Building The Next Tech Giants
Offering Early Stage Access To The Next Unicorns Before They Are Unicorns
(VST: CSE) (VSQTF: OTC) (6F6: FWB)
Why Victory Square?
- Builds, acquires and invests in promising start-ups, then provides the senior leadership and resources needed for fast-track growth.
- Record Net Income of $8.89M and EPS $0.12 cents per share in Q3. $13.6M and EPS of $0.18 cents for the 9 months ended Sept 2020
- The result: rapid scale-up and monetization, with a solid record of public and private exits.
- Sweet spot is the cutting-edge tech shaping the fourth industrial revolution.
- Boasts a portfolio of 20 global companies using:
- Artificial Intelligence
- Virtual Reality / Augmented Reality
To disrupt sectors as diverse as financial technology, insurance, health and gaming.
*SEE DETAILED PORTFOLIO OVERVIEW FURTHER DOWN IN THIS PROFILE
- More than 20 portfolio companies in hot sectors including
- Health Tech,
- Insurance Tech,
- Sports Betting,
- Mobile Gaming,
- Acquired FansUnite (FANS:CSE) in 2016 for $2M in stock, raised more than $25M over a three-year period, took public in May 2020, acquired McBookie and Askott. Now the leading online gaming company in Canada. Trades @ $185M market cap
- Massive success with Victory Square Health (VSH): Acquired SafeTest, a Brazilian company which developed two COVID testing methods.
- Recently completed an oversubscribed brokered financing for $6.1M
- Access to a $10M convertible note personally issued by the CEO
Two companies going public:
- V2 Games/GameOn (mobile gaming)
- V2G is acquiring GameOn in an all-stock transaction for $3.8M. The combined deal is valued at $11.1M. GameOn, Founded in 2018, GameOn is the leader in providing consumers, broadcasters, sportsbooks and partners with interactive, social experiences around sports, TV and live events. Their mobile and TV apps with free prediction games empower sports and entertainment distributors with the world’s simplest and most accessible gamification platform.
- Immersive Tech (AR/VR)
- Immersive Tech: Builds VR immersive experiences for hotels and large corporations, with clients including Capital One, Bayer and BioMerieux, Snickers, Intel, Capital One, FDA, Scotiabank and Kalahari Resorts.
- Featured in Forbes, Immersive Recently launched a premiere new location-based entertainment (LBE) virtual-reality attractions division named Uncontained to capitalize on the growing demand for COVID-19-safe attractions. Uncontained will be the world's first free-roam interactive VR franchise attraction, built for a COVID-19 world, within shipping containers. The experience will allow for up to six players to roam freely within the container while interacting inside a digital environment as a team while making decisions that help guide and define the story.
- Launching “Discreet Care” telehealth platform with a focus on clinical issues for men/women that do not feel comfortable making an app with a doctor. For example, ED issues, prescriptions for Viagra, Cialis, STDs, hair loss etc. The telehealth clinic has a network of healthcare professionals in 50 states. Patients can expect next-day delivery.
- Acquisition of Hydreight: A U.S. certified e-script and telemedicine provider, allowing Hydreight to offer a wide array of health and medical services in all 50 states. A completely compliant turnkey business model for various health professionals to offer fully licensed medical, health and wellness services through an on-demand and on-site platform; services include IV drip, Botox, COVID-19 testing, vaccinations, and other medical and medispa treatments
SO HOW EXACTLY DOES THE COMPANY MAKE MONEY?
Victory Square looks for companies to invest in with a strong management team and unique technology, in industries it is familiar with and looking to enhance, addressing a large market.
The company typically looks to invest in companies at or under a $10M valuation and our investments have been as low as $100k and as high as $5M in consideration. Its ownerships in its portfolio companies ranges from as low as 5% and up to full ownership at 100%.
- VSTs work with these companies over a 24- to 36-month period
- Provides management with mentorship and resources, such as development, distribution, technology and capital raising in order to help the company scale and achieve their goals
- If the firms have a pain point that Victory Square is not able to solve itself, the company has a network of more than 80 accelerator programs across the globe.
- If there is a match, VST can license the technology or acquire either the company, or the assets and IP of that particular company.
Once VST has made an investment and worked with that company over the 24- to 36-month period, the VST management team will re-evaluate and make a decision on the next steps based on the milestones the portfolio company has hit and growth it has achieved.
At this time, the management team will consider spinning out the company and having it listed publicly on one of the exchanges; potential M&A activity with a larger company; or continue working with them and helping them scale.
