A pre-IPO fund targeting exceptional companies and enhancing returns through complementary equity enhancements unavailable to most other funds
Fund targets:
- Pre-IPO companies with market dominance and highly defensible positions of strength
- Late stage companies with highly successful co-investors
- Through a unique mechanism CrossWork Midas enhances returns by providing access to complementary equity in compelling private companies
- ONLY for accredited investors and qualified institutions . i.e. Annual income over $200k ($300k combined with a spouse) or net worth of $1 million either alone or combined with a spouse. Also includes certain family offices, trusts, entities and institutions with more than $5 million in assets
CrossWork Midas Pre-IPO Fund
Summary
- For accredited investors only. ie those with annual income over $200k ($300k combined with a spouse) or net worth of $1 million alone (or combined with a spouse) or certain family offices, trusts, entities and institutions with more than $5 million in assets
- CrossWork invests in pre-IPO companies. Provides investors stock allocation in CrossWork emerging companies to further enhance returns
- Formed by ex Goldman Sachs bankers with an extended team of over 20 professionals, advisors and consultants from hedge funds to Fortune 500 companies
- Aims to provide superior returns to investors by combining traditional pre-IPO with bonus emerging company / accelerator returns
- Track record of billion dollar investment results: Facebook, Twitter, Cvent etc.
- Examples of potential targets - AirBnB, Stripe, Palantir, Asana, Ripple. We believe we are in a unique time during which pre-IPO investors will generate extraordinarily high returns in solid companies. However past results are no guarantee of future performance and investments in private companies are illiquid and risky with the potential for loss of all capital
Model
We aim to provide superior returns to investors through strong, sound core investments and an “unfair” method of allocating equity from our emerging companies non-fund holdings to our pre-IPO portfolio.
Pre-IPO
returns
IPO returns + pre-IPO yield
Emerging company
returns
CrossWork allocates a percentage of emerging company returns to the CrossWork pre-IPO fund at no cost
Superior
expected returns
Targeted annualized returns
Time Horizon Expectations
Consistent with pre-IPO opportunities we aim to commence
capital returns upon portfolio company liquidity events
Emerging Companies' Equity
Our Core Investment Process Allows Us To Enhance Returns
Through Our Holdings In Non-Fund Emerging Companies
Thousands of companies contact CrossWork or are contacted by CrossWork each year
Deal Flow Due Diligence
30-40 Emerging
Companies / Potential
Investments
10-20
Investments
- Many companies do not pass our due diligence processes, tests and filters
- Compelling companies, meeting strict criteria. Excellent performance and strong management teams that our advisor network can help scale substantially
- Investments that pass a VERY high hurdle. Clear pre-IPO companies + mid/late-stage companies with solid management teams and hands-on co-investors with strong niche track records.
Non-Fund Emerging Equity
Emerging Equity Returns Provide An Attractive Enhancement
2% to 10%
Est. Equity In Emerging Equity Companies
$0
General Cash Cost Of Investment
High
Targeted Return On Investment
10-30
Number Of Targeted Companies
Assisting Portfolio Companies
IBM And Amazon have agreed to provide CrossWork
companies a significant level of complimentary cloud hosting and related credits
IPO Market
- >50% return in major IPO index returns as of Sep. 2020. However, IPO returns have also been negative in the past
- But CrossWork targets investments at pre-IPO price enhancing potential returns
- CrossWork believes timing is of the essence
- Still, future performance could be negative or adverse in spite of past performance. Private investments are illiquid, speculative and run the risk of complete capital loss
U.S. IPO Sizing
2020 IPO Volumes Were Strong Despite Covid
- The biggest tech IPO of the year 2020 came in September, when cloud data warehouse vendor Snowflake arrived on the New York Stock Exchange
- The company priced shares at $120, up from its initial pricing of $75-85. Many companies share prices also decline post-IPO
- These immediately popped on the first day of trading, ending up by as much as 111% at $245 per share
- Raised $3 billion, the most ever for a software firm at IPO
Significant Volume Combined With SPAC Projections
Many Compelling Companies With Significant Sizing
$22 billion
Palantir offers software applications designed for integrating, visualizing, analyzing data and fighting fraud.
Palantir’s solution is embedded into thousands of critical national security and critical financial workflows. It’s too hard to replace and its value added is measured in billions or lives
$1.7 billion
Asana is a web software that helps teams manage projects and tasks in one tool. Teams can create projects, assign work to teammates, specify deadlines, and communicate about tasks directly in Asana.
Asana’s solution is embedded into thousands of business workflows.It has critical business information that can’t be moved. It’s too hard to replace and has virality built into its customer acquisition model
$11 billion
Ripple’s Blockchain is embedded into thousands of bank and financial institution global business workflows that are worth billions. It’s too hard to replace and will grow as banks base more applications on it
Ripple’s solution is embedded into thousands of business workflows.It has critical business information that can’t be moved. It’s too hard to replace and has virality built into its customer acquisition model
$34 billion
Airbnb is an online marketplace that enables members to rent out whole or part of their properties to travelers. It offers over 7 million dwellings in 191 countries
AirBnB is the world’s top brand, by far, in non-hotel accommodations. In general, it’s almost impossible to topple a marketplace that has reached scale and is still scaling
Deal Flow
In Numbers
20+
High level advisors and consultants with wide industry coverage
1,000+
VC + PE contacts with whom CrossWork team has made contact over the last 5 years
100+
Years of combined investment experience of team
50,000+
Investors, executives, lawyers & accountants contacts in CRM
Deal Execution
CrossWork Deal / Investment Process
Deal Flow
Leverage contracted infrastructure of advisors, consultants and relationships at hundreds of VC/PE funds
Investment
Decision
Target opportunities, with some exceptions, that fit core criteria
(1) High gross margins
(2) Core market dominance
(3) High growth
(4) High switching costs
Investment
Execution
Utilize smart securities and other structures to optiimize returns and protect against risk
On-going
Performance
Monitoring
Review financial and other business information. Executive meetings. Require or seek board appointments
Shareholder
Value
Development
Provide strategies and transactions that can significantly increase the company's value e.g. inexpensive acquistitions, partnerships, etc.
