Making global property investing available to anyone, anywhere, from any amount, safer & simple.
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | www.wealthmigrate.com |
| Sectors | Property Digital Mixed B2B/B2C |
| Company number | 10928486 |
| Incorporation date | 21 Aug 2017 |
Business highlights
- $1,18bn USD value of total deals facilitated to date
- Members from 171 countries, investors from 69 countries
- $105m USD raised through the meta-marketplace
- $13 million + USD earned by clients & $17 + million USD in exits
Learn more about convertible campaigns.
Idea
Introduction
THE PROBLEM
Real estate is currently worth $326,5tn (USD) worldwide and alternative assets are forecast to be $21.1tn (USD) in 2025, but less than 13% of the population has access to it. The wealth inequality gap continues to grow due to the lack of access to this global store of wealth, and less than one percent of people retire wealthy at 65.
Our Purpose:
Through our FinTech-based meta-marketplace, we help everyone invest like the top one percent in global real estate and other alternative assets, economically and safely using tech. Our purpose is to help close the global wealth inequality gap.
Our FinTech solution:
Wealth Migrate’s digital platform is our proof of concept, with a mature global meta-marketplace that offers multi-financial asset classes, compliance, a payment system, and personalised digital wallets. Not only does it handle all primary market transactions, but our platform also allows Global Wealth Group (GWG) to provide B2C and B2B opportunities.
Substantial accomplishments to date
OUR TRACK RECORD*
Awards:
• KPMG Global FinTech Top 50 in 2016
• Top Chinese FinTech award in 2018
• Top Three - Africa FinTech award in 2016
Achieved:
• Over $18m (USD) in seed capital
• Fully digital and integrated meta-marketplace, built internally
• China footprint with Mandarin Platform, through our subsidiary Wealth Migrate China. Please see Key Information tab for more details on subsidiary ownership.
• Global team and geographical expansion since 2017
• 83 affiliates, 13 channel partners, 7 strategic partners
Africa's leading crowdfunding platform:
• Wealth Migrate SA (Pty) Limited, a subsidiary of GWG, is an approved CAT I Financial Service Provider (FSP 47394), registered with the South African Financial Regulator or the FSCA. This makes GWG the first in the African Continent to obtain a license to offer a crowdfunding business model.
COMPETITIVE ADVANTAGE
The real estate industry is experiencing tech disruption, with over 250 platforms worldwide adapting to innovation. Our global platform grants us a competitive edge in comparison to other real estate platforms that are built for in-country deals only.
Wealth Migrate is a leading solution that was designed and launched as a global platform. We work with partners for regulation purposes, such as Lemonway for our payment processes, and our subsidiary is approved as CAT I Financial Service Provider. We operate on five continents, have international capital flow, and offer diversity in first-world markets.
2020-2021 GROWTH
• 168% growth in new members
• 162% growth in number of transactions
• 61% increase in investment raised for deals
• 12% increase in revenue**
MARKET OPPORTUNITY
These three significant trends have our focus:
• Explosive growth of the middle class in emerging markets
• Rise in internet and mobile adoption
• People desire the opportunity to invest in first-world opportunities
This target market will expand to 1.8bn people (80% growth in the next 10 years) as international cross-border capital flow increases yearly.
*Key metrics across all platforms. Please see the Key information section for company structure and ownership.
**Based on unaudited management accounts
Monetisation strategy
OUR BUSINESS MODEL
For B2C, we monetise both the supply and demand side of the marketplace. We receive a capital raising fee from suppliers, and with demand our system charges an investor fee at the time of transaction. These costs include an upfront charge for investment initiation and a success fee at the actual profit/income generation point. This monetary model creates a compelling story for investors by only paying ongoing fees when making money, with no automatic assets under management charges.
Our white label B2B partners operate on a fee split basis, and this revenue share policy works on the total equity raised annually. We jointly earn revenue throughout the life of a deal, by providing an annuity income model and an escalating revenue stream, the longer the platform operates
In 2020, revenue grew 12% to $2,34m** (USD), with five extra revenue streams, with the aim to place our business on track for break even with scalable operating profit
**Based on unaudited management accounts
Use of proceeds
INVESTMENT SUMMARY
We aim to raise a total round of £1.5m ($2 million USD) with the plan to grow the business and increase revenue by 3x, through organic digital growth, strategic partnerships and marketplace rollouts. The intention is to grow members, transactions and revenue.
