12% Preferred Shares
A Profitable BUYER AND OPERATOR OF CONTENT DRIVEN INTERNET BUSINESSES
We buy, build, and operate profitable content and service businesses across a broad range of verticals. As well as our own portfolio, clients hire us to operate businesses on their behalf. We receive management fees and profit share for this service. When we buy businesses, we use our expertise to accelerate what works, and fix what doesn’t work. We’re able to grow businesses across numerous verticals. We see a fantastic opportunity to buy and grow profitable content businesses, utilizing that unique skill sets and expertise.
THERE ARE THOUSANDS OF PROFITABLE INTERNET BUSINESSES FOR SALE
Online businesses can produce high returns on investment, but they are risky. Our objective is to reduce risk through diversification, and by acquiring bigger, and better businesses.
We plan to acquire Internet business when they generate profits that are substantially higher than the cost of non-dilutive capital (preferred shares and debt). For example, we may buy businesses generating returns of more than 20%, while our long-term cost of capital should be less than 12%.
We plan to increase the revenue and profitability of companies we acquire, by leveraging our extensive operating skills and experience. We typically look for businesses with a clear path to future growth
Get To Know Us
Dom Wells bought his first Internet business over 5 years ago, and has been buying and growing them ever since. He is a thought-leader in the space, and sees huge opportunity in the online content industry.
Esbe Van Heerden
Esbe is an entrepreneur, problem solver, scientist & unshakable yeasayer dedicated to helping you grow your investments. She loves systems, efficiency, and finishing things —even building herself right out of her role at her previous company.
Esbe Van Heerden
DIRECTOR OF STRATEGY & ACQUISITIONS
Yury is a digital marketer with a focus on SEO. He has over 15 years experience working across many website types, industries, and verticals. He has helped companies increase revenue by multiple 7 and 8 figures through SEO.
DIRECTOR OF CONTENT AND SOCIAL MEDIA
Hannah has been working in the Internet Marketing field since 2011. She loves technical projects and creativity – a great combination for Social Media success. Having 5 kids has taught her patience, organization skills, and stamina. She’s learned to adapt, and not sweat the small stuff.
Annie is a project-driven wearer of multiple hats. She’s the go-to for anything in the company that needs taking from zero to one, or a pinch of innovation.
PROJECT MANAGEMENT ASSISTANT
Twinkle is a former IT associate in the corporate industry before shifting career as a project manager. Now she enjoys the best of both worlds – carrying the lion’s share of responsibilities to administrative tasks and helping manage the day-to-day details to ensure project deliverables are timely met, while juggling her time as a fulltime mom to two adorable girls
PROJECT MANAGER AND EXECUTIVE ASSISTANT
Nina worked as a chemical engineer for 6 years, before switching to a new passion working online. She quickly demonstrated a keen ability to project manage and adapt to the online business world, and has become a core part of the team.
JR has been into creating websites for over 5 years. His love for creating something from scratch and troubleshooting has resulted into building numerous awesome and functional sites.
FRONT END WEB DEVELOPER
Kevin is a programmer who enjoys video games and traveling. Originally beginning his career as a total WordPress theme aficionado. Kevin’s focus is now on all things HTML & CSS and his newfound love for Javascipt, yet he is still a front-end developer at heart.
Katarina is an experienced content creator turned digital marketer. She loves data-led SEO helping clients to improve and grow their online businesses. As a true millennial Katarina loves road biking, traveling, and exploring the woods with her dog.
Jovana is an avid researcher, analyzer, and problem-solver driven by curiosity and a constant need to grow and develop. She worked as a content strategist for over 5 years before she stepped into the SEO world that became her primary focus and area of expertise.
Jesse has a background in business and marketing. He has been working in online marketing for 4 years and brings a strong desire to develop partnerships that help the company grow.
Adam Trainor is a digital marketing pro and experienced business manager. He’s run everything from brick and mortar retail/service based businesses to digital publishing and ecommerce brands, with over 10 years digital marketing experience. He loves nothing more than figuring out what makes businesses tick, and determining which levers to pull to generate growth.
