CL8 (ASX) Discussion Points

Originally posted by Ildsrud ↑

I would disagree with you FF on FundX in saying it is a "very good business". It is a very good business model, and there are others with near identical business models who are far further advanced (thus giving a good commercial proof of concept). From my understanding FundX hasn't even commenced sales/lending, so I'm not sure on what qualitative factors you can call it a very good business. It does have potential and it's in a hot space which is poorly serviced by traditional players, and the market is highly fragmented, so there is room for more than 1 fintech here. In my view however the incumbent fintechs have made some very good ground the past 12 months so I will be most interested to see how FundX goes. I would also be interested in the depth of industry experience of FundX management, which could play a big part in their success. I'll let you do your own research there.

I think CL8 need to focus a significant amount of its attention on PeerPass, as that is the jewel in the crown here (IMO). If they can successfully develop this in to an industry accepted tool for the Peer2Peer market, then the licensing revenues that may earn could be significant.

Launching 'startups' like DMC, Rentoid and Caravans is great, but to be successful, each requires a highly skilled set of entrepreneurs driving them, a runway for the required cashburn which is inevitable and may last for years. These are a much higher risk/reward play than focusing on the PeerPass technology and licensing that to the P2P market. I think ultimately CL8 needs a balance to hedge its best, so that it can commercialise it's in house tech and generate upside on that front, while also creating their own P2P market disrupters who have the potential to be high growth and high value in their own right.

I know there's lots of emerging P2P players out there and the opportunity to make PeerPass a commercial standard is very real. Let's see what path they ultimately decide to take.

Watching, closely, with interest.

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Tend to agree with lldsrud .

The peer to peer lending thing is specialist and fraught with risk and is not relevant to Peer-Pass so ditch it .

DMC stands out for a couple of reasons :-

- The barriers to entry are quite high ; the facilitator (CL8) has to negotiate with an insurance company .
- Conversely DMC are exposed to the Insurance Company deciding to cut them out or terminate and must have contingencies .
- If DMC have a sliding scale charge structure which combines elements of a transaction fee and a per-diem rate and the overall cost to the customer is not too high then there is little incentive for customers to try and cut DMC out .

DMC exists for several reasons ; to generate revenues , presence and publicity , to establish Peerpass and populate the Peerpass Database .

DMC announced they had recruited a "business development manager" for DMC . Now I don't want to do this person a disservice but DMC is only going to succeed if they are as driven as Chris Noone himself .

Parking and Storage would enhance the value of Peer-Pass but there is no need for them to own these applications themselves .

As lldsrud points out , Peerpass should be the jewel in the Crown . It is a database of trusted customers . Selling access to parts of this database and populating it via licensing to third parties is what excites me .

Chris Noone seems to be a genuine entrepreneur , not just a good talker . The company requires at least one similarly driven person for each division .