The company is already in Dizraptor’s portfolio since Mar 10. New offerings are possible in the future
About the Company
FiscalNote’s solution allows users to predict the probability of government actions and the future of draft laws, track campaigns, quickly gather and sort through bills from thousands of agencies. The company was founded in 2013 in Washington with additional offices in South Korea, Belgium and India.
The company has more than 5,000 customers worldwide across industries, including finance, transportation, energy power, public sector. These are, for example, AstraZeneca, Lyft, Coinbase, New Balance, Salesforce and other famous brands. The main source of revenue for the company is the subscriptions to its services.
Market Opportunities
In March 2020, at the height of the COVID-19 crisis, local and state governments initiated rapid lockdowns of businesses and started imposing restrictions. FiscalNote’s advocacy products saw an incredible 1 894% surge in usage. The average contract value for enterprise customers grew by 18%. The percentage of enterprise customers engaging in multi-year deals also grew from 48% to 65%.
The global market for legal tech artificial intelligence was valued at $3.245B in 2018 and is expected to grow with a CAGR of 35.94% and to reach $37.858M by 2026 owing to the transformation of traditional law practices into digital.
Another source of FiscalNote's growth is the European Union. Politicians have been trying to transform the EU into a system of global management with an all-time growing list of rules and directives. In addition, the company is expanding into the Asian market and has opened its additional offices in India and South Korea. Recently FiscalNote has introduced a new service: the platform is going to predict the success or failure of specific legal initiatives.
Financials and Valuation
FiscalNote has raised a total of $210M from 51 VC investors, both private investors and funds, including New Enterprise Ventures (invested in Uber, MongoDB, Cloudflare, Snap), Plug and Play (invested in PayPal, Google, Dropbox), Jerry Yang (a co-founder of Yahoo), Carlos Gutierrez (the former United States Secretary of Commerce), Katharine Weymouth (ex-chief executive officer at Washington Post), Ron Gula (founder of Tenable), Thomas Monaghan (former CEO at CEB, sold to Gartner for $2.6B), Daniel Nadler (the founder of Kensho, sold to S&P Global for $550M) and others.
In November 2021, the company announced that it would go public on Nasdaq via a merger with Duddell Street Acquisition Corp. The deal values FiscalNote at approximately $1.3B.
Risks
The market for FiscalNote may be overvalued. The legal tech market is relatively young – there is a risk that analysts and venture capitalists are overestimating the growth potential of this industry.
FiscalNote does not reveal its financial indicators. There is no information on whether the company makes a profit or not and whether it trends towards profitability.
Sources
FiscalNote Announces Acquisition of Oxford Analytica, FiscalNote website, February 2021
FiscalNote raises $160 million to track government legislation, Fortune, December 2021