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FiscalNote

Legislative and regulatory analytics
Pre-IPO
Medium risk

Estimated revenue in 2019-2020

Invest in FiscalNote

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Investment Idea Details
About the company

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.

Market Opportunities

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.

Risks

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.

Financials and Valuation

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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1. Searching for Companies

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Publication
25 Sep
Minimum Amount
1 share
2. Buying shares

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Shares Outstanding
Limited
3. Public Offering

United Traders will have shares at its disposal after the IPO. The shares can be sold after the established 6-month Lock-up period. Alternatively, the shares can be hedged for the above period. Prior to the company going public United Traders look for exit options in the OTC market. If we find a great offer, we sell the shares.

Public Offering Date
Pending
Estimated Gains
+150%
4. Taking profit

After the Lock-up period is over, the investment in pre-IPO or OTC will be automatically closed, and generated profits are credited to your account less the applicable UT fees. We offer an opportunity for investors with over $100,000 invested in a specific idea to search for a counterpart in the OTC market individually and to take profits before the company goes public and thereby exiting the trade prior to the Lock-up period expiration.

Exit
̴ 2021
Early Exit

Although it is prohibited to sell shares within the Lock-Up period, our traders find ways to take profits for our investors using various financial instruments: forwards, options, short selling trades, etc.

For an investor the above means that the pre-IPO or OTC investment may be exited after paying a part of its value, usually around 15% which is caused by highly-priced instruments used to close the position. To do so, you should press the respective button in your members area as soon as it becomes active.

The exiting process is similar to making a new investment. You submit a request, we execute it within 1 business day, and your investment is closed at the current exchange price.

Fees

ENTRY FEE

3.5% of the share purchase amount. The fee is charged at confirmation of your investment bid.

EXIT FEE

0.5% of the share sell amount after the trade. The fee is charged at the investment exit.

SUCCESS FEE

20% of the profit gain. The fee is charged only if the trade is profitable at the time of exiting.

EARLY EXIT FEE

Usually a 15% fee is charged subject to the actual situation at the exchange. The fee is calculated individually for each investment.

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HIGH PROFITABILITY

Venture investing is very risky as they involve new or growing companies, and multifold increase in capitalization is expected. We prioritize companies at the pre-IPO stage as they already demonstrate strong financial indicators and plan to go public soon. This approach allows limiting hyper-risks related to insolvency of new companies and substantially increasing profits as compared to investors who buy shares through a subscription just before the IPO.

LOW ENTRY THRESHOLD

To buy the OTC stocks, one would need millions of dollars. We gathered a pool of traders and investors allowing everyone interested to join similar transactions with as much as $10.

Risks

United Traders is experienced in minimizing risks but a future investor should be aware of all risk types:

  • Illiquidity. There is a possibility that early exit from this investment will take more than 1 month.
  • Asymmetric information. Management and current investors have access to more internal information about the company than other market participants.
  • Time uncertainty. There is no information regarding next financing round or exit strategy timeframe (IPO or M&A).
  • Share dilution. The issue of additional shares by a company may reduce the value of shares of existing investors.

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