BUSINESS FINANCING ECOSYSTEM

Debitum Token (DEB) Initial Coin OfferingRound B: January 25 – February 25, 2018

TRUSTED, DECENTRALIZED AND TRULY GLOBAL

Why Debitum Network?

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A solution for huge markets that are currently

underserved

Developed by a strong team with diverse

experience

Creating a self-sustainable ecosystem with a sound

token model

Executive summary

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▪ Debitum Network is designed to create access to funds for numerous underbanked small businesses in the world.

▪ It also allows investors worldwide to invest in loans directly, i.e. bypassing traditional intermediaries such as banks or investment funds.

▪ Debitum Network is a blockchain-based solution to connect multiple parties, performing different steps of a lending process, includingrisk assessment, insurance and debt collection, in a single, transparent, trust-based and easily accessible ecosystem.

▪ Founders of Debitum Network aim to launch the solution in up to 50 markets in order to make a truly global impact.

▪ Once established globally, the Network shall connect enough members to develop further in a self-sustained way.

▪ Eventually, Debitum Network shall operate independently of any core developers or owners of the solution.

▪ DEB tokens will be received in exchange for services provided by members of the ecosystem in each step of lending process. They willserve as a means for borrowers and lenders to use the system regardless of the currency in which they lend or borrow.

▪ The tokens will also serve as a guarantee to ensure the delivery of the service by each participating party. They will trigger smart contractsdesigned to objectively evaluate the performance of every service provider, thereby creating motivation and trust within the ecosystem.

▪ The limited supply of tokens is issued and no further minting or mining of them will be possible. Whereas the demand for DEB tokens shallgrow as Debitum Network expands, the turnover of loans increases, and more parties offer services within the ecosystem.

The solution’s self-sustainability

The use of a token

The idea

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$ 2.6 trillion 200 million businessesThe demand for credit by small and medium enterprises in developing countries that is not met

The number of small and medium sizeenterprises that are either unserved orunderserved by financial institutions

Credit gap in developing economies

Market potential

Asia

Central & South America Australia & Oceania

Africa

Middle East

Central & Eastern Europe

27m

28m

0.4m

132m

9m

3m

$620 bn

$190 bn

$338 bn

$931bn

$297 bn

$2.6 bn

Credit gap, $ billion

# of SMEs lacking credit

▪ Debitum Network seeks to address theneeds of small and medium-sizedbusinesses, particularly in developingcountries, that lack access to credit dueto flaws of the current financial system.

▪ The data compiled by the World Bankreveals a huge financing gap that is stillnot filled by neither traditional banksnor alternative finance providers.

▪ Due to their size and risk aversionunderpinned by strong regulation,traditional banks prefer larger clientswith lower credit risk, and overlookyoung, small companies.

▪ The alternative financing industryplayers are growing fast but are stillnot able to serve much of the demanddue to limitations for their expansion.For example, they have to set up localoperations in each market, whichrequires resources and time.

▪ Debitum Network applies blockchaintechnology to overcome these barriersand to create a global ecosystemconnecting small businesses to globalsources of capital.

Data sources: SME Finance Forum, The World Bank

Key principles of Debitum Network

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Community-driven decentralization

Hybrid connecting crypto and fiat

Trust empowered by blockchain

▪ Debitum Network communities willunite service providers from differentlocations worldwide based on their fieldof expertise (e.g., risk assessmentcommunity, debt collection community).

▪ The formation of such communitiesdecentralizes the lending process andthereby eliminates dependency on anysingle financial institution.

▪ Communities also allow for a fast butsustainable global expansion – aspecialist from anywhere in the worldcan join the community to provideservices within the network.

▪ Communities will have leaders that willbe motivated to develop the communityand ensure quality of its services.

▪ Lenders and borrowers in DebitumNetwork will invest and receive funds intheir operating currency – at presentthese are mostly fiat.

▪ The network will include fiat facilitators,a role designated to take care of all fiattransactions and make necessaryrecords on the blockchain using smartcontracts.

▪ Regardless of the currency used toinvest or borrow, the parties will useDEB tokens for services provided in thelending process within the ecosystem.

▪ This approach allows Debitum Networkto be operational from day one anddoes not limit access to funds tobusinesses based on their currency.

▪ Each transaction (i.e., each activity) inDebitum Network will automaticallytrigger Trust Arbitrage smart contract.

▪ Trust Arbitrage smart contracts will‘collect’ records on the blockchain andwill generate objective trust rating foreach counterparty in the ecosystembased on their past performance.

