WatchMyCompetitor EIS

Every action a competitor firm takes – from changing prices to making hires to launching and removing products – has the potential to threaten or create opportunities. To thrive and stay competitive, businesses need to be extra vigilant and respond fast.

WatchMyCompetitor.com Ltd (“WMC” or “the Company”) has created a competitive intelligence platform that collects and curates industry and competitor-specific data and delivers tailored insights to users. The platform now tracks 100 million data points monthly and serves more than 100 clients across the world, including the likes of Volkswagen, IKEA, Uber and Santander.

In 2024 WMC launched AI agents that can intelligently use WMC’s proprietary data lake to prepare reports, marketing collateral, promotional strategies, etc., saving clients thousands of man hours per month.

The Company forecasts it will be consistently profitable and cash generative by the end of year 2 – not guaranteed. Based on its forecasts, it aims to deliver EBITDA of £11 million with ARR of £23 million in five years, and a target return on a consistent ARR multiple with this round of 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. Based on the forecasts being delivered as presented, the Company does not expect to need further funding to achieve its forecasts – not guaranteed.

This is a single 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.

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. 

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).

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

In 2024, WMC demonstrated strong client demand for its AI agents. This allowed the business to almost double quarterly new business wins, increase average contract values by 50%, and now approximately 90% of contracts are billed annually in advance.

The ambitious forecasts presented in this round are predicated on continuing the strength of existing sales performance, with potential upside possible if management can improve net retention rates beyond the 90% forecast.

If management can deliver the projected growth, the business could achieve strong levels of profitability and a premium valuation on exit. That said, growing an early-stage business is rarely a straight-line journey and unexpected barriers to growth may result in delayed growth or lower margins.

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

This financial promotion has been communicated and approved by Wealth Club Ltd on 17 February 2025

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.