Byprotex

Byprotex is the first digital marketplace focused on trading animal by-products (i.e., protein meals and animal fats), plant-based products (e.g., vegetable oils and plant extracts) as well as dairy products (e.g., whey proteins). The trade in the target markets is still done via phone and, especially, small and midsized companies give away a significant part of their margin to trading companies - Byprotex aims to directly connect buyers and sellers from all around the world while also digitizing the majority of the anxillary transaction processes.

- MVP launched mid February 2020
- First lead users on the platform (<10)
- First deal to be completed next week (exp.)

Typical customer:
- smaller SMEs with 20-100 employees where the managing director takes (almost) all decisions incl. sales / procurement
- such SMEs often turn to intermediaries / trading companies for convenience / capacity constraint / safety reasons

# market participants:
> 1000 companies only in Europe --> the market is fragmented
- thousands of potential users globally

market size & growth:
SAM: $160bn
SOM: $5bn
- expected growth of the by-product market in line with growing world population & expanding middle class in emerging markets

- The market for animal by-products, dairy, plant extracts, vegetable oils and similar products is completely intransparent and analogue, i.e. trading is done by phone and email via intermediaries
- This leads to a lack of price transparency and missed market opportunities
- Especially, SME buyers and sellers do not have the capacity to purchase from abroad / drive sales internationally to optimize prices and often turn to intermediaries who charge a significant spread (5-40%).
- This leads to a lower sales price for the producer and a higher purchase price for the buyer.
- Even larger struggle to navigate international trade especially in Asia and Latin America given complex regulatory requirements and the challenge of finding reliable business partners
- Manual transaction handling (e.g. organize traceability, logistics, insurance or financial services) and exchange of documents (via mail or email) are
time-consuming, expensive and lead to a higher error rate

- Digital and globally active B2B marketplace specialized in animal by-products, dairy, plant extracts, vegetable oils and similar products
- Easily connect (smaller) buyers with multiple sellers from around the world such that a managing director of a small company can cover his production input needs from one marketplace with a couple of clicks
- Become a benchmark for market pricing in a thus far intransparent market
- Help producers access new export markets by indentifying reliable business partners in Asia / Latin America
- Cross-sell / develop in-house payment & factoring solutions, credit insurance, logistics services, etc.

- one direct competitor with partial overlap (Syngredient) - same development stage as Byprotex
- other digital platforms with a different focus (e.g., Kemiex - chemical APIs; agri commodity platforms)
- analog brokers and trading companies
- Cargill, ADM and co. are working on their own platform to digitize their transaction processes (no trading platform)

- first-mover advantage
- full-service provider incl. document management, traceability services, logistics, insurance, etc. as opposed to a simple marketplace
- no technology-based barries to entry per se, however, the barrier to entry lies in the complexity of regulation of international trade of animal by-products which we want to tackle in cooperation with one of Europe's largest producer of animal by-products

- 1.5% transaction volume-based fee
- various cross-selling fees
- income from premium subscriptions
- planned internal revenue in year 5: EUR 61mn
- planned trading volume in year 5: EUR 3.7bn

Main income stream:
- 1.5% transaction volume-based fee

Further income streams:
- various cross-selling fees
- income from premium subscriptions

Mid-term vision:
- Scrap transaction fees to scale volume
- Develop and provide factoring / payment solutions inhouse to drive revenue
- Further revenue from data-as-service model (we aim to become the benchark for market prices / volumes)

- Product scaling
- Building up of an international sales team

25%

- achieving a critical mass of users is critical
- international / global reach is of utmost importance
- regulatory changes and trade wars
- spread of animal diseases leading to a partial ban of certain products

n.a.

Finalist of the Munich business plan competition (winners to be announced on March 2nd)