new stay-at-home orders spark potential 2,218% upside from “the … · 2020. 5. 8. · palm beach...

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Stay-at-Home Orders Spark Potential 2,218% Upside From “The Netflix of Wine” Teeka Tiwari May 04, 2020 • 38 min read Print

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Teeka’s Note

Friends, while we all hope and pray for a speedy pharmaceutical solution to COVID-19,

we must assume the earliest vaccine will not be available for at least 12 months… and

perhaps as long as 18 months.

I mention this because the realities of social distancing and sheltering in place for high-

risk members of society will be with us far longer than many people realize. This new

reality has already altered consumer behavior – we believe forever.

That is why chief analyst William Mikula and I recently published a COVID-19 special

report. We’re analyzing how consumer behavior will change and zeroing in on those

early-stage companies best poised to respond to that change.

Click here to invest in Winc

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That’s why this month, William and I are excited to share with you what could become

one of the biggest winners emerging from this shift in consumer habits. I’ll let William

give you all the details below on what this shift is and how it can potentially multiply

your capital by 22 times…

Let the Game Come to You!

Big T

For decades, it was the same, simple, profitable process…

A Hollywood production studio would release a film to movie theaters. Then, the feature

would weave its way down to video rental stores. From there, consumers could pick it

up, grab some snacks along the way, and drive back to watch it in the comfort of their

own homes.

This simple process made Dallas, Texas-based Blockbuster a household name. At its

peak, it was worth $5 billion… had 60,000 employees spread over 9,000 stores… and

generated $6 billion in annual revenue.

Then, on August 29, 1997, a proverbial “asteroid” hit, ultimately making Blockbuster as

extinct as a dinosaur.



You see, that day marked the launch of a tiny DVD mail-order business in California

called Netflix. The rest is history…

Netflix now reigns supreme in the streaming media space, with a $186 billion market

cap. In fact, at current prices, Netflix has a larger market cap than global energy giant

ExxonMobil, fast food veteran McDonald’s, and entertainment behemoth Disney.

But what many people don’t realize is that Blockbuster had the opportunity to avoid

extinction at the hands of an unassuming startup…

Besides missing the opportunity to pivot into the mail order business – and later

streaming – the movie store giant had the chance to buy Netflix for $50 million in 2000.

Blockbuster passed, thinking Netflix was too “niche.”

That was almost two years before Netflix went public. If Blockbuster had the foresight to

grab on to this opportunity at the time, it could’ve gotten in around the split-adjusted

IPO price of $1.20 and be sitting on a 42,000% gain today. That’s enough to turn each

$1,000 invested into over $420,000.

This is a massive testament to Netflix’s disruptive business model.

Meanwhile, Blockbuster is bankrupt today…

The key behind Netflix’s continued growth is the way it combines data science and

technology with ongoing consumer trends and tastes. Here’s what that means…

In general, most people enjoy movies and shows. But everyone has different tastes. By

keeping track of the content every user watches, Netflix is able to curate

recommendations. This keeps its user engaged and loyal… and monthly membership

fees rolling in.



It’s a brilliant, “sticky” business model that leads to strong cash flows, high customer

retention, and rapid growth. And one that’s especially valuable now as consumers rely

on at-home entertainment while governments advise lockdowns.

Seeing Netflix’s astronomical growth, it’s tempting to wonder: What if you could go back

to 1997 – right as the “asteroid” was landing on Blockbuster – and buy Netflix shares

while it was still private?

You would’ve been on board even below the $1.20 IPO price… and positioned yourself

for truly life-changing gains.

While it’s nice to fantasize about what could have been… we’re happy to announce we’ve

actually found the next “Netflix” of its industry. Just like the streaming media mogul, it’s

coming in like an asteroid to disrupt an outdated business model, and it’s benefitting

from more people being confined to their homes.

Last week, we told you we’d be bringing you a series of opportunities created by – or

helping to solve or alleviate effects of – the COVID-19 pandemic (more on this in the box

below).

This month’s “sweetheart deal” is the first recommendation stemming from that special

theme.

