Initial Licence OfferingMobileILO.com

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Initial licence offerings, also known as ILOs are a revenue-based form of raising money for seed stage and startup stage firms.

Different from Equity crowdfunding in that the transaction is not considered an investment, but a licence sale, ILOs are available to companies in every country.

B r a n d N e w A p p

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How an ILO WORKS

The ILO is a straightforward intellectual property and distribution rights licence that expires after an agreed period of time or is exchanged for cash under a buy back or equity dependent upon the offering.

Any firm interested in creating an ILO first needs to provide the sale parameters for the licensees to review before they purchase.

These include:> Length of time the sale will last

> Royalty percentage or licence fee that represents the percentage of net sales that the company will set aside after the product is released and the contract has entered its sales year

> Buyback percentage- which represents the total percentage of equity that the company will set aside to compensate the pool of licensees at contract’s end should the company opt to pay the licensees back in equity

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Once the firm has created the sale parameters, they merely need to create a portfolio or listing that explains the product or service that they are creating.

The portfolio should include:> A description of the technology or process that makes the product or service unique> An overview of what the firm is seeking to accomplish with the offering> An analysis of the competitive environment> Some form of media presentation to augment the sales pitch> The total amount of money that is expected to be raised via an Initial Licence Offering

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LICENCE OFFERING

The next step is to create a standard licence contract that contains all of the elements that are to be promised to the licensees. In most commercial iterations of an ILO contract, the intellectual property rights do not include patent or copyright credit or allow the licensees to assign their rights or manufacture unless the company creating the co-creator licence fails to fulfill the terms of the agreement.

After the portfolio is created, the firm can choose to list the offering on its own website or find an ILO Market.

When a purchaser chooses to licence the technology or product, there are several set price options for the signup fee normally available. Each signup fee level generally corresponds to an increased stake as a co-creator. After selecting a sign-up fee, the purchaser then completes the transaction by paying, typically online.

The seller then signs a copy of the contract and sends it off to the buyer for their signature.

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The Contract Per iod

The length of an ILO contract is set at the begining of the offering and can be up to three years.

During this time, the seller can use the money that was deposited as a signup fee to expand the company and fund operations. During the first year of the contract, the seller has no obligations to the buyer other than maintaining the contract.

After the first year, the seller will start to set-aside royalty money from net sales if they have specified that there are to be royalties. The money will be sent on to the buyer on a quarterly basis.

Near the close of the second year, the seller is required to set a date for buyback within the next 12 months. On that date, the seller will pay the buyer back their sign-up fee in either cash or equity.

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Advantages for the SELLER:

> The transaction is a licence sale, not an investment contract, therefore no Regulatory involvement. > The ability to receive funds every two months as they come in, not at the end of your crowdfunding efforts, and not contingent upon whether or not you reach your target

Advantages for the BUYER:

> The ability to promote themselves as a co-creator of the technology> The ability to become a distributor of the product> The ability to start accruing royalties> The right to sell the licence back to the licensor in exchange for cash

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The mobile revolution could not exclude the possibility of conducting an ILO on your mobile device. We are pleased to say it hasn’t. Mobile ILO is a feeder app to a regulated brokerage firm that is conducting ILOs for early to mid stage companies that then list on their own fit for purpose startup stock exchange.

Everything conducted on MobileILO is digitally delivered right from the start and therefore all in one place making it easy to store it, report and more. This is the accelerating evolution of technology, driving business processes that are shifting the way companies function. The need for mobility, in particular, has had a significant effect on all sectors across the board. The concept of business mobility has evolved from a component of individual productivity to team productivity to delivering true business process and re-engineering.

Organizations across all industries are in flux as new technologies both drive innovation and displace traditional ways of operating. Today’s businesses leverage new technology to automate tasks, unlock efficiencies, hasten innovation, and improve collaboration. These aggregate changes are rewriting longstanding business rules.

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Now we enter a phase of the Mobile ILO. Beginning the entire process witha digitally delivered cornerstone sets a new standard on due diligence andfact checking as every single zero and one that was keyed into the systemis recorded, stored, analysed and used in accordance with the rules andregulations and then disseminated to essential and interested parties such as investors and or regulators. Generating data the likes of which has neverbeen seen before.

We no longer go into the office to access our work, we can access work on any device, anywhere. Within five years, Gartner predicts, consumers will use and own more than three personal devices.

We are using mobile devices to do more and more today. A great example of this rise in mobile usage is online shopping, especially over this past Black Friday and Cyber Monday shopping weekend. According to Adobe Digital Insights, consumers spent $1.07 billion via smartphones and tablets: 34 percent more than in 2015. The consumer world is leaning more and more toward mobile experiences to get things done and so conducting an ILO on a mobile device from both sides of the value proposition, makes sense.

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What you will need: - Product/tech or service and why it can be explosive

in a tech/social market

- Demonstrate the more ILO holders the more value is created

- Full description of product

- Market financials

- Market stats

- Terms. Percentages and time scales

- Price

- Qualifiers. (What does the holder need to do to qualify for royalties)

- Disclaimer

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A few key things occurred in mobile that enabled us to do more with our mobile devices:

> Our experiences are synced across devices: notes in Evernote, shopping lists or orders in Amazon, music in Spotify, and movies on Netflix.

> Mobile apps now deliver integrated workflows, making it simpler for us to use mobile devices: Yelp integrated with Maps, Phone integrated as one-touch across apps, and GPS integrated with calendar.

> Banking has truly become mobile, across countries and continents e-banking moved to secure easy to use apps that make all banking easier and on the fly.

And further:

> Sales reps can book business travel through Concur, log deal activity in Salesforce, and submit expense reports without ever leaving a mobile email app like VMware Boxer.

> While helping a shopper in the store, retail workers can scan available inventory across locations, place orders, process payments, email receipts, and ship items from a single app.

> Field technicians can go paperless, using a mobile app to receive assignments, map customer locations, capture signatures, and adjust their schedules on the fly.

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We are building features to host your entire portfolio on your mobile device, share advice and tips, insights, vote for interesting deals and learn new skills. You will even be able to host a part of the business on your mobile device to help advance the business you are invested in and earn from the process. Why not turn your shareholders into sales people for the service or product they are already promoting in the form of an investment?

We are thinking 360 eco system. Use every single thing to the biggest possible advantage to all parties in the value chain, leave nothing out because the tech platforms today allow us to have and do more, so we want it all.

It doesn’t stop there.

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But how far can you go? What are your ambitions? How BIG do you want to be? HUGE?

Only you and your business partners can answer that, but success is all about the foundations, where you start. And it’s in the beginning that getting the right direction makes all the difference. By listing your venture on Mobile ILO.

With MobileILO, the Startup Stock Exchange and The Capital SuperHighway, companies and their licence holders can grow together.

And that’s it! Easy. Done.

A L L I E D S T O C K E X C H A N G E

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