIC expert examiners to our successful Stage 1 submission. Their comments were very encouraging and insightful. I’ll share some of these comments here with context as I believe it confirms we are fully on the right track.State of play and HR in placeThe examiners identified Tradefox as having traction, expertise and brand recognition in the industry, and were impressed by our “leadership team is highly experienced and this experience is reflected in the concise preparation and thorough analysis of what is required to effectively go to market”.Timing, Fit and Impact on EU Regulation and ObjectivesThey understood what Tradefox is driving towards, and how suitable we were for the grant. “The timing is right - the project is aligned to the new EU Directives CSDD and CSRD, and may substantially help European companies to reach the circular economy objectives set by 2050."Transformational PotentialThey also explicitly subscribed to our mission - that by enhancing transparency and accountability it could lead to “optimal trading practices. It would become a standard in the trading sector”. Furthermore, they elucidated on our “transformational potential” in the sector through  “supply chain effectiveness - reports transparent and affordable…and enhancing the quality of the reports with predictive analyses”. Potential for AIAnd lastly, they surmised Tradefox could “automate the analysis process by using AI, improving scalability of the solution and the speed at which information and reports are made available while significantly lowering costs”Needless to say - we are highly motivated by their feedback and are fully engaged in finishing the Stage 2 submission!Harnessing AI for Enhanced Risk ManagementTradefox has built custom Machine Learning algorithms to streamline data cleanup and extraction over the last few years. However the impact of readily accessible LLMs in our day-to-day operations in the last 12 months has been extraordinary. We are at the forefront of transforming the recycling industry through the strategic implementation of Artificial Intelligence (AI) and Machine Learning (ML). Our roadmap focuses on leveraging these technologies to bring unparalleled transparency, efficiency, and predictive capabilities to our platform.Predictive Risk Analysis: Our AI-driven predictive risk analysis will empower members to anticipate potential trading issues, including counterparty risks and market volatility, before they occur. This will significantly reduce losses from fraud, low-quality shipments, and other trading inefficiencies.Enhanced Data Intelligence: By integrating AI, we will provide detailed counterparty risk metrics, market trends, and predictive analytics. These tools will offer real-time, actionable insights, helping our members make informed trading decisions and fostering greater accountability within the supply chain.Classifying Trading and Risk Profiles: AI will help us identify and classify buckets of companies based on relevant trading and risk profiles. This classification will provide critical insights into ancillary services such as credit insurance and affordable trade finance, which are currently underserved in the market. By offering these insights, Tradefox will enable more efficient and targeted support for companies, reducing their financial risks and promoting smoother trade operations.Simplifying Communication with SLMs: We are also incorporating Small Language Models (SLMs) to support data interrogation and extraction of primary data from our reviewers. Using natural language processing, SLMs will streamline communication and workflows for our membership base, simplifying the way members interact with the platform and extract valuable insights.Driving Sustainable Practices: Through enhanced data transparency and improved trading practices, our platform supports Global goals for a circular economy and the UN Sustainable Development Goals. Our AI capabilities will help members comply with new regulations, ensuring they stay ahead of the curve.Scaling with New Investment: With new investment, hopefully in conjunction with support from the EIC, we aim to scale up and accelerate our rate of data acquisition, creating a unique and targeted database. These funds will enable us to onboard specialized skills, fund collaborative development, and expand our capabilities in high-value markets, including North America and Europe. This will significantly enhance our platform's value proposition, driving further growth and innovation in the recycling industry.Our roadmap is designed to drive innovation and create significant value for our members, transforming the recycling industry with AI-powered solutions that enhance efficiency, reduce risks, and promote sustainability.Scaling Operations, Technology, and TalentI have one more exciting development to share with you today. To accelerate our growth and prepare for a future Series A round, we are opening an institutional funding round this fall.Institutional Round This Fall:Purpose: Secure significant investments from venture capital and institutional funds to scale our operations, technology, and talent rapidly.Focus: Target impact investment funds and industry-specific funds aligned with our mission and vision.Structure: This will be an unpriced funding round, not triggering your SAFE agreements, allowing us to attract sophisticated investors.Why Now? Pursuing professional funding now will enable us to access more capital faster, fueling our expansion plans. We have a solid roadmap in place and need this capital to scale up effectively. Additionally, securing this funding is essential to match the EIC grant, maximizing our ability to leverage these funds for greater impact.Current Investment Opportunities As mentioned in my previous update, our Reg D round opened in May. Investments made before June 30th will benefit from a valuation cap of $27.5 million, while those made in July will have a valuation cap of $30 million. This round will close at the end of July, so it's important for anyone interested to reach out immediately. If you are interested in discussing an investment ranging from $10,000 to $100,000, please follow this link and provide your information. I will contact you as soon as possible to arrange a call.Your Support is Crucial: We are incredibly grateful for the continued support and belief from our investors. Together, we have laid a strong foundation for Tradefox’s future. With your support, we are confident in achieving our mission of revolutionizing the recycling industry through innovation.Call for Assistance:Institutional Funds: If you know of institutional funds that would be interested in speaking with us, we would appreciate any introductions.Advisory Board: We are revisiting our advisory board. If you have sector-specific knowledge in legal (contracts, fundraising), legislative, academic, or technology-related areas, we would like to speak with you.Grants Expertise: Anyone with experience in government grants in the USA, we welcome a conversation.If you can provide assistance in any of these areas or just have comments to share, just let me know by replying back to this email.Thank you for being part of our journey. Let's continue to drive change and make a significant impact together!Chris Yerbey, CEOTradefox, Inc.