Accelerator Interests
Goal: Acquire deeply discounted interests in 30 compelling private companies that have unicorn potential
CrossWork Midas Pre-IPO Fund
Summary
- For accredited investors only. An accredited investor has annual income over $200k ($300k combined with a spouse) or net worth of $1 million alone (or combined with a spouse)
- Accelerator takes positions in 30 leading tech companies that generally have $1-$20 million in revenues and are interested in a potential exit
- Formed by ex Goldman Sachs bankers with an extended team of 30 professionals, advisors and consultants from hedge funds to Fortune 500 companies
- First 6 accelerator opportunities have been closed with exceptional companies. 20+ additional offers have already been made to potential accelerator companies.
- Track record of billion dollar investment results: Facebook, Twitter, Cvent etc.
- Very basic summary information is presented here. Schedule a meeting to learn more at https://meetings.hubspot.com/steveo1
-
Very basic summary inform-
ation is presented here.
Schedule a meeting to learn
more at https://meetings.hubspot
.com/steveo1
Our approach
- It typically takes us a couple of discussions to ascertain if our advisers can add value
- If we do not believe that we can add value we refer you to other groups.
- If we can add value and our advisers commit to help, we invite you to join our accelerator
- We work best with companies from $1-50 million in revenues
Feel free to schedule some time to chat with a senior professional and learn more about our approach
Accelerator Equity : Scenario Models
10x
- Out of 30 accelerator companies if one company reaches a $1 billion valuation:
- Then CrossWork’s interest (assuming 3% average) is worth $30 million
- Investors get at least $10 million or 20x based on a $500,000 investment
20x
- Out of 30 accelerator companies if two companies are sold for over $100 million each in valuation:
- Then CrossWork’s interest (assuming 3% aver age) is worth $6 million
- Investors get at least $2 million or 4x based on a $500,000 investment
All investments are risky and carry the risk of loss of all capital.
CrossWork Accelerator Interests Vs. Other Private Company Structures
CrossWork Accelerator Offering
Diversification reduces risk
Typical VC Fund Investment
Diversification reduces risk
Typical Single Company Investment
Lacks diversification
Accelerator Equity
- 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 the best management teams and hands-on co-investors with strong niche track records.
Scenario Models
Return enhancer example for accelerator and fund companies
IBM And Amazon have agreed to provide CrossWork accelerator and fund companies up to $200k in cloud hosting credits
$200k
IPO Market
As of September, 2020 IPO Performance Has Been Very Strong Despite Covid
- >50% return in major IPO index returns as of Sep. 2020
- But CrossWork targets investments at pre-IPO price further enhancing potential returns
- CrossWork believes timing is of the essence
IPO Market
As of September, 2020 IPO Performance Has Been Very Strong Despite Covid
- The biggest tech IPO of the year 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.
- 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.
Select Transaction Examples
A CrossWork partner completed an early stage investment in Cvent
Cvent completed an IPO on the New York Stock Exchange at a valuation at over $1 billion
Cvent was subsequently acquired for $1.6 billion by Vista Equity, a fund founded by a former Goldman Sachs colleague
As of August 2020 ranked top 10 among software companies in USA
“In addition to completing an equity investment in our company Steven helped us complete our overall round of equity financing and has provided us with significant strategic input and guidance that has helped out overall strategy;”
– Chairman and CEO, Cvent, Inc.
Deal Flow
In Numbers
30+
Contracted high level advisors and consultants with wide industry coverage
1,000+
VC + PE funds with whom CrossWork has had communications over the last 3 years
100+
Years of combined investment experience of team
50,000+
Investor, executive lawyers & accountants contacts in CRM
Deal execution
CrossWork Deal / Investment Process
Deal Flow
Leverage contracted infrastructure of advisors, consultants and relatioships at over one thousands VC funds
Investment
decision
Target opportunities that fit core criteria
(1) High gross margins
(2) Thousands or millions of customers or users
(3) High growth
(4) High switching
Investment
Execution
Leverage contracted infrastructure of advisors, consultants and relatioships at over one thousands VC funds
On-going
Performance Monitoring
Review frequent financial and other business information. Frequent executive meetings. Require of seek board appointments
Shareholder
Value
Development
Provide strategies and transactions that can significantly increase the company value e.g. inexpensive acquistitions targets partnerships, etc.
Investment
Realisation /
Exit Strategy
Orchestrate of influence the ultimate sale IPO of the company or other means of generating shareholder returns such as recapitalizations