News
16 Dec 2024
Annual Letter to the Shareholders of Webit Investment Network (BSE: WIN)
From: Dr. Plamen Russev, Executive Board Member
Dear Shareholders,
As 2024 draws to a close and the holiday season approaches, I would like to extend my warmest greetings and share the remarkable achievements we have realized together.
This year was exceptional for Webit Investment Network (WIN) – a year in which our companies achieved significant results and we strengthened our position as a global pioneer.
Key Achievements of 2024
1. Sustained Revenue Growth
The consolidated revenue of WIN’s portfolio companies reached $93.3M – a 1.7x increase compared to 2023 ($57.15M) and a 3.31x increase compared to 2022 ($29M).
2. Global Recognition for Portfolio Companies
BeeHero was recognized by the global media authority TIME as one of the top innovations of 2024 that are changing lives. CH4 Global was named by Fast Company as one of the top four technologies of the future for 2024.
See more and links to global media here.
3. Strategic Partnership for CH4 Global
CH4 Global secured a key partnership with UPL, a global leader with over $6 billion in revenue. This partnership opens doors to strategic markets such as Argentina, Uruguay, and India, where over 40% of the world’s cattle are raised. See more details here.
4. Impressive Growth of iSchool
iSchool achieved revenue of $10.25M, reflecting a 7x increase compared to the revenue used for its valuation in 2022, at which WIN made its investment in the company
5. Success of Elephant in a Box
IKEA approved Elephant in a Box’s innovative material after 18 months of testing, and is now using it in the Italian market. We expect significant revenue growth in 2025 and expansion into global markets.
6. Breakthrough for InHeart
The company developing a digital twin of the heart achieved its planned nearly double revenue growth for 2024, alongside receiving FDA 501 (USA) and CE (EU) licenses, opening the door for sales in leading global clinics like Johns Hopkins, Mayo Clinic, Northwell, and hundreds more. We expect this success to lead to significant growth and potential strategic acquisition in the near future.
7. VUZ – Entertainment Success
VUZ reached $10M in revenue for 2024, a 1.5x increase compared to the previous year.
8. Liquidity and Stability
WIN demonstrated over 18% liquidity on its stock over the past 12 months, with a stable stock price that remains above the IPO level.
Upcoming Opportunities
Our goal is to successfully increase the company's capital, as according to the regulations of the Bulgarian Stock Exchange and the BEAM market, the maximum amount raised cannot exceed 8 million euros within 12 months. This increase will allow us to:
Invest in WIN’s capital
increase via BSE
An Exceptionally Attractive Investment Opportunity
According to WN's officially published accounting policy for revaluation of its assets, NAV (Net Asset Value) is updated only after shares have been held for more than 12 months, with an audited report filed annually. This policy creates a unique opportunity, like a Time Machine, that allows investors to acquire WIN shares at a discount to the current NAV, with a difference of 12 to 24 months - providing a more advantageous entry opportunity compared to even secondary funds.
WIN Compared to a Traditional VC Fund
Unlike WIN, standard VC funds not only require high minimum investments (from $1M+ for investments in companies at similar stages of development) but also demand that investors lock their capital for 10+2 years, with limited liquidity options and significant penalties for early exits, sometimes up to 40% or more. These funds are usually geographically limited and invest in specific industries or focus areas, which can lead to increased risk.
In contrast, WIN develops a geographically and industrially diversified portfolio, significantly reducing the risk of negative events. WIN also offers exceptional liquidity and flexibility, allowing investors to exit in much shorter timeframes while retaining the potential for substantial returns. Here's why:
- 18.5% liquidity of WIN stock on BSE over the past 12 months, with the stock price exceeding the IPO price.
- WIN’s investment horizon is notably shorter compared to most VC funds, as it invests in later and lower-risk 'A, B, C' rounds.
- WIN is a dividend-oriented company. As stated in our IPO memorandum, we are committed to paying dividends to our shareholders upon each exit, ensuring real returns on investment.
- Through the Right of First Refusal (ROFR) from Webit and Founders Games, WIN gains the right to invest in some of the fastest-growing companies in the world. Additionally, WIN has the right to invest smaller sums in investment rounds that typically require significant amounts invested by the most successful venture capital funds, with WIN’s investment being tens of times smaller compared to those of these funds. This further reduces risk and provides an exclusive advantage for WIN shareholders.
WIN’s access to exclusive deal flow (Founders Games), covering thousands of companies annually, combined with our meticulous selection process and guaranteed investment opportunity through the Right of First Refusal (ROFR) for co-investment with some of the world’s leading VC funds, makes WIN a unique and highly compelling investment tool.
Our model offers liquidity that is unmatched by traditional VC funds, with exceptional transparency, significant return potential, and guaranteed dividend payouts upon liquidation events.
Additional Special Bonus: Bulgarian based entities benefit from a zero-tax rate on transactions related to the disposal of stocks from regulated markets like BSE, significantly enhancing WIN shareholders’ potential returns when exiting their investments, compared to other successful global VC funds.
In Conclusion
WIN’s innovative financial model has resonated strongly with you – our investors from the very beginning, as evidenced by the 2.43x oversubscription of our IPO in June 2022.
We are proud to have created an innovative investment tool that combines the best of public markets, venture capital, secondary funds, and the global Webit network, along with access to successful global companies through Founders Games, ensuring a solid foundation for growth and returns.
This unique approach offers the potential for exceptional future growth, which we plan to exceed the traditional venture capital asset class returns.
Today, we are proud to unite over 650 shareholders from Bulgaria. We hope the upcoming capital increase will open the door to international investors who can join us on this exciting journey.
Since the IPO, no board member has sold shares in WIN. I personally hold 5% of the company – a testament to our confidence in its success.
Thank you for your trust and support, allowing us to build the future together.
Express your interest in participating in the upcoming capital increase and acquiring new WIN shares in early 2025 here.
Wishing you a joyful holiday season and a successful New Year!
To The WIN!
Best regards,
Dr. Plamen Russev
Executive Board Member
Webit Investment Network (WIN)