Nicolette moved over from being a transport logistics manager in the formal sector to working as a freelance customer support agent, website manager, and content writer and editor 6-years ago. She has an approachable, yet professional demeanor perfectly suited to responding to our client’s needs in an efficient manner.
Double-click any video to view full-screen
Dom Wells – CEO & Founder
Esbe Van Heerden – COO
Yury Byalik – Director Of Strategy & Acquisitions
Bea Chan – Strategy & Email Marketing
Below are the details of 4 businesses we are currently evaluating and are in the due diligence process.
If we purchase all of these businesses:
Total asking price: $4,700,000
Total EBITDA: $1,326,000
Average Cash Return: 30.2%
Asking price: $550,000
TTM Ebitda: $160k
Cash on cash return: 29%
A collection of courses sold on Udemy and self-hosted website. The top course has been a bestseller on Udemy for over 5 years, has helped thousands of people with “career hacking” advice. The course has positive YoY grown with 2020 the strongest year ever.
While the majority of sales come via the Udemy platform, we can grow the business both on and off platform, through additional marketing channels, and by creating new courses.
We believe this method of learning will continue to grow, and with our expertise and focus, we can accelerate the success of this business post-acquisition.
It is relatively hands off to run, which means we can apply our efforts into growth strategies.
Asking Price: $2.5MM
TTM Ebitda: $700,000
Cash on cash return: 28%
A service business helping people with international structuring for offshore companies, banking, and finances.
The world is becoming more global, and businesses and wealthy individuals are looking for quality services in an area that can be confusing; international business law. This brand is well positioned to grow, has a full team in place, and with our expertise will be able to launch new marketing campaigns to accelerate growth.
Asking price: $950,000
Cash on cash return: 28%
This online business offers monthly-membership access to a large library of expert training for new/aspiring freelancers who want to earn an income through writing (or are searching for a legitimate work-at-home income option) and for career writers who want to increase their professional earning potential. (Home Based)
Great opportunities in light of recent trends to make money online, and this is already a market leader. It complements our own skills very well.
Asking Price: $700,000
Cash on cash return: 42.5%
This business highlights ongoing deals suitable for designers and web developers. Templates, design bundles, and fonts are essential for designers, and there is a growing industry meeting their demand.
This business highlights whenever the aforementioned items are on deal, and receives a commission in the process.It has a lot of room to grow.
CAN I GET MY PRINCIPAL BACK ANY TIME?
You may sell all, or some, of your preferred shares after 12 months from the date of purchase or anytime they are registered. In addition, we have the right (but not the obligation) to purchase any outstanding preferred shares starting January 1, 2026.
IS THIS INVESTMENT GUARANTEED?
Nothing in business is 100% guaranteed. As long as Onfolio is in business and generating sufficient free cash flow, we intend to pay preferred share dividends every quarter.
IS THERE ANY SHARE IN THE UPSIDE OF THE BUSINESSES?
No. Owners of preferred shares only receive dividends that are paid.
HOW CAN YOU GUARANTEE 12% FOR FIVE YEARS?
The dividend is not guaranteed. However, we are confident in our ability to pay 12% from our current and forecast cash flow.
WILL YOU POST THE ACCOUNTING INFORMATION?
We already engaged an accounting firm to prepare financial statements pursuant to GAAP. We will make those statements available to common and preferred stockholders.In January, we plan to engage an independent accounting firm to complete an audit of our financial statements. We will make our audited financial statements available as well.Since we intend to become an SEC reporting issuer, we plan to publish quarterly financial statements and annual audits for all of our stakeholders to review.
WILL YOU SHARE THE DETAILS OF THE SITES YOU’VE BOUGHT?
We will disclose each of the websites and businesses acquired. The financial results of each will be integrated within our accounting statements and provided to stakeholders pursuant to the relevant securities laws.
WHAT IS THE PAYMENT SCHEDULE?
Payment is made at the end of each quarter, on a pro rata rate depending when you invested during that quarter.
The first payout will be on March 31st.
WHAT HAPPENS IF INSUFFICIENT FUNDS ARE AVAILABLE?
If there was not sufficient funds available, then it would accrue to the next payment.
HOW SOON WILL THE AUDITED RESULTS BE AVAILABLE?
