Invest in Tradefox, Inc.

Tradefox is solving the biggest problem in the recycling industry – the lack of transparency.

This lack of transparency results in unnecessary costs which decreases the viability of recycling, leading to the disposal of $100’s of billions of material value in landfills every year.

We provide visibility into past trading behavior and current industry reputations of companies that buy and sell recyclables.

Our goal is to act as a conduit for green capital to enter the recyclables trade, increasing profitability and liquidity for the recovery of more material from waste. 

The Cost of Limited Transparency

1) Fraud and Other Unfair Trading Behavior

One billion dollars is lost every year to unfair trading practices ranging from quality manipulation, contract cancellation, unpaid quality claims and outright fraud.

Limiting capital losses is the key to increasing industry investment and the viability of recovering recyclables from waste streams.

The above claim is made based on research conducted by Scrap Connection, BV indicating that the total losses suffered by buyers average about 1% of purchases/imports globally.

2) Limited Access to Trade Finance

Affordable and effective trade finance is difficult to obtain. Risk managers are unable to assess their customers' exposure to unfair trading practices.

Providing company reputation visibility allows financial institutions to allocate green capital into the recycling industry.

3) Lack of Insurance for Key Trading Risks

Insurance companies are unwilling to underwrite losses to unfair trading practices due to a lack of data insights into company trading behaviors.

With the threat of losses that can bankrupt a business, insurance coverage is an imperative and provides additional assurance to the finance sector.

How Tradefox Solves these Problems

1) Database of Trading Reputations

Tradefox has spent the last four years establishing its technology platform as a solution for avoiding losses from unfair trading practices; representing recyclers, material consumers, traders, brokers, logistics, financiers and insurers.

Today we have:

• Trade reputation reports on more than 150,000 companies
• 5,300 + members spanning across 183 counties
• 100,000 peer-to-peer reviews on individually verified trades
• Visibility into 220,000 + unique trading relationships
• 2.3 million verified buyer-seller trades matched by machine learning.

Counter-parties provide the crucial informational feedback loop - rating each other on metrics such as integrity, material quality, payment, shipping and the handling of quality claims.

Our scoring algorithm combs through the data on trade reputation reports, providing a high-level assessment on each company’s reliability and trustworthiness.

We now have more members than the Top 3 leading international recycling trade associations combined.

2) Market Access for Sustainability Focused Investment

Tradefox business intelligence provides intrinsic value to financial institutions eager to deploy sustainable investment funds, but wary of the risks of backing this large, but poorly developed market.

Powered by data analytics, peer-to-peer performance reviews and trading history, Tradefox can provide key market intelligence & data insights into the interconnectivity of the market & quality of ongoing trading relationships.

3) Partnerships with Finance and Insurance Institutions 

By complementing our partners’ credit and risk analysis with Tradefox’s understanding of operational and behavioral properties of market participants, we can broaden the industry’s access to financial products and address uninsurable risks in the industry.

Business Model

Tradefox is strategically increasing our database asset value as we develop and educate the market, build the brand and onboarding new members through a data exchange program.

Companies earn credits and free access to the platform by reviewing their trading history with verified trading partners - building value for all members. Credits unlock due diligence reports, which are monitored on an ongoing basis for an additional fee.

Once companies deplete their credits, they move to a pay as you go or subscription model to access Tradefox reports and other features.

Unlocking Sustainable Capital

The market for sustainable finance has grown to $1.2 Trillion, and future growth looks highly likely given that financial institutions have committed $6 Trillion + before 2030.

Our unique data insights allow risk managers to better assess sustainable funding opportunities within the recycling industry, channeling green capital to where it can make the greatest direct impact, facilitating real and tangible change.

Growth Strategy

We have prioritized new membership growth in Central Asia and the Middle East to capture the predominant buyer-side of the global market, as well as exporters from North America and Europe who sustain a competitive edge by maintaining their Tradefox profiles.

Our next phase of business development extends the scope of data acquisition and member onboarding to the rest of Asia across all material types. By partnering with emerging recyclables exchanges, national and international trade associations we estimate a 10x increase in market capture in the next two years (not guaranteed).

This will be followed by a move into intranational trade where more complex relationships in the circular economy exist, meaning significant opportunities for additional products and services.

Revenue Forecast

Combined revenue streams driven by subscription licenses are projected to generate $12-15 million revenue in 3 years, scaling 2.3x over years 4 & 5 as Tradefox expands into new data categories (ie. ESG reporting), new geographies and intra-national markets (not guaranteed).

Positioning services between trade partners giving access to insurance and finance products and scaling the addressable market will drive exponential growth towards a $1 billion valuation in 6-8 years (not guaranteed).

Use of Funds

Tradefox is committed to a VC investor readiness program following this final round of SEED investment, closing a priced round in 18 to 24 months, although ability to close VC funding at all or within this timeframe is not guaranteed.

Funds will be used to support talent and data acquisition, continued market development and scaling up in-person attendance at international and sector specific conferences & trade shows.

It will fund the technical development of deep analytics, machine learning algorithms, an underlying blockchain ledger (DLT) and APIs to support the demands of financial, credit, insurance and debt management institutions.

Your investment into Tradefox will drive change by helping the recycling supply chain become more efficient and improve profit margins for companies at the forefront of the circular economy.