DADI

DADI enters the market of cloud services providers. CAGR for Public Cloud Services market is expected to be around 16% in 2017-2020, according to Gartner. However, the part of the market that DADI aims to enter- Cloud Application Infrastructure Services (PaaS) – has the smallest share of Worldwide Public Cloud Services market. It will only have around 4% of the whole market by 2020. More than 50% of the cloud providers market is taken by large players, such as Amazon, Microsoft, and Google, according to Gartner. Also, DADI has direct competitors in the market of application infrastructure services with working products, such as Readz, woopie, and Zmags. Blockchain in API economy is on its rise and will reach plateau in the next 2-5 years, according to Gartner.

DADI aims to create a decentralized web services cloud platform that will help clients to build and grow digital products. DADI technology has been in active R&D for four years and some of its Web Services are already live (as of 9th January 2018): 5 out of 10 proposed services (API, CDN, Publish, Queue, Web) have already been developed and are available for use. DADI+Limited has existing revenues totaling $165,000MRR(USD). As DADI will also create a built-in exchange, allowing Consumers to purchase services in their currency of choice, the security risk of exchange has to be considered as exchanges are the main target of hacker attacks in crypto world. The high level roadmap is given in WP. The product does not have competitive advantages over similar products, such as Woopie or Magloft.

Consumers will be charged fees for their usage of DADI Web Services. The biggest slice of those fees will go to Hosts, with a percentage of every Host’s income paid to the Gateways that they are attached to. A smaller percentage is retained and dedicated to supporting the underlying connectivity of the network (the Ecosystem fund). A similar percentage is paid to the DADI team for the ongoing development and iteration of the platform. Operating expenses for the ongoing development and maintenance of DADI are covered by the revenues and capital holdings - accumulated during the Crowdsale - of DADI+ Limited. Revenue is made up of direct support income and tokens accrued as a share of DAO revenue over time. DADI's main line of expenditure is people, accounting for 66% of expenditure today and expected to grow towards 80% over the first three years post Crowdsale as the team is built from 18 towards 100 people. Tokens awarded as part of the pay package for new employees will be purchased from the market. This will have the effect of supporting exchange prices before the network moves to full live status. DADI’s second largest expenditure line is marketing, which will be activated in all key markets ahead of network launch. The exact fee level is not given in WP and so the commercial viability of the platform is not clear.

There is no minimum level of contribution during ICO. As DADI will sell 60% of tokens during pre-sale and public sale, the company valuation will be around $1.7M in Soft Cap scenario and $50M in Hard Cap scenario. The soft cap valuation is below the median US software companies seed stage post-money valuations, while hard cap is 6X times above this figure. DADI will reserve 20% of tokens as a bonus for the core team using 4-year vesting scheme. Also, 10% of the sold tokens will go directly to founders of the project. All this suggests that the size of the bonus for the team is quite large. The given split of anticipated expenditures only gives percentage terms, not the real figures.

The CEO of DADI has strong executive experience in digital marketing. He successfully launched Airlock Ltd. That focused on digital brand strategies development. Head of PR& Marketing at DADI - Christopher Mair – has worked at Airlock as head of strategy for 7 years and has strong experience in marketing prior to joining Airlock(Diesel Inc.). The CTO of the project- James Lambie - also worked at Airlock before DADI and worked as a software developer at BBC, developing Top Gear website back in 2008-2009 and working at Barclays before. However, James does not have previous Blockchain experience and there is no such a specialist in the team. All of the core team members are located in London. The advisors board is not large and consists of only one person – Robert Belgrave – founder of a web hosting company. Therefore, the advisory board does not have strong experience in related areas.