▪ Trust rating can define availability, price,or priority for further actions withinDebitum Network to promote the bestperforming members of the ecosystem.

▪ Trust ratings will allow investors toevaluate the trust level of the potentialborrowers, as well as both investorsand borrowers to choose reliableservice providers.

Economy of DEB Token

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Value exchange role: payment for services in the ecosystem

Toll role: service providers’ “skin in the game”

Pure utility token

▪ DEB tokens will be primarily used by borrowers to pay for services provided by theecosystem members during the financing process, e.g. for verification of loan application orcredit risk evaluation.

▪ Investors will also use DEB tokens to get services on the ecosystem, e.g. to insure a loan orportfolio of loans.

▪ Counterparties providing services will be required to deposit a small portion of their tokensearned as a guarantee for delivery of future services.

▪ Token transactions will trigger Trust Arbitrage smart contracts, which are designed to createtrust and performance incentive for each member of the ecosystem.

▪ A limited amount of DEB tokens was generated during the Token Generation Event(crowdsale round A). No further minting or mining of the tokens will be possible, whichmeans that the token supply is fixed.

▪ As Debitum Network expands and incorporates more and more borrowers, investors andservices providers of the lending process, the token demand will increase, which, given thefixed supply, will rise its value. In other words, DEB token is designed to increase in value asactivity within Debitum Network grows.

▪ Debitum Network model does not permit burning of tokens in any situation, i.e. it isdesigned as a pure utility token.

WHY NOT JUST ETHER?

Independency of the ecosystem

▪ The use of own token ensures thatthe value of the token is determinedby the activity within the Networkand not by any external force.

Better control of the token

▪ The creation of own tokens allows todevelop smart contracts with customproperties and set rules to ensureclear token flow.

Technological flexibility

▪ With own tokens, Debitum Networkis not tied to Ethereum platform andhas more flexibility to adopt changesin technology; it will be ready tomigrate to a more advancedinfrastructure in case it is developed.

More space for legal compliance

▪ Ether and some other cryptos mightbe officially recognized as currenciesby many countries, which could resultin more complex legal compliancerequirements. Use of own tokensmitigates these potential legal risks.

Debitum Network MVP

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▪ Debitum Network has alreadylaunched a functional MVP, which

was developed based on actual

financing requests from businesses.

▪ This MVP in essence is an alphasolution for a "secondary market" on

Debitum Network.

▪ Current MVP indicates certain partsof the final product, in particular

linked smart contract architecture.

▪ In addition, Debitum Network teamhas already started working on

integral exchange and is developing

other beta-like functionality.

▪ MVP demo can be accessedusing the link below:

MVP

Debitum Network vs. other fintech ICOs

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A lending platform which allows borrowers to use their

blockchain assets as collateral for cash loans

Peer to peer lending platform which runs on the Ethereum blockchain and uses digital

tokens as collateral

A decentralized lending ecosystem providing access to funds for underbanked small

businesses

Invoice financingBusiness and personal loans

with crypto collateralBusiness and personal loans

with crypto collateralAny type of business loans, with

different types of collateral

The idea

Financing product

Markets The UK Global Global Global

Token sale Closed on 06/24/2017 Closed on 08/15/2017 Closed on 12/09/2017 Ongoing (Round B)

ROI since ICO 20’824% 1’335% 1’663% n/a

Current Market Cap* $1.9 billion $688 million $308 million n/a

A smart contract invoice finance platform which uses tokens pegged to fiat currencies for

flow of funds

▪ A number of successfully completed ICOs have presented blockchain-based lending solutions. Yet, in most cases, their market reach is limitedto borrowers or investors already holding blockchain assets, which limits their scalability at present and in the immediate future.

▪ In comparison, Debitum Network addresses a large market of underbanked businesses in developing economies, and can serve their needsregardless of their currency choice or available collateral.

▪ Besides, in contrast to other blockchain-based lending platforms, Debitum Network incorporates provision of lending-related services bydifferent counterparties, thereby creating a truly decentralized and valuable ecosystem.

▪ The table below shows how Debitum Network compares with the most prominent ICOs in the financial sector.

*As 01/12/2018

Background for setting up Debitum Network

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Established in Lithuania in 2015,

Debifo is now one of the leading

alternative financing platforms for

SMEs. In 2016, it was recognized

as a Financial Service of the Year.

▪ The founders of Debitum Network have solid expertise in bothfinancial and technology sectors.

▪ Together, they have already established a successful invoicefinancing company and an IT services company, and canleverage this experience when creating a lending platformbased on the currently most prominent IT solution - blockchain.

