Wave Telecoms Startup Funding Round and Free Internet Access from 2014
Wave Telecom is an exciting new British tech startup that promises free internet for everybody by as soon as 2015. In the next few months Wave Telecom and its ISP partners will debut a Beta release of a broadband router firmware which is free to download, easy to install and instantly results in free internet access.
Future versions of the firmware will take us beyond free internet, keeping us logged into free Wifi hotspots wherever we travel and instant access to cloud based applications from any device, anytime and anywhere.
Research and Development
In 2012 valuable research and development was financed with a £300,000 seed fund investment round which explored the opportunity of free internet. The result is Wave; a technological breakthrough, which now boasts an estimated pre-money valuation of £3.8million.
Waves socially driven App Store and Ads-for-Access capability is an unprecedented leap forward for network-telecommunications and display advertising industries. But a more important realisation came from the valuable r&d carried out in this field.
In a world without interconnectivity cost barriers, connectivity and transparency will shift us all from a 5,000 year old hierarchical society to a borderless network where we can all deal directly with anyone how we please without fear of the privilege being removed.
For thousands of years major innovations on land, sea and more recently in air and space, have been referred to as industries and folded into our system of law, the monetary economy and Government. But in the early 21st Century cyberspace ballooned beyond the definition of an industry. It's now being referred to as the 5th domain. An entirely separate terrain to land, sea, air and space.
Cyberspace is still ballooning in prosperity and attempts to fold it into our social systems as another industry or resource are failing terribly. Cyberspace causes revolutions near enough weekly, but stopping them is proving very difficult. As they compound, society as we know it is encountering enormous pressure and is prone to collapse at any time. Activity in cyberspace is causing us to evolve and even rethink the very philosophy of law, currency and government. Regardless of your title, resources and power in the 4th domain, this disruptive and irreversible 5th domain opportunity is anyones for the taking.
We're also witnessing a huge transition from the archaic mindset of an 'Institutional'-run world to a fresh mindset, expected from those living in a digital 'network'-run world.
Institutional minds are conditioned to be Closed, Selective and Controlling (CSC) e.g people are careful of what information they absorb, selective of people they connect with and controlling of everything. This is because shareholders in a monetary system demands it and Law enforcers in a judicial system demand it.
The recent emergence of network thinkers are the opposite. They are Open, Random and Supportive (ORS)) e.g open to anything, accepting of everything, random in their response to the disorder of events and supportive of everyone around them.
"There are many institutions who are capable of changing despite being criticised for not changing fast enough" Thomas Powers
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The Marketplace
There's a norm happening in the marketplace right now which is causing huge inequality and resentment in the network-telecom operators and the digital advertising industry. Networks are being forced to make bandwidth and accessibility costly to the end user in order to keep up with user demand. Whilst at the same time free, data-hungry online service providers (such as YouTube) are generating billions in advertising revenue without any obligation to compensate the networks or bill the end users.
Wave offers an alternative (network) advertising platform which outperforms internet advertising platforms and permits advertising revenues to compensate network costs giving end-users 100% free, unlimited internet access.
Global display ad spend is expected to skyrocket from $9billion in 2012 to as much as $200billion (£129 Billion) by 2015. The UK display advertising market accounts for 11% of this spend, that's £14.2 Billion in 2015 alone. When Wave launches in 2014 it is expected to act as a traffic cone in this superhighway of expenditure.
By Q3 of 2015, Wave Telecom expects to divert 1% of this spend away from online advertising platforms and to its own platform and the pockets of its network partners. 0.8% penetration doesn't sound much but that's a turnover of £100million for Wave, half a million free internet users. it also gives Wave a pre-money valuation of £50million in 2015. Not bad for a 3 year young tech Startup.
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Where to begin ?
So how does Wave structure itself ready to exploit the market opportunity as a company and lead in a power levelled, moneyless domain ?
There is no doubt 'the establishment' and cyberspace are opposing. They're conflicting approaches to social order keeps adding fuel to the fire. Finding firm foundations during this period of conflict, anarchy and even cyber civil war, depends on technical strength and the trust of the people. There is no doubt that Wave must operate as a for-good company with a lawfully-rebellious, user-powered platform.
