A pre-IPO fund which targets leading pre-IPO companies and enhances returns through complementary equity enhancements not available in most other funds
Fund invests in:
- Pre-IPO companies with strong sales growth or an extraordinarily high number of total customers/users
- Mid/late stage companies with highly successful co-investors
- Through a unique mechanism enhances returns by providing access to complementary equity in compelling private companies
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)
- CrossWork Invests in pre-IPO companies. Gives investors bonus stock in CrossWork accelerator companies to further enhance returns
- Formed by ex Goldman Sachs bankers with an extended team of 30 professionals, advisors and consultants from hedge funds to Fortune 500 companies
- Track record of billion dollar investment results: Facebook, Twitter, Cvent etc.
- Aims to provide superior returns to investors by combining traditional pre-IPO with bonus accelerator returns
- Examples of potential targets - AIrBnB, Stripe, Palantir, Asana, Ripple, SpaceX etc. We believe we are in a unique time during which pre-IPO investors will generate extraordinarily high returns in solid companies
- Over 100 years combined investment experience of team with deep technology roots. Extensive pre-IPO experience. Extensive relationships among North American late stage venture and private equity companies planning exits and transactions
Model
We aim to provide superior returns to investors through strong, sound core investments and an “unfair” method of simply adding free equity in accelerator companies to our investment portfolio.
VC returns%
Major IPO stocks and indices are up on average over 50% so far in 2020
Accelerator returns%
For each investment in the fund CrossWork will credit a percentage of accelerator company returns
Superior returns%
Targeted annualized IRR
Time Horizon Expectations
Consistent with Pre-IPO opportunities we aim to commence capital returns within 6 months -2 years of investment:
Accelerator Equity
Why Do We Enhance Returns?
Provide The Best Possible Returns
- We are aiming to be the top performing accelerator and fund in our niche
- It is our fiduciary prerogative to leverage unfair advantage for the benefit of our investors
- We seek to develop lifelong relationships with our advisors and investors
- There is no rule that says you should only return to an investor from the “pot” that they invested in
Accelerator Equity
Our Core Investment Process Allows Us To Enhance Returns Through An Accelerator Program
- 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.
Accelerator Equity
It is Possible That Accelerator Returns Exceed Investment Returns
2% to 10%
Est. Equity In Each Accelerator Company Targeted By CrossWork
$0
General Cash Cost Of Investment
Very high
Return On Investment
30
Number Of Targeted Accelerator Companies
Accelerator Equity
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
U.S. IPO Market
Biggest U.S. Software IPO of All Time: Snowflake - September 2020
- 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.
Timing Is Key
Opportunity To Invest In Certain Pre-IPO Companies Will Soon Be Unavailable
Valuation:
$22 billion
$1.7 billion
$11 billion
$34 billion
Description:
Palantir offers software applications designed for integrating, visualizing, analyzing data and fighting fraud.
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.
Palantir offers software applications designed for integrating, visualizing, analyzing data and fighting fraud.
Palantir offers software applications designed for integrating, visualizing, analyzing data and fighting fraud.
Why we like it:
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
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
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 add more applications on it
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
Select Transaction Examples
- A CrossWork partner, through MidasLP, advised a number of groups on pre-IPO investments in Facebook
- Valuation at time of recommendation in 2011 was $50 billion (publicly available)
- Valuation is now over $700 billion
- Ex-Goldman Sachs Colleagues led a $200 million investment in Facebook
A CrossWork partner as CEO and head of investments at MidasLP, hired and led a team of analysts and hedge fund professionals pioneering strategic insights research in pre-IPO internet stocks including at the time - Facebook.
Select Transaction Examples
- A CrossWork partner, through MidasLP, advised a number of groups on pre-IPO investments in Twitter
- Valuation at time of recommendation in 2011 was $8 billion
- Valuation is now over $32 billion
- Ex-Goldman Sachs Colleagues led an $800 million investment in Twitter
A CrossWork partner as CEO and head of investments at MidasLP, hired and led a team of analysts pioneering strategic insights research in pre-IPO internet stocks including at the time - Twitter.
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 and executive contacts in CRM
+
An extensive array of lawyers, accountants and more
Relationships
TEAM
Deal Execution
CrossWork Deal / Investment Process