Founded in 2012, one of themost innovative IT companies inNorthern Europe, providing highquality IT services to both thepublic and private sectors.

2015.01. Founded DEBIFO, an alternative finance provider

2016.01. DEBIFO loans listed on Mintos p2p finance platform

2016.10. Reached investment agreement with a private debt fund MUNDUS

2017.02. Envisioned Debitum Network

2017.07. Expanded core team with business and technology advisers

2017.08. Established global business development team

2017.09. Built and deployed MVP version on Ethereum Ropstenblockchain

2017.09. Attracted first counterparties of the ecosystem

2017.10. Development of the Debitum Network community

2017.10. Incorporation of Debitum Network

2017.12. Crowdsale Round A (Community Round): $1.2 million raised

2018.01.25-2018.02.25: Crowdsale Round B

Companies set up by founders of Debitum Network:

2015 - Q2 2017 Start of the Company

Q3 2017Creating Proof of Concept

Q4 2017Raising funds via Crowdsale

€ 25 million 3-year asset turnover

€ 3 million Current asset portfolio

151’000Total project hours

6.5 yearsAverage experience

per specialist

DEBITUM NETWORK TIMELINE

The core team

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Mārtiņš LibertšCO-FOUNDER, VISIONARY

CEO of INNTEC, IT solutions developer in the Baltics

Technology entrepreneur, public speaker and business coach

10+ years of experience in IT

7+ years of experience in top management positions

Justas Šaltinis, CFACO-FOUNDER, FINANCE

CEO of Debifo, invoice financing provider for small businesses

7+ years of experience in corporate finance/investment banking

Solid background in capital markets and asset management

Märt LumeLEAD PRODUCT MANAGER

Was the first employee for co-founders of what is now known as Slack, a digital workspace tool with 1M daily active users globally

10+ years of experience in product management and design

Donatas JuodelisCO-FOUNDER, PARTNER RELATIONS

Serial entrepreneur with background in law and investment management

5+ years of experience in business development

Mažvydas Mackevičius, Ph.D.CHIEF TECHNOLOGY OFFICER

Certified systems architect with expertise in blockchain and IT solutions for financial sector

10+ years of experience in software development

▪ The founders of of DebitumNetwork are passionate

entrepreneurs with solid

background in their fields.

▪ In addition to core management,Debitum Network has set up a

team of developers and business

development managers, who are

already working on the

deployment of the platform.

▪ Debitum Network aims to keepits team small, consisting mainly

of developers and country

managers for the launch of the

platform in different markets.

▪ Over time, Debitum Networkshall be able to operate

independently of the initial

development and management

team.

Monika VarkalytėCHIEF MARKETING OFFICER

Certified Usability Analyst (CUA) and User Experience Analyst (CXA)

10+ years of experience in IT sector marketing

Advisors

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Eyal HertzogCRYPTO ADVISOR

Product Architect and Co-founder of Bancor

Co-founded several successful technology companies in Israel

20+ years of experience in venture-backed technology entrepreneurship

The Hon Richard EvansINVESTOR RELATIONS ADVISOR

CEO and Founder of ACE Funding, Balmoral Global Capital and founder of Lithuania GB

Professional networker, dealmaker and entrepreneur with more than 25 years of experience

Andrius BogdanovičiusRISK ASSESMENT ADVISOR

General Manager, Chairman of the Board at Creditinfo bureau (Lithuania)

Chairman of financial service companies association FINCO

Member of supervisory boards of Creditinfo bureaus in Latvia and Estonia

Tadas LangaitisINVESTOR RELATIONS ADVISOR

Member of Lithuanian Parliament, angel investor and venture philanthropist

Has been a partner at investment bank and investment funds, co-founded a number of successful companies

Lex SokolinFINTECH ADVISOR

Global Director of Fintech Strategy at Autonomous Research

Lex is a Fintech entrepreneur, futurist and the author of the keystone analysis “Token Mania”

▪ Debitum Network has attracted asolid advisory board of

experienced professionals. Part of

them are presented on this page.

▪ All members of the AdvisoryBoard have previously co-founded

successful companies and served

in executive roles. Their

comprehensive knowledge and

expertise in business development

and financial services will be a

valuable element in fostering the

growth of Debitum Network.

▪ Several board members havebeen highly involved in

developing financial technologies

and already have accumulated

experience in issuing crypto

currencies.

▪ The remaining members of theAdvisory Board have been

entrusted to advise on legal

matters, international business

development and marketing.

