WYZA

WYZA is a new data driven digital platform which was launched in 2014 targeting a tech-savvy 50+ audience

Internet business IT and Telco Media and Entertainment
$262,991
invested
62.6%
funded
6 days 8 hours
time left
5.1% - 11.9%
minimum-maximum equity offered
$420,000 - 
The minimum combined investment required for this deal to become successfully funded.
$1,050,000
The maximum combined investment this deal is capped at.
investment sought (min - max)
SPREAD THE WORD:
*Language in the offer and offer document have been updated to describe the aims of a potential listing and future exit opportunities.

The shares are denominated in Australian Dollars and the deal is shown in NZD. The exchange rate used is AUDNZD 1.05.
More detailed information about this offer is contained in this Information Memorandum DOWNLOAD IM

OFFER OVERVIEW

The Company is offering 2,666,667 to 6,666,667 ordinary shares under the following terms:

Convertible notes:

Please note: At the time of this capital raise through the Equitise platform, WYZA Limited (WYZA) has a series of convertible notes on balance sheet (see $1.7m in FY16 in the financial summary section below).

In addition to this balance at 30 June 2016, WYZA has completed a convertible note raise for a total of A$25,000 (equating to 200,000 ordinary shares upon conversion) in August, and is about to finalise an additional 3,000,000 shares for $375,000.

In total, these convertible notes equate to 17,088,000 ordinary shares upon conversion and have a strike price of $0.125. The convertible notes can only convert upon a major liquidity event in the WYZA business. For the avoidance of doubt, this will mean that the implied debt will be converted to equity and there will be additional dilution for straight equity holders in the business. If you are unsure how this mechanism functions, please speak to your accountant or financial adviser.

To see a detailed convertible note register relating to WYZA please refer to the documents section of this offer (“Convertible Note Register”).

EXECUTIVE SUMMARY

WYZA is a new data driven digital platform which was launched in 2014 targeting a tech-savvy 50+ audience while providing marketers with an opportunity to tailor communications to this powerful segment. 

WYZA’s business model is based strongly on building a significant database and commercialising it.

WYZA publishes a vast array of engaging content and offers across financial planning, insurance, travel, property loans, entertainment and real estate as well as retirement, aged care and home care industries.  We have built up extensive data around our audience and know specifics about their behaviours, intentions, likes and dislikes (having invested heavily in data research). Driven by our brand relaunch, our growth has been phenomenal:

  • UA (Unique Audience): 420% growth
  • Page views: 314% growth
  • Session duration: up by 14%

Additionally, our significant expansion is underpinned by subscriber growth and heightened reader engagement scores:

  • The WYZA subscriber base is growing rapidly nearly tripling its size over the last 12-15 months (59,000 in April ’15 to 151,000 in May ’16 to 232,000 in October ‘16)

Our current growth trajectory shows our subscriber database will grow from 232,000 to 500,000 by December 2017.

 

Founder and CEO, Michael Farley, says the site fills a gap in the market and responds to research which has shown that the over-50s segment has not warmed to the way many advertisers communicate with them.

Every month 16.4 million Australians are online. Of these 16.4 million users, the 50+ segment make up the largest online demographic 37.4%.

  • 7.9 million people aged 50+ in Australia
  • Spend $4 billion a week on products and services

WYZA aims to disrupt the $200 billion annual spend of this valuable demographic by connecting them directly with the products and services and information they want.

KEY STATISTICS

Since inception, WYZA has raised over A$2.3 million and invested over A$3 million in the business. As a result, WYZA has experienced phenomenal growth to date:

  • 232,000 Subscriber database
  • 1.3 Million monthly page views
  • 450,000 Monthly unique audience
  • 24,000 Facebook followers
  • 12 Strategic partners

Trademarked WYZA in 9 classes, WYZA RADIO, WYZA TRAVEL, WYZA DATING, WYZA MONEY etc.

  • Secured global WYZA domains
  • Launched a travel portal

BUSINESS MODEL

WYZA has multiple revenue streams available which include annuity revenues, referral, commission and directory revenues, advertising and sponsorship revenue, eCommerce and marketing services.

MILESTONES & HISTORY

In the last month WYZA has entered into a strategic partnering agreement with National Seniors Australia (NSA), a 40-year old not for profit advocacy group with 200,000 members. The partnering agreement provides for NSA to manage WYZA TRAVEL through their call centre and process all WYZA TRAVEL bookings. The agreement provides for access to some 50 travel wholesalers who will customise travel packages for the WYZA database. The agreement extends to all forms of customised insurance products through Allianz. Starting with up-selling travel insurance (Allianz & World Nomads Group) on the back of holiday bookings. 

