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IPO Hopeful 11 – IPO Plan?
Continuing from the last post, I asked, “So, you mentioned that you guys are burning through 4M/year to hit the financial target and get ready for an IPO. What’s your plan for the next round of funding? Where do things stand now? What’s the current valuation? How long would one need to hold? What are the exit strategies, and what’s the expected return?”
Kevin pulled up a financial forecast summary right away (the full version is in the video). Based on current revenue projections, it seems 2025 will break even. By the end of 2024, they expect 1.2M of revenue; in 2025, 30.5M; and in 2026, 114M, with an IPO likely around end of 2025 or early 2026.
Kevin added, “Oh, and I forgot to mention—several interested investment banks have been in touch with us. However, our cash reserves are solid, and revenue is ramping up quickly, so we don’t need institutional funding or new investors at this point. That said, we’re open to existing investors increasing their stakes or introducing new investors from their networks.”
I said, “What’s the current valuation?”
He replied, “The price now is $0.42 USD per share, roughly a $60M valuation at the start of this ‘B’ round. If everything goes according to plan, we’re looking at revenue of $20M by the end of 2025 and $100M by end of 2026, with our intention to IPO at that time at many times the current valuation. Assuming the stock performs well, you could cash out your principal and some profits after the IPO, then leave the rest in to grow as long as you’re comfortable. The timeline depends on your strategy.”
I joked, “So basically, high risk, high reward. None of the startups I’ve invested in so far have returned a dime. My track record is zero in angel investing. But I’m thinking of adding to my position this time—maybe you guys will turn my luck around. 😂“
At that point, I remembered a question I’d forgotten to ask. I said, “Your hair’s turning pretty gray and don’t tell me this is your first time leading a company to IPO—because that would be way too risky for me!”
He laughed and said, “Oh, I haven’t mentioned it before. Our first company (both founders were together in the first one), won a 95% market share for a similar ‘digital network’ in two major global industries. We took that company public. Early investors made over 30x returns post-IPO. I didn’t stick around to manage the stock price afterward, so those who held on likely made even more. The ticker was TWT—you can look it up yourself (details are in the video). In 2017 (after we had left the company), it sold for $500M. So trust me, I didn’t leave a $500 million company went public to work on something smaller lol”
He continued, “This time, we’re following the same playbook: focusing on a niche, building a high barrier to entry over nearly a decade, and achieving a dominating market share. But this time the industry, Travel, is 100 times the size of the last company, leading to a much greater potential financial outcome!
That put me at ease a bit. Kevin seemed like a proven entrepreneur. I got a glimpse of his mindset during our chat when someone—an intense environmentalist—argued that cable phones in hotels are the most eco-friendly option. Kevin calmly explained why they were replacing old phones, then said, “I’m not interested in irrelevant topics. Let’s stick to our topic at hand.” He shut down the conversation without pandering or sugarcoating, showing zero interest in appeasing people unnecessarily.
I actually appreciate this kind of candor—someone who’s laser-focused on getting the job done, not trying to charm investors. After all, if I’m investing in someone, it’s because I want them to accomplish things I couldn’t do myself. 😂
There were a few small things during the meeting that convinced me this market has genuine demand and a solid underlying logic, but I’ll save those for next time. The finale is coming soon—stay tuned!