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Invest in Phaze

Making cryptocurrency instantly spendable at some of the world’s biggest retailers

  • $375,000Amount raised
  • $10,000Minimum
  • $18,000,000Valuation cap

Purchased securities are not currently tradeable. Expect to hold your investment until the company lists on a national exchange or is acquired.

Phaze is accepting investments for an Offering under Regulation D. The contents of the Highlights, Term Sheet sections have been prepared by SI Securities, LLC (“SI Securities”) and shall be deemed broker-dealer communications subject to FINRA Rule 2210 (the “Excluded Sections”). With the exception of the Excluded Sections noted above, this profile contains offering materials prepared solely by Phaze without the assistance of SI Securities, and not subject to FINRA Rule 2210 (the “Issuer Profile”). The Issuer Profile may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. These statements reflect management’s current views with respect to future events based on information currently available and are subject to risks and uncertainties that could cause the company’s actual results to differ materially. Investors are cautioned not to place undue reliance on these forward-looking statements as they are meant for illustrative purposes and they do not represent guarantees of future results, levels of activity, performance, or achievements, all of which cannot be made. Moreover, no person nor any other person or entity assumes responsibility for the accuracy and completeness of forward-looking statements, and is under no duty to update any such statements to conform them to actual results.


Company Highlights

  • Relationships with over 1,000 of the world's leading retail brands including Amazon, Starbucks, and Uber.
  • Received $400,000+ from strategic investors including Komodo Platform and Executives from Techstars and Polymath.
  • Successfully launched beta platform with over $50,000 transacted.
  • Advisors include Cole Diamond of Coinsquare, Sunny Ray of Unocoin, and Kesem Frank of AION (advisor agreements registered under subsidiary, Phaze Global Inc.)

Fundraise Highlights

  • Total Amount Raised: US $375,000
  • Total Round Size: US $2,500,000
  • Raise Description:  Seed
  • Minimum Investment:  US $10,000 per investor
  • Security Type:  Crowd Note  (SWIFT)

Tiered Valuation Cap

  • Valuation Cap:  US $14,400,000 before Mar 30, 2019
  • Valuation Cap Schedule: See Full Schedule

Phaze enables growth of the cryptocurrency industry by working with some of the world's largest retailers, powering some of the most trusted exchanges, and rewarding users for transacting in cryptocurrency.


Over $100B worth of cryptocurrency is held in millions of wallets and often cannot be used like traditional currency. To spend cryptocurrency quickly today, you have to pay high costs up to 20% from Bitcoin ATMs to withdraw cash. Or risk waiting up to 8 business days, but save money going through a cryptocurrency exchange.  

We believe Phaze makes transacting with cryptocurrency cheaper, faster, and more secure than using fiat or a credit card.

How? Using our intelligent cryptocurrency converting technology and relationships forged with over 1,000 of some of the world's biggest retailers from 55 countries, we receive discounts on transactions using their digital gift cards as payment.

Combined, we aim to obtain excellent margins (up to 40%) on each micro-transaction and pass it onto the user as cash-back, inspiring future transactions.  

Now, with Phaze, everyday transactions at retailers such as Uber, Starbucks, and Amazon can be more cost-effective using cryptocurrency than fiat currency or a credit card. 

Product & Service

How Consumers use Phaze:

  1. You transfer in cryptocurrency to the Phaze wallet.
  2. You choose from one of the 1,000+ online or in-store merchants.
  3. You input your total bill or desired fiat amount and currency.
  4. We instantly provide you with a digital fiat prepaid charge card for that value.
  5. You use the charge card to pay online or in-store.

How Phaze powers new cryptocurrency exchange 'Withdraw to Digital Gift Cards' feature:

Problem 1: Setting up fiat banking at a cryptocurrency exchange is expensive and takes months to setup.

  • Phaze can be integrated within hours providing a fully operational withdraw option, supported in 54 countries.

Problem 2: Setting up fiat banking has high transaction fees.

  • We charge exchanges 0% per digital gift card withdraw.

Problem 3: Setting up fiat banking in every country requires licenses and relationships.

  • We are compliant with local regulation in all of our supported countries with 37 currencies.