And it isn’t your average startup. It’s already generated over $200 million in revenue…

acquired 500,000 customers… has zero net debt… and sold over 14 million units of

product.




We see today’s Regulation A+ deal continuing to grow and expect 2,218% potential

upside in the years ahead. And unlike Netflix’s over $400-per-share price tag, this

private company is trading for a bargain – even as it grows rapidly.

In the stock market, this would be like finding a momentum stock like Netflix, with

massive growth trading at a value stock’s discounted price. It’s unheard of.

But as usual with the top sweetheart deals, we’ll need to move fast… This company is

closing its Regulation A+ offering on May 27 to focus on bolting down some key

acquisitions.

Recent events have created a target-rich environment… and unlike other companies that

are getting buffeted around by market exposure, it’s poised to pounce.

So we’ll need to act quickly to add this rarest-in-breed company to our portfolio. But

first, read the box below to catch up with where we are in our special COVID-19 game

plan…

Our COVID-19 Action Plan

As we told you last week, we’ve been working for months to find opportunities that have

seen a surge from COVID-19. The firms we’re looking for will use their niche to fight

against the virus… and give consumers a sense of dignity, safety, or stability.

There are many opportunities out there. But unfortunately, many are under-funded…

too focused on one segment… or even worse, outright frauds.

As regular readers know, at Palm Beach Venture, we go to great lengths to make sure

only the best opportunities make it in front of our readers. With our COVID-19 game

plan, we look for companies that show four signs:





• Well-funded and already growing before the pandemic

• Getting a boost from their goods and services during the pandemic

• Will continue to thrive after the pandemic passes

• Trading cheaply and showing 10x or more potential upside

These are strict criteria. But as you’ll read below, today’s “sweetheart deal” checks all

four boxes.

“The Netflix of Wine” Is Born

It all started when a top sommelier paired up with a thirsty businessman…

Geoff McFarlane and Brian Smith were matched up for a wine and restaurant tour in

New York City. Between wine tastings, bus stops, and hors d’oeuvres, the two

immediately hit it off.

Brian – a master sommelier himself – had a lifelong passion for wine. And Geoff was

passionate about using technology to disrupt antiquated business models.

After a final brainstorming session over coffee the next morning, they developed an idea

to combine their two passions.

Their big idea was to leverage the growing trends of direct-to-consumer (D2C) e-

commerce, data analytics, and artificial intelligence (AI)… and pair them with a popular

consumer product they both loved: wine.

To execute their vision, they’d set up a state-of-the-art website to collect custom data

about each user. Then they’d use AI to suggest wines and pairings based on these inputs.

From here, the customer would purchase wines from the list of suggestions. And the

wine would appear on their doorstep in a few days.



The execution seems simple, but this process would disrupt a business model that had

been stagnant since Prohibition over 100 years ago.

Geoff and Brian decided to call their disruptive service Winc.

We call it “the Netflix of Wine”…

That’s because, like Netflix, Winc uses customer data, demographics, and past choices to

craft a custom-built wine catalogue. And more importantly, once a consumer drinks a

bottle, they’ll need to replace it. This leads to recurring revenue for Winc.

It didn’t take long for the idea to gain traction. And as revenue rolled in, Winc began to

develop its own in-house wines. In eight years, it became the 75th largest winery out of

over 8,700 in the U.S.

Not only that, but it’s introduced its most successful wines to retail chains like Whole

Foods, Fairmont Hotels, and Kroger.

It’s also leveraging two huge trends: the $72 billion wine market and $18 billion D2C

market.

And thanks to the JOBS Act, Winc can now use a Regulation A+ offering to raise money

and continue expanding. This will allow it to:

• Bring in thousands of everyday investors who could also turn into Winc customers

• Convert its thousands of loyal Winc customers into investors

This positive feedback loop is one of the key reasons “sweetheart deals” are ideal for

popular consumer product companies. After all, if you have a stake in a business, you’re

more likely to use its services and tell your friends and family about its products.



