DeFi Development (DSDV) Registration Filing summary

Company overview and business model

• Operates a B2B fintech platform using AI to connect commercial mortgage and small business borrowers with lenders, including banks, REITs, and debt funds.

• Revenue is primarily from transaction fees on closed loans, typically about 1% of the loan amount, paid by lenders, borrowers, or both.

• Acquired Groundbreaker Tech Inc. in November 2023, adding recurring SaaS revenue from a platform for capital fundraising and investment administration in commercial real estate.

• Launched Janover Insurance Group Inc. in late 2023 to enter the commercial property insurance market using generative AI and proprietary data.

• Focuses on expanding sales channels, product features, and M&A to drive growth, with a particular emphasis on recurring revenue and high-margin products.

Financial performance and metrics

• Groundbreaker achieved profitability in May 2024 and was profitable for Q2 2024; expected to generate operating margins above 40% in Q3 and Q4 2024.

• Janover Insurance Group received its first insurance commission in May 2024, representing 66% of Groundbreaker's monthly revenue; insurance revenue is expected to grow and may surpass Groundbreaker's by year-end 2024.

• Annual recurring revenue increased by 5% with the addition of Groundbreaker and insurance revenues.

• As of July 31, 2024, 11,182,223 shares of common stock were outstanding.

Use of proceeds and capital allocation

• Net proceeds from securities sales will be used for general corporate purposes and working capital.

• Management retains broad discretion over allocation of proceeds.