KiwiTech is a one-of-a-kind startup ecosystem based out of NYC (Bryant Park) with presence across the U.S. & globally. The company is presently raising capital for acquisitions and targets an exit via IPO or sale in 2-3 years.
Proven Team – The Guptas are sibling entrepreneurs and earlier scaled a tech services business to 5,000 people worldwide. This previous company, Aptara, was sold in 2012; at which time the Guptas began investing in startups. Ultimately, the Guptas created a unique platform of building tech for equity, which they call “cashless investing”.
Platform – The Kiwi platform is the world’s only complete startup ecosystem, with about 40 employees in the U.S. and 450 employees in India. We have scaled a model of building tech for payment in cash & equity with a 50/50 split from startups. The cash component covers our operating expenses so the equity component is pure upside. In addition, we help our portfolio firms & clients by hosting over 100 events this year from Demo Days to Family Office & VC Panels. At these events, entrepreneurs can meet name brand investors from our panels such as NEA, Edison Partners, Amazon Alexa Fund; while investors have access to Kiwi’s deal flow & viewing the startups which pitch at our events.
Portfolio – Kiwi presently has over 400 portfolio firms. The goal is to continue scaling to 1,000 portfolio firms. The book value as of the end of 2020 of the portfolio is $78 million while the estimated exit potential is $216 million. Since we acquired the bulk of this equity via our “cashless investing” or tech for equity model, the ROIC is very high.
Family Offices – Kiwi’s cap table includes over 90 family offices and HNWI, who have invested in the umbrella company of KiwiTech. Many of these people are founders & owners of billion-dollar enterprises, public corporations, hedge funds, & other sophisticated investors. Some family offices participate on Kiwi panels, including Koch Industries, Forbes, & DuPont. Kiwi’s Board includes three outside directors, who are large family office investors in KiwiTech.
Rationale — The motivation for these investors to participate in the holding company include a diversified method of investing in tech via a large portfolio, unique investment model & platform, the backstop of a cash-flowing tech services business, receiving a dividend from KiwiTech instead of paying fees to a fund, and ability to diligence portfolio startups over a long period for direct investments.
Audited Firm – BDO has conducted a global audit of KiwiTech for the past 4 years, in preparation for an exit transaction via M&A or IPO.
Kiwi has raised $33 million in capital after the founders provided the initial financing. For the current round of $10 million (with a cap of $20 million), we have over $8.5 million closed and committed. The additional money being raised is primarily for acquisitions. The round is structured as Convertible Debt. Kiwi is paying 8% annual interest (paid on a quarterly basis) on a five-year note convertible to equity upon an exit at today’s $8 share price. The convertible note is due on 12/31/24 with two one-year extensions at the option of the company.
