More about Onfolio

Thanks for signing up for the Onfolio newsletter.

It’s great to meet you.

As I mentioned in the welcome email, this newsletter is going to be about Mastering Digital Acquisitions.

But I think it’s important to have some context about Onfolio so you get where I’m coming from with my weekly emails.

In this email, I’ll take some time to tell you more about us.

We're publicly traded on Nasdaq, which means anyone with a brokerage account can buy our common shares (ticker: ONFO).

As you know, my name’s Dominic Wells. I’m the CEO and founder.

The company buys already profitable online businesses, and operates them as a diversified holding company. Think of us like Berkshire Hathaway but Internet businesses. Also, I hate “Berkshire Hathaway of the Internet” comparisons, but it does help people understand.

If you’re familiar with Constellation Software or Tiny, we are in the same vein.

In fact, if you want to know which companies we look up to and want to be like when we grow up, here are a few in no particular order:

• Constellation Software

• Roper Industries

• Tiny

• Transdigm

• Berkshire Hathaway

These are all companies that think about capital allocation, decentralization, and compounding the same way we do.

We’ve been around since 2018, but we went public last year, in August 2022 (not a great time to IPO, but we got it over the line).

I’ve been building, buying and selling online businesses since 2012. My team have been operating online businesses for decades as well, some of them longer than me.

I started Onfolio when I saw an opportunity to help others buy and run online businesses as investments, and pretty quickly we grew a team, an investor base, and pivoted to a holding company then went public as a way of raising money to buy businesses.

We’ve made 4 acquisitions since our IPO, growing our revenues by around 5x in a year as a result.

We’re still a small company though, with revenues roughly tracking to be around $6m in 2023.

We’re what’s known as a micro-cap company due to our size and small market cap.

This is obviously an opportunity for investors like yourself, since you’ve found us early, while our common stock (ONFO) is "cheap" and has plenty of room to grow.

It might be useful to you to know we’re also raising $10m from preferred shares currently. If you figure we’re going to sell out this $10m raise and acquire more businesses, you can assume our revenues and profits are going to grow too, which will benefit all shareholders.

What's the difference between the two share classes?

The preferred comes with a 12% dividend, but won’t be likely to appreciate in price (preferred shares usually trade around the $25 price they’re sold at, as people are just buying or selling for the dividend). The preferred shares are also not currently trading on an exchange, but we’ll list them soon so you can have liquidity.

You can learn more about our Preferred Share offering here.

The common shares have no dividend but will likely go up in price (perhaps quite significantly ) as our profits grow. The common are also listed on Nasdaq, while the preferred aren’t currently listed anywhere, which is why they’re only available to accredited investors at the moment.

We typically earn around 20-25% cash on our acquisitions, so we raise more money from investors like yourself, use it to buy more businesses, then rinse and repeat.

Due to the strong cashflows of these businesses, we can afford to pay a higher dividend than most, which is great since we’re smaller than most, we need something to stand out.

Anyway, secret pitch out of the way, back to the topic of this email.

We decided to start writing this newsletter as a way of helping share our expertise about buying online businesses or flipping them for profit.

We’ll write about buying, growing and scaling a variety of online businesses, so stay tuned for more on that topic.

We’ll also share updates about life as a publicly traded company.

For now, if you want to learn more about the company, you have a few options:

1. Read more about our preferred share offering and view a slideshow here.

2. Reply to this email with any questions you might have for me

3. Stay subscribed, I will share more info about the company and our vision soon.

4. I’m also active on Twitter and Linkedin, if that’s your thing.

Thanks, have a great week ahead.

Dominic