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    $92 mln$112 mln

    IPO BigCommerce

    Enterprise ecommerce platform
    IPO
    Medium risk

    Revenues in 2018-2019

    Invest in IPO BigCommerce

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

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    Investment Idea Details
    The Company

    BigCommerce provides a comprehensive platform for launching and scaling an ecommerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integration into third-party services like payments, shipping, and accounting. As of June 1, 2020, BigCommerce served 60,000 online stores across industries in 120 countries. The company is located in Austin, Texas.

    All stores on BigCommerce platform run on a single code base and share a global, multi-tenant architecture purpose built for security, high performance, and innovation. BigCommerce serves stores in a wide variety of sizes, product categories, and purchase types, including business-to-consumer and business-to-business.

    Market Opportunity

    According to eMarketer Inc. (“eMarketer”), retail ecommerce was nonexistent in the early-1990s and grew to approximately 10% of all global retail spending in 2017. They predict it will take just six years for this percentage to more than double to 21% of global retail spending in 2023, as shown in the chart below. More than half of the world’s population is now online, according to eMarketer, with four billion global internet users spending an average of seven hours online per day across ecommerce, content, social networks, and applications on desktop and mobile platforms.

    Global retail ecommerce will reach $3.9 trillion, representing 17% of total retail spending in 2020, according to eMarketer. They forecast that retail ecommerce will reach $6.3 trillion by 2024, representing 21% of retail spending. Digital influence extends to purchases made in the physical world as well. Forrester Research estimates that digital touchpoints impacted 51% of total U.S. retail sales in 2018.

    Risks

    BigCommerce has a history of operating losses, and it may not be able to generate sufficient revenue to achieve and sustain profitability. Future revenue and operating results will be harmed if BigCommerce is unable to acquire new customers, retain existing customers, expand sales to existing customers, or develop new functionality for platform that achieves market acceptance.

    BigCommerce faces intense competition, especially from well-established companies offering solutions and related applications (Shopify, Wix.com, Magento). BigCommerce may lack sufficient financial or other resources to maintain or improve competitive position, which may harm ability to add new customers, retain existing customers, and grow business.

    Financials

    BigCommerce (BIGC) generates revenue through platform subscriptions (SaaS). Over the past 12 months, the company's revenues amounted to $137 million. It is growing at an average rate: revenue growth is 30% year-on-year. The gross margin is at a high level of 77%. BigCommerce has raised a total of $219.2M in funding over 7 rounds. Their latest funding was raised on Apr 25, 2018 from a Series F round. There are well-known funds among investors such as General Catalyst (invested in Lemonade, Livongo Health), GGV Ventures (invested in Slack, Peloton, Alibaba) and Goldman Sachs (invested in Tesla, Uber, Spotify).

    BigCommerce (BIGC) plans to raise $140 million during the IPO, the price range is $18-20. The company's IPO market capitalization will be $1.3 billion. Shares of similar public competitor Shopify (SHOP) are up 165% since the beginning of 2020. Shopify has surged 5600% since its IPO in 2015. The IPO price was $17 per share. Shopify is currently trading at $1,050. Considering the large size of the potential market and operational metrics of BigCommerce, this investment idea has a high potential return of over 40%.

    How IPO Investments Work
    1. Collection of funds

    2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.

    Publication
    30 Jul
    Threshold amount
    $50
    2. Buy shares

    We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».

    Submit applications before
    03 Aug
    3. Start Bidding

    The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.

    Start Bidding
    05 Aug
    Return forecast
    +40%
    4. Receiving profit

    After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.

    End
    09 Nov
    Early profit fixation

    Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.

    From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.

    The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.

    Fee

    FOR ENTRY

    3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.

    FOR EXIT

    1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.

    SUCCESS

    20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.

    TO EARLY EXIT

    Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.

    Advantages Enjoyed by Those Investing with United Traders

    RELIABILITY

    Our risk managers ensure proper support throughout the entire transaction. Moreover, you may call them on +7 495 646-15-57 or 8 800 333-66-81 or visit our office, if a more detailed discussion is needed.

    IN THE PROFIT FROM THE FIRST DAY

    Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.

    LOW ENTRY THRESHOLD

    Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.

    Invest in IPO BigCommerce

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

    View more ideas