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$112 mln$134 mln$150 mln

Fuze

Unified communications as a service
Pre-IPO
High risk

Funding in 2016-2018

Invest in Fuze

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Investment Idea Details
About the company

Fuze is a collaboration software platform that enables remote work. The platform offers a seamless transition between voice, video, messaging, and content sharing. It also provides real-time analytics solutions.

Fuze opted to develop its own in-house technologies. To ensure that the platform is fully operational, Fuze works with contact center suppliers. The company also has patens under its belt.

Market Opportunities

The global unified communications market size is projected to reach $50-75 billion, according to RBC Capital Markets. The investment bank estimates that the market has doubled over the last six months. Companies operating in this market boast a distinctive high customer retention rate.

Technological proliferation along with work-from-home trends in the communication sector is expected to offer growth opportunities over the forecast period. IT-directors began to redirect workforce communication from informal instant messaging (WhatsApp) to corporate messengers to ensure data security. Many choose to give up local software and move to cloud software. Last year about 7% of PBX-system users switched to cloud solutions.

Risks

Fuze doesn’t dominate the market and faces intense competition from several businesses: Zoom, RingCentral, Microsoft Teams, Skype, Cisco Webex, Google Meet, BlueJeans, LifeSize. This investment is considered to be high-risk.

No recent data on revenue growth or customer base size are available to date. It is unknown if the company is currently profitable and if there’s any tendency toward profitability.

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

Financials and Valuation

Market capitalization at OTC: $660 million. Total capital raised: $480 million. Fuze's last round of financing in May 2018 brought the company’s valuation to $600 million. Fuze CEO Colin Doherty said to Forbes back in 2018 that the company had done a lot of work and was looking at the possibility of an IPO in 18 months.

The latest data on Fuze's revenue and customer base are for May 2018: revenue growth +44%, customer growth +500%. Most likely, the number of Fuze customers increased as organizations shifted to remote work. The revenue of Zoom, a close rival, soared 355% in the previous quarter.

If we factor in the number of employees and total capital raised, we can assume that now Fuze's revenue hovers around $150-200 million. Given the market’s rapid growth, we expect that the value of the company after IPO will exceed $3 billion. Potential return – over 150%.

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Publication
25 Sep
Minimum Amount
1 share
2. Buying shares

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Shares Outstanding
Limited
3. Public Offering

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

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Exit
̴ 2021
Early Exit

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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

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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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