Private Equity Wire’s Post

Futbol is Life...well in Venture, Liquidity is Life. If you are following the #venturecapital world right now, one word is on top of everyone's minds #liquidity. From Jason Calacanis and the all-in crew, to PitchBook to #vcfunds everywhere, the lack of Liquidity is massively affecting the venture market. VC funds are having a hard time raising from LP's because prior funds haven't returned capital. Mid-stage (Series A/B) are running out of capital and the late-stage market is hampered by headwinds in both the #IPO market and the FTC's antitrust stance. KKR is right on point for what I think we need. LIQUIDITY via funds to acquire mid-market companies. Personally, I think there is an incredible opportunity for #familyoffices or other investors to stand up similar funds and acquire fantastic companies at "reasonable" valuations. This would both create tremendous potential returns for investors and much needed liquidity to get the flywheel in venture moving smoothly again.

I've had several founders in the past two weeks ask me if we can help with fundraising instead of M&A, with the impression that the process for both are similar. I tell them that's not what we do, and that working with an advisor to fundraise is counterproductive. ---->Founders NEED to be good at fundraising<---- A successful venture scale business will raise several rounds. Outsourcing it to a third party prevents you from building the muscles needed to do it successfully in the future. M&A on the other hand only happens once per company, and only at the end. It's a waste of the your time to learn how to run an M&A process when you could be focused on growing the business. Another nuance is that VC investments typically have a 10 year liquidity horizon, while M&A deals "mature" in 1-4 years. This means M&A deals are more transactional in nature, and the more transactional a deal is the more an advisor can do to increase the value. A concrete example: offering different terms to different investors in the same VC round is heavily frowned upon. Offering different terms to different buyers in an M&A process is not only accepted, it's best practice for maximizing sale price.

The VC secondaries market is booming, with Hamilton Lane leading the charge by launching a record $5 billion fund. This surge in activity signals a shift in the #investment landscape, offering new opportunities for liquidity and growth. Why is this important? Secondary transactions provide a vital avenue for early investors to exit and re-deploy capital, fueling further innovation in the #VC ecosystem. Learn more about what's driving this trend in PitchBook's Q&A with Hamilton Lane’s managing director, Matt Pellini, here👇

I am excited to announce the release of part one of my PE series for MarketScouts on Substack! What you'll learn: 1. The role of private equity in shaping IPO strategies 2. Advantages and potential pitfalls for investors 3. Case studies of PE-backed IPOs and their performance If you're interested in the intersections of private equity and public markets, don't miss out on this insightful read. Check it out now, and let me know your thoughts! Thank you, Vas Musca, for your guidance.

The Startup Journey: From Idea to IPO Every great company starts with a idea, but what happens next? The journey through VC funding has stages of growth, risk, and opportunity. Whether you are at the Pre-Seed looking for validation or getting ready for your IPO, understanding where you stand and what investors expect is key. Pre-Seed/Seed (Very High Risk): It’s all about proving your business thesis and market fit. Family member, Friedns, AngelInvestors, and early VC invest in you and your vision for corporation. Its All about credibility! Early Stage (High Risk): Growth, growth & growth, venture capitalists want to see how your company can stand out from competitors and maintain a lasting advantage. Growth strategies and profitability need to be within reach.It’s make or break time! Late Stage (Moderate Risk): Now Focus shifts to efficiency and profitability. With hedge funds and private equity firms stepping in, it’s about maximizing growth and impact.You’re nearly there! IPO/Exit (Moderate Risk): Time for the grand finale. Whether it’s an IPO, acquisition, or merger, you’re delivering shareholder value and getting ready for the big leagues. Investors are looking for strong returns and smooth exits. Keep your investors engaged and aligned with your vision at every stage. Communication is KEY to getting the right kind of funding and scaling successfully! 🎯 Pawel Maj #privateequity #venturecapital #cfa #ca #caaspirants #cfalevel1 #investment #connections #business #finance #investmentbanking

Interested in getting in early on the next big thing? Pre-IPO investing offers the potential for high returns, but also comes with risks. So is it worth it for the average investor? Here we break it down. https://hubs.la/Q02zZ70P0 #privatemarket #privatestock #preIPO #investing

“Private equity groups globally are sitting on a record 28,000 unsold companies worth more than $3tn” Those number are crazy ! I’m very much looking forward to seeing how those private companies will perform once the exit market will get more open. #privateequity #secondary #ipo #ai #scalex #scalexinvest