Startups to Watch
aaaaaand we are back! Amidst several events and gatherings, I continue to have on the pipeline good startups to share with you.
For those who are new, this series is dedicated to very early stage startups that are under the radar – and have a good story to tell. I send it out every other Wednesday - and it is seperate from my traditional weekly newsletter. The basic criteria is a company that is not on the spotlight and is NOT actively raising proceeds. There is also no bias – apart from the fact that I like the story. I am not an investor or get any financial compensation to promote startups featured. This is intended for informational purposes only, using my solid base of subscribers to share intel of good people doing cool things.
Since launch, featured startups in aggregate were connected 53 times, to 28 different investors/strategic partners globally.
Finally, if you are a founder and want to be considered for this series - it is very simple:
Please fill out a one-pager, in English, about your company using the topics and themes outlined in the posts.
Reply to this e-mail with your one-pager attached.
I will review and reach out if I need more information.
It will be posted if I believe the startup fills the profile and audience of this newsletter.
Good Luck!!!!!!
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Opinions expressed here are solely my own and does not represent those of people, institutions, organizations that I may or may not be associated with in any capacity, unless explicitly stated.
DUX is a web3 onboarding company focused on being the biggest wallet provider in the LATAM region by leveraging web3 infrastructure through seamless connections to web2 applications.
PROBLEM:
Let's be honest: the user experience on WEB3 sucks. Web3 may be great for technology geeks and disruptive evangelists, but in everyday life, when it comes to ordinary people, technological resources aren't friendly and require digital literacy that few have, compromising the massive influx of new users and companies.
Despite the many benefits arising from the blockchain, (it's not breaking news for) anyone who has used web3 resources knows that the user experience can be fragmented, complex and full of insecurity points, generating resistance, apprehension and unnecessary navigation friction. Furthermore, developing any type of web3 application involves high implementation costs, skilled labor and a long learning curve; making it an unattractive deal for the onboarding of large brands.
PRODUCT:
It is understood that the use of traditional methods can be quite expensive, challenging and unproductive in the near future. To overcome this, rather than persisting in a contentious struggle with the web2 framework, the DUX digital wallet offers a fusion of the most advantageous features of both worlds - the advanced infrastructure of WEB3 and the user-friendly interface of WEB2. The approach is to not opt for one over the other, but rather incorporate the positive attributes of web2 front-end to facilitate the acceptance and implementation of web3.
As a widget, DUX's wallet integrates with the back-end of websites and web2 applications, providing web3 services and benefits without changing the UX that people value so much and are already used to. With a low code plug and play format, DUX facilitates implementation, almost zero development costs and can be embedded in any wordpress and social media websites, solving the most sensitive points of pain in the market to reach the mainstream.
BENEFITS FOR USERS:
Plug and Play: simply embed the DUX wallet on a website, landing page or social media link to offer web3 services
Social Login: only requires email or social media profile to sign in
Multichain: technology agnostic, inclusive of most major networks
Gasless: free for the end user
MultiID: allows you to combine other wallets, bank information and documents in one place
Crypto/Fiat on and off-ramp: multiple payment gateway, accepting pix (brazilian instant payment),bank payment slip, credit and debit card
One click mint: users can easily mint NFTs created by brands
NFT marketplace: brands can easily implement an NFT marketplace without changing key visuals and creating new revenue from the secondary royalty market
NFT Ticket: DUX's wallet integrates with ticketing platforms, creating a web3 connection layer
Token Gated Experience: Enables the creation of premium loyalty programs segmented by tiers with different benefits
MARKET:
The digital wallet market is one of the most promising sectors on the planet, with great potential for valuation growth. Numbers that certify the attractiveness of the market:
3.4 billion users worldwide
5.2 billion estimated users by 2026
USD 5.4 trillion from internet and smartphone purchases at points of sale in 2020
USD 1 Trillion 2023 estimate
USD 7 Trillion in up to 5 years
43.7% CAGR 2021~2030
Besides that, LATAM's large number of unbanked and socially vulnerable people provide a valuable opportunity to implement digital wallets in the country.