After the launch of the travel and insurance offerings a financial services offering will be launched. This decision is based on 21% of the WYZA audience surveyed stating they plan to speak to a financial planner in the next 12 months. A further survey of the respondents providing financial information showed an unbelievable 70% open rate to e-marketing information.

Below is a funding timetable identifying each of the prior rounds of investment successfully closed by WYZA. This diagram also outlines the specific growth outcomes WYZA was able to achieve off the limited growth capital it has successfully raised since inception.

STRATEGY & VISION

WYZA have a vision to be the trusted destination that provides relevant and actionable information to help people 50 and over live their best tomorrow.

  • On track to have 500,000 on WYZA subscriber database by December 2017
  • Expect to have a profile on 50% of our database for targeted marketing by December 2017
  • Maintain our position as the number 1 platform targeting the 50+ audience
  • Enter NZ market in 2017

Year 2017/18 goals represent the strategic targets of the business if the current capital raise is successful.

  • Aims to be cash flow positive and ready to begin a process for IPO, trade sale, merger, significant strategic partner or corporate consolidation in 2017
  • To increase UAs from 655K in FY17 to 1.1M in FY18
  • To increase page impressions from 1.9M in FY17 to 3,6M in FY18
  • To increase database subscribers from 430K in FY17 to 550K in FY18

USE OF FUNDS

NOTE: In the event that WYZA raises the maximum round of A$1 million, the excess funds will be applied to items 1 and 2 above on a pro-rata basis.

FINANCIAL SUMMARY

Profit and loss

FY15A and FY16A P&Ls represent the development of the company’s website, editorial platform, audience and subscriber databases and the establishment of commercial partnerships.

With the injection of capital in FY17F the company will scale its commercial partnerships with affiliates and the directories businesses.

The commercial partnerships with affiliates will produce retainer income and commissions on sales. These partnerships targeting our key demographic of 50+ spending include insurance, travel, finance, real estate, health and wellbeing products and services. Income growth is driven by audience and subscriber numbers. The commercial partnerships will offer advertorial support, potential of exclusivity in a product/service and the promotion of special offers to the WYZA audience.

The directories business comprises two platforms:

  • Retirement villages and aged care facilities of which there are currently approximately 6,600 in Australia
  • Consumer Directed Care product and service providers (eg: nursing assistance, household modification, assistance alarms, electricians, gardeners)

Income will be from annual listing fees for businesses and video production for retirement villages / aged care facilities.

Display advertising income will be generated across the site and increase in-line with the WYZA audience and page impressions.

The growing data WYZA gathers on its audience and subscribers will be packaged into insights, market research and reports for third parties.

In building these revenue streams WYZA will:

  • Employ an active sales force
  • Increase marketing expenditure to build its brand, audience and subscribers
  • Continue to develop and build out its website
  • Write and commission engaging editorial

 

NOTE: All amounts in the above table are displayed in AUD ‘000’s

 

Balance sheet

Cash and Cash Equivalents represent cash at bank.  As at 30th September 2016 cash at bank was A$18,024.

Trade and Other Receivables comprise normal operating trade receivables of A$113k, Prepayments of A$9k, Other Receivables A$9k and GST refund owing of A$24K. All amounts are expected to be fully realised.

Intangible Assets represent website, database assets & trade marks which are amortised over their expected economic life.

Trade and Other Payables comprise payables in the usual course of business of A$123k and unearned income of A$8k. Other than normal operational creditors, the company does not currently have any material third party debt on its books since the FY16 year end.

Current borrowings represents the interest accrued on the convertible notes.

Total non-current liabilities are in the convertible notes on issue. The terms of the convertible notes are viewable in the documents section of the platform.

HOW WILL MY SHARES BE HELD

Your shares will be held on trust by a nominee company (Equitise Nominees Limited, NZBN 9429042159025) (the “Nominee Company”). This allows the Company and the Nominee Company directors to help manage communications between investors investing through Equitise (the “Equitise Investors”) and the Company, and the Company will only have one name on its share register in respect of the Equitise Investors.

Should there be a shareholder vote, including on matters such as on the future sale of the Company, change in constitution or other shareholder resolution, the Nominee Company will make a reasonable effort to pass any required resolution to you, the Equitise Investor, to vote on.

