Onfolio successfully completed their $1M preferred share raise, securing over USD $100,000 through Flippa Invest while leveraging the platform to connect with qualified online business investors and validate market demand for their unique investment structure.

Dominic Wells, founder of Onfolio, successfully raised $1M for his digital asset holding company through a strategic combination of Flippa Invest and his existing network. As one of the early campaigns on Flippa Invest, Onfolio’s fundraising journey provides valuable insights into how established online business operators can leverage the platform to access qualified investors and expand beyond their traditional networks.

The campaign demonstrated both the opportunities of raising capital through a specialized platform focused on online business investments.

Company Background

Founded in 2018, Onfolio began as a service helping individual investors acquire and manage online businesses. Dominic Wells started with a clear problem: his audience wanted to buy businesses from marketplaces like Flippa but lacked the expertise to evaluate opportunities, negotiate deals, or operate the businesses post-acquisition.

“I started Onfolio in 2018 and originally we were helping investors who wanted to buy online businesses,” Wells explained. “So I had people in my audience who might say they want to buy a business off somewhere like Flippa, but they had no idea how to vet what was good, what was bad, how to negotiate, and how to run the business once it was acquired.”

Business Evolution Timeline:

• 2018-2019: Agency model managing 30-40 individual online businesses for clients
• 2020: Strategic pivot recognizing limitations of agency model
• 2021: Transition to holding company structure with diversified portfolio
• Present: Focus on agencies, e-commerce brands, and digital products

“We realized we were essentially just a glorified agency,” Wells explained. “I wanted to capture the opportunity and build something big in the space, but I didn’t want to just work with individual investors.”

The shift to a holding company model addressed a critical risk management issue Wells had identified: “If you were the one person who owned the business that got hit, it kind of wiped out your investment. And so I thought, okay, it makes much more sense if everybody owns a share of all of the businesses.”

The Need for Capital

Onfolio’s capital requirements stemmed from their strategic evolution and growth opportunities in the online business acquisition space. Wells had identified a sustainable model for scaling their operations: “The next few years for us is just going to be about perfecting our model and rinsing and repeating really – raise more money, buy more businesses, scale our revenues and our profits.”

Primary Capital Needs:

• Business Acquisitions: Funding to purchase additional online businesses for the portfolio
• Operational Scaling: Resources to improve and grow existing portfolio companies
• Team Building: Investment in personnel to manage an expanding portfolio
• Technology Infrastructure: Systems and tools to support portfolio management

Market Opportunity: The online business acquisition market was experiencing significant growth, with investors seeking diversified exposure to digital assets. Onfolio identified an opportunity to provide this diversification while applying their operational expertise to improve portfolio performance.

Portfolio Evolution: Wells also recognized the need to adapt their acquisition strategy.

“Late 2020 we actually realized probably the writing was on the wall for that business model [content sites]. Every single Google update just seemed to punish content sites and reward big media brands.”

This led Onfolio to diversify: “We moved towards agencies because we were kind of an agency and I’d had an agency before… now we’ve got a more balanced portfolio. We have some agencies. We have one or two e-commerce brands. We’ve got some digital products like info products, online courses.”

Preparation for Fundraising

Onfolio had established systems and documentation from their earlier rounds, which streamlined preparation for the Flippa Invest campaign.

Due Diligence Materials:

• Comprehensive portfolio performance data
• Individual business operational metrics
• Historical acquisition track record
• Management team profiles and experience
• Financial projections and growth strategies

Platform Research: Wells had been tracking Flippa Invest’s development for months, having previously sold a business on Flippa’s M&A marketplace. So when the Invest platform launched, Wells was excited to be one of the first rounds to go live with it.

Making It Easy to Sell Online Businesses
Flippa provides owners and investors with the tools and expertise to sell.

The Fundraising Process

The fundraising process unfolded across multiple channels, with Flippa Invest serving as both a direct source of capital and a validation mechanism for the investment structure.

Campaign Launch: Onfolio launched on Flippa Invest during the platform’s early operational phase, making them one of the first campaigns to test the system with a more complex investment structure.

Investor Outreach: The campaign employed both platform-driven and direct outreach strategies:

• Flippa Invest deal room engagement
• Direct communication with existing network
• Mass updates to platform investors about company developments
• One-on-one conversations with qualified prospects

Ongoing Engagement: Throughout the process, Wells maintained active communication with interested investors, sharing company updates, press releases, and performance metrics to maintain momentum and demonstrate progress. This drove investors towards signed capital commitments and queued them up for capital collection and roll-up in the SPV created for this round.

Key Documents and Agreements

Onfolio’s documentation strategy leveraged their experience from previous fundraising rounds while adapting to the Flippa Invest platform requirements.

Core Investment Documents:

• Preferred share term sheet outlining dividend structure and investor rights
• Comprehensive investor deck with portfolio performance data
• Detailed due diligence materials covering individual business metrics

Platform-Specific Materials:

• Flippa Invest listing optimized for online business investors
• Deal room materials tailored to platform investor expectations
• NDA framework for accessing detailed financial information
• Communication templates for investor updates and mass messaging

Investor Engagement and Outcomes

The campaign generated significant engagement from Flippa Invest users, though conversion patterns reflected the challenges of working with a cold audience compared to warm network connections.

Quantitative Results:

• Total Capital Raised: $1M (target achieved)
• Flippa Invest Direct Contribution: $100K+ 
• Total Investor Count: ~30 investors
• Flippa Platform Investor Count: 4 direct investors

Wells noted some uncertainty in the exact numbers.

“I’m not entirely sure how much came from Flippa Invest because some people found us on Flippa and then they invested sort of through our website instead of through like the Flippa data room and stuff. So I think at the minimum we’ve got at least $100K from Flippa… maybe $100K to $200K.”

Conclusion

Onfolio’s successful $1M raise through a combination of Flippa Invest and traditional networks demonstrates the platform’s potential as a valuable component of online business fundraising strategies. 

Key Success Factors:

• Strong alignment between business model and platform investor interests
• Professional approach to documentation and investor relations
• Realistic expectations about platform contribution to overall raise
• Active engagement with platform support team and investor feedback

Through Flippa Invest, Onfolio gained exposure to a wide range of investors, and when they look to raise more capital, or when one of their subsidiaries are looking for funding, Onfolio will return to Flippa Invest.

Making It Easy to Sell Online Businesses
Flippa provides owners and investors with the tools and expertise to sell.