As I mention quite a lot, there is no turning back for digitalization. Here you can find some cool stats on the region:
38.5% unbanked
43.3% of women unbanked
47.1% in the northeast region
The rapid digital acceleration that occurred after COVID and the significant internet penetration made the region even more appealing.
78% Internet Penetration
60% of the time connected to the internet
5th fintech market in the world
129M people registered with PIX (government digital payments)
89% of Brazilian e-commerce consumers have already used digital wallets
Top 5 biggest consumers of gamers in the world
Top 10 NFT holders
In addition, in a macro perspective, IDUX is found at the intersection of 6 powerful trends, providing business opportunities in markets with long-term horizons.
Stats on Digital ID market (global)
USD 27.9 B 2022
CAGR 17.2%
Stats on Embedded Finance (global)
USD 54.3 B 2022
CAGR 16.4%
Stats on Web3 (global)
USD 3.2 2022
CAGR 44.8%
Stats on Loyalty Marketing (global)
USD 5.5 B 2022
CAGR 23.5%
Stats on Payment as a Service (global)
USD 8 B 2021
CAGR 21.4%
Stats on Big Data (global)
USD 162B 2022
CAGR 11%
COMPETITIVE ADVANTAGES:
Their web3 infrastructure services offer several competitive advantages that set them apart from other providers in the market. Firstly, their solution can be easily integrated with any web2 application by regular web2 developers, eliminating the need for specialized blockchain knowledge. This allows businesses to expand their reach and possibilities without significant investment in new technology or training. Their infrastructure also provides multiple use cases, allowing companies to explore new avenues of revenue and growth.
In addition, their solution offers an invisible blockchain experience for the end user, simplifying the sign-up process and eliminating any confusion or complexity associated with traditional blockchain interfaces. Their infrastructure is also multichain, allowing for the application of different blockchains into the same application, which further enhances flexibility and adaptability.
They simplify the conversion of fiat currency into cryptocurrencies, making it easier for businesses to leverage the benefits of blockchain technology without disrupting their existing operations or user experience. Their infrastructure is fully customizable, ensuring a seamless integration into any existing system. All these factors combine to provide a highly competitive and unique solution in the web3 infrastructure space. It's also one of the only providers of such infrastructure in the Brazillian and LATAM market to this date.
FUTURE VISION STATEMENT:
More than security devices, Wallets will be the future of human interactions.
In a world where relationships have become increasingly transactional, our personal identities and digital wallets tend to merge, transforming wallets into a place where we keep our documents, graduation certificates, digital collectibles, art, music, bank cards, membership cards, concert tickets, and all we care for.
In the imminence of a digital ownership society and affected by a serious truth verification crisis, digital wallets - empowered by tracking mechanisms and transparency subsidized by the blockchain - will be important mechanisms to determine what is true and what is false.
Through the DUX wallet they can go one step further in solving society's acute pains such as fake news, money laundering and impunity for digital crimes.
DUX'S MILESTONES:
DUX, a pioneer in the Brazilian NFT games market, has quickly emerged as the largest and most rapidly expanding guild in the Latin American gaming scene. They have successfully encouraged users to learn, provided remuneration opportunities, fostered entrepreneurship and facilitated web 3.0 onboarding. DUX has recently concluded a seed round of US$2M from significant web3 VCs such as Animoca Brands and a private investment round of 550 k from a Spanish exchange. They strategically pivoted their operations to a wider and more valuable industry by developing a digital wallet. This move has allowed DUX to create business scalability while also minimizing the risk of adverse price movements that chronically impact the NFT games sector.
BUSINESS APPROACH:
Their business approach centers around providing web3 infrastructure services that are both cost-effective and easy to integrate. They believe that by lowering the barriers to entry, more businesses can tap into the full potential of blockchain technology, and create new opportunities for growth and innovation. With their digital identity/wallet, they make it easy for individuals to participate in the web3 ecosystem, creating a seamless experience that encourages widespread adoption. Some of the most prominent use cases of blockchain technology include decentralized finance (DeFi), non-fungible tokens (NFTs), and supply chain management. By leveraging these technologies, they are helping businesses to transform their operations and gain a competitive edge in the digital age. Additionally, they are fostering a more decentralized and accessible digital landscape for B2C customers, by making the cost of acquisition negative and promoting increased adoption and usage of their services.