Today, Winc is using its sweetheart deal to raise up to $15 million to pursue some key

acquisitions. We’ll cover the details below. This strategy is a smart, targeted use of

Regulation A+ funds. It’ll add value for shareholders… and speed up Winc’s ascension as

the Netflix of Wine.

But even before executing its planned acquisition strategy, Winc was on track to bring in

around $40 million in revenue this year. And all those projections just skyrocketed

higher from one catalyst…

COVID-19 Sends Winc Soaring

COVID-19 is a highly infectious virus. In just two months, leaving your house or

apartment became illegal, dangerous, or both. So the question became: How do you get

everyday comforts – like wine – if you can’t leave your house?

The same way you can get most anything else: delivery. And Winc has been mastering

wine delivery since inception in 2011.

People are turning to Winc’s superior services this year more than ever. In fact, it saw a

massive 684% increase in new memberships from February to March – and an 80%

increase in revenue in the same period.

And Winc was ready to keep up with this growth. It had been building its infrastructure

to handle a surge just like this. Indeed, its “from grapes to glass” business model

enabled the company to scale rapidly.

But acquiring new customers isn’t enough. The important thing for a subscription

business – like Netflix and Winc – is to generate positive “lifetime value” from each

customer.



When lifetime value is positive, it means a business earns more on a customer than what

it spent to acquire that customer.

Across its 532,000 customers, Winc’s average customer lifetime value is $400. And it

only spends about $60 to acquire each customer. This means it makes $340 per

customer on average. When you scale this to tens of thousands of customers, the profits

add up quickly.

To help keep those customers engaged during social distancing, Winc unveiled virtual

wine tastings paired with things like poetry readings and new product launches.

Winc immerses technology and experiences with wines people enjoy to create a money

and growth machine – and disrupt the traditional vineyard-to-retailer business model

that had been in place for a century…

In addition to lockdowns, COVID-19 has caused major disruption in the traditional

supply chain as well. With restaurants, hotels, and resorts closed, popular wine brands

are struggling to reach consumers… or even stay alive.

But not Winc. The fact that other wineries and providers are in a precarious position

gives Winc a target-rich environment to choose from. It can acquire marquee brands at

crisis-level discounts, then plug them into its unique platform.

But as you know, strong growth and a disruptive business model aren’t enough to get us

involved. Any sweetheart deal must pass through our SCALE system before we add it to

our portfolio.

SCALE stands for Structure, Cash, Advantage, Leveraging a Trend, and Executives. You

can read more about the system in our Palm Beach Venture manifesto.


https://members.palmbeachgroup.com/palm-beach-venture/special-reports/palm-beach-venture-manifesto


So let’s run Winc through our filtration process…

Important Note

Neither the Palm Beach Research Group nor its affiliates receive compensation for

bringing this deal to you. As publishers of financial information, we make general

recommendations based on our own analysis. We do not offer investments.

For this reason, our Palm Beach Venture customer service team will not be able to assist

you with this deal. Please contact Winc directly for all investment details.

STRUCTURE

As a refresher, Regulation A+ deals let private companies raise funds from everyday

investors. They post their deal online, and investors can choose whether to entrust the

project with their money. In return, investors receive equity in the company.

For Winc, it’s qualified to raise up to $15 million. Investors can buy shares for

approximately $1.41 per share. The minimum investment amount is 707 shares. At

current prices, that’s $999.42. For simplicity, we’ll use a minimum investment figure of

$1,000.

As we’ll break down below, our research indicates the value of these shares could climb

98% in 12 months from now… 429% in 36 months… and deliver us a potential 2,218%

gain in five years.

With this sweetheart deal, there are no warrants attached.

Remember, with these pre-IPO deals, you’re buying shares directly from the company.

This means you won’t be buying them from your normal online brokerage account.

For full instructions on how to get involved, see the end of this report.



CASH

Successful Regulation A+ offerings bring a flood of cash to a company. So when we track

down a potential sweetheart deal, we want to make sure the team has a clear use case

and plan for this cash infusion.

