Web3 Infrastructure Solution Provider
Price: $270,000,000
Annual Revenue: $8,000,000
Net Cash Flow: $1,500,000
Industry: Technology
Location: UK, Europe
Transaction Overview: The transaction involves the complete acquisition of the Company, including the following:
- Technology IP used for creating NFTs, valued at $154 – $323M by KPMG.
- SaaS Enterprise business valued at $487M – $805M by KPMG having an ARR of $8M and an EBITDA of $1.5M (product-market fit).
- 30-member development team who were involved in creating the product and driving initial revenues for the Company without any established sales or growth initiatives.
Company Overview: This Company, headquartered in the United Kingdom, is a leading global provider of Web3 infrastructure solutions with a robust portfolio of Fortune 500 Companies and many more in the pipeline. Its services include Blockchain-as-a-Service (BaaS), Token Creation and NFT Marketplaces delivered to enterprise clients via IaaS, PaaS, and SaaS models.
Revenue and profitability have been explosive, growing by 71% YoY during FY22-FY24E with a 12% EBITDA Margin in FY24E. An ARR of $8M in FYE March 2024 is already booked. The company also benefits from an average contract length of 3-5 years, with values ranging between $300k – $1.2M per year, which provides strong visibility into future revenues.
Team: The Company is run by its founding owners who have also appointed a CEO to oversee daily operations & to expand the business. The company employs around 40 employees, all of whom plan to remain with the company post-acquisition.
Products: Top-selling products are BaaS, NFT Marketplaces, and Token Creation, which are all provided on a white-label basis.
Clients & Industries Served: The Company specializes in Supply Chain, Energy, Event Ticketing, and Telecoms having a blue-chip client base and a strong pipeline in these industries and some big clients in the Sports Industry as well. As sports organizations increasingly depend on technology for fan engagement, data analytics, and operational efficiency, the Company plans to provide specialized services and solutions tailored to the needs of these leagues.
A typical customer needs quick deployment of secure and scalable Web3 solution infrastructure or wishes to monetize their entertainment IP.
Listing Details
Terms and Conditions?:
Only serious buyers who are willing to provide POF will be contacted.
Reason For Sale:
The founder has proven the value of the IP with revenue and product market fit. He believes it is time for someone experienced to take the Company to the next level in terms of management for building out the commercial engine and ideally a strategic acquirer who can leverage the value of the IP within their portfolio or partners for rapid expansion.
Training & Support:
The owners are committed to ensuring a seamless transition for the prospective buyer. They are ready to assist with transferring confidential data and tools to the new owner. The Company has a total of 40 employees who will stay with the Company post-close.
Operation
Employees: 40
Summary
Competition:
The Web3 solutions landscape is rapidly evolving with the Company facing competition from established players, emerging startups, and alternative technologies vying for market share. However, the Company has been successful in targeting mid-market enterprises which have often been neglected by larger players.
The Company’s key differentiators from its competitors are as follows:
- Target Market: Targeting mid-sized enterprises that are often neglected.
- Revenue Model: Minimal upfront fee + a modest monthly fee + recurring quarterly revenue share. This helps clients avoid investing heavily in the infrastructure in advance but rather pay as they generate revenues.
- User-friendly tools and APIs for deployment of Web3 applications.
- Secure & scalable Enterprise solution by utilizing private permissioned blockchains.
Potential Growth:
The global Web 3.0 blockchain market size was USD 1.73 Bn in 2022 & the industry is projected to grow at a Compounded Annual Growth Rate (CAGR) of 47.1% over the next seven years.
The Company also plans to dive into tokenization and believes that everything of value will be tokenized in the future and managed by blockchain technology. The TAM of this industry is valued at $15 Tn, bringing an excellent opportunity for the Company to expand rapidly.
The owners of the Company have identified the following key areas of growth:
- Expanding Web3 Solutions: Delve into emerging sectors like retail, travel, or real estate by harnessing decentralized and blockchain-based solutions, including NFTs and blockchain networks.
- Amplifying IoT Integrations: Utilize the Company’s capabilities to provide IoT integration services to businesses spanning manufacturing, healthcare, and logistics.
- Elevating Loyalty Offerings: Advance the development and implementation of loyalty solutions to assist businesses across diverse industries in enhancing customer retention.
- Forging Global Partnerships: Establish collaborations with international organizations, industry leaders, or technology giants to gain access to untapped markets and expand the customer base globally.
- Expanding Airport Presence: Replicate the success achieved at Heathrow by targeting other major airports worldwide.
- Engage in Partnerships with Sports Leagues: Collaborating with prominent sports leagues like the NBA, MLS, and MLB has the potential to significantly enhance growth.