Short term return on investment for active users of the platform, additional deal terms:Investors over 500 euros: waiver of 12% service fee, period 1 year, for all projects worked on.Investors over 1000 euros: free use of the Peerwith platform for 2 years.
The business case envisions a profitable business
by the second half of 2019, and market dominance by 2020 or further on. Both the platform and business models are fully-scalable, so the mid-term return on investment will be dividend payments. The Shareholder Agreement determines that 75% of profit is paid-out as dividend
to shareholders, unless decided otherwise.
A Share Buyback
will be offered to all shareholders investing in this round five years following the issuance of shares. The price per share at which the Buyback will be offered shall be determined based on the market value of the Company at that point.
Long-term return on investment is an exit
. The platform aims for market dominance, like any marketplace would do. Peerwith is active in the scientific publishing industry where the RELX group alone (parent of Elsevier, the largest scientific publisher) spends up to 500 million per year on acquisitions. Other major players, like Taylor & Francis, Springer Nature and Wiley have also spent significant money over the last few years on acquisitions, like workflow tools, publishing platforms and other online solutions, to support their primary business - publishing.
Another potential group are service providers to the industry, like Clarivate Analytics which has taken a very aggressive growth approach to acquisitions since being taken over by private equity. There are links between Peerwith and such companies, for example the existing partnership agreement we have with Clarivate Analytics for ScholarOne integration.