Wi-5 Technologies Limited EIS
Notice to investors
We have come across this EIS offer arranged by West Hill Capital, a respected private equity and venture capital firm, with which we have collaborated in the past.
The offer has already attracted significant interest from West Hill's own investors and is expected to reach its full fundraising target soon.
Due to the tight timeframes we have not reviewed the offer details and produced a research report, as we normally do for single-company deals.
Please read the offer documents carefully to form your own view and ensure you wholly understand the potential benefits and risks.
This £8 million offer is over-subscribed and has been extended to £9 million: applications will be handled on a first come, first served basis.
What to consider
This is an illiquid and high-risk speculative investment: capital is at risk. It should only be considered by experienced investors. Please ensure you read the report and the Private Placement Memorandum carefully. You should not invest money you cannot afford to lose. Returns are not guaranteed. The value of tax benefits depends on circumstances and tax rules can change.
How to apply
If you are interested, please:
- Carefully read all the offer documents, including the Private Placement Memorandum and ensure you understand the risks
- Complete your investor registration forms for West Hill which is arranging this offer. The forms include 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
- Once you submit the registration forms, we will ask you to complete a short application form for Wi-5 Technologies Limited EIS then make a payment via cheque or online bank transfer. More details are in the application form.
The summary reproduced below has been created by West Hill Capital. It doesn't reflect the views of Wealth Club. We have not reviewed – and are not responsible for – its content. You should read it alongside the offer document and form your own view. The summary contains forecasts and projections. Please remember there are no guarantees.
West Hill Capital's offer overview
"In what has to be the standout transaction of 2018 for West Hill, we are delighted to offer our clients an opportunity to acquire 21% of the world’s most intelligent Wi-Fi engagement platform that is forecasting cumulative sales of £520million by 2022 and a target valuation of £2.3billion based upon the median EV/Revenue multiples of comparable listed companies in this sector.
"The Company has the only technology in the market capable of delivering such advanced, personalised engagement for brands in the entertainment and leisure sectors over Wi-Fi and as such, the Directors believe that the Company is a prime target for a large advertising, telco or social media group, with the alternative of an IPO also being an option for the Company.
"Wi-5 is 10% owned by Wayra, the Telefonica (O2) backed accelerator programme behind SafeToNet. Through this partnership, O2 in the UK have given the Company access their corporate clients with over 17,000 Wi-Fi hotspots including McDonald’s, Costa Coffee, Subway, ITSU, Strada and Pizza Hut and numerous multi-purpose stadia including Manchester City FC, Twickenham and the O2 Arena. Wi-5 have also run trials in the US for AB InBev at Wrigley Field, home of the Chicago Cubs, which is expected to lead to coverage of their platform in numerous US stadia for sports and entertainment.
"In what the Company believes is a genuine world-first, they have partnered with Mastercard to allow restaurant customers to order and pay for food sat at their table from their phone – just by connecting to the Wi-5-supported hotspot. The first trials will commence in January 2019 with Yo! Sushi restaurants with discussions underway with Wagamama, Byron, Zizzi, Ask and the Emirates Stadium.
"An example of how powerful the Wi-5 platform can be for brands is when they ran the Wi-Fi for the BMW PGA Championship at Wentworth, which allowed people to interact with all of the BMW models using a car configurator. This resulted in BMW receiving an unprecedented number of leads in a short period of time, which subsequently led to BMW deploying the Wi-5 platform at the flagship store BMW Park Lane.
"Wi-Fi is one of the largest growing consumer engagement platforms with over 542 million public hotspots. It is a market achieving a CAGR of 21.2% and is expected to hit $15.6billion by 2022. Using Wi-5’s own IP related to AI and machine learning, there is an enormous opportunity for businesses to capitalise on the ability to market to people with relevant content.
"Their technology gives instant app-like content and functionality to anyone who chooses to connect to the venue Wi-Fi, enabling a frictionless user experience underpinned by:
- No requirement to download an app – a known barrier. According to a Deloitte study over 80% of brand apps achieve less than 1000 downloads. The Wi-5 interface is easy to navigate and entirely customisable for each brand
- Automatic user authentication. For example if a customer connects to an O2 wireless network in a McDonald’s, the platform will recognise that same customer if they were to also connect to any other O2 Wi-Fi hotspot – in a Costa Coffee for example. It will also store their payment details enabling one-time registration
- Optimised content and personalisation. Wi-5’s machine learning gets to know individual customer preferences and matches offers based upon demographics and psychographics
"Wi-5 will charge companies a £40,000 setup fee followed by monthly license fees of £50-70 per location. In addition, the Company will receive a fee of £0.02 per transaction on payments made in restaurants and venues via the platform.
"The Company has an exceptional Board made up of internet entrepreneurs and senior telecoms and advertising executives that have collectively invested c£1million into the Business to date. West Hill is raising £8million on an EIS basis to support the Business growth including the recruitment of best-in-class talent from across the globe, development of regional sales teams targeting wireless internet providers in America, Asia and throughout Europe and to support further patent applications relating to new features under development.
"The funding is being undertaken on a £29m pre-money valuation and given the Company’s target valuation of more than £1billion within 2 years, it represents one of the largest upside cases we have seen. Various Principals of West Hill will also be investing on this round."
West Hill Capital LLP, Becket House, 36 Old Jewry, London, EC2R 8DD
Risks – important
This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice.
EIS / SEIS investments are high-risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They also tend to be illiquid and hard to sell and value. Before you invest, please carefully read the Risks and Commitments and the offer documents to ensure you fully understand the risks.
Tax rules can change and benefits depend on circumstances.
This is a single company EIS offer with no diversification. It involves investing in an early-stage business which is by nature high risk and prone to failure.
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. 16 October 2018
- Single company
- Target return
- Funds raised / sought
£8 million /
- Minimum investment
- Closing soon