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    DigitalOcean

    Cloud Infrastructure Provider
    OTC
    Medium risk

    Company's revenue in 2015-2018

    Invest in DigitalOcean

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    Investment Idea Details
    About the company

    DigitalOcean is a company that delivers the fastest and easiest way for developers and businesses to deploy and scale any application in the cloud. With a focus on simplifying the end-user experience, DigitalOcean accelerates software development so developers spend more time building features and less time managing their infrastructure.

    With more than 1,000,000 registered developers and 78M droplets, DigitalOcean claims to be one of the largest web hosting companies in the world. Notable investors including Andreessen Horowitz, Fortress Investment Group, and IA Ventures.

    Market Opportunities

    The global cloud computing market size is expected to grow from USD 272 billion in 2018 to USD 623.3 billion by 2023, at a CAGR of 18% during the forecast period.

    Increased automation and agility, need for delivering enhanced customer experience, and increased cost savings and return on investment are the major growth factors for the cloud computing market.

    Risks

    DigitalOcean competes in the cloud computing industry and faces a competitive landscape, which may affect DigitalOcean’s 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

    DigitalOcean reported to Business Insider that it has achieved an annualized run rate of $220 million in 2018. Additionally, the company disclosed that its been profitable on an EBITDA basis since 2015.

    The company's shares are trading at an estimated value of $1.3B. Given the revenue growth, profitability and a large potential market, we expect the company to be worth of $3B after an IPO. The potential return on investment may reach 100%. 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
    28 May
    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
    + 100 %
    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.

    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 $15,000.

    Invest in DigitalOcean

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