Problem 4: Exchanges have little control over ‘when the fiat will be cleared and in a users bank account’.

  • Users instantly receive their prepaid digital gift card.

How Phaze powers a new revenue stream for Developers building on a Token/Protocol:

Problem 1: ‘We need developers to build dApps on our token/protocol!’

  • When the Phaze API is integrated directly to a protocol and a developer builds with it. Everytime cryptocurrency is exchanged for a digital gift card through the Phaze API we can reward the protocol, developers, or users with additional native tokens or credit for future digital gift cards.

Business Model:

We leverage our intelligent cryptocurrency phase change technology to convert micro-transaction cryptocurrency amounts to fiat. The system is designed to use arbitrage and real-time data to capture revenue, especially in times of market volatility. We target returns between 2% and 20%, subject to market risk. We also make between 2-20% through digital gift card margins based on two factors:

  1. Monthly Volume. Example: If in month 1 we do $300,000 at Air Canada with a 7% discount, which is $50,000 over their threshold of $250,000 at 7%, we will get 8% for the next month.
  2. Brand. Example: Large brands with thin margins like Walmart offer 0.5 - 2% discounts. Whereas high margin, less popular businesses like restaurants that compete on retention provide larger discount ranges: 10 - 20% based on the previous month's volume. 

Team Story

Phaze exists because Kyle Collier lost 5,710 Bitcoin, worth over $20,000,000 today. 

Kyle had received Bitcoin from friends to 'split bills' for group meals with friends during his engineering undergraduate degree at the University of Waterloo back in 2011. 

These friends were international students that taught their parents to send them Bitcoin because it was cheaper to internationally remit than Canadian dollars. 

When we ate out, he would pay the bill and they would send him Bitcoin to cover their portion of the bill. Over some time, he accumulated roughly $2,000 worth of Bitcoin in a cryptocurrency exchange known as Mt. Gox.

After Mt. Gox was hacked and Kyle lost all this Bitcoin, he realized that if cryptocurrency was spendable, he never would have had the Bitcoin to start with and wouldn't have lost it. 

Over 10 years ago cryptocurrency was not easily spendable and it still is not easily spendable today. 

Founders and Officers

Kyle Collier graduated as a Systems Design Engineer from the University of Waterloo. He has been interested in blockchain since 2011 and advises venture funds and investors in the space. He has founded 3 companies and exited two of them. He also has nearly 10 years of experience building teams, cultures and launching social and mobile payment companies, including BoothPass, Eve Tab and The Noq.

Kyle is a prominent voice for startups in the Toronto tech scene, has helped launch world renowned startup tech accelerators like Techstars Toronto, and helped manage growth for billion dollar companies such as Ritual. Most recently he has volunteered to lead the world's first Founder Institute Blockchain Accelerator in Toronto in collaboration with Decentral and Anthony Di Iorio (Co-founder of Ethereum, Founder and CEO of Jaxx Wallet and Decentral). 

Kyle Collier

CEO

Kyle Collier graduated as a Systems Design Engineer from the University of Waterloo. He has been interested in blockchain since 2011 and advises venture funds and investors in the space. He has founded 3 companies and exited two of them. He also has nearly 10 years of experience building teams, cultures and launching social and mobile payment companies, including BoothPass, Eve Tab and The Noq.

Kyle is a prominent voice for startups in the Toronto tech scene, has helped launch world renowned startup tech accelerators like Techstars Toronto, and helped manage growth for billion dollar companies such as Ritual. Most recently he has volunteered to lead the world's first Founder Institute Blockchain Accelerator in Toronto in collaboration with Decentral and Anthony Di Iorio (Co-founder of Ethereum, Founder and CEO of Jaxx Wallet and Decentral). 

Shuangchen Song

Lead Engineer

Prior to Phaze, Shuangchen worked at GE Energy where he designed and validated real-time embedded systems used in power/electricity systems. He also has experience as a technical consultant in the field of web/mobile development. Shuangchen also worked on an academic research project on machine learning and artificial neural network with faculty members from the University of Toronto.

In his free time, Shuangchen studies the tariff and fare rules of airlines and provided travel consulting services.

