The best deal

At what valuation of companies does WIN invest?

Under a contract with Webit, WIN has the right to invest in companies that reach the Grand Finals of the Founders Games in Davos. Typically, these companies close rounds from $5 to $50 million USD.

WIN is the so-called follow-on investor, which means it does not determine the valuation of the company - the lead investor does. For example, if a round raises $29 million in capital (as was the case with CH4 Global) and two investors collectively invest more than 80% of the round, they are the ones placing price and terms, naturally negotiating the best deal for themselves and their shareholders. In this case, DCVC (managing over $3 billion in assets) invested $14 million, while WIN invested only $200,000. Despite the small investment amount, WIN invested under the same financial terms and valuation as DCVC, and also received the right to warrants.

Typically, follow-on investors are included if they are invited (admitted by the lead investors) on equal or worse terms. In the case of WIN, the company has a right of first refusal (ROFR) granted by Webit and an additional guarantee that WIN receives financial terms identical to those of the lead investor.

This provides WIN investors with the best market conditions “best deal” for an investment in a given company.

As an added protection and using its right of first refusal, WIN invests in a given finalist as the last investor after (almost) the entire round has been raised. This gives an additional guarantee for the shareholders' money. Such rights are an exception in the market and are usually granted to the top funds in the world. WIN investors get these rights thanks to Webit's international influence and the success of Founders Games.

Thanks to Webit, WIN shareholders get:

  1. Best market valuation of the company made by a professional VC investor.
  2. Same financial terms for WIN as the lead investor.
  3. Right WIN to invest only when the round is almost closed, ie. the lead and follow on investors have already announced their funding.

The above process greatly protects the interests of WIN investors and removes 100% the element of subjectivity when investing in a company.

WIN's board and shareholders are not exposed to the risk of subjective evaluation of companies. On the contrary, despite its small investment tickets, once the Board has completed its investment research, it has the right to invest on the best terms agreed by the largest professional investors in the round.