The Securities and Exchange Commission will require us to file audited financial statements within 90 days of the fiscal year end. So we anticipate being able to satisfy that requirement on a future basis and will do so and we’ll publish it and make it available for everybody to see.
WHO IS ONFOLIO’S AUDITOR?
The auditor that we’ve designated is Malone & Bailey. They are a CPA peer reviewed firm that handles audited financial statements for many dozens of publicly traded companies in the United States.
ISN’T IT TOO EARLY FOR AN IPO?
That’s a whole long conversation, but the short answer is that the company believes that by going public earlier, we can access investment capital at a lower cost than it would otherwise be if we remain private, but equally important, we would have access to better deal flow. For example, because brokers are more likely to show the company higher quality deals before they show other potential buyers of those same deals, because the ability for the company to be able to close would be better and more known because the transparency and disclosure associated with public companies.
IF THERE’S A DELAY IN ONFOLIO BEING ABLE TO GO PUBLIC, DOES THAT AFFECT THE ABILITY TO SELL THE SHARES AFTER 12 MONTHS?
No, it’s an independent, unconnected issue. This 12 month period has to do with the regulation under the Securities and Exchange Commission, which basically states that shares purchased by accredited investors may not be resold to others for a minimum period of 12 months. When someone buys a preferred share, they need to hold it for 12 months and not resell it to anybody until after that period. And then when the shares are not registered, they can only resell it to somebody who is accredited. If we get to the point where the company has the preferred shares publicly traded on an exchange, then those shares could be sold at any time to anybody, whether they’re accredited or not.
WHAT SIZE OF SITES IS INFOLIO TARGETING GOING FORWARD?
We’re looking for businesses that are really doing 200k a year profit or more. For the next six months or so, we’ll look at sites that size and then as we grow, we’re going to be looking at bigger sites as well. Sizes will then be 500k a year, or a million a year. There are a lot of reasons behind that, but the short answer is these sites are easier to manage, and they still have a lot of room for growth. Believe it or not, we’ve seen a lot of businesses that are valued at anywhere from 1 million to 10 million that still have money left on the table.
You have 2.25 million for 2021. Discuss more about how the team plans to hit that large growth goal.
It’s through acquisitions primarily. In order to go from 250K to 2.25 million, it really just needs a handful of good acquisitions. As we’re raising money right now, that money goes to acquisitions, and then those acquisitions are what will lead the majority of that growth. And of course, we are also growing the acquisitions, the businesses that we’re acquiring as well. Based on what is already in the pipeline, we anticipate hitting those goals for 2021 and onwards.
WHY DIDN’T THE COMPANY PURSUE A BOND OR NOTE ISSUANCE INSTEAD?
Great question. From a capital markets perspective, there’s a lot of interest in preferred shares in the United States, the market for preferred shares is almost $400 billion. It’s more of a standardized type of security that investors are familiar with, that investment advisors are familiar with. Whereas bonds and notes tend to be more for municipalities and large corporate, and government. And so this type of investment we thought would be best structured as preferred.
If you’re paying a preferred return of 12%, what percent return are you anticipating from the acquisitions?
So clearly, we’re expecting a meaningful spread. Obviously, there’s going to be diversification in the portfolio. But we believe that the spread will be sufficient enough to pay that type of return with a meaningful margin that falls to the bottom line so that in the event that one acquisition doesn’t work out exactly the way we anticipate, then the blended average of the portfolio should be more than sufficient to pay the 12% return.
WHAT IS THE CUTOFF DATE TO INVEST?
The way this offering is structured is it’s actually for a face value of $25 million. And so we made it structured so that it effectively closes, I believe the date was end of November of next year. But I think the way to think about it is that investors can invest at any point in time and from the date of their investment through to the next quarter period is how they’ll earn the first dividend and then thereafter, it’ll be based on the quarterly payments. So there’s not necessarily a rush to invest by a particular date, except that the earlier you do invest, if you choose to, is when your dividend rate will start calculating until the next first payment.
Invest with Onfolio
This is an opportunity to earn an 12% annual return. Onfolio is raising up to $25MM, and will pay out 3% preferred share dividends quarterly.