Why Do Investors Want Secondaries

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Secondaries stands for secondary sales which refers to selling privately held stock in startups to other buyers.

Investors buy secondaries instead of waiting for the next fundraise round.

By buying now rather than later the investor can lock in a lower valuation.

Investors in secondaries provide liquidity to other investors who trade off some portion of the valuation for that liquidity.

Investors in secondaries buy into proven startups and are not at risk to go under for startup failure.

As companies stay private longer, there are more secondaries available for purchase.

Employees selling their shares after a poor-performing quarter often drop the asking price providing an opportunity for investors to gain more shares at a lower valuation.

Later-stage companies come with substantial market and performance data on which to make an investment decision, unlike early-stage companies where little data is available.

Investors often purchase secondaries to gain exposure to new technology markets.

Finally, investors often use secondaries to diversify their portfolios.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

On this episode of Investor Connect, Hall welcomes Zeke Trezise, Associate investor of New Stack Ventures and a member of the Full Ratchet podcast team.

Located in Chicago, IL, USA, New Stack Ventures is specialized in pre-seed and seed funding for