Winc will use the cash it raises to acquire leading wine brands and add immediate value

to the company. These companies had popular locations, but currently have no outlet

due to COVID-19 closures.

The ideal fit are smaller, undervalued wineries that haven’t found a route directly to

consumers yet. So they’re 100% reliant on on-premise sales – think restaurants, hotels,

and other places people can no longer go to enjoy a glass of wine.

With that market in disarray, a cash-rich company like Winc can go into deal-making

mode… absorb known, winning names… and shine a national spotlight on them to boost

sales and brand recognition.

Winc will target brands that do $5 million–15 million in annual sales, have a loyal

following, and have operated as established brands for decades.

By 2023, Winc estimates its projected acquisitions will produce around $20.5 million in

annual revenue. They’ll also provide the added bonus of reducing Winc’s costs by about

$2.2 million for storage, packaging, bottling, and other shared expenses like legal,

compliance, and administrative.

Moving forward, Winc plans one or two major buyouts per year on its path to becoming

a billion-dollar company (more on this below).

Winc will also use the incoming cash to ramp up its marketing efforts. After all, if you

can generate $400 for every $60 spent, that’s some good math.

And another unintended consequence of COVID-19 is that marketing costs have

declined due to a lack of demand from companies hit hard by the pandemic. This has

translated into lower costs for Winc. In fact, its cost per customer dropped to $24 in

March – its lowest level ever.

ADVANTAGE

Winc has four key advantages:

• It’s in a strong financial position, and on the verge of being profitable.

• Its use of acquisitions to buy undervalued wineries and absorb them into its

efficient business model.

• It was one of the first – and most successful – in the beverage space to find a way to

marry D2C services and wine: two growth industries showing no signs of

slowing down.

• Through Regulation A+, its customers are becoming investors and vice versa. This

leads to perpetual momentum.

Let’s break each down…

Financials

Unlike many early-stage companies, Winc’s founders have been committed to achieving

profits from the outset. In fact, Winc expects to report positive earnings before interest,

tax, depreciation, and amortization (EBITDA) by next year.



Winc has about $10 million in cash on its balance sheet versus $10 million in debt. It

also has $1.5 million in accounts receivable (sales that are complete, with the money in

route to Winc’s coffers).

This means it has zero net debt – a rarity with rapidly growing, earlier stage companies.

Key Acquisitions

As we mentioned earlier, Winc expects to purchase one to two wineries or wine brands

per year. After acquiring a winery, it focuses on developing the target company’s top-

performing brands.

Right now, Winc is negotiating acquisitions that should boost revenue 93% from $36.4

million to $70.4 million. At the same time, they’ll save the company around $2.2 million

through increased efficiency and shared operations.

The team is targeting at least five major acquisitions by 2024. This means Winc expects

to top $325 million in revenue while saving on costs. And by getting in at the ground

floor today, we can enjoy this growth from the start.

Cutting Out the Middleman via D2C

Winc’s “secret sauce” is its ability to test, refine, and launch wines through its D2C

model. By taking out middlemen in the supply chain, Winc can cater to consumer tastes

in weeks, instead of years.

D2C is how companies like Casper mattresses hit a $100 million valuation in two years…

Harry’s razors became a $750 million company in only 24 months… and shoe company

Allbirds grew into a $1.4 billion brand in only a few years.



These businesses use savvy marketing and data analytics to sell directly to their users.

They don’t rely on distributors or middlemen like traditional retail supply chains. This

cuts costs and allows these innovative companies to beat their non-D2C competitors on

price and convenience.

By turning the traditional retail business model on its head, this new generation of

retailers are steamrolling their legacy counterparts.

For Winc, this means it can sell wine without unnecessary expenses and commissions

being tacked into its pricing structure. This ultimately benefits the consumer and the

competitive pricing attracts more customers.

And with a 65% gross margin, Winc is in the same league as top spirits giant Diageo’s

62% margins, Brown-Forman’s 62%, and Constellation Brands’ 50%.

Thick margins like these allow Winc to spend money on building its brands and

technology. And this is where we truly see Winc transforming the wine industry…

Like analytics giant Netflix, Winc has a direct feed into its users’ tastes.