The constitution and other legal documents of the Company (a copy of which may be downloaded from the documents section of this offer) are attached to the documents section of the Equitise Platform.

The Equitise nominee service allows investors access to opportunities, such as WYZA that they would not previously have had access to. As a result of this, and through managing the Nominee Company, Equitise takes a 5% success fee of your profits on any future liquidity event. This percentage will only be deducted from the returns we hope investors will make. You agree to this fee buy transacting for shares in the company.  

Upon any liquidity event, where your shares are sold as a result of a trade sale or IPO, any funds available to you as a shareholder will flow through the Equitise trust account to you, the investor. In the event of an IPO, where your shares are not sold but become traded on a public stock exchange, you may hold your shares directly in the Company rather than through the nominee company. This will be worked out at the time of the IPO. It may be the case that your parcel of shares is still held on bare trust by the Nominee Company, for example where your parcel of shares is too small to list directly on the relevant stock exchange.

Upon any liquidity event, such as a trade sale or IPO, the nominee will not stand in your way from recognising the economic benefit of a liquidity event (minus the Equitise Nominee management fee of 5%). 

We are happy to answer any questions about the nominee via email to contact@equitise.com, or +64 21 1 700 797.

FINANCIAL MARKETS CONDUCT REGULATIONS - WARNING STATEMENT ABOUT EQUITY CROWDFUNDING
  • Equity crowdfunding is risky.
  • Issuers using Equitise’s facility include new or rapidly growing ventures. Investment in these types of businesses is very speculative and carries high risks.
  • You may lose your entire investment, and must be in a position to bear this risk without undue hardship.
  • New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision.
  • The usual rules do not apply to offers by issuers using Equitise’s facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.
  • Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.

MARKET OVERVIEW

Every month 16.4 million Australians are online and surprisingly, the 50+ segment make up the largest online demographic 37.4%.

WYZA aims to disrupt the $200 billion annual spend of this valuable demographic by connecting them directly with the products and services and information they want.

WYZA’s audience moves through different life stages and WYZA will better serve the valuable WYZA generation, whether they are working full time or part time, helping young adult children, becoming a grandparent, planning for retirement, working part time, transitioning into retirement, caring for ageing parents, staying connected to family, moving to full retirement and helping grandchildren.

88% of Australian’s over 50 feel ignored by businesses yet they hold 40% of Australia’s net worth.

TARGET MARKET

WYZA is targeting a tech-savvy 50+ audience while providing marketers with an opportunity to tailor communications to this powerful demographic. As the largest segment of online users in the Australian market, WYZA is well-positioned to be the premier provider of online communications to this demographic. WYZA intends to launch in the New Zealand market in early 2017.

  • 7.9 million people aged 50+ in Australia with statistics projecting this figure to be 8.8 million by 2020
  • The 50+ age bracket spend an estimate of $4 billion a week on products and services
  • 1.4 million people aged 50+ in New Zealand

COMPETITIVE LANDSCAPE

POTENTIAL RETURNS

Whilst there are no guarantees in life, we believe we can grow the WYZA business to be a circa A$6M EBITDA business by FY20F. The enterprise value of the business should be circa A$30 million based on a 5X multiple.

The first exit strategy targeted for shareholders may be through an IPO. They will also consider a  trade sale, merger, significant strategic partner or corporate consolidation.

FINANCIAL MARKETS CONDUCT REGULATIONS - WARNING STATEMENT ABOUT EQUITY CROWDFUNDING
  • Equity crowdfunding is risky.
  • Issuers using Equitise’s facility include new or rapidly growing ventures. Investment in these types of businesses is very speculative and carries high risks.
  • You may lose your entire investment, and must be in a position to bear this risk without undue hardship.
  • New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision.
  • The usual rules do not apply to offers by issuers using Equitise’s facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.
  • Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.

THE TEAM

The core team for this business is listed below. To view the specific profiles of these team members please select “see profile” where you can view a complete biography of the person, including links to their social profiles. You can also view the advisory/board members and current shareholders of the business to give you a thorough understanding of the human capital associated with this investment opportunity.

Sandra Hook Chair
Michael Farley CEO
John Diddams NON EXECUTIVE DIRECTOR

INVESTORS

Below is a list of the investors that have committed their funds in this round of capital through the Equitise platform. Some of our users like to remain anonymous with their investments. In which case we allow the users to obfuscate their details when investing.

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Golda Paderanga Last Investment made: 15-12-2016
Greg Plummer Last Investment made: 21-11-2016