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    Procore

    All-in-one construction management software
    Pre-IPO
    Medium risk

    Revenues in 2017-2019

    Invest in Procore

    This investment idea is no longer available. New applications are not accepted

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    Investment Idea Details
    About the company

    Procore is a leading provider of cloud-based construction management software. It is helping transform one of the oldest, largest, and least digitized industries in the world. The platform is modernizing and digitizing construction management by enabling real-time access to critical project information, simplifying complex workflows, and facilitating seamless communication among key stakeholders.

    Adoption of Procore platform helps customers increase productivity and efficiency, reduce rework and costly delays, improve safety and compliance, and enhance financial transparency and accountability. The company was founded in 2002 in California. It has more than 8500 customers running projects in 125+ countries.

    Market Opportunities

    Construction is critical to the global economy but is in need of digitization. The construction industry represented approximately 13% of global gross domestic product, or GDP, and employed 7% of the global workforce in 2017.

    Given growing pressures on the industry, key stakeholders face an increasing imperative to adopt modern technology or jeopardize future business success. In fact, 80% of contractors surveyed in a USG Corporation and U.S. Chamber of Commerce survey believe that they will use some newer technology by 2022.

    Risks

    Procore business may be significantly impacted by changes in the economy and related reductions in spend across the construction industry.

    Procore operates in a competitive market and may not continue to compete effectively. It faces significant competition from Autodesk (ADSK) and Oracle (ORCL).

    Procore has a history of losses and may not be able to achieve or sustain profitability in the future.

    Financials and Valuation

    Procore generates substantially all of revenue from subscriptions to access its products. The company sells products on a subscription basis for a fixed fee with pricing generally based on the number and mix of products a customer subscribes to and the fixed aggregate dollar volume of construction work contracted to run on platform annually.

    Procore generated revenue of $112.3 million in 2017, $186.4 million in 2018, and $289.2 million in 2019, representing year-over-year growth of 66% in 2018 and 55% in 2019. Procore has raised a total of $648.9M in funding over 13 rounds. Their latest funding was raised on May 1, 2020 at $5B valuation. In the beginning of July Procore shares are trading at $51.8 on the secondary market, which implies ~$6.8B valuation.

    Similar public companies by business model and product functionality are Veeva (VEEV) and Okta (OKTA). The average P/S ratio is 30x. Given Procore current growth rate and revenue number, the equity value of Procore in the public market would be $10B. We expect that Procore equity value on the public market will be $15B by the next year. The expected return on investment is 120%.

    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
    03 July
    Minimum Amount
    $5000
    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
    +120%
    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
    ̴ 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 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.

    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. You can also contact us by phone: +7 495 646-15-57 or 8 800 333-66-81, or visit our office for a detailed discussion.

    HIGH PROFITABILITY

    Venture investing is very risky as they involve new or growing companies, and multifold increase in capitalization is expected. We select companies that already demonstrate strong financials 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 in a pre-IPO subscription.

    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.

    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 Procore

    This investment idea is no longer available. New applications are not accepted

    View more ideas