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Online Business Investing for RIAs

Speak with our Investor Relations Manager to learn more

Our Track Record *

11.8%

Cash Yield

20%+

Annualized IRR

How WebStreet Works

Select Operators
Review the Active Fund

WebStreet curates a diversified fund of Portfolio Managers based on their track record of acquiring and managing online businesses.

Click
Click "Invest"

Follow the steps to complete accreditation, sign legal documents & transfer your funds.

Receive Distributions

Once funds are invested, you will own a fractional piece of each business you invest in & receive quarterly distributions.

Available Investments

About WebStreet

Benefits for Investors
Benefits for Investors
  • Completely passive investments managed by handpicked professional portfolio managers with successful track records
  • Diversified portfolio of fractional ownership across a variety of business models to reduce the risk of any single point of failure
  • 20% projected average annual returns (see Summary of Terms below)
Benefits for Investors
Benefits for Operators
Benefits for Portfolio Managers
  • Ability to focus on core competency of running online businesses
  • WebStreet handles the legal set up, securities compliance, investor relations, and ongoing reporting
  • Co-invest 5% into every fund and receive 4-5X leverage
Benefits for Operators
Aligned Incentives
Aligned Incentives
  • Payouts to Portfolio Managers are based on profits only creating a win-win-win scenario
  • No Portfolio Managers’ salaries, or hidden fees in the funds
  • Portfolio Managers performance will be public and determine access to future funds
Aligned Incentives


Who is this Investment for?

Who this is for:

Accredited investors who want exposure to online businesses but may not have the time or skill set

Entrepreneurs and Founders who may have the skill but want passive returns and diversification

Who this isn't for:

Non-accredited investors or those who don’t have the capacity to take on the risk or diversify across multiple funds.

Active investors looking to run their own online business

 

WebStreet Summary of Terms

Investor ProfileAccredited Investors
Minimum Investment$60,000 USD
Capital Stack95% Investor Capital
5% Portfolio Manager Capital
Profit Split &
Carried Interest

66.7% to Investors
33.3% Carried Interest

• 20% to Portfolio Managers
•10% to WebStreet
•3.3% to Advisors

Operating Profit
Distribution Schedule
Paid Quarterly. Split at the percentages above
First distribution 9-12 months after investment
Sale of Business
Distribution Schedule
Investors recoup their initial investment first
Increase in business value is split at the percentages above
Hold Period2-4 years
Return Expectations20% projected average annual returns*
ReportingQuarterly reports including financials and commentary.
Financials will be put together by a 3rd party accounting firm and reviewed by WebStreet

* These are estimated returns which may be significantly higher or lower. There is no cap or guarantee on returns, and investments may result in partial or total loss. Please refer to legal fund documents for full detail of terms.

Why Invest with WebStreet?

Assets Acquired
40

Raised Amount
$36M+

Projected IRR*
20%+

Return Expectations: Where do returns come from?

  • Purchase Multiple – An online business is typically sold for a monthly multiple. For example, if a business makes $25,000 per month, and it is acquired for $1,000,000, that makes the purchase multiple 40x. If you bought this business to manage and earnings stay the same, you would receive a 30% annual ROI.
  • Carried Interest – These are the fees paid by the investor out of the profits. With 33% carried interest, the investor keeps 2/3 of the profits in order to turn this into a passive investment and be able to build a diversified portfolio with fractional ownership. A business acquired at a 40x multiple that generates a 30% annual ROI would net investors 20%.
  • Growth/Decline – This is a risky investment and we’re projecting that one out of five deals could fail. In a diversified basket of deals, the growing deals can offset the losers. We strongly recommend only participating in WebStreet if you plan to do multiple deals.
  • Exit Multiple – Valuation multiples have continued to increase every year. We have used conservative estimates in all of our projections but if this trend continues or accelerates, investor returns could be positively impacted.

Have any questions?

WebStreet