VST describes its advantage or secret sauce as being ‘our process, our people and our partnerships.' The firm identifies a pain point in a large addressable market or within its own network.
One such example is its relationship with Foxwoods Casino, the largest native band casino in the U.S., with 241 locations. Foxwoods relies on traffic from surrounding states, such as Pennsylvania and Massachusetts, and with the opening of casinos in those states and emergence of online gambling, like most Casinos, Foxwoods felt the pressure to modernize its operations and look into the online gambling space.
This is a pain point that needed to be solved, the solution being to bring in more customers.
- VST reached out to its 80 accelerators around the world and found FansUnite, in an accelerator called Boomtown in Boulder, Colorado.
- It acquired the company for $2M CAD in stock and brought the company to Canada to participate in its tech hub, launch academy.
- The solutions VST provided were around the introduction of eSports to Foxwoods customers, as well as introducing a VR experience where customers can gamble at any casino around the world.
- Once the product is validated in Foxwoods, the casino markets the solution to the other 240 native band casinos across the U.S. It’s then ready to scale and monetize.
- FansUnite - Acquired for $2M in stock, took public @ $25M market cap, currently trades @ $185M market cap
- BTL - First publicly traded blockchain company. VSL incubated BTL and wrote the first cheque. The company reached a $500M market cap. VSL exited at $80M market cap
- Tantalus Labs - Private cannabis company, VSL exited at $120M market cap, a 10x ROI
- Partnership with Launch Academy: Recognized as one of Western Canada’s leading entrepreneurship facilities, which has incubated more than 3500 entrepreneurs of which 300 have grown their start-ups to Seed and Series A stage and raised over $300 Million in funding.
- Cash in the bank
- Strong management team
- Portfolio of more than 20 hidden gems
- At least two companies listing in 2021
- Rolling out Discrete Care
- 23 companies in the portfolio and trading @ $55M market cap.
DETAILED PORTFOLIO BREAKDOWN
1) GameOn (vertical: mobile gaming and e-sports)
Founded in 2018, GameOn is the leader in providing consumers, broadcasters, sportsbooks and partners with interactive, social experiences around sports, TV and live events. Their mobile and TV apps with free prediction games empower sports and entertainment distributors with the world’s simplest and most accessible gamification platform.
- Led by CEO, Matt Bailey (former Brooklyn Nets) and talent from EA Sports, Dapper Labs and Intuit
- Accelerated and invested in by Techstars and Comcast
- Winner of the 2020 NBA All–Star Weekend pitch contest
- Rockstar board of Directors and Advisors including J Moses (current Director of Take-Two Interactive - NBA2K, Grand Theft Auto, Red Dead), Boris Gartner (LaLiga USA CEO), Sean Hurley (former DraftKings Head of Sportsbook), Sabrina Carrozza (PR Lead for Barcelona FC, DAZN and others), Shauna Griffiths (SportsBusiness Journal Game Changer), Mike Vorhaus (angel investor in DraftKings), and more.
- Diverse revenue streams from two products:
- Flagship GameOn-branded apps: 100K downloads and 1,200 reviews.
- Confirmed partnership with Comcast to integrate GameOn into their cable box in homes and bars.
- Driven by ad and sportsbook affiliate revenue - confirmed partnership with PointsBet.
- Patent-pending white label platform:
- Confirmed partnership with NBCUniversal and Bravo for The Real Housewives franchise.
- In the pipeline: 2020 Olympics, Exatlon, LaLiga, Bally's Casino, Sky Sports and more.
- Driven by licensing revenue.
2) Immersive Tech (vertical: virtual reality/augmented reality/mixed reality)
Immersive Tech designs, programs, builds and installs immersive and engaging experiences for some of the world's leading companies for a variety of purposes such as brand engagement, revenue generation and corporate training. Through a blend of video game development, theme park engineering and the latest VR/AR technologies, the company has amassed a portfolio of global brands.
- Fortune 500 clients which include Intel, Snickers, FDA, Capital One, Bayer, BioMerieux, HealthCanada, Scoitabank, Kalahari Resorts.
- Recently launched a premiere new location-based entertainment (LBE) virtual-reality attractions division named Uncontained to capitalize on the growing demand for COVID-19-safe attractions. Uncontained will be the world's first free-roam interactive VR franchise attraction, built for a COVID-19 world, within shipping containers. The experience will allow for up to six players to roam freely within the container while interacting inside a digital environment as a team while making decisions that help guide and define the story.