Our previous Seedrs fundraising campaign funded the first phase, with £1.8m raised from 658 investors in 42 countries (248% funded).
OUR FUTURE GROWTH PLANS
The next phase focuses on a dual strategy of organic growth and venture building. Tech investment is a priority for our business to achieve a robust scale-up. Our marketplaces are expanding into Europe. Through venture building, GWG plans to increase throughput significantly in the meta-marketplace with geographic and genre-based strategic partnerships.
Key Information
Advance Subscription Agreement Key Terms
This investment round is being raised by way of a convertible equity investment structure, in this case, an 'Advanced Subscription Agreement'.
The key terms that apply to the Company’s Advanced Subscription Agreement are set out below. See also attached Key Terms document for further details.
Discount – conversion at a 30% discount to the valuation set by a Trigger Event.
Valuation cap: None
Conversion is triggered by ("Trigger Events"):
- An Equity Fundraise – defined as the Company raising investment capital of at least £1,000,000 from one transaction or a series of transactions, in exchange for the company issuing shares;
- A Change of Control of the company (transfer of more than 50% of the share capital); or
- An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.
- Longstop Date is 12 months from the date of the advance subscription agreement.
If conversion has not been triggered by the Longstop Date shares will be issued on the longstop date at the Default Share Price, which is the lower of:
- the lowest price of any shares issued after the date of this Agreement; and
- a price per share of £1.45 (valuation of £23,614,280.95). Please note this is higher than the share price of the previous equity round (£1.15).
- The convertible would also convert to equity at the Default Share Price in the event of winding up or liquidation of the company.
Corporate structure
Seedrs will be investing in Wealth Migrate UK Ltd. Other angel investors investing as part of this round will be investing into Global Wealth Group Ltd, as a vehicle to hold their shares. The company intends to restructure Q4 2022 to move shareholders from Global Wealth Group Ltd to Wealth Migrate Ltd. This will not affect existing Seedrs investors or new Seedrs investors.
Wealth Migrate UK Ltd has six subsidiaries:
1. Wealth Migrate Holdings Ltd: 100% owned by the investee company Wealth Migrate UK LTD.
2. Wealth India - 50% held by Wealth Migrate Holdings Ltd. The remaining holding is held by strategic partners. Revenue share for the company is as follows:
- Below $200,000 of revenue: 55% to strategic partners and 45% to Wealth Migrate Holdings Ltd.
- Between $200,000 and $600,000 of revenue: 65% to strategic partners and 35% to Wealth Migrate Holdings Ltd.
- Above $600,000 of revenue: 80% to strategic partners and 20% to Wealth Migrate Holdings Ltd.
3. Wealth China - 34% held by Wealth Migrate Holdings Ltd, with the remaining 66% held by angel investors and team members. 34% of revenue is received by Wealth Migrate Holdings Ltd.
4. Wealth Migrate Fund Limited Australia: 100% owned by Wealth Migrate Holdings Ltd
5. Wealth Migrate SA (Pty) LTD: 100% owned by Wealth Migrate Holdings Ltd
Outstanding Convertible Loan Note
Global Wealth Group B.V has an outstanding Convertible Loan Note of a total amount of $970,064. The Share Price on conversion and the interest rates per anum depends on the level of investment. Interest is paid to investors on a quarterly basis, and investments will convert to shares in July 2026. Investments are in USD.
- Investments of $25,000+: 7% interest per anum and conversion at $2.20 per share
- Investment of $100,000+: 8% interest per anum, and conversion at $2.10 per share
- Investment of $250,000+: 10% per anum and conversion at $2.00 per share.
None of the funds raised will be used to repay this CLN.
Investment in this round
The company has raised offline investment on the same terms as this round totalling $963,366.68. This has been reflected in the progress bar at a conversion rate of 0.76 GBPUSD, meaning £712,891.34.
Between January and May 2021 the company raised $1,154,180.50 of investment on the same terms as this campaign. This amount has not been reflected in the campaign progress bar. Existing Seedrs shareholders have been offered preemption based on the full round, including this amount.
Investor Perks
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
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