Visionary Private Equity Group
Investor Update - Tusk Ventures Investment
Dear VPEG Limited Partner,
We hope this investor update finds you well. We're pleased to share with you important information below on the following:
- Tusk Ventures/Fanduel - Investment Executed
Visionary Private Equity Group & Tusk Ventures/Fanduel Investment
VPEG is happy to report that on 4/29/2016 we completed our investment into the Tusk/Fanduel Special Purpose Vehicle (SPV).
Through the Special Purpose Vehicle secured by Tusk Ventures, the terms of our investment are:
- 25% payment-in-kind interest; compounded annually
- 2-year term
- Converts at a 15% discount to the purchase price of equity upon conversion in the Next Equity Financing
- 100% warrant coverage on the Series E.
Therefore, for each $1.00 invested, investors (VPEG)will receive $1.84 of Series F preferred stock and $1.00 of Series E preferred stock, resulting in a total base consideration of $2.84 per dollar of invested capital.
FanDuel is the leading daily fantasy sports provider with the sole mission of making sports more exciting. Founded in 2009, FanDuel has redefined fantasy sports; offering a multitude of one-day game options for NFL, NBA, MLB, NHL, and college football and basketball, with new public and private leagues forming daily, ranging in size from two to thousands of players.
FanDuel is the Official Partner of the NBA and has multiple deals with NFL and NBA teams, driving fan engagement, hosting numerous live events and creating once-in-a-lifetime experiences for sports fans throughout the year.
Fantasy sports has rapidly become an enormous industry and continues to grow. Daily games will generate an estimated $2.6 billion in entry fees this year and are projected to grow 41% annually, reaching $14.4 billion in 2020. Research analysts point to latest polling figures to show that even with this rapid growth in the industry, there is still room for increased participation in daily fantasy sports.
Since launching in July 2009, FanDuel has grown to over 1 million paid active users. Based in New York City with offices in Los Angeles, Orlando, Edinburgh and Glasgow, FanDuel has raised $363 million in funding from investors including KKR, Google Capital, Time Warner/Turner Sports, Shamrock Capital, NBC Sports Ventures, Comcast Ventures, Pentech Ventures, Piton Capital and Bullpen Capital.
Your VPEG Investor Relations team is here to answer your questions. Please be aware that future correspondences will be sent from firstname.lastname@example.org; add this email account to your contact list to avoid any future emails being labeled as spam.
This update contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this update that address activities, events or developments that Visionary Private Equity Group I, LP ("VPEG") and the companies or ventures that it has invested (or target as an investment) (collectively, the “Companies") expect, believe or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this update specifically include the expectations of management of VPEG and the Companies regarding plans, strategies, objectives, anticipated financial and operating results of VPEG and the Companies, and production and operating expenses guidance included in the update. These statements are based on certain assumptions made by VPEG and the Companies based on management's experience, technical analyses, current conditions, anticipated future developments and other factors believed to be appropriate and believed to be reasonable by management. When used in this update, the words “will,” “potential,” “believe,” “intend,” “expect,” “may,” “should,” “anticipate,” “could,” “estimate,” “plan,” “predict,” “project,” “target,” “profile,” “model” or their negatives, other similar expressions or the statements that include those words, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of VPEG and the Companies, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the “Risk Factors” disclosed in VPEG's private placement memorandum. Any forward-looking statement speaks only as of the date on which such statement is made and VEPG and the Companies undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
An investment in VPEG involves a high degree of risk and other considerations and, therefore, should be undertaken only by investors capable of evaluating the risks of making such an investment and bearing the risks, it represents. As an investor in VPEG you have carefully consider the information provided in this update; however, as a sophisticated investors you acknowledge that you have relied upon your own examination of and ability to understand the nature of this update, and your investment in VPEG, including the risks involved, in making a decision to invest in VPEG. There can be no assurance that VPEG will be able to achieve its investment objective or that investors will receive any return on or of their capital.