Stat Zero is an American technology holding company that nudges the world towards zero-disease, zero-poverty, and zero pollution by scaling GovTech innovations.
In May 2019, Stat Zero (statzero.io) started to build a public sector IT venture portfolio with future value.
Stat Zero is a digital scale platform for GovTech DX startup solutions, which is a sub-segment of the global digital transformation markets. A market that is estimated to be a trillion dollars. However, we focus on a $50B beachhead of the GovTech / Smart Government markets. Why? I worked at the Obama White House and Former 1st Lady Michelle Obama said: "If you're not trying to help people crawl over and die." We can make money and do good by working in the public sector markets, which is why I joined IBM Global Government Team and built NATO's 1st Open Source Capabilities and Denmark's 1st Blockchain for Food Safety. At IBM, I grew a $9B public sector IT solutions portfolio focused on global governments, but we needed to be able to harden the capabilities of our clients. So I am doing the same thing I did at IBM except I have a fund to recruit the best technology teams and harden the capabilities my clients want to procure. My co-founder just had an exit from an AI startup backed by Sheryl Sandberg, so we know how to build. My capital partner just had a company acquired by a Walmart subsidiary, so we know how to select solutions.
Market size: Global GovTech Market is ~$460B with the potential to have secular market growth with fungible enterprise market capabilities and use cases.
1. Stat Zero History
- Stat Zero's brand was developed by the same people that developed NBA Kevin Durant's Boardroom, NBA's Blake Griffin's brand, and the NFL Ben Watsons. See our brand reveal video, here.
- Stat Zero won Forbes 1000, Los Angeles Lakers and Comerica Bank's Woman of Promise Award, Treehouse Foundation Award Re-envisioning Foster Care in America, Thinkers360 #2 Global GovTech Thought Leader, and World Finance Magazine's Most Sustainable Investment Company
- Stat Zero was featured in Nasdaq, VoyageLA, Techstartups, Borgen Project, World Finance Magazine,
- Stat Zero's efforts have been wildly successful yielding impact and returns. For example, Stat Zero's first investment had a 32% IRR and gave 10,000s of cardiac rehab patients access to digital healthcare.
- The fiscal model is also sustainable and creates new jobs, which is why Fortune 100s have paid our management team to source and configure underrepresented climate tech solutions.
- Stat Zero created a corporate theory of change, proprietary impact investment methodology, GovTech / impact investor course, engagement methodology, digital managed account (due to COVID-19 and have digital resiliency against future pandemics), and set up the utilization and cost models. We're ready to operate and implement it now. Of importance for us is to secure investment into Stat Zero in the US.
2. Stat Zero Series A - We must now build capacity to avoid execution risks and to clean up the balance sheet, which will enable Stat Zero to drive short-term liquidity by selling our portfolio all the while increasing IRR and building AUM. Min Checks: $1M.
- Stat Zero also raised $210M in venture debt with no interest, essentially a patient capital note facility from a billion dollar global family office, which is similar to what Xepelin did. We committed ~$40M of this debt capital and stress tested our business & GTM model and built our corporate structure, but we don't want to use debt capital to grow operations, which is why we're seeking a GP Stakes/ Series A into our holding company.
- The funds we are raising for Stat Zero now are at a holding company level in the US that holds the $210M promissory note (and oversees the US operations). Stat Zero will also be the owner of Stat Zero GCC, which is receiving a $50M equity investment from the ruling family in the UAE. Stat Zero also has a 100% operational control and holds 80% profit rights to the Stat Zero GCC entity.
- We have already identified a former VP of Yahoo! that is interested in joining us, as well as a former VP of IBM who served as an expert advisor to the United Nations, the World Economic Forum, and the European Commission. These candidates complement our Digital Government strategy extensively and will play an important role alongside our current executives.
- To maintain a healthy cap table, Stat Zero is willing to give up 15%, which is common for Series A rounds. Comparables for example are Titan Global Capital Management ($12.5M round at $60M valuation post), MoneyFarm ($5.5M round at $55M) or Catalant ($20M round at $95M). Thus, based on above mentioned milestones, we are targeting a $75-80M valuation. What is more, Titan raised another $58M five months after raising the $12.5M. I envision the same for Stat Zero, for we have Series B investors on deck who are interested in writing bigger check sizes. We figured out the operating model for the company, which will allow us to scale fast.
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