[PreMoney SF 2016] "Liquid Dreams: The Fantasy of Selling Out & Getting Cash"

TL;DR

Panel discusses private company liquidity solutions amid challenging exit environments.

Transcript

good afternoon everyone the panel is liquid dreams the fantasy of selling out and getting cash so we're going to start this whole track with a little bit non-traditional exits and the context here is staying private longer and longer but the exit environment is really challenging right with M&A sort of being slow especially like in the private mark... Read More

Key Insights

• 🪘 Companies are staying private longer due to challenging exit environments in M&A and IPO markets.
• ❓ EquitiesN and Industry Ventures provide liquidity solutions for shareholders and various market constituents.
• ♿ Structured loans like those offered by 137 Ventures help founders and employees access liquidity during growth periods.
• 💁 Control of cap tables and information flow is crucial in the evolution of the secondary market post-Facebook liquidity challenges.
• 🔒 Relationship-driven trust is vital in private company liquidity solutions.
• 💪 Industry Ventures focuses on strong relationships and reputation in providing liquidity solutions for LPs and companies.
• 👨‍💼 Long-term business fundamentals drive decisions in private market liquidity solutions.

Questions & Answers

Q: How does EquitiesN facilitate liquidity for shareholders in private companies?

EquitiesN provides a platform for private investments, catering to shareholders looking for liquidity for various needs and helping investors access this asset class efficiently.

Q: What check sizes does Industry Ventures typically invest in, and who are their target counterparties?

Industry Ventures invests from $1 million to $100 million per transaction, working with a wide range of shareholders, companies, and investors in the market.

Q: How do structured loans provided by 137 Ventures help founders and employees gain liquidity?

137 Ventures offers structured loans to address tax issues, providing liquidity while waiting for equity returns, typically with multi-year loan terms and focus on equity return rather than interest rates.

Q: How has the secondary market evolved since the days of Facebook's liquidity challenges pre-IPO?

The secondary market has evolved to address liquidity needs for shareholders, employees, and founders, with a focus on controlling cap tables and information flow to benefit companies and stakeholders.

Summary & Key Takeaways

• Panel discusses staying private longer amid slow M&A and drying IPO market.

• EquitiesN provides liquidity for shareholders, investors, and facilitates private investments.

• Industry Ventures manages liquidity for various market constituents, offering transaction solutions.