- Completed new projects with three large multinational corporations (Capital One, Bayer and BioMerieux, Snickers, Intel, Capital One, FDA, Scotiabank and Kalahari Resorts
- Won the 2019 Startup Canada high-growth entrepreneurship category;
- Immersive new product presents the ultimate 5-D experience that is 100 per cent portable and brings major returns to the operator; step inside a fully immersive AR experience as guests board COVID-19-safe teams as they are transported to one of over a dozen AR custom experiences including: tourism attractions, haunted Halloween, Santa's village, the Temple of Doom, Peter's Easter Land, the Sahara Desert, commercial events and trade shows, and many more;
- Aiming for a direct listing by the Q2 2021 Listing
- For more info view the company's latest highlight reel video or visit www.ImmersiveTech.co
3) FansUnite Entertainment Inc. (vertical: sports betting, e-sports and gaming)
FansUnite Entertainment is a sports and entertainment company, focusing on technology related to regulated and lawful on-line gaming in sports, e-sports and casino. In addition to providing underlying technology, FansUnite operates multiple growing B2C (business to consumer) brands. FansUnite adds value by acquiring and growing its gaming portfolio with high-growth assets in new or developing markets.
- Completed 4 financings totalling $18M with oversubscribed brokered financings led by Canaccord Genuity and Gravitas
- Acquisition of Askott Entertainment, a leading e-sports betting technology platform;
- Acquisition of Mcbookie, a United Kingdom-based sports book that has generated over $340-million in betting volume since inception;
- Partnered with U.S.-based GameCo LLC to bring Askott technology into the U.S. market.
- Received gaming license from Malta
- Trading @ $180M market cap
4) CoPilot AI (vertical: marketing automation and artificial intelligence)
CoPilot AI uses cutting-edge artificial intelligence technology to help sales teams automatically target qualified prospects on social media, initiate one-to-one conversations and surface timely sales opportunities without requiring any content marketing, spam e-mails or any advertising.
- Ranked No. 140 on Canadian Business Magazine’s 2020 list of fastest growing companies in Canada and No. 15 fastest growing companies in Vancouver
- Company achieved high seven figures in annual recurring revenue along with the announcement of record sales revenue for Q3, new business MRR and growth expansion
- Finalist for the 2019 Technology Impact Awards for company of the year -- start-up success.
- Clients include: MassMutual, Merrill Lynch, UBS and New York Life, and more;
5) Victory Square Health
Victory Square Health was founded in 2016 to accelerate the development of personalized medicine and technology solutions including diagnostic tests to support patient's care and improve health outcomes. Its first product, the Leishmaniasis rapid test, was developed in partnership with the UFMG, Federal University of Minas Gerais. Safetest took advantage of its expertise in the subject to develop other antibody-based tests and a robust research and development pipelines of diagnostic kits for Hansen's disease, brucellosis, HTLV and blood sample screening tests.
- Safetest COVID-19 test enables the user to verify whether they are currently infected, have been infected or have never been infected with COVID-19.
- Received CE from European Union competent authority of Belgium for Safetest antibody Rapid test for distribution, sale and usage throughout the 27 countries in the European Union
- Victory Square Health received Anvisa approval for sale and use of Safetest COVID-19 antibody Elisa and 15-minute rapid test for the country of Brazil.
- First company to be approved in the Ideiagov program supported by the Sao Paulo state government for immediate trials and application in the state.
6) Covalent (vertical: fintech, crypto)
Covalent provides a unified API to bring full transparency and visibility to assets across all blockchain networks. Covalent is built by a smart team of financial analysts, data scientists, blockchain and database engineers passionate about improving and scaling blockchain technologies. Covalent is financed by leading venture investors, with over a decade of expertise building and scaling technology companies.
- Closed an oversubscribed $3.1-million financing;
- Partnered up with OpenDeFi to enhance the transparency of tokenized real-world assets;
- Launched one million wallets: a celebration of Ethereum 2.0.
7) VS Digital Health Inc. (vertical: digital health and diagnostics distribution)
VS Digital Health is 360-degree health care offering smart, connected devices, at-home diagnostic tests, personalized digital guidance and monitoring, 24/seven/365 access to health care professionals, and prescription delivery. The mission for the company is to make it easier for people with chronic conditions to stay healthier. VS Digital Health has an exclusive distribution right for all Victory Square health's diagnostic tests in North America, Europe, Middle East, India, Malaysia and Indonesia.