Michael RicksFINANCIAL SERVICES ADVISOR

Serves in executive & non-executive roles in aviation, high tech/clean tech and financial services sectors

20+ years of experience providing strategic advice to corporations, PE, family offices and growth companies

DEB token crowdsale

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39%: Stage 1 (ongoing) 15% 15% 10%CROWDSALE (No lock-up period) RESERVE TEAM’S SHARE

(Vested for 12 months)

SUPPORTERS’ SHARE (Vested for 6 months)

KEY TERMS:

Name Debitum (DEB)

Blockchain Ethereum-based (ERC223) token

Total supply 400 million tokens

Deposit Method Ether (ETH)

60% FOR SALE 40% NOT FOR SALE

ROUND B

Round B Starts January 25, 2018 at 15:00 GMT

Round B Ends February 25, 2018 at 15:00 GMT

Round B cap 20,000 ETH

DEB TOKEN DISTRIBUTION

Note: DEB tokens will be instantly traded after the crowdsale on Debitum Network internal exchange. The team is in talks with a couple of external exchanges with a goal to get listed by the end of the crowdsale.

21%: Stage 2*

* All DEB tokens were generated prior to the Token Generation Event. 156,500,000 tokens are to be sold during Stage 1 for the NetworkDevelopment in the first 15 countries. The remaining 83,500,000 tokens available for sale will be locked-in until Stage 2, when Debitum Networkwill set for expansion in additional 35 markets. For more detail, see the Debitum Network Token Generation Event Document.

Up to 500 ETH raised: 7,800 DEB/ETH

Up to 2,000 ETH raised: 7,500 DEB ETH

Up to 6,000 ETH raised: 7,150 DEB/ETH

Up to 14,000 ETH raised: 6,850 DEB/ETH

Up to 20,000 ETH raised: 6,500 DEB/ETH

Token pricing

Token price is structuredin steps, where each newprice level is establishedafter the completion ofthe previous step.

Use of proceeds

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20%

10%

29%

33%

4%4% 1%

PLATFORM DEVELOPMENT

NETWORK LAUNCH MANAGEMENT AND ADMINISTRATION

COUNTRY-LEVEL BUSINESS DEVELOPMENT(15 countries)

REGION-LEVEL BUSINESS DEVELOPMENT

ACCOUNTING & LEGAL

INVESTOR RELATIONS, CUSTOMER SUPPORT

AUDITING

▪ The following graph displays thebreakdown of use of proceeds for

Debitum Network development in

Stage 1, following a successful

completion of the crowdsale.

▪ In the graph, network launchmanagement and administration

include costs for the general

management, HR management and

necessary administrative expenses.

▪ Country-level business developmentincludes onboarding service providers,

setting up communities, attracting

borrowers, etc., in each country.

▪ Region level business developmentstands for onboarding regional

partners and coordination of activities

within the region (e.g. Southeast

Europe, CEE).

▪ The use of proceeds is outlined for 5years, afterwards the operations of the

platform shall be self-sustaining.

Roadmap

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Year 1 Year 3 Year 4

END OF ROUND B OF THE CROWDSALE

SETTING UP INTERNAL EXCHANGE

DEBITUM NETWORK 1.0 LAUNCH

EXPANDING DEVELOPMENT TEAM

ENTRY TO +7 CEE & BALKAN MARKETS

ENTRY TO 8 CEEMARKETS

PRESENCE IN 50 MARKETS WORLDWIDE

▪ Debitum Network has already raised $1.2 million, sufficient for initial product development and launch in the first market.

▪ Upon successful completion of Crowdsale Round B, Debitum Network will pursue Stage 1 expansion: setting up the ecosystem in 15countries across Central and Eastern Europe (CEE) and Balkan region.

▪ The Stage 2 represents expansion into 4 major geographical regions outside Europe. Overall, Debitum Network seeks to establishoperations in 50 countries with the worst indicators for access to credit.

PRESENCE IN 15 EUROPEAN COUNTRIES AND

6 KEY REGION MARKETS

SIGNING UP THE FIRST MEMBERS OF THE NETWORK

SETTING UP OPERATIONS IN FIRST COUNTRIES

ENTRY TO BRAZIL, MEXICO, THAILAND, SOUTH KOREA

ENTRY TO INDIA AND CHINA

PRESENCE IN 15 COUNTRIES

IN EUROPE

ENTRY TO 29 MARKETS IN ASIA, MIDDLE EAST, AFRICA, CENTRAL & SOUTH AMERICA

Year 2

Stage 1 Stage 2

Find out more

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https://debitum.network/

Whitepaper TGE Document

https://debitum.network/whitepaperhttps://debitum.network/whitepaper