Joint Venture Enables Investview to Enter $8.7 Billion Big Data Industry Which Is Growing at a 29.7% CAGR
Investview Corporation has closed a Joint Venture to enter the data mining industry.
The joint venture formed by this agreement will conduct its business under the product and brand name “APEX” and will be managed by SAFETek LLC, a Utah limited liability company and wholly owned subsidiary of Investview. The Joint Venture has been formed for the purpose of acquiring, reselling, and operating high-speed computer processing equipment for intense industry data mining and processing applications. The joint venture will leverage the network marketing distribution model of Kuvera LLC, another of the company’s wholly owned subsidiaries. The sales model includes a unique structure of a leaseback to SAFETek from the equipment purchaser for the rapid deployment of equipment into the Big Data Analytics industry, which is projected to grow 29.7% compounded through 2023.
The company’s goal is for SAFETek LLC to become one of the world’s largest specialty data processing providers. The company believes that with its joint venture partners, A.I. Data Consulting LLC and Freedom Enterprises LLC, who bring extensive network marketing and global business experience to the partnership, has created a team that can make this goal a reality. To increase the probability of the joint venture producing $20 million of pre-tax income for the company, the four founders of the company have contributed a collective 100 million shares, as an additional incentive for Investview’s joint venture partners to produce targeted profits.
“The unselfish decision by the four founders to forfeit a sizable portion of their own shares to motivate the two joint venture partners is unprecedented in this age of Corporate Officer compensation contracts. This is truly an honorable attempt to create less dilution for all shareholders worldwide,” said William Kosoff, Investview CFO.
The Big Data Analytics market accounted for $8.5 billion in 2017 and is expected to grow to $40.6 billion by 2023 according to November 2018, Research and Markets Report. The managed services segment which Investview’s SAFETek subsidiary is addressing is expected to account for the largest portion of this growth for the data mining tools and services market over the next five years. SAFETek seeks to provide high speed processing to smaller companies and emerging growth sectors who require the processing power but lack the capital to purchase and maintain high speed data centers for intense processing applications including artificial intelligence, protein folding, CGI rendering, game streaming, machine & deep learning, mining, independent financial verification, and general high-speed computing. Key trending markets for data computation include Internet of Things, Smart Homes, smart cities, smart devices, block chain technology, Virtual Reality, 3D animation, and health data technology to name a few.
The sales plan is for the existing distributors of Investview’s wholly owned subsidiary, Kuvera LLC, and the new distributors who will be recruited into the subsidiary by the joint venture partners to market and sell SAFETek’s APEX. Purchasers of the $11,000 Apex product will lease the equipment back to SAFETek under a 60-month agreement for $500 per month in lease payments. The compounded annualized rate of return for the purchaser based on their receiving $30,000 in lease payments is an attractive 22%.
Additionally, the joint venture requires SAFETek to reinvest initial profits to purchase APEX units that will be owned by SAFETek. This enables a mixed environment of leased and owned equipment to scale the operations to maximize cash flow. Conservative pre-launch pro-forma models indicate that within 24 months SAFETek could have as many as 36,000 Apex units generating monthly revenue in excess of $38M. SAFETek has the ability to scale rapidly based upon their current contract provider having the capacity to supply over 100,000 APEX units.
“APEX provides passive income for purchasers, scale of operations for SAFETek and additional competition in the high-speed processing sector benefiting research and innovation for companies of all sizes. This truly is a model that benefits all and I am humbled and blessed to receive the vision and give birth to it through this extraordinary partnership,” said Jeremy Roma, Owner, Freedom Enterprises.
Since APEX equipment can also be used to mine for altcoins which can be converted into Bitcoin, the risk for the lessors and SAFETek has been reduced. The ability for SAFETek to convert into liquid bitcoins offsets its negative cash flow risk and could also significantly increase its profit margins and revenue should the price of a bitcoin increase. Furthermore, SAFETek has elected to make lease payments in Bitcoin to expedite payments for international participants.
The metrics below are from Kuvera’s and SAFETek’s pro forma projections at the point at which the $20 million cumulative profits milestone might be achieved. The approximate metrics are based on the assumption that the average Apex unit will produce an average of $1,250 per month revenue.
- $4.7 million of monthly revenue for SAFETek.
- A per Apex unit breakeven of $327 of revenue per month as compared to $527 per month in month 1.
- Installed base of 5,000 APEX units with 50% owned by SAFETek and 50% leased from Kuvera’s client owners.
Under the terms of the joint venture agreement AI Data Consulting and Freedom Enterprises have been issued 200 million share certificates each or a collective 400 million Investview shares. Some or all of the shares are forfeitable in the event that the joint venture does not generate minimum amounts of profits. For the two joint venture partners to keep all of their shares requires that Investview’s two subsidiaries, SAFETek LLC and Kuvera LLC produce $20 million of cumulative profits for Investview for the five-year period which began on March 6, 2019 and will end on March 5, 2024. The profits are comprised of the pre-tax income for the SAFETek subsidiary and a $1,000 pre-tax profit per unit that the Kuvera subsidiary receives from the sale of each $11,000 APEX unit by a Kuvera distributor. The partners’ first 100 million shares are earned upon the SAFETek and Kuvera subsidiaries generating $2.5 million for Investview. The second 100 million shares are earned when the two subsidiaries have earned a cumulative $10 million. The third 100 million shares are earned upon the subsidiaries earning a cumulative $15 million. To add an additional 100 million shares to further incentivize the joint venture partners the four founders including Annette Raynor, Mario Romano, Chad Miller and Ryan Smith have contractually agreed to cancel 100 million of the shares, which they collectively hold when the $20 million profit milestone is reached.