Viewture EIS

This overview is provided to make it easier for you to form your own view about the opportunity. 

What Wealth Club has done: we have reviewed the Company details, gathered information about the management team, reviewed the information provided by the Company and done our own research. Note: this doesn’t constitute an audit. 

What to expect post-investment: the Company should provide bi-annual updates for Wealth Club to distribute to shareholders. The Company may also communicate with shareholders directly, however Wealth Club Nominees, which holds the shares, will be responsible for all corporate resolutions and communications relating to voting and pre-emption matters.

Profitable, fast-growing, data analytics company acquiring rights to future advertising revenues from successful YouTubers in partnership with global investment firm Permira

From Bruce Springsteen to Sting, Bob Dylan and Shakira: blockbuster artists selling the rights to their back catalogues is an established trend in the music industry. The artist receives a lump sum and the acquirer receives any future revenue – from royalties to licensing deals. 

Viewture Limited (“Viewture” or the “Company”) was set up to broadly replicate this tried and tested – and potentially highly lucrative – model in the flourishing sector of digital content, filling a gap in the market. Instead of buying music catalogues, Viewture buys the rights to future revenue from the growing breed of successful digital content creators, e.g. YouTubers with millions of followers. 

YouTubers get finance to invest in new content and develop their audience, whilst Viewture gets the creator’s share of future advertising revenue for an agreed time, typically from adverts playing in their videos. Last year alone, YouTube paid creators $19 billion for their share of advertising revenues. 

To do this, the Company developed proprietary technology, iQuant, which uses data from the likes of YouTube to accurately predict audience viewing numbers and associated revenues and therefore calculate how much to pay content creators. 

In 2023, iQuant analytics predicted viewing numbers with 99% accuracy and advertising revenues with 113% accuracy.

Viewture’s management team has extensive experience in data analytics, underwriting and valuing specialised assets. In his last venture, co-founder and CEO David Page built Marlin Financial Services (Marlin) – a data and risk analytics company that bought non-performing debt – from a startup to a £300 million exit in 10 years.

Viewture is rapidly growing. It has already deployed $32 million, including a flagship licensing deal with Sidemen, Europeʼs largest YouTube brand. Viewture has a $70 million credit facility with global investment firm Permira, giving it the firepower to fund more licensing deals and increase market share.

To date, the Company has been funded by the management team, which has invested £1.2 million, and ultra-high-net-worth investors.

Now, to keep pace with demand, Viewture is seeking to raise up to £1 million from Wealth Club investors under an Advance Subscription Agreement (ASA), expected to be EIS qualifying. EIS funds are expected to be invested alongside a private equity investment of up to £10 million to finance a strategic acquisition expected to complete in May – not guaranteed. Three term sheets have already been received from private equity funds and diligence is in advanced stages.

In 2023, Viewture generated revenues of £6.1 million (12x more than the prior year) and £0.9 million of profit before tax. The Company expects to remain profitable throughout the forecast period. Predicated on successfully raising funds and completing the acquisition, the Company is forecasting sales of £23.8 million in Year 1, growing to over £89 million by Year 5, with profit before tax of just over £27 million – not guaranteed.

The minimum investment is £20,819.64 and you can apply online.

Based on the Company’s forecasts, the target return in Year 5 is c.7x (IRR 50%) after performance fees, but before EIS tax relief. Investing at this early stage means rewards could be significant, but so are the risks – you should form your own view. 

Important: The information on this website is for experienced investors. It is not advice nor a research or personal recommendation to invest. If you’re unsure, please seek advice. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value, so you could get back less than you invest.


Viewture EISThe deal at a glance

Type Single company EIS private offer
Stage Series A Scale Up
Date started trading 2020
Funding to date £4.7 million equity, £1.9 million secured debt
Co-investors Ultra-high net worth individuals
Sector FinTech
Fully diluted pre-money valuation £40 million (or £30 million if acquisition does not complete by longstop)
Market size Video licensing: $19 billion
Music licensing: $30 billion
Business / revenue model Rights licensing for content assets
Revenue last 12 months £6.1 million
EBITDA last 12 months / profit before tax £4.6 million / £0.9 million
Forecast revenue in Y5* £89 million
Forecast EBITDA / profit before tax in Year 5* £84 million / £27 million
Target return in Y5* c.7x
Target IRR* 50%

*Forecast, high risk and not guaranteed. Capital is at risk.

Company by numbers

  • $32 million deployed to date into video licensing assets with iQuant across 27 deals
  • From 2020-2023, achieved a 35% gross IRR on content assets, 1.6x money multiple
  • iQuant performance: 113% of revenue forecast and 99% of views
  • Accuracy of revenue predictions required for break-even (after financing costs): 76%
  • 2023 revenue: £6.1 million
  • 12x revenue growth in 2023
  • 2023 earnings before tax: £0.9 million
  • Investment by management to date: £1.2 million

Free research report

Download our free research report to read more on:

  • The market opportunity
  • The business
  • The product / service
  • Sidemen case study
  • Revenue model and route to market
  • Growth strategy
  • Current trading and financial forecasts
  • Target returns and exit
  • Management
Viewture EIS – research report

Watch our interview with the Co-founder and CEO: Dave Page (recorded 16 Apr 2024)

 

Risks – important

This is a single private company offer with no diversification. It involves investing in an early-stage, loss-making business, which is by nature high risk and prone to failure. There is a risk that the capital raised may not be sufficient to achieve the Company’s objectives. You could lose all the amount you invest.

Like all investments available through Wealth Club, it is only for experienced investors happy to make their own investment decisions without advice.

There is no ready market for unlisted EIS shares: they are illiquid and hard to sell and value. There will need to be an exit for you to receive a realised return on your investment.

Exits are likely to take considerably longer than the three-year minimum EIS holding period; equally, an exit within three years could impact tax relief. The value of tax benefits depends on circumstances and tax rules can change. 

Before you invest, please carefully read the Information Memorandum, which contains further details on the considerable risks – alongside the Wealth Club Risks and Commitments.

Fees and structure

Investors will pay no direct initial or ongoing charges to invest. Fundraising costs are being met by the Company. Wealth Club will be entitled to a performance fee on exit predicated on returns hurdle being met. 

This investment is an Advanced Subscription Agreement (ASA) that will convert to EIS-qualifying shares before 31 August 2024.

Wealth Club investors will invest using a nominee structure. This service is provided by Wealth Club’s subsidiary companies Wealth Club Asset Management Limited (authorised and regulated by the FCA) and Wealth Club Nominees Limited. Wealth Club Nominees Ltd will be completing the share subscription documentation on investors’ behalf.

Please refer to the Schedule of Charges for more details on charges (may vary for different rounds and offers). 

All the services Wealth Club and, where applicable, its subsidiaries provide are governed by the Terms and Conditions of the Wealth Club Services.

Our view

Viewture could be a rare and interesting opportunity to gain access to cash-generative assets in a rapidly growing industry, set up by a successful and proven team. 

The predictive capability of Viewture’s platform iQuant has performed well over the past three years. The partnership with Permira adds significant credibility and could help Viewture secure a leading position in this niche market – not guaranteed. 

If the team can continue to accurately value content assets and deploy additional capital to achieve its growth forecasts, returns to investors could be attractive.

We consider this a compelling, albeit high-risk, EIS investment opportunity – as usual, you should form your own view.

Register your interest – No obligation

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination. 

The details

Type
Single company
Sector
FinTech
Target return
c.7x
Funds raised / sought
£430,000 / £1.0 million
Minimum investment
£20,819
Deadline
31 May 2024 for next close
Last updated: 11 April 2024

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