The creation World Wide Web ushered in new possibilities for our world.
When Tim Berners-Lee created HTML and HTTP in the 80s to be able to share research papers with his colleagues at CERN, little did he know that his creation would ignite the first internet revolution.
With the first wave of the internet now available (Web 1.0), had he created a web browser or search engine, he would have become the wealthiest person on the planet, but instead, he gave it away for free and received a knighthood from the Queen.
Then, in the 2000s, the formation of Web 2.0 kickstarted with the advent of the smartphone, adding a GPS, an accelerometer, a gyro, and a few other sensors to the smartphone, and birthed a new generation of unicorns and decacorns including Lyft, Uber, AirBnB, and others.
At this time, we are presently at the outset of the third revolution in computing – The Spatial Web and True Web 3.0.
While Web 1.0 and 2.0 brought tremendous value to businesses and households alike, the Spatial Web and True Web 3.0 are set to launch our world into another stratosphere.
Although many people are confused and confounded by the metaverse, cryptocurrencies, NFTs, and the like, and while they are tools that have a place, the so-called “web3” misses what is required to reach the full potential of Web 3.0.
This is in part because web3 focuses almost exclusively on the distributed or decentralized computing trend of Web 3.0 while mostly ignoring other key technology trends of the era such as AI and the Internet of Things (IoT) – more on this in a bit.
This is why we are taking the more holistic view that is more commonly called the Spatial Web.
As investors, the relevant question for us is what companies will be the market leaders that will both drive and benefit the most from this evolutionary shift.
Fortunately, we have identified one company at the forefront of this new era in computing.
With one of the most experienced management teams in the industry and a proven business model, this Spatial Web company is leveraging True Web 3.0 technology to its full potential and will change the way we live, work, and thrive.
Founded in 2020 on the back of three decades of deep tech experience, the company has hit the ground running enabling companies to do less with more.
They inked their first commercial contracts in the logistics space where they are presently improving workplace efficiency by 35% to 50%+ in multiple businesses and are helping them save millions in operational costs annually.
At a market cap of just ~$104 million*, as per the prospectus, or $0.88 per share, it is hard to believe they are priced at such a tiny valuation, in a market valued at over $81.5 billion.
And they are just getting started…
*Market cap will differ from most online platforms due to the unique share class of the founders, which once converted will result in 117.7 million shares outstanding as of September 22, 2022.
What is the Spatial Web?
Envision a reality where the physical limits of our world no longer exist, and the internet acts as a three-dimensional entity functioning in unison with all of our technological devices.
If this were possible, then many of our most repetitive tasks would no longer require our attention, thus opening the door for us to explore ideas once considered inconceivable.
Next, imagine this on a greater scale whereby warehouses, cargo ships, trains, tractors, and more rarely require our attention because they operate autonomously without the need for much human interaction.
While this may feel like a sci-fi dream, and in reality, these “smart cities” of the future are likely a decade or more away, their infrastructure is being built today.
In his internationally bestselling book, “The Spatial Web – How Web 3.0 Connects Humans, Machines and AI To Transform the World” Chairman of the Spatial Web Foundation and CEO of Verses Technologies, Gabriel Rene explains that the Spatial Web is the result of four converging technological trends:
👾 Immersive (Augmented Reality/ Virtual Reality)
🤖 Physical (IoT/ Robots)
🧠 Cognitive (Artificial Intelligence/ Machine Learning)
🕸 Distributed (Edge computing/ Distributed Ledger Technology)
By combining the effectiveness of all of these technologies, any environment may become significantly more advanced because we (our machines) learn to maximize space to its full potential.
Whether it be virtually or physically, AI-powered devices can develop more efficient solutions since they are not only analyzing the information around them but essentially every available data source in the world as well.
This interconnected web is the quintessential component for creating an ultra-productive civilization since logic takes precedence over everything else.
Now isn’t that something?
🚨 If you’re interested in learning more about the Spatial Web, Deloitte Insights produced an extensive article exploring the space. Click this link to view.
The Wonderful Opportunities of Spatial Web (Web 3.0) Technology
To conceive everything that the Spatial Web has to offer is quite difficult, and nearly impossible since it is only in its infant stage, and many use cases have yet to be discovered.
That being said, if we consider what analysts are forecasting, and the value added by services in this industry, then the spatial web market speaks for itself:
📈 As of 2021, the global Web 3.0 market size was valued at $3.2 billion and is expected to reach $81.5 billion by 2030, growing at an annual rate of 43.7% within that period (Emergen)
🌎 Total Ubiquity means that internet content and services will be accessible anywhere, at any time, and used simultaneously via any number of devices, rather than exclusively via computers and smartphones (expert.ai)
💭 The Semantic Web will improve the abilities of web technologies to generate, share, and connect content through search and analysis by understanding the meaning of words rather than by keywords or numbers (expert.ai).
🔒 Zero Trust Architecture ensures user data is protected and encrypted, which prevents large organizations from controlling and/or using users’ personal data for their gain; users also maintain ownership of their data and digital assets, and protects large corporations and governments data from being hacked and ransomed to the highest bidder.
