FiscalNote is an American company developing an information and analytical platform for communication between business and government. The company provides solutions for tracking and forecasting political trends, informing about recent changes in legislation, assessing the likelihood of getting a lawsuit and monitoring active litigation processes. Moreover, on the platform, clients can prepare analytics for all the company’s invoices, schedule payments and assess the risks of violation of one or another obligation. For analytical functions, the platform uses artificial intelligence technologies.
FiscalNote was founded in 2013 in Washington DC. The company now also operates subsidiaries in Korea, India and Belgium. The company provides customers with software on a subscription basis (SaaS), which generates the main revenue. FiscalNote’s client portfolio consists of approximately 5,000 companies. Among the most famous are AstraZeneca, Lyft, Coinbase, NewBalance, Salesforce. During the period of legislative and political uncertainty during the pandemic, the demand for FiscalNote services grew by an impressive 1,894%, the average cost of a client contract increased by 18%, and the share of customers who chose FiscalNote for the long term increased from 48% to 65%.
Over 13 investment rounds, FiscalNote raised $ 258 million. A total of 57 investors invested in the company, among the most famous are Arrowroot Capital Managemen, New Enterprise Ventures (invested in Uber, Cloudfalre, Snap), Plug and Play (PayPal, Google, DropBox) and CBC Group. Now, the company’s valuation is $ 1.4 billion. According to management plans, at the time of the IPO, the company can be valued at $ 3-4 billion.
As of the end of 2019, the global LegalTech and RegTech market was valued at $ 23 billion. According to analytical estimates, by 2025 the market volume could almost double, reaching $ 41 billion, which corresponds to an average annual growth rate (CAGR) of 10%. The main competitive advantage of FiscalNote is a unique platform that integrates modern technologies for solving legal and tax problems. Moreover, we welcome the company’s desire to enter new markets, including developing ones, where amendments to legislation are made much more often compared to developed countries.