Secondary Directs & Limited Partner Venture Investments for Sale

In 2016, SoftBank Group Corp. Chief Executive Officer Masayoshi Son  announced he was raising a $100 billion fund to make technology investments high growth start ups. Uber, WeWork, DoorDash, OpenDoor, Grab and received billions of dollars in investment from the SoftBank’s Vision Fund.

Fast forward 3 years and in early November 2019, SoftBank reported a $4.6 billion hit from its WeWork investment.

Having worked with multiple venture capital funds to place allocations with large institutional investors, there is opportunities for larger investors to acquire ‘secondary’ parcels of Unicorn companies at discounts to the most recent venture capital financing rounds.

Listed below are 22 blocks/sellers of Limited Partner interests and direct companies that Frequency Ventures has access to.

 

Secondary Directs & LP interests for Sale
  1. Didi @ $39.50 direct preferred shares (24% discount to last round)
  2. DJI @ 19.77 per share up to 150M
  3. Bytedance @ 46.50 per share up to 100M available
  4. Palantir @ $5.25 at $9.47B valuation (preferred shares 75M available 53% discount to the last round $11.38, $20.5B valuatino)
  5. Grab Taxi @ $6.30 per share- $40M (37% discount to current estimated val)
  6. Wework @ $17 per share (SPV not commingled no fees no carry)
  7. Coupang @ $4.95 at $7.9B val ($100M available 18% discount to last round $5.50 per share $10B no ROFR risk)
  8. Circle @ $2.68 at $500M val (direct shares common 82% discount to last round $3B)
  9. Juul @ $110 (65% discount to last round)
  10. Wish @ $95 ($130M direct shares available 35% discount to last close)
  11. Space X @ $212 per share 30M available
  12. Impossible Foods @ $30.50 per share ($40M available, direct shares)
  13. PayTM @ $262 per share ($15.5B valuation, 5% discount to round)
  14. Coursera @ $12 per share ($1.6B valuation, fair current market value, direct shares available)
  15. Textile $21 per share direct shares
  16. Microvast $8.44 per share direct shares
  17. Relativity Space (seller looking for bid)
  18. Ripple (seller of $50M looking for bid)
  19. Instacart @ $25.50 per share ($50M available)
  20. AirBNB @ $165 per share ($30M available)
  21. Sofi @ $8.70 per share (direct shares up to $20M)
  22. NextVR (10M available employee shares looking for buyer)

Just remember that Unicorn valuations is as much  about marketing a business and getting press to drive traction and future fund raising than it’s underlying market valuation. There are many examples of unicorns who went public and their share prices are now below the last private financing round when they attracted venture capital.