Whenever its products are mentioned in tweets, blogs, or Instagram posts, Winc tracks

it. It pairs this data with feedback, sales, and mentions and compares it to units shipped

to map how each wine is performing.

From there, it can ask questions like: “Is the messaging of the brand working?” “Is the

taste appealing to consumers?” “How can the brand be strengthened even more?” then,

make necessary adjustments to its method.



This gives Winc an invaluable leg up over its competition. After all, most wineries have

no way of knowing what happens to a bottle of wine after it leaves the store or vineyard.

They can only rely on opaque monthly sales reports from regional warehouses.

Meanwhile, Winc is busy gathering data and adapting to make an ever-better product

for its buyer. If something’s not up to par, Winc can respond in real-time. Whether it’s

the taste, packaging, or brand message.

To see this in action, let’s look at one of its recent hits, Summer Water Rosé. Not only is

it rated 92 points by Wine Enthusiast – incredibly high for a rosé – but its branding is

spot on:



Source: Winc

Summer Water targets 21- to 35-year-old females with its whimsical packaging and

simple messaging. This brand represents a fun, refreshing drink on a hot day.

Since its launch in 2015, Summer Water has grown at a compound annual growth rate

(CAGR) of 1,200%. And it was all a result of Winc using data from thousands of

customers to develop new products.

By finding undervalued wines, using the D2C business model, and then pairing it up

with real-time data, Winc is poised to continue disrupting the wine market.

Perpetual Momentum

As we’ve written many times, the beauty of Regulation A+ opportunities is they allow

everyday investors to get in on the ground floor of promising companies. In many cases,

this means early investors become customers and vice versa.

Think about it… If you own a little piece of Winc, and your neighbor asks you about the

box of wines on your doorstep, you’re likely to launch into the benefits of Winc, how

great the wines are and the user experience is, and so on. After all, you have a vested

interest in promoting Winc.

In this way, Winc’s investors become de facto salespeople for the company.

Also, if you’re an investor in Winc, you’re likely to give its services a shot to learn more

about the company you’re invested in.

These features are what make well-run private companies with popular consumer

products an ideal fit for Regulation A+ raises.

LEVERAGING THE RIGHT TREND

At Palm Beach Venture, we travel the world to bring you massive, undeniable

investment trends… then position ourselves in companies poised to cash in on these

trends. And as these once-in-a-generation trends unfold, we look to make 10x-plus gains

on our investments.



As we explained above, Winc has a rapidly growing D2C wine business model. This

segment is set to grow around 24% higher from last year and hit $18 billion in 2020 –

and that was before COVID-19.

This brought more activity to the spirits industry as a whole. Nielsen reports alcoholic

beverage sales jumped 243% during the pandemic.

Additionally, wine is in a perpetual bull market even among other alcohols. Check out

this 12-year chart of wine sales:

According to Grand View Research, the U.S. wine market alone is projected to eclipse

$85 billion in sales by 2025.

So Winc is positioned in all the right places. And we expect it to cash in on the trends

that were strong before COVID-19… and are now adrenaline-charged on the heels of the

coronavirus.

EXECUTIVES

Winc is led by a crack team focused on turning it into the Netflix of Wine:

• Geoff McFarlane, CEO and co-founder – Geoff co-owned a 300-plus-

employee restaurant and hospitality group for eight years and oversaw brands like

Jet Hotel and Pizza Republica.

He was also founder of a sports management software company called Play Coed,

which he sold to League Apps in 2007 after three years.

His experience in running operations in the food and beverage industry, coupled

with his software skills, equips him to handle the growth headed Winc’s way.

• Brian Smith, president and co-founder – Brian founded Loca Linda Wines in

2008 and exited in 2017.

He’s also served as wine director at Clo Wine Bar in New York City, helping customers

sample over 100 wines according to various criteria and inputs. Brian even developed

wine programs for Charlie Palmer’s Aureole in Las Vegas and the Jackson Hole Wine

Company in Wyoming.

