Valuations Reality Check: Comparing Private to Public Performance
Join us for a panel exploring trends in public and private market valuations and how to strategically diversify your portfolio in today’s shifting market conditions.
This event is for you…
- If you seek greater exposure to venture capital and want to put strong-growth unicorns in your portfolio at a discount of up to 50% NAV
- If you are currently overexposed to public equites and are seeking guidance on diversification
One way to gain access to top-performing VC portfolios ad venture-base companies is through the venture fund secondary market – a strategy with reduced risk, faster growth, and faster liquidity compared to traditional venture investments.
Venture Capital Secondary combines the rapid growth of tech companies with faster liquidity. It’s a bit like placing a bet on the winning team at halftime.
PVC offers their investors discounted access to top venture portfolios that already have $1B+ companies on course to IPO within 3 years or less.
Venture capital may seem like a challenging asset class to know where and how to get started. During the current climate, many investors are migrating to venture capital as a way to diversify away from public equities for several reasons:
- Public equities in the US have performed very well over most of the past 40 years, but that favorable backdrop is unlikely to continue.
- Modern Portfolio Theory investors should seek to diversify returns across different asset classes, to reduce the risk of losses.
- Based on an empirical review of recent returns using Pitchbook data, Cambridge Associates data, and from reports by Invesco and AngelList Ventures, the long-term correlation between venture capital returns and the market (NASDAQ and S&P 500) is very weak.
- Venture is a long-term bet on innovation, software, and small cap stocks, whereas large public indexes depend largely on financial services, energy, health care, and retail, as well as technology.
- Investors should look to alpha-producing venture capital to diversify risk across future market cycles.
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About
FLAIA is an open access platform of alternative investments for institutions, wealth advisors, family offices, RIAs, and accredited investors. General Partners gain access to a vertically integrated digital & traditional fintech marketplace. Investors gain access to special opportunities, educational webcasts and digital events. All of our digital events, educational content and alternative investment opportunities are available in one place under a single sign on.
Practical Venture Capital (PVC) is a Silicon Valley VC firm that buys secondary interests in mature, top-performing early-stage VC funds and companies. The co-founders and managing partners are Dave McClure and Aman Verjee, experienced investors and internet startup veterans who have worked at PayPal, eBay, Sonos, Founders Fund and 500 Startups. They have been early investors in 30+ unicorns and 8 IPOs that have generated 50-100x+ returns including Credit Karma, Twilio, SendGrid, Lyft, TalkDesk, Canva, among others.
CapLinked’s fintech platform is used to securely share information between firms and manage multi-party interactions during complex transactions and projects.
Dubbed the “go-to place for setting up and closing deals” by the Wall Street Journal, the CapLinked platform includes three distinct product lines that serve the needs of its diverse client base:
1) an enterprise application for larger firms with complex needs and large quantities of data;
2) self-serve accounts for smaller clients who need to safeguard limited amounts of information; and
3) an application programming interface (API) for clients who need to embed robust information security capabilities in their own applications.
Thousands of companies in over 113 countries worldwide rely on CapLinked’s enterprise, self-serve, and API product lines. Eric M. Jackson (PayPal’s first head of US marketing) and Christopher Grey (former private equity and investment banking executive) founded the company in 2010. CapLinked is a trademark of CapLinked, Inc. Visit https://www.caplinked.com to learn more.