Marcos Freire Gurgel’s Post

Hey there, while the IPO market is booming with new listings this week, I've got something special for you. Check out my latest article on Forbes about the micro-cap market and how startups can leverage innovative capital-raising strategies like micro-cap IPOs. 📈 It's all about how these under-the-radar opportunities can offer high growth potential and significant returns. 🔍 #MicroCap #IPO #Nasdaq #NYSE #Investing #Business #StockMarket https://lnkd.in/dT4Eh6gC

Check out my colleague Ivan Lunegov article in Forbes about the opportunities that micro-cap IPOs offer for small companies. It's a great read for anyone interested in understanding the potential benefits and strategies for growth in this space

Liquidity comes at a cost: The dearth of IPOs has forced VCs to take liquidity whenever they can get it. In 70% of  exits since 2022, VCs made back less than their initial investment is at 70% versus 58% for the period between 2009 and 2014, per Pitchbook. The 70% figure is the highest since the global financial crisis of 2007-2009. While early-stage startups are expected to and do have higher loss ratios, but since 2022 in Series D and beyond companies, a majority of exits were at a loss. https://lnkd.in/gbifqh7H #venturecapital #liquidity #siliconvalley #IPO

Poor IPO and M&A conditions are driving VC investors to sell stakes in promising startups at significant discounts to later-stage investors in conjunction with the companies raising fresh rounds. These secondary sales allow early-stage investors to return money to LPs even if it means they'll miss out on potentially higher future valuations.

#Secondaries | €3.7M in transaction volumes. Up to 3x returns. 1 year and a half. In early-stage and growth-stage investments, liquidity is often the elephant in the room. The allure of a potential 10x return is tantalizing, but traditional venture capital has always required patience—waiting for that long-awaited exit often takes years. Yet, SeedBlink’s secondary market has surpassed €3.7M in transaction volumes—giving investors a chance to exit early, with some seeing returns of 2.5x to 3x. This growth was driven by two distinct types of transactions: Bulletin Board Secondaries & Secondaries in mature scale-ups or pre-IPO companies. This not only benefits investors looking for flexibility but also provides new entrants the opportunity to join exciting deals at various stages of company growth. Read the full article: https://lnkd.in/dRjsKpmB

Dive into the impact of a stagnant IPO market on startup employees with insights from Jordan Long, Executive Team Member at ESO Fund. Explore liquidity options, funding resources, and the potential benefits of a stronger IPO market for private shareholders. https://lnkd.in/d22T9uqY #ipomarket #shareholders #esofund #ipo #funding #finanical #financialtechnology #privateshareholders

VCs need exits — but how are they going to get them? The IPO market is at a standstill, secondaries have just begun to pick up and VCs’ investors, the LPs, are getting antsy. 1️⃣ M&A and IPOs have fallen drastically in recent years, causing concerns among VCs about returning capital to their investors. 2️⃣ Good portfolio management includes planning for and achieving successful exits, starting from the early stages. 3️⃣ Alignment on exit goals is crucial among stakeholders, including founders, investors, and board members. 4️⃣ Building strategic relationships and networks with potential buyers is key to creating exit opportunities. 5️⃣ VCs are exploring various options, including extending fund lifecycles and leveraging secondaries markets, to return capital to LPs. #VentureCapital #IPO #startups #exitstrategy

For later-stage companies, exits are a big headache. To exit, they need to understand what attracts global investors and also, from the perspective of public stock market investors, make an IPO happen. There has been a lot of misalignment between what investors are looking for and what African businesses are doing.

This period of low IPO activity is an opportunity to 💥seize, not a problem. It will enable startups to make strategic choices about timelines, prepare meticulously, and negotiate more effectively with advisors. #startup #ipo #startupstrategy

We’re seeing a lot of factors improving in the overall #IPO marketplace. For Chicago companies considering an IPO in the next 24 months, early preparation is key. Thanks to Alex Zorn of Chicago Inno for the great discussion about the Chicago IPO market. You can read more here: https://lnkd.in/gnEetfqe