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Auth0

Authentication platform for application developers
OTC
Medium risk

Post-money valuation 2013-2018

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Investment Idea Details
About the company

Founded in 2013 by Eugenio Pace and Matias Woloski, Auth0 is a cloud based identity platform for developers. It provides a web-scale cloud solution that includes APIs and tools that seek to enable developers to ease the process of authentication and authorization of their applications and APIs.

Auth0's customers range from small startups to large enterprises. The company states that they have over 2,000 enterprise customers, and reported that they experienced over 100 percent customer growth in 2017.

Notable customers: Siemens, Mazda, Nvidia, Dow Jones, Financial Times, Atlassian, Tableau

Financials and Market

On January 28, 2019, the company announced that it ended 2018 with a nearly 80% increase in both sales and new customers.

On January 29, 2018, the company announced that it had increased its customer base and revenue by more than 100 percent in 2017. They reportedly added more than 1,500 new customers in 2017.

The Identify & Access Management Market is expected to exceed more than US$ 14.50 Billion by 2021 at a CAGR of 12% in the given forecast period.

Risks

Board Approval Risk: Certain transfers of Auth0 shares are subject to board approval.

Asymmetric information. Management and current investors have access to more internal information about the company than other market participants.

Illiquidity. There is a possibility that early exit from this investment will take more than 1 month.

Similar companies and Valuation

Okta
The last venture round was on Sep 2015, with a share price of $14. The company went public 18 months after its last round with a share price of $17. On April 2019 the share price of Okta is $85 (+500% returns since last venture round)

The last venture round of Auth0 was in May 2019 with the post-money valuation of $500M. In April 2019 the shares of Auth0 are traded within $22-$24 range on OTC market ($800M-$900M valuation).

How Venture Investments Work
1. Searching for Companies

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Publication
21 febr
Minimum Amount
15 000 $
2. Buying shares

As part of our service for purchasing shares on the OTC market, for its traders and investors United Traders buys units in funds that own equity stakes in private companies. These funds make early-stage investments in private companies or acquire equity stakes from employees of such companies.

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 position 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
̴ 2020
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 investment may be exited after paying a portion 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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LOW ENTRY THRESHOLD

To qualify for a pre-IPO subscription, 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 $15,000.

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