As you can see, there are many benefits brought on by the Spatial Web, and this is only scratching the surface.
With the adoption of True Web 3.0, our world is sure to change in the ways we think, live, and interact with one another.
The possibilities are endless.
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Source: Krystle Merrow
How VERSES (NEO: VERS, OTC: VRSSF) is at the forefront of Spatial Web technology
There may be no company better positioned to leverage Spatial Web technology than VERSES Technologies.
In fact, VERSES’ founders Gabriel Rene and Dan Mapes are the co-authors of the book mentioned above.
But far from being merely internationally known thought leaders, Mr. Rene and Mr. Mapes share their brilliant insights on Web 3.0 and develop real-world applications using this innovative technology.
Source: VERSES Investor Presentation
Not only are they driving awareness through their book, but they are putting their thoughts into action by building a business around the space and adding significant value to a plethora of businesses.
Using their patented Wayfinder technology, firms are benefitting from this AI-assisted order-picking platform that optimizes the organization and retrieval of warehouse goods, improving efficiency by 35% to 50%+!
Currently, their client in LA is saving ~$8 million in annual costs (and doubling their profitability) from utilizing the technology, and paying Verses $2.5 million per year for 10 years for that privilege.
It’s a pretty compelling sales pitch…
Through spatial intelligence, Wayfinder helps employees navigate complex facilities with optimal efficiency and accuracy, thus reducing errors and maximizing the bottom line.
To date, VERSES is on track with its one-year milestone by:
💎 Securing a C$34 million, 10-year contract with a major warehouse provider.
🤝 Completing 10 million in transactions.
📱 Aiding over 1000 workers.
And this is only the beginning.
At this time, VERSES is perfecting the first AI-operating system in the world called COSM which has the potential to reach over 100 billion devices and is currently five years ahead of any competitor’s platform.
They are able to do so because VERSES’ leadership invented the Spatial Web Protocols (HSTP and HSML), which allows programmers to reach the next level of development on the Spatial Web.
Since then, the open standards were put into a public foundation (The Spatial Web Foundation) and donated to the IEEE which declared it a “Public Imperative”, thus fast-tracking the standardization of these protocols.
The protocols are expected to be released to the public in about 18 months.
For reference, the IEEE standardized and brought to the world Wi-Fi, Ethernet and Bluetooth, to name a few protocols.
On top of the proto version of the standards, VERSES built an operating system (COSM) and the first killer apps on the system, like Wayfinder.
COSM allows developers to build intelligent, interoperable, and multi-dimensional applications for anything.
In doing so, the system enables context-aware information and activities to be collaboratively shared between the dynamic plug-and-play networks of devices and applications, creating a fully immersive and interconnected experience in the real world.
While certainly impressive, what is even more interesting, is that VERSES intends to open up COSM to 3rd party developers to create Spatial Web applications on its OS in 2023, effectively creating the App Store for the Spatial Web.
With modern technology no longer putting limits on creative freedom, this product is truly a game changer and is bound to be fundamental for all developers in this next era.
And even though they are quite young, it is clear to see VERSES is an incredible business by any measure.
Given its strong management team, technological advantage, and proven business model…at a market cap of $104 million, we believe this stock to be undervalued.
This is reinforced by VERSES’ recent financing round of $15 million, at $1 per share, that we as a team participated in.
After dipping down to $0.88 per share at the time of writing, free trading shares of VERSES are now below the financing price which has a four-month trading lockup.
No matter where our civilization is headed, this transformative company is bound to be at the forefront of our future and is a stock you should add to your watchlist and take the time to research.
To learn more about VERSES (NEO: VERS, OTC: VRSSF), click the link to access their entire Investor Presentation.
🚨 We met with VERSES’ CEO Gabriel Rene to dive deep into the spatial web and the business. Check out the full-length interview here.
🚨 If you enjoyed the newsletter, please subscribe for more content like this!
🚨 For more information on VERSES’ (NEO: VERS, OTC: VRSSF) share structure, check out its Prospectus here for the most accurate financial accounts.
This newsletter is written by Kevan Matheson, Founder & CEO of Edge Investments.
Before starting Edge, Kevan was an Institutional Analyst at RBC Global Asset Management, one of North America’s largest fund managers, with over $400 billion in assets under management.
After spending the majority of his career focused on large market capitalization public companies, Kevan became attracted to the risk/reward proposition of growth stocks and cryptocurrency.
In 2017 Kevan published a book on investing in cryptocurrency, where he speculated on the coming growth in NFTs and the underlying tokens that power their ecosystems.
Known in the growth stock community as Small Cap Kev, his current passion is finding stocks in disruptive industries like blockchain, psychedelic medicine, plant-based meat alternatives & much more.
This article was written in collaboration with Edge Investments’ analyst & writer, Declan O’Flaherty
Declan holds a Bachelor of Commerce from the University of Alberta and has over 2 years of experience investing in financial markets.
As a value investor, Declan embraces the lessons of Warren Buffett and his disciples when making investing decisions. With an emphasis on business fundamentals, his strategy focuses on finding stocks with excellent management, a competitive advantage, and those that are selling at discount to their real value.