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The Technical Stuff
Following a simple broadband router upgrade, your web browser will continue to display homepages as normal, but with two slight differences;
A bar will remain constant along the top 5% of your browser window throughout your entire internet browsing experience. In the centre of the bar you will see a pulsating wave logo with slide menu icons on either side.
- The icon on the left can be selected to reveal a slide menu containing your portfolio of application.
- The icon on the right (feature coming soon) can be selected to reveal a slide menu containing a list of your contacts and their available to chat or receive calls.
- The wave logo pulsates according to your applications, so if you have unread messages from friends or there's a hot business opportunity in your pipeline, the logo's pulse-speed will increase.
The lower 10% of your browser window is also occupied by Wave. Throughout your entire internet browsing experience this area will contain a new standard of animated and interactive banners, but not for advertising as we know it. The information being displayed here are Relative Real-Time (RRT) events happening in your physical and virtual surroundings.
This is all achieved using the universal firmware and a decentralised SaaS platform. Very similar to how Bitcoins Wallet and Pirate Bay operates. An interactive demo is now in development to showcase Waves pioneering new standard of applications and ad platform, which, without distortion, resize to fit any orientation on any device connected to your broadband router.
(Our apologies if the link doesn't load straight away or if you can't access the demo at all. There's huge amounts of traffic accessing the showcase of this new technology. Keep trying!)
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Below is the early phase corporate structure of Wave. It includes several details about the investment opportunities in this young tech startup and how it will survive in the future environment that is cyberpsace.
Buzz Words
Allodial Owner = The highest title on ownership. Maintained through occupying and defending. Reserved for Governments in the 4th domain (land). Powers include compulsory purchases and eminent domain.
* In the 5th domain (cyberspace), platforms are the high-ground. While centralised platforms are commonly owned by legal entities (citizens or companies), decentralised platforms actually redistribute allodial title.
Beneficiary = Those who stand to benefit from the activity of the Trust (and its trustee(s))
Extropy = The name of the Trust.
Trust = Group trusting in each other and/or something e.g community and technology
Trustee = The entity (company) being entrusted by the Trust (and its beneficiaries) to execute the commercial application of their technology.
Legal owner = The legal owner (trustee) has the right to possession, the privilege of use and appears by all counts to be the owner, to all but one person; the beneficial owners (The Trust and its beneficiaries)
Trusted Advertising Ltd = Private limited company. Principle Trustee. (switched to Wave Telecom Limited in 07_13).
Stakeholder = Any person or entity associated with this venture that has a stake ownership or title to gain or lose as a result of its activity.
Alternate foundations. Alternating Benefits
Wave is even pioneering with its business structure. The investment opportunities in this technology is designed to meet the needs of two types of investors and two ends of modern society.
Wave Telecom Limited - For the institutional minded investor (closed, controlling and selective).
If you're traditional you'll want shares in a company, operating diligently under our regulatory/ statutory laws in our monetary orientated economy, then you can benefit from shares and dividends in Wave Telecom Limited. A private limited (trustee) company whose privileged legal title to the technology gives it a pre-money valuation of £2 million.
The company has placed 500,000 shares in circulation, at a price of £4 per share. All investors in the company are also listed on the articles of association with Companies House. Wave Telecom also qualified for the Government's Regional Growth Fund (via the Angel CoFund) which enables syndicate investment in the company to be matched. You'll also receive 50% tax relief on all gains from the Seed Enterprise Investment Scheme (SEIS). In 2014 the company also plans to move to the London Stock Exchange's Alternative Investment Market (AIM) with each of the 500,000 shares expected to receive a £20 per share starting valuation.
Extropy Trust - For the network minded investor (open, supportive and accepting)
If you still believe in trust, collaboration and open communities then you might like to invest in an alternative entity of this technology venture; a decentralised Trust, operating in a resource based digital economy, under a cyber equivalent of common law (called dual-crowdsourcing). This option gives investors beneficial ownership of the technology and the royalties associated with this level of ownership. The Trust is already home to 50 professionals who all believe this technology to be worth £3.8 million. Subsequently, one million shares have been placed into circulation at a price of £3.80 per share.
