Memo from Andrew Wileman, founder and CEO of Wileman!.com, to his angel investors: I understand that several of you are concerned about the status of your investment in Wileman!.com. Rumours are circulating that our concept is flawed, we are not meeting our quarterly targets, our management team is weak, we have shelved our plans for an IPO in September, and that I personally sold all my shares back in early April. These rumours are malicious and totally unfounded.
The concept behind Wileman!.com has been completely validated. There is a large wired community of Wilemans around the world, representing an untapped and unloved market - and a very targeted one. Based on the spam messages I get on AOL, most of them live in Halifax, Nova Scotia, and have similar, rather narrow, sexual interests. We are on the point of signing five-year affiliate marketing deals with Ann Summers Sex Shops and Rubber-U-Like.com.
We estimate our target market is worth dollars 35 billion (10,000 Wilemans, dollars 35,000 per head gross income, for the next 100 years). We intend to be the leader in the Wileman space, with a 10% market share - that's dollars 3.5 billion revenue. Based on comparables like Yahoo, Qualcomm, Nokia and Autonomy, we should get a 100x price/sales multiple and a stock market value of dollars 350 billion (a pretty conservative estimate - about the same as Microsoft and well below Cisco).
We are absolutely on track vis-a-vis our quarterly targets. Our business plan had us in pre-revenue phase through Q4 2000 - we are already there in Q2. (We may even hit post-revenue phase by the end of the year, if the Ann Summers range takes off.) We are ramping up the burn rate. Operating losses are way ahead of plan.
More importantly, we are maintaining our First Mover Advantage - as of mid-2000, amazingly, we still have no serious competitor in the Wileman space (AskWileman.com is a joke). But we are not complacent. We are driving forward and investing ahead of the curve.
Our management team has never been stronger. In the key technology role, our CTO, Alex Wileman, will be on-board full time over the summer. Alex has extensive experience with video games, scanning and MP3 downloads.
(On a fatherly note, I am very proud that his mock GCSE grades were all A-C.) Alex is migrating our e-commerce platform on to neural networks, fuzzy logic and complex algorithms - with a user-centric front-end.
There is no way that we have shelved our plans for an IPO in September.
Morgan Stanley and Goldman Sachs are working on the prospectus right now.
We will be positioned as a B2B/Infrastructure play, which is dead right and a great story.
However, we should not get hung up on this IPO-in-September idea. What really matters is sticking with our vision: building a world-class e-business enterprise, with committed employees and loyal investors. An IPO could be distracting. So what if you thought you might make 10x on your initial investment in under 12 months? We're in this for the long term, not to make a quick buck so we can swan off and stuff ourselves full of drugs and booze. Just forget about the IPO.
(As to the rumours that I sold all my shares in the last financing round back in early April, I want to know where these came from - Jean-Claude, if it was you, you have just lost my trust fund business.)
Let's cut to the chase. We need more angel dosh. Specifically, another dollars 500K from each of you by next Monday morning (wire transfers to Banque Martinique, a/c 412970, s/c 40-40-40). The risk is atomically minute, the opportunity is nuclearly explosive. (As Bob Dylan meant to say: If you can't stand the burn rate, get out of the kitchen.)