As a master sommelier, his strength is matching customer taste with the perfect wine. In

fact, Brian was part of an elite group voted “Best Sommeliers in America” by Food and

Wine magazine.



• Pat DeLong, board member – Pat’s impressive experience ranges from CEO at

Constellation Brands to CEO, CFO, and president at Crimson Wine Group. He’s

now founder of the fine beverage consultancy firm Azur Associates, specializing in

acquisitions and D2C business.

Pat’s time as an executive at some of the biggest names in the wine industry

combined with his expertise in acquisitions and D2C make him a great talent for

Winc to land.

• Laura Joukovski, board member – Laura is the chief media officer at

TechStyle Fashion Group. Her agency designs and runs advertising campaigns for

Fabletics, JustFab, and Savage X Fenty.

Her team manages a $150 million advertising budget and deploys over 35,000 ads

per year to drive brand growth. Laura also brings vast D2C and branding

experience to Winc.

The Winc team has experience spanning wine, multi-brand operations, D2C

advertising, and acquisitions. This is the perfect combination to build a billion-

dollar company.

What’s It Worth?

The U.S. wine industry is worth around $72 billion. And Winc is disrupting it with its

unique technology and products beloved by millions.

As Winc acquires more popular wines, builds award-winning brands, and secures loyal

customers, its valuation will continue to climb.



And as Winc grows, it will be able to absorb bigger wineries than its current $5 million–

25 million target. Then, it’ll focus on scaling the new brands.

We expect an average initial revenue uptick around $15 million for each winery it

acquires.

To help measure how much growth we can attribute to each acquisition, let’s refer to

Winc’s history. To date, Winc has grown at a CAGR of 195% since 2011 – an impressive

figure. But to stay conservative, let’s use a projected growth rate one-fifth of that.

Applying a 40% CAGR for Winc and its anticipated once-per-year acquisition, we arrive

at an expected annual revenue of $350.2 million by the end of 2024.

Now, to gauge future value, we can use the price-to-sales (P/S) ratio. It’s a common

metric used for companies in early high growth stages.

[P/S ratio compares a company’s stock price to its revenues. It’s calculated by dividing a

company’s stock price by its sales per share. It shows how much investors are willing to

pay for every dollar of sales. Generally, a comparatively low ratio means the stock is

undervalued.]

As we’ve gone over extensively, Winc is a unique mix of two business models: D2C and

wine. So we’ll use an average of the P/S ratio of companies with similar business

models:

• Netflix (data and tech): 8.7

• Beyond Meat (wholesale and D2C): 8.9

• Peloton (D2C and data monitoring): 7.7



• Constellation Brands (alcohol and wine): 3.8

• Average: 7.3

The 7.3 average is useful because it accounts for stodgy, slow-growing companies like

Constellation, seasoned tech vets like Netflix, and newer D2C entrants like Peloton and

Beyond Meat.

But to be even more conservative, let’s cut that in half to 3.6. Using this as our marker,

we can project our price targets on our five-year road map:

Winc Share Price Road Map

Year Catalyst Potential Upside One Acquisition

1, plus around $60 million in revenue

$218 million

Two Acquisition 2, plus around $105 million in revenue

$382 million

Three Acquisition 3, plus around $160 million in revenue

$582 million

Four Acquisition 4, plus around $240 million in revenue

$874 million

Five Acquisition 5, plus

$1.27 billion



Year Catalyst Potential Upside around $350 million in revenue

The exact share price will depend on the number of shares outstanding. But going from

a $110 million valuation to a nearly $1.3 billion valuation in five years will give us a

1,059% gain from our entry price. This is enough to turn a $1,000 grubstake into an

$11,590 windfall.

That’s the power of harnessing the right trends at the right time… and getting in on the

ground floor. And there are two things to keep in mind…

First, a larger competitor could swoop in some time before the five-year mark and buy

Winc outright. And second, overall market sentiment is down. As sentiment returns,

investors will be willing to pay top dollar for high-growth companies like Winc.

