4Ps crypto-fund:

distinctive and disruptive combination

of funding, blockchain and distributed consulting

Version 0.9 – 12/12/17

Pre-ICO White Paper

Abstract: Bitcoin emerged as a reaction to central banks failure to back

Lehman Brothers collapse. It’s a brand new way to build trust on a
distributed way through unique mix of cryptography, distributed ledger and
distributed validation of transaction. But the propagation boost came from
Ethereum platform in 2015 that allowed any type of transactions to take
place in all sectors through “smart contracts” and certification functions of
new blockchains protocols: energy, insurance, distribution, automotive …
Early 2016 appeared the use to raise money through the now famous
“ICO” process. Any project, venture, idea or large company can now be
funded through it with some caveats due to legal grey zones. The purpose
of this white paper is to provide more explanations on this ICO process, to
show how 2PS position itself in a creative manner for this technological
wave, why crypto-fund is a very tempting investment vehicule and how
4PS will merge in one place funding, blockchain and distributed
consulting.

What is 2PS? A new breed of consulting organization with a strong “parti-pris”

Since a young age our parents, teachers, religious leaders, even books and cartoons have told us to be
kind, loving, and friendly. As human beings, most of us have carried this nice and helpful attitude
throughout our lives. While business may seem separate from our personal lives, we strongly believe
“playing nice” should remain a code of
conduct.
In 2PS, we’ve built a whole system to
encourage cooperative behaviour
between independent consultants thanks
to gamification. Game theory plays a key
role in 2PS. Whether it’s the payoff
matrix, Nash equilibrium, the prisoner’s
dilemma, Grim trigger, Schelling points
or bounded rationality, game theory
concepts have big implications on the
2PS model - a tremendous similarity
with blockchains and crypto-currencies.
Since 2016, 2PS have built a dense network of independent business consultants offering advice across
finance, marketing, strategy, and operations (IT). Thanks to regular events, 2PS assemble teams of
trusted experts to help top executives, from small and medium enterprises, analyse, resolve, and execute
business-critical decisions.
Today, 2PS is a community of 500 advisors in 20 countries. Helping more than a thousand businesses
improve their performance. 2PS experts are success generators and a viable alternative to traditional
consulting firms.

Innovation as a core value leads to create a crypto-fund: 4PS

2PS raises fund to assemble a team, structure, and spin-off a NewCo - an investment fund - temporarily
named 4PS - able to take advantage of the 2PS global advisors network and bet on promising unchartered
territories as they were in the 90’s for the emerging internet.
4PS will be a fully-fledged private equity firm (such as the relationship between Bain & Co and Bain
Capital) and will act as a separate company on an everyday basis. The link between the two sister
companies will provide 4PS with a continuous deal flow, connections, leverage, and influence to support
both start-ups and established companies.
4PS will thus be able to consult the experts of the 2PS network to identify new investment opportunities,
obtain opinions on an investment opportunity or to carry out due diligence. Furthermore blockchain may
allow to have a disctinctive and unique way to vote or get orientation of funds collected through an ICO

What is and why an ICO?

500 ICOs have been conducted since a year and a half. 135 for the single month of September. Most
recent results (graph thereafter) confirm an accelerating trend in favor of ICO funding. Last quarter has
seen $1,3 billion raised by this new way to finance companies, start-ups, associations, ideas, projects,
patents, communities … 2017 will reach the magic $5B figure and forecasts for new year are in the range
of $15-25B. This figure has to be compared with a total $30B for crowdfunding and $132B for IPOs in
2016 …
ICOs date back to 2014, but the term and underlying mechanics a still not known by all. First, we need to
dispel a common misconception. The concept of an ICO has almost nothing to do with an IPO (Initial
Public Offering), which deals with raising capital for a company. Two details are responsible for this
confusion: phonetic proximity and the use of ICOs to raise money. However, conditions of
implementation, governance, and the integration of the funds received are all different.
The basic principle of an ICO is as follows. When using the blockchain, a token is manufactured with its
qualities: encrypted, time-stamped, transparent, shared on multiple servers and therefore "tamper-proof"
and "immutable". This token can be of different types depending on the purpose defined by the user of the
blockchain technology. It can be used as a money transfer, the registration of information (e.g. land
registry), the certification of a product (e.g. counterfeiting), the authentication of a painting, the validation
of an action (e.g. ledger or registry book), the triggering of an action (e.g. for heater maintenance
purpose), the use of a car (e.g. sharing or collaborative economy), etc.
Some tokens can be traded on a market: they can be bought, sold, stored ... They have a market value in
addition to their use value, similarly to raw materials such as gold or silver. For example, if the token
represents a unit of energy produced by a photovoltaic installation and the blockchain age has been made
to certify that this token is equal to one kWh, this token, or crypto-kWh, can be traded at 0.15 euro on the
Canadian electricity market. For other tokens, use value can be strong with market values close to zero.
For example, a boiler with its information linked to the blockchain, issuing a token to a maintenance
company, when a temperature or pressure alarm is triggered, has very little market value, yet real use
value for the maintenance company.
An ICO consists of floating the tokens produced by a company instead of its shares as it is done for an
IPO. This may be surprising, but this process can lead to raising a lot of money.

Is an ICO then simply a new way of crowdfunding?

