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$17 mln$150 mln$190 mln

Udemy

Online education platform
Pre-IPO
Medium risk

Cumulative funding in 2014-2020

Invest in Udemy

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Investment Idea Details
About the company

Udemy is a global online learning platform. Any expert can register on Udemy and create his own course from French cuisine to piano and self-defense lessons.

Udemy serves 150 thousand courses for private users and companies. The world’s leading companies rely on Udemy to help their employees upskill on a subscription basis, including Adidas, Toyota, PayPal, Lyft, Booking, Pinterest, HSBC.

The company was founded in San Francisco in 2010. From February through late March 2020 Udemy online course enrollments increased by 425%. In May alone, the company logged 25 million new enrollments, compared to 9 million the previous May, according to Forbes.

Market Opportunities

The global digital education market is expected to grow from $8.4 billion this year to $33.2 billion in 2025, at a compound annual growth rate (CAGR) of 31.4%, according to Dublin market research firm, Research and Markets.

The global e-learning market is expected to reach revenue of over $345 billion from 2020 to 2025, says the Market Research by Arizton.

Surging demand will likely drive revenue above $400 million this year, according to two sources with knowledge of Udemy’s finances. Udemy CEO Gregg Coccari confirmed that number in an interview with Forbes.

Risks

Udemy faces intense competition from Coursera, Udacity, LinkedIn, which suggests additional risks for the company's long-term business.

Udemy hasn’t disclosed its financial performance. It is unknown if the company is currently profitable and if it shows any tendency toward profitability.

The market may be overvalued. The online learning market is comparably young – there is a chance that analysts and venture capitalists are overestimating the growth potential of this industry.

Financials and Valuation

According to Crunchbase, Udemy has raised a total of $223 million in eight rounds of venture capital funding. Its last funding was in February at a $2 billion valuation, price per share is $15.57. In July 2020, Udemy said it would raise $3 billion in financing and had hired Goldman Sachs to work on the fundraising effort.

From March through May, Udemy’s sales were double the total for the same period in 2019, said Coccari.

On the OTC market Udemy shares are worth $25.5, which approximates a valuation of $3.3 billion. The company's projected revenue by the end of 2020 is $400 million, in 2021 – $600-800 million. The market cap in this case will go over $8 billion on the public market. Expected IPO date is 2021. Potential return on investment – 150%.

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 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
̴ 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 Udemy

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