KABN Systems NA Holdings Corp. is now Public in a Rapidly Expanding Market

Comparable analysis is even more challenging in a rapidly advancing market.

This is due to three important reasons.

1.) Every company in a non-mature industry is finding their unique growth route.

2.) Most comparable companies are private, and thus hard to analyze.

3.) It is hard to find relevant market data in a market that is constantly expanding.

That said, no point in giving up on a challenge. This research report will be the first in an ongoing series on Comparables.

From the Corporate Release:

“KABN Systems NA Holdings Corp. through its wholly owned subsidiary KABN Systems North America Inc. focuses on the verification, management and monetization of digital identity, empowering users to control and benefit from its use of their online identity.”

Comparables

I will be including information on a comparison analysis but need to be cautious. These are very large in number so we will tackle only a handful from time to time in this letter. The data is intentionally obscured, in no small part because of competitive threats over pricing and the fact these companies are growing so fast that they hold their cards close to their chest.

Below is a slice of the Threats and Security bucket. It is meant for information purposes and not to rely on the precision of the data which was gathered from a wide patchwork of materials. Also, the timing varies significantly from release of information between these companies, making apples-to-apples comparison a flawed task to imply specific group averages.

Take Synack, whose recent valuation of US$500MM implies ~7.8x price to sale. Given this is private data we can’t value the statements, but let’s assume the additional funding contributes to additional growth so the cash is part of the valuation.