Estimated revenue in 2019-2020
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FiscalNote’s solution allows users to predict the probability of government actions and the future of draft laws, track campaigns, quickly gather and sort through bills from thousands of agencies. The company was founded in 2013 in Washington with additional offices in South Korea, Belgium and India.
The company has more than 4,000 customers worldwide across industries, including finance, transportation, energy power, public sector. These are, for example, AstraZeneca, Lyft, Coinbase, New Balance, Salesforce and other famous brands. The main source of revenue for the company is the subscriptions to its services.
In March 2020, at the height of the COVID-19 crisis, local and state governments initiated rapid lockdowns of businesses and started imposing restrictions. FiscalNote’s advocacy products saw an incredible 1894% surge in usage. The average contract value for enterprise customers grew by 18%. The percentage of enterprise customers engaging in multi-year deals also grew from 48% to 65%.
In terms of revenue, the global legaltech artificial intelligence market was valued at 3,3 Million in the year 2018 and is expected to grow with a CAGR of 37.7% over the next 5 years owing to the transformation of traditional law practices into digital.
Another source of FiscalNote's growth is the European Union. Politicians have been trying to transform the EU into a system of global management with an all-time growing list of rules and directives. Also, the company is expanding to the asian market and has opened its additional offices in India and South Korea. Recently FiscalNote has introduced a new service: the platform is going to predict success or failure of specific legal initiatives.
The market for FiscalNote may be overvalued. The Legal Tech market is relatively young – there is a chance that analysts and venture capitalists are overestimating the growth potential of this industry.
FiscalNote does not reveal its financial indicators. There is no information whether the company makes profit or not and whether it has a tendency towards profitability.
There is a chance that after the lockup period (6 months after the IPO) we’ll need much time to transfer FiscalNote shares to our brokerage account. The process usually takes two weeks, however delays are possible due to some legal procedures that are hard to foresee in terms of their duration.
FiscalNote has raised a total of $210 mln from 51 VC investors, both private investors and funds, including New Enterprise Ventures (invested in Uber, MongoDB, Cloudflare, Snap), Plug and Play (invested in PayPal, Google, DropBox), Jerry Yang (a co-founder of Yahoo), Carlos Gutierrez (the former United States Secretary of Commerce), Katharine Weymouth (ex chief executive officer at Washington Post), Ron Gula (founder of Tenable), Thomas Monaghan (former CEO at CEB, sold to Gartner for $2,6 bln), Daniel Nadler (the founder of Kensho, sold to S&P Global for $550 mln) and others.
During the last round of investment in December 2020 FiscalNote secured $160 million in funding. Since its creation FiscalNote has absorbed 6 startups — which creates additional points of its future growth. In January 2021 the company purchased the startup FactSquared that makes AI-driven text transcriptions. In February 2021 FiscalNote absorbed the British company Oxford Analytica, that provides geopolitical and advisory services to customers all over the world.
FiscalNotes’s projected market capitalization, given it maintains the current growth trajectory, will amount to $3-4 billion on the public market. The IPO is expected in 2022. It is also possible that some major analytical companies, such as Bloomberg or Thomson Reuters, buy FiscalNote. Given the rapid market growth along with financial information about FiscalNote from open sources, we estimate that return on investment will be over 150%.
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