The notions are very distinct with nevertheless some overlaps. Looking at the differences between the two
gives us a good understanding of how an ICO really works:
• Usual crowdfunding platforms do not accept crypto-currencies like Ether and Bitcoin (and thus
deprive themselves of the availability of +$180 billion monetary supply)
• ICOs provide tokens that can be valued over time (unlike a pre-purchase of products or services)
• There is no need to free or market all tokens, therefore some or a large chunk of them can be kept
in the safe for later use when the token will have increased its value.
• The amounts of money to be raised with an ICO a several magnitudes higher than through
traditional crowdfunding that makes it a viable solution to finance global governance projects,
and these amounts are increasingly exponentially.
Since the emergence of the wave, some historical funds, mainly “West Cost American”, have created
dedicated VCs in order to bet on this new dynamic and promising sector.

Is there room for a new animal, let’s call it “crypto-fund”?

Awareness of ICO phenomenon raised suddenly in June when some high profile ICOs have been done
both in terms of money and speed: $30Mio in 30 seconds was a large sound with many echoes in the
press. Since then, a lot of
VCs and Funds have focused
their attention on
understanding the waves and
underlying trends at work.
Some charts and analysis
brought them more meat and
substance to quantify the
nature of the disruption like
the one beside.
Pierre Paperon has been
requested for meetings and
conference to explain the
functioning and prospective
view on this becoming hot subject both in terms of disruption and potential short cuts to funding for any
start-up in early stage and even grown-up for A or B funding series. Obviously blockchain is at first sight
very different from other technology which can be understood promptly, at least on the surface.
Blockchain requires
The need for a specific investment vehicle emerged at that time, a vehicle designed for investors that feel
the power of the new technology but do not have proper or in-depth knowledge to find a way to do so.
This new fund, let’s call it crypto-fund, could offer investment, eventually blockchained to be in line with
the “eat your own food” rule, through the emission of tokens which will be shares of the global fund. For
example, if the fund needs to collect $50mio, a global volume of 200 millions tokens could be issued and
50 millions offered to the market with an entry price of $1.
The additional distinctiveness brought by 2PS to this crypto-fund
2PS has a neat singularity regarding the blockchain technology and underlying philosophy: it’s highly
decentralized. In fact, it’s a new breed of distributed consultants which has emerged 3 years ago and has
reached an amazing number of 500 consultants around the world, independent but nevertheless well
connected to each others to hunt in packs. Cities are opened one after another and rapidly spreading all
over the world. In a nutshell, 2PS is homothetic to blockchain and well fitted with companies acting in
this new sector.
In addition to this native fit, 2PS has the ability to provide consulting help to company in which the
money will be invested: strategy, communication, sales force management, web design, product
marketing … are every day work for the network. Obviously, some help will also be brought to conduct
an ICO for the company if the opportunity is there.
Some thoughts are underway at 2PS to envision a partial payment of consultants with tokens from the
funds to act as a bonus earned if success is reached but also as cement for the collective action done every
day of the year by individual consultant acting collectively.

Two-stage process to launch the 4PS crypto-fund

1st stage: Pre-ICO/2PS offers to early investors X% of its share to fund the project
As discussed with interested investors, launching an ICO on such a new basis required careful preparation
and some funding estimated to $5 millions in order to
• define crypto-fund governance,
• select sectors and functions to invest in,
• chose mix of geo play,
• take or not the options
• select balance of liquidity events allowed by token sells,
• define reward systems for consultants as well as entrepreneurs …

2nd stage: preparation and launch of

the ICO to raise the money needed
and creation of 4PS crypto-fund
The preparation and the launch of an
ICO could be charted as follow. It’s a
mix of different activities ranging from
marketing strategy to token design and
site build-up with a strong emphasis put
on security with extensive pentesting of
online products and services.

Obviously, a part of this time frame will

be used to finalize governance of the
fund as mentioned above as it will a key part of the value proposition embedded in the token for the ICO.
Helicopter view of global process
Key figures for the pre-ICO and ICO
The purpose of the pre-ICO is to raise a fair amount of funds to prepare an ICO and support 2PS
development and aggressive growth strategy both in Canada and new countries.

ICO will be conducted with a three-pronged strategy

1. Raise a reasonable $20 millions to initiate first investments in targeted sectors or companies
during the interim and preparation phases
2. Build a reserve of tokens to manage future needs for investments
3. Acquire the ability to manage token price and evolution (by buying or releasing tokens from
reserve).
The amount of tokens chosen for the ICO is in line with current best practices for an ICO. A two low
price send a poor quality or cheap service image. A too high price make it difficult to convert and
evaluate properly the size of the investment. Here, obviously, the ICO community of investors will seek
diversification for their portfolio and new blockchain investors will size the opportunity to bet on a very
innovative business model combining a new breed of consulting with new technologies applications or
usages.

Additional innovations potentially included in the crypto-fund

In addition to already intense innovation brought by the approach mentioned above, the team is thinking
of pushing the envelope one step further on different grounds.
• Consider tokens as stock-options and reward employees in funded company with them.
• Think of an automatization process to “ICO” funded companies in order to leverage blockchain
expertise and functionalities
• Settle new grounds of transparencies for fund management by providing real time value and
usage of funds collected and used (nature of token made by blockchain)
• Through ICO publicity, attract and build a pool of entrepreneurs willing to mix consulting and
entrepreneurship without having the resources or simply the guts to take the plunge (mentoring
like direction)