We are delighted to let you know we have invested in Leonie Hill, a technology company enabling access to digital assets and tokenisation. Leonie Hill’s solution provides cryptocurrency access to the mid-market such as wealth managers, family offices and trading houses, in a secure, stable, and traditional way.
What does Leonie Hill do?
Leonie Hill is a technology company focused on building out picks and shovels and digital services across the growing digital asset ecosystem.
Leonie Hill's FLUID platform and OTC desk allow investors to buy, sell and interact seamlessly with their asset. Their activities include trading software solutions, digital asset liquidity, fx, custody, investment products and tokenisation services.
Leonie Hill is helping to build infrastructure for the next generation of financial services in Web 3.0, with a belief that this requires full regulatory permissions, technical expertise and a focus on environmental impact.
Their approach is underpinned by a strong focus on investment, tech solutions and simplifying new and complex underlying services for their clients and partners.
Why did Scalare invest?
The Market
Leonie Hill's solution was created to solve a specific problem, by enabling an underserviced but wealthy segment of the investment community to access digital assets and Web 3.0 products. Established players outside of the retail market need trusted, onshore-regulated service providers such as Leonie Hill to be able to enter the market.
Leonie Hill CEO, Adam Switzer, says:
“Clients want things in a traditional way, be able to point to the assets and trust the people they are dealing with, which is actually anti-the decentralised model people associate with crypto. We offer comfort to the wealth sector who are confident and smart and want to allocate part of their portfolio to crypto. Digital assets are in the ‘take-off’ point. We believe that in a decade some of the largest financial systems in the world will be powered by or utilising blockchain technology."
Target Market
Leonie Hill’s infrastructure is aimed at the traditional finance players and investors who want to participate in Web 3.0 and digital assets, specifically targeting the early majority via B2B channels and accredited and institutional investors, who are likely to require a more joined-up, compliant offering.
Their initial market within Australia has a significant wealth management industry relative to its economy and population, with a $1 trillion pool of investible funds held directly by Australian individuals in personal portfolios and SMSFs.
This figure includes:
Wealth Managers and Stockbrokers: 8,000 stockbrokers and over 19,000 financial planners operating in Australia (at 30 June 2021) with very few unable to offer digital assets or provide seamless reporting capabilities to their clients;
Family Offices: 100b+ family offices investing in Australia, with only 15% currently investing in digital assets (and 45% considering it); and
Other traditional finance institutions: including 12,000 managed funds, 120+ VC firms, $63.5b+ in private and growth equity annual turnover and over $30b+ in hedge funds and alternative investments.
Leonie Hill is prepared for a wave of new regulations which will tighten up all the basics. and intends to be front of the pack in adopting regulation in its key markets (Australia and Singapore), and see this as a valuable competitive advantage.
The Founder/Team
CEO and CTO Adam Switzer (left) brings over 20 years of international experience, leading the delivery of world-class analytical technology platforms and process transformation for global banks, including DBS, ANZ, Barclays, Credit Suisse, HBSC and Macquarie Bank.
Adam is supported by a highly experienced team including Eric Chau, COO, (centre) who was formerly operations manager at ASX-listed RESA Group Limited and holds extensive operational, management, compliance and product design experience across start-ups, small businesses and listed companies.
Head of Sales, Philip Le Pelley, (right) is a wealth management professional with over 17 years of international experience in both client-facing and managerial roles across stockbroking, private banking, and technology start-ups.
The team are supported by a highly experienced advisory team with global banking, trading and listed experience including Tibra Capital co-founder Kinsey Cotton and Aura Group co-founder Calvin Ng.
The Product/technology
Leonie Hill's solution is the proprietary crypto trading Platform as a Service called FLUID, designed to enable institutions to offer crypto trading to their clients.
Offered through a white-label solution or through tapping into over 150 API's
It offers connection to multiple liquidity venues to source the best execution
It enables seamless crypto access to wealth managers, banks, brokers, fund managers and OTC desks and their clients
End clients can be individuals, SMSFs, Trusts, corporate entities
It offers integrated revenue generation for institutions
Provides an end-to-end institutional-grade settlement and storage solution
Momentum
Leonie Hill’s initial clients and partners administer and manage in excess of A$10b in client assets and are the foundation of a powerful ecosystem. They include Integrated Portfolio Solutions, xBullion, Aura Group and Wholesale Investor.
Leonie Hill has a strong B2B2C pipeline of clients across APAC with in-flight integration projects.
Scalare is delighted to be supporting Leonie Hill as they focus on building one of the world’s leading platforms for facilitating investments in digital assets.
Investment & Engagement
Scalare will be working closely with Leonie Hill Ai to deliver support in a range of business areas.
Scalare Partner Tim Griffiths will become a Board Advisor to the Leonie Hill board to support Adam and team with their growth and development plans. Tim’s broad scope of digital experience and strong track record of working with start-ups and scaleups will be a great complement to the team.
Leonie Hill's other investors include Aura Group which manages over $1.3b in AUM globally, venture capitalist and Managing Director of TNBAura Vicknesh Pillay, Tibra Co-Founder Kinsey Cotton through investment vehicle YMF Investments, Capital Green International Ltd managed by Hong Kong-based VC Toby Chan, private opportunities marketplace Wholesale Investor, and B7 Capital managed by Singaporean lawyer Brandon Tee.
If you wish to discuss further, please contact Tim Griffiths.
About Scalare
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