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Malwarebytes

Cybersecurity software for large companies
OTC
Medium risk

Money Raised in 2014-2016

Invest in Malwarebytes

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Investment Idea Details
About the company

Malwarebytes is a developer of cybersecurity software designed to protect consumers and businesses against malicious threats that escape detection by traditional antivirus solutions.

Founded in 2008, the company is headquartered in California, with offices in Europe and Asia, and a global team of threat researchers and security experts.

In 2018 Malwarebytes was named a gold winner in the Cyber Security Vendor Achievement of the Year.

Market Opportunities

The cybersecurity market is expected to grow at a CAGR of over 17% from USD 120 billion in 2017 to USD 300 billion by 2024, according to a 2019 Global Market Insights, Inc. report.

According to J.P. Morgan study, top managers of the leading US companies plan to increase investments in cybersecurity software services in the next five years, which would represent a growth driver for this market and secure long-term contracts with large clients for service providers in this market.

Risks

Malwarebytes competes in the software security industry and faces a competitive landscape, which may affect Malwarebytes’ long-term viability.

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.

Financials and Valuation

Malwarebytes was ranked 313 in Deloitte's Technology Fast 500. The Company disclosed that it grew revenue by more than 250% between FY2014 and FY2017.

According to Inc., Malwarebytes had revenues of $126.2M in 2017. It has also been reported that Malwarebytes is currently profitable.

The company's shares are trading at an estimated value of $675M. Given the revenue growth, profitability and a large potential market, we expect the company to be worth more than $3B after an IPO. The potential return on investment may reach 200%. Estimated IPO date - 2020.

How Venture Investments Work
1. Searching for Companies

United Traders analysts are in continuous search for OTC offers studying financial reporting, companies’ businesses, their future plans, analyzing them as potential acquisition targets or estimating prospective multifold capitalization increase as well as considering risks that may hinder business growth. The best ideas are offered to our investors.

Publication
25 Sep
Minimum Amount
1 share
2. Buying shares

As part of our service for purchasing shares on the over-the-counter market (pre-IPO, OTC), 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 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.

What Are the Benefits of Investing with United Traders?

WE ARE A RELIABLE PARTNER

Our risk managers will support you throughout the entire transaction life.

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.

Invest in Malwarebytes

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