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Latest Investment News
During 2013 Wave Telecom Limited was incorporated as the Trusts principle trustee. A startup funding round was launched in order to give prospective investors an equity stake of the technology for £750k. Recent developments in the technology and business have somewhat affected this investment round. This effect is an adjustment to the startup investment round itself which now seeks to raise £870k by July 2014.
Regardless of whether these funds are sourced from future beneficiaries in the Trust or shareholders in the company, the total funds raised will benefit all stakeholders. The most recent announcement was to the Trust in June 2013. It stated that our principle trustee (Wave Telecom Limited) would be taking over the Trusts funding round. This statement has now being retracted. The startup funding round is instead being made accessible to both the future company shareholders and future beneficiaries in the Trust.
Duplicating the investment opportunity across both groups is not done to duplicate the amount of funds being raised, but to help ensure that the overall funding target is met and the investment opportunity is extended to both the prospective company investors and beneficiaries of the Trust. The remaining unsold shares will be re-distributed to the respective entities stakeholders.
At this time the Trust operates on a pre-money qualitative valuation of £3.8m while the company and its quantitative due diligence, operates on a pre-money valuation of £2m.
While the entire technology venture seeks to raise £870k by July 2014, the equity being sold, the entity being invested in, and the role and title of the stakeholder will depend on each specific investment deal e.g. if you invest in the trust you will become a beneficiary, obtaining any number of the 1 million shares in circulation which are based on an estimated pre-money value of £3.8m. If you were to invest in the company you will become a shareholder and obtain any number of the 500,000 shares in circulation based on an estimated pre-money value of £2m.
Adjustments
Let the record show that;
By August 2013 Wave Telecom Limited had 500,000 company shares @ £4 each and the Extropy Trust had 119,084 of its 1 million shares 11.91% equity, ring-fenced for sale as part of the startup funding round. In advance of making any adjustments, those shares will now be proportionately re-distributed to the beneficiaries, then a re-dilution will occur to create enough salable equity to raise £870k.
£42,395 of the old startup fund target (£750k) was successfully raised, meaning that the revised startup funding round (which is seeking £870k) has £827,605 left to raise. In order to raise these funds the equity on sale will need to be recalculated. There's no denying that this amendment would systematically take a percentage of every beneficiaries stakeholding however this concern has already been rectified.
A scheme called the Angel Cofund recently approved Wave, giving the company (and subsequently the Trust) an opportunity to access some of the Governments £3.2billion Regional Growth Fund. Use of these funds are to incentivise and attract investors by matching their contribution by 100%. 2.5% of the grant is given to investor syndicates lead Angel in order to monitor and share reports of ongoing due-diligence with the Fund). Investors in Wave subsequently benefit from a 97.5% fund matching scheme which will now apply to all investments made in Waves startup funding investment round.
This only leaves two options to decide between;
a) The startup investment round target can now be met by selling a smaller percentage of the equity previously discussed. By retaining the benefits for the venture and not the investors of this round, we would reduce the impact of the revised liquidation whilst simultaneously raising the full target.
b) The other option is to continue selling a larger portion of equity, but subsidise the investments by matching it with the maximum amount of 97.5%.
The Wave Telecom and Extropy Trust business team feel it necessary to go with the latter option in order to stimulate new investment opportunities, help close existing opportunities and raise awareness of our technology in the wider community. Despite further liquidation of the shares to meet the need of the revised Startup investment round, we are also helping reduce the risk of underfunding which can cause share price to drop.
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Statement Summary
A 22.14% equity stake ownership in this venture (average sum of 21.78% in the Trust and/or 22.5% in the company) is now on sale to raise the remaining investment round target of £827,605. If you or your syndicate of investors would like to back this tech startup you'll also be pleased to learn that your investments will be 97.5% matched by the Angel CoFund. This means you will DOUBLE YOUR MONEY JUST BY INVESTING.
For more information please:
call: 02031377118 or email: sion@wavetele.com
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