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Mark Cuban and NEA-Backed FiscalNote To Go Public Via SPAC Merger

The deal is valued at about $1.3 billion.

Video source: YouTube, FiscalNote

DC-based legal and regulatory policy tracking software company FiscalNote Holdings Inc will go public via a merger with a special purpose acquisition company Duddell Street Acquisition Corp in a deal valued at about $1.3 billion. 

Under the agreement announced this week, the Maso Capital-backed SPAC will provide FiscalNote with proceeds of $275 million, consisting of a $100 million private placement and about $175 million currently held in trust by Duddell Street. 

After the transaction’s anticipated close in the first quarter of 2022, FiscalNote will trade on the Nasdaq under the ticker symbol “NOTE.”  The deal would make FiscalNote’s co-founder and chief executive officer, 29-year-old Tim Hwang, the youngest Asian-American founder and CEO on a major US stock exchange.

Founded in 2013, FiscalNote uses artificial intelligence and machine learning to collect and analyze global legislative, regulatory and geopolitical data for its clients in the private, public and non-profit sectors.

Its thousands of blue-chip subscribers include 3M, Blackstone, AstraZeneca, FedEx, Lyft, Microsoft, Netflix, Peloton, Tesla, Uber and Zillow. FiscalNote’s government clients include the White House, Congress, US Supreme Court, the Department of Defense, the Federal Reserve and the US Centers for Disease Control and Prevention. 

For the past year, FiscalNote has been in growth mode, acquiring eight companies in 10 months, expanding its reach into Europe, Australia and Asia. 

The company is targeting $173 million in revenue next year, including revenue from additional acquisitions in the works. The following year, FiscalNote is aiming for $256 million in revenue, along with an expectation to become profitable, according to an investor presentation

Hwang said in a statement, “When we founded FiscalNote in 2013, we set out to build a category creating technology company that would change the way organizations understand and act on the legal, policy, and regulatory issues that mattered most to them.”

“Legal and geopolitical issues have become even more inextricably linked to markets, and it is crucial that organizations have access to key information about the actions of regulators and policymakers to proactively navigate and manage the volume and velocity of regulatory change that will impact them.”

Current FiscalNote shareholders — which include billionaire entrepreneur Mark Cuban, Yahoo co-founder Jerry Yang, AOL and Revolution Growth co-founder Steve Case, Green Visor Capital, New Enterprise Associates (NEA), Winklevoss Capital and S&P Global — will roll their stakes into the public company and retain a 76% ownership.

JP Morgan is serving as financial advisor to FiscalNote, whole Duddell Street is advised by Citi and BTIG.


Source: Equities News