SafeToNet EIS

Exclusive terms for Wealth Club investors – only £200,000 left

This growth EIS gives you an opportunity to invest in SafeToNet EIS. SafeToNet is developing software and mobile apps that protect children from online harm by identifying and blocking harmful content.

This investment is arranged by West Hill Capital and is only open to Wealth Club and West Hill investors. The minimum investment – exclusively for Wealth Club clients – is £11,600 (normally £50,000).

Interested? Read our report and reserve an allocation now.

Highlights

  • £5 million EIS offer (less than £200,000 left)
  • High risk / high potential return offer: targets 7.7x money invested (before tax relief) – not guaranteed
  • EIS Advance Assurance received
  • Supported by Telefonica and in advanced talks with other major telecom operators
  • Potential AIM IPO within three years – not guaranteed
  • Highly experienced management team with significant personal investment 
  • Minimum investment £11,600
  • Closes 29 December but expected to reach capacity earlier 

Please note: making a reservation places you under no obligation. It will simply help us get an idea of the level of interest in this opportunity. 

This is a very high-risk offer. If you wish to invest, you will need to complete West Hill’s elective professional client questionnaire and declaration to confirm you have the knowledge and experience to understand the risks before your investment is accepted.

The opportunity 

Last year, 30% of young people reviewing social network sites and apps reported seeing either hatred or violence online. 21% reported sexual content. In the same period, there was a 64% increase in child sexual abuse images in England alone.

SafeToNet ("STN") is developing a solution: an app powered by proprietary software that parents and children install on their respective devices and which runs unobtrusively in the background. 

Its objective is best described by the CEO and co-founder, Richard Pursey: “The internet should be a safe and fun place for children, but dangers like cyberbullying, online radicalisation and sextortion have turned it into a minefield. STN’s artificial intelligence is tackling this head-on, constantly evolving and learning how to better protect families. This allows children to enjoy the positive aspects of the web whilst parents can feel confident their children are safe from harmful content”.

The STN app is currently live in the app store, available free but with reduced functionality. The finished paid-for version is planned to be launched imminently. 

Once finished, the software will monitor social activity in real time, and help protect the child from harmful content in two ways: by giving parents the ability to block specific apps or the device as a whole and by using artificial intelligence to automatically block potential threats (e.g. images, videos, messages etc.). 

Therein lie STN’s innovation and competitive advantage. 

Once all the app features are live, it should be the only app powered by artificial intelligence able to detect and stop threats such as sexual extortion, cyber-bullying, inappropriate content sent or received in real time.

The primary route to market will be through mobile network operators, alongside sales direct to consumer via the Apple App store and Google Play. 

STN has been backed by Telefonica and is part of the Telefonica Wayra accelerator programme. It is currently in trials, or in talks to trial, with BT/EE, Singtel, O2, Vodafone, Tesco Mobile, KPMG and PWC. By having its primary distribution model via mobile network operators, STN should, in theory, be able to scale more effectively and quickly than it would by distributing direct to consumer only.

Despite being pre-revenue, STN has already received worldwide acclaim for providing some of the most advanced cyber security and safety software available today. 

SafeToNet awards

“I want SafeToNet to become an everyday word in the English language, and for our software to become the global default standard in e-safety”

Richard Pursey, co-founder and CEO

The offer

STN is seeking £5 million under EIS to cover marketing expenses of the forthcoming global product launch and expand the technology team. To date, the business has raised £3 million from the founders and private investors. These funds have been used to develop the technology and the SafeToNet App for iOS and Android operating systems. 

Of the £5 million EIS fundraise there is just under £1 million remaining. The EIS offer is solely open to West Hill and Wealth Club investors and Wealth Club has negotiated a reduction in the minimum investment from £50,000 to £11,600 exclusively for Wealth Club investors. This is expected to fill fast.

Target returns

The target return is 7.7x by year 3, which is not guaranteed.

This reflects the high risk but high growth prospects of the offer. Please remember the company is early stage and pre-revenue. So the risks, as well as the potential rewards, are far greater than with more established companies that have already taken a product to market. 

Exit strategy

West Hill intends to help STN achieve an IPO. Alternatively, the Company could have a number of other exit options, given its potential scalability. None of the exit options are guaranteed.

What to consider

This is a very high-risk and illiquid investment. Please ensure you read the report and the Private Placement Memorandum carefully. You should not invest money you cannot afford to lose: capital is at risk. Returns are not guaranteed. The value of tax benefits depends on circumstances and tax rules can change. 

How SafeToNet protects children from harmful content online

In this interview, co-founder and CEO Richard Pursey explains how SafeToNet uses AI (artificial intelligence) to protect children in the online world. 


How to apply

The offer is expected to close on 29 December 2017, but there is only £1 million left so it may well reach capacity sooner. If you are interested you should:

  1. Carefully read the Private Placement Memorandum and ensure you understand the considerable risks
  2. Complete your investor registration form for West Hill which is arranging this offer. The form also includes an elective professional client declaration. You need to complete this, even if you are already an elective professional client of Wealth Club. West Hill needs to ensure you have the knowledge and experience to understand the risks
  3. Once you submit the registration form, we will ask you to complete a short application form for SafeToNet (you will also need to have the form witnessed) then make a payment via cheque or online bank transfer. More details are in the application form.

Wealth Club aims to highlight investments we believe have merit, but you should form your own view. You should decide based on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination. 20.11.2017

The details

Type
Single company
Sector
Technology
Target return
7.7x investment
Funds raised / sought
£4.8 million / £5 million
Minimum investment
£11,600
Deadline
29 December 2017

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