- Launching Discreet Care; March 2021
- Focus on clinical issues that men and women do not feel comfortable going to a clinic for ie ED (Viagra, Cialis), hair loss, STD's, fertility testing. mylabbox.com will show you all diagnostic tests we are selling
- Telehealth Clinic with over 11k health care professionals
- 35 states
- Next day prescription delivery
8) Aspen Technologies (vertical: cybersecurity)
Aspen is pioneering a cybersecurity offering for the new work-from-home (WFH) COVID-19 business world. Aspen delivers entrepreneurs and business professionals a way to ensure maximum productivity while collaborating through the cloud with colleagues, partners and customers.
9) Multapplied Networks Inc. (vertical: software-defined wide-area network)
Multapplied Networks develops and sells a proprietary software-defined wide-area network (SD-WAN) platform that cloud and managed service providers white label and run in their infrastructure to improve visibility and control over end-customer experiences of their hosted, managed applications and drive customer acquisition, retention and brand.
10) Taloflow ai (vertical: cloud infrastructure, cloud management)
Taloflow's prediction engine reveals the cost of every cloud process in real time; it is an AI autopilot for cloud resource management that saves companies up to 40 per cent on Amazon Web Services (AWS). Investors include: Victory Square Technologies; Plug and Play Ventures; Scott Belsky, venture partner at Benchmark; Ian Wong, co-founder of Opendoor; David Tedman, co-founder of Hootsuite and Invoke; Ross Wightman, founding engineer of Avigilon; and John Seely Brown, co-chairman of Deloitte Edge.
11) Shape Immersive (vertical: augmented reality, 3-D E-commerce)
Shape Immersive creates the value layer of spatial computing for the world's top retailers and e-commerce brands. Its 3-D commerce solution helps its customers increase conversion rates, drive more sales and reduce return rates with 3-D and augmented reality technology. Clients include: Nike, Amazon, Lululemon, Disney, Intel, Red Bull, TED and Uniqlo.
12) Grow Tech Labs (vertical: plant-based science)
GTL is a plant-based science company focused on the R&D of cannabis and psychoactive compounds from both plant-based compounds and fungi as well as the development of skin products from plant-based derivatives.
13) Victory Square Entertainment (vertical: film, TV and digital content)
VSE was established to strengthen the Victory Square presence in film, TV and other digital related content. VSE has three main areas of focus: script development, financing and production. Since inception, VSE has financed and produced three films which include Dragged Across the Concrete featuring Mel Gibson and Vince Vaughn, What They Had featuring two-time Academy Award winner Hillary Swank, and The Opening Act featuring Jimmy O. Yang, Cedric the Entertainer and Ken Jeong.
14) CloudAdvisors (vertical: insurance tech)
CloudAdvisors is one of the top insurtech solutions in North America, powering the next-generation of employee benefit advisers. CloudAdvisors connect insurance advisers with marketplace data and the best tools in a secure digital platform for an enhanced client experience. Through digital client management, on-demand insights, automated reporting, governance and compliance, CloudAdvisors create an accessible and intelligent robo-advice assistant for better insurance advice.
15) Compression.ai (vertical: artificial intelligence and machine learning)
Accelerating businesses' digital experiences, Compression AI utilizes its proprietary neural networks to tailor compression algorithms to each and every input resulting in compressed data sizes as little as 10 per cent of the originals. This results in non-terrestrial, agriculture, energy and manufacturing gaining the ability to rapidly assess, audit and act on oceans of data to improve their business competitiveness.
16) ShopandShout (vertical: marketing automation, influencer marketing)
Founded in 2016, ShopandShout is the fastest growing influencer marketing platform in North America. ShopandShout lets you choose which brands to collaborate with; giving creators with influence in their niche the ability to grow their audience by creating and sharing authentic branded content that gets promoted across social media. ShopandShout partners with exciting start-ups, local businesses and global brands to bring its creator community a variety of campaign opportunities. Over 55,000 inspiring creators, and reached over 500 million potential customers for brands to date.
17) Flo Digital (vertical: AR/VR, MR)
Flo Digital designs and develops turnkey and 3D video delivery advertising solutions with a focus on GIS-enabled solutions. Flo Digital’s platform makes 360 degree content viewable within any browser, VR platform, or mobile device, that interacts with and leverages the users’ physical location.
18) Next Decentrum – (vertical: online learning)
Blockchain, Artificial Intelligence, Cybersecurity and Fintech. Next Decentrum is an education tech company developing the learning platform of the 21st-century with a focus on emerging technologies. CXO.ai enables experts to create and publish courses using curated content
19) Draft Labels (vertical– software development, saas)
20) PayVida (vertical: payments, lending)
21) Capaciti (vertical: marketplace)
22) Biosciences Enterprises (vertical: plant based science, cbd)
23) PIIK (vertical: esports)