And if valuations hit the 7.3 P/S ratio we calculated earlier, Winc would be worth $2.5

billion. This would turn that same $1,000 starting stake into a $23,180 lottery ticket.

A High-Growth Company at Value Pricing

And the best part is, when you calculate Winc’s current P/S ratio, it’s almost as if the

company is a value stock…

Before accounting for any acquisitions, Winc was already on track to hit $60 million in

revenue this year. It’s raising money at a $110 million valuation. This means its P/S ratio

is 1.8. That’s insanely cheap for a high-growth company like Winc. It’s more in line with

a sleepy, decades-old firm plodding along.

Once its Regulation A+ raise closes and sentiment improves, Wince also has the

opportunity to go public. This increase in exposure could lead to a boost in valuation

and bring liquidity to the shares.

That illustrates another great feature of these sweetheart deals: They have plenty of

options and control over their own destiny.

If conditions are ripe, Winc can choose to go public. If not, it can use the funds from its

offering to scale and grow the business – organically increasing the value of the shares.

And speaking of increasing value, here’s where we see Winc headed over the next five

years:

Bringing It All Together



Today, we have an opportunity that’s rare in the investing world: The ability to get in on

the ground floor of a company positioned in all the right places… on the verge of

profitability… at a bargain valuation.

This is such an anomaly that we ran the math a dozen times just to verify it wasn’t too

good to be true. But our time is limited. Winc is closing its funding round on May 27.

Once it does, it’ll nail down an acquisition (or more), revalue its shares… and increase its

share price and valuation.

Already, friends, family, and its network have gobbled up more than $5 million worth of

Winc.

So if you’re interested, we’d urge you to act now and snag shares in “the Netflix of

Wine.”

Risk Management

Please be aware, in private placements, while there is potential for your rewards to be

higher than in traditional investments… there is also a very real, high risk.

In some cases, the company might not receive regulatory approval and the shares won’t

go public. And like public companies, private companies can also fail. So your

investment could go to zero.

Alternatively, the company could go public like we expect. But there’s a chance share

prices could fall and lose you money, which is a risk for private companies that IPO.

Look, you don’t need to risk more than a small amount to see big gains. So for investors

with smaller accounts, we recommend no more than the required minimum. For



investors with larger accounts, we recommend you don’t invest any more than you can

afford to lose.

The minimum investment for this specific deal is right under $1,000. You must reach

out to Winc directly to take part in this private deal. The information it provides is what

you should use to decide whether the investment is right for you.

How to Invest in Winc

You can get involved with Winc via ACH, check, wire, IRA, 401(k), or credit/debit card.

And you can invest in one of three ways:

1. Through its website, wincshares.com.

2. Call the investor relations team at 1-213-322-1263.

3. Email Winc at [email protected].

The easiest way to get involved with Winc is through its website. Its investor portal

walks you through each step.

Once on the site, first take some time to read through information about the company

and any other items of due diligence.

When ready, enter your email address into the field below, and click on the red “Start

Investing” button:


https://www.winc.com/invest?utm_source=palmbeach&utm_medium=email&utm_content=winc&utm_campaign=05022020

mailto:[email protected]

https://www.winc.com/invest?utm_source=palmbeach&utm_medium=email&utm_content=winc&utm_campaign=05022020


From here, you’ll enter your email address and confirm it. Then, you’ll create a

password for your account. After that, the portal will prompt you to fill in your personal

information, desired investment amount, and funding choice.

Once you’ve completed this process, you will receive an automated email confirmation.

And if the company needs any more information from you, it’ll be in touch.

Note: Even though you don’t need a brokerage account to make the initial investment,

you will need one to trade shares if/when Winc goes public. If that happens, we’ll help

guide you through what to expect.

Remember, our Palm Beach Venture customer service team will not be able to assist you

with this deal. Please contact Winc directly for all investment details.

Whichever way you choose to act, you must do so before May 27.

We’ll be in constant contact with the Winc team as the deal fills up and let you know of

any updates or urgent news moving forward.



new stay-at-home orders spark potential 2,218% upside from “the … · 2020. 5. 8. · palm beach...

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