SecondaryLink’s Post

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That's great. OK. So then when you're doing, when you're doing the deals out of the syndicate or the fund, how do you, how do you source those deals? Is it still do you have relationships with the founders? Are you doing second like buying in the secondary market now like how how do you go about? Finding companies that fit that investment thesis that you told us about earlier, So second is, is a very interesting one. So if I'm doing primary, that's very different or for sourcing deals because you know you have to reach out or the funders reach out etc etc. In case of secondaries, I'm seeing a mix of either you know, sometimes there are individual sellers or individual early employees or early investors who is reaching out or sometimes you know I am investing in another fund which is investing on a. On a larger pool, so sometimes I'm going into a fund of funds and the third one is sometimes I'm getting you know directly other investors who are trying to offload. So. So there are we are seeing cases where an investor who is an early investor, you know company, you know we all know the name of the company, I can't say publicly, but anyway so the investor wants to offload some of their shares and was asking me do you want to buy into that fund so they can they get some equity. So I'm curious with the timing on this because this is when I stepped into this. Space, the timing of when you get access to shares to when you actually have to deliver cash back is not a big window, right. So how do you, how do you manage that right, How do you, because it sounds like you're sourcing the shares 1st and then perhaps going to your investors or syndicate saying, hey, who would like to invest like that might only be like a couple of days time. So I mean is that your experience and if it is like how do you, how do you manage that? That's a lot of work to do in a short period of time. Ohh, yeah. Yeah. And that I, you know that's whenever. So that's what I have to manage LP expectations because in case of primary, so there are two, there are a couple of very fundamental differences, right. So in case of primary the terms are set, you know exactly what you're getting the shares. In case of secondary, it's a very individual negotiation, right. So you know, so probably you closer secondary deal at X price the next day someone else is selling at X -, 1, right. So that creates some confusion unless it's a tender. From the company. So there's one problem, of course. Yeah. The, the second problem of course is like you're saying in some cases the deals move really fast and that's where, you know, you know, you have to essentially go back to LP's uncertain, You know, we need to close it in three days or five days or seven days. Some cases, Yeah, we do have time. So, yeah, so secondaries are usually very fast moving compared to primary. Yeah, In that case and that to me, I find it's such a unique, do you find that your lips are like receptable to that? Do they move that quick or maybe you've trained them that way, Right. They're they're used to it. Out with you because the the relationship you have with. Yeah, I mean if you are, if you are, I mean there are LP so find that you know timeline is too pressured and so they usually don't want to participate in those cases or so when it comes for me to really sign the docs and send the wire, I just have to cut off some of the MP contribution because the funds don't understand that's really fascinating. So the so do you find. I mean some of those, some of those, some of the companies especially in AI the market is like. Vary. Challenging or expensive, right. So is that how, how does that come into play when you're thinking specifically in the secondary? Is something just you look at a company being like, man, I wish I'd love to buy. Open AI, but it's just so it's like so competitive and so expensive. Like I just don't think right now is a good entry point. Do you have those in your investment thesis or kind of your or maybe set another way, it hits the mark on the investment thesis, the the company, right. And it fits the theme that you want. But just accessing the stock is too expensive, right? It's just it's too much of A premium. Do you ever think about that or or or if you, you know, if you come across it, is that something that you consider when you think about, hey, I'm going, I'm going to set up a Finder, do a Syndicate deal on, on this particular company. Ohh, definitely. Yeah, I I think so There are a couple of things that are happening in this secondary space. One is in general, you know there is a significant discount except for a companies and most of the large companies there has been, you know I have done secondaries for Stripe which was at a significant discount compared to their race, right. So yeah, so there have been a significant discounts happening in many of the companies to the extent I did not invest, but there were one company which was doing at 99% discount, right, so which is? Which is you know essentially you, you can, you know in front of your eyes you have seen this company going from starting to five, $10 billion valuation in a span of 2-3 years. And then again you're saying that it's coming down almost 9798%, right. So all those things are you know we are seeing this in a very short period of time this this ups and downs. So of course the price is always an important in case of AI it is sometimes difficult because the market is so big. It is sometimes difficult to understand whether we have reached the maximum point or not. But what I think will ultimately end up happening in artificial intelligence that couple of names, couple of big names, we'll get so much funding that they will be significantly ahead of others. So the question is you know they will probably be the next Google or next Facebook or I agree at that level. So then the question is that then the at that. Find our study is motivating to the ship rather than you know.