Shuangchen holds a BASc degree in Electrical and Computer Engineering from the University of Toronto, with a near perfect GPA. Shuangchen has also self learned many advanced subjects in economics and finance.

Shuangchen Song

Lead Engineer

Prior to Phaze, Shuangchen worked at GE Energy where he designed and validated real-time embedded systems used in power/electricity systems. He also has experience as a technical consultant in the field of web/mobile development. Shuangchen also worked on an academic research project on machine learning and artificial neural network with faculty members from the University of Toronto.

In his free time, Shuangchen studies the tariff and fare rules of airlines and provided travel consulting services.

Shuangchen holds a BASc degree in Electrical and Computer Engineering from the University of Toronto, with a near perfect GPA. Shuangchen has also self learned many advanced subjects in economics and finance.

Key Team Members

Bruno Santiago

Director of Design

Guy Pavlov

Senior Software Engineer

Yaopeng Liu

Lead Front-End Engineer

Ksenia Vendrova

UX/UI Designer

Emily Sit

Operations and Partnerships

Notable Advisors & Investors

Kalman Gabriel

Investor, Lead Business Development at Coinsquare

Sunil Sharma

Investor, Director of Techstars Canada

Komodo Platform

Investor, Komodo

Cole Diamond

Advisor, Coinsquare CEO

Kesem Frank

Advisor, Cofounder of Aion.Network

Gil Penchina

Advisor, Lead Angellist Crypto Syndicate

Pavel Bains

Advisor, Founder & CEO of Bluzelle

Sunny Ray

Advisor, Mentor, Cofounder of Unocoin Exchange

Simon Dixon

Advisor, Cofounder & CEO of Bank to the Future

Jamie Skella

Advisor, Blockchain Advisor

Adeo Ressi

Advisor, Founder & CEO Founders Institute

Investor Perks

The first 5 investments of $25,000+ will receive $5,000 as Phaze Credit*.

The first 25 investors who invest $15,000+ will receive $2,000 as Phaze Credit*.

The first 50 investors who invest $10,000+ will receive $1,000 as Phaze Credit*.

*Phaze Credit can be instantly used for any digital gift cards on the platform today including: Amazon, Starbucks, American Airlines, Delta Airlines, Air Canada, Hotels.com, Uber, Walmart, Target and many more!


It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.

Frequently Asked Questions

Making an Investment in Phaze
How does investing work?

When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by Phaze. Once Phaze accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Phaze in exchange for your securities. At that point, you will be a proud owner in Phaze.


What is the difference between preferred equity and a convertible note?

Preferred equity is usually issued to outside investors and carries rights and conditions that are different from that of common stock. For example, preferred equity may include rights that prevent or minimize the effects of dilution or grants special privileges in situations when the company is sold.

A convertible note is a unique form of debt that converts into equity, usually in conjunction with a future financing round. The investor effectively loans money to a startup with the expectation that they will receive equity in the company in the future at a discounted price per share when the company raises its next round of financing.

To learn more about startup investment types check out “How to Choose a Startup Investment” in our academy.


What will I need to complete my investment?

To make an investment, you will need the following information readily available:

  1. Personal information such as your current address and phone number
  2. Employment and employer information
  3. Net worth and income information
  4. Social Security Number or passport
  5. ABA bank routing number and checking account number (typically found on a personal check or bank statement)

Because Phaze is offering its securities under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.


What if I change my mind about investing?

Until a closing occurs, you may cancel your investment at any time, for any reason. You will receive an email when the closing occurs and your securities have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page.


After My Investment
How can I sell my securities in the future?

Currently there is no market or liquidity for these securities. Right now Phaze does not plan to list these securities on a national exchange or another secondary market. At some point Phaze may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when Phaze either lists their securities on an exchange, is acquired, or goes bankrupt.


How do I keep track of this investment?

You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement.


Other General Questions
What is this page about?

This is Phaze's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity.


What are the risks of this investment?

This investment is highly speculative and should not be made by anyone who cannot afford to risk the entire investment amount. In addition to these risks, you should carefully consider the specific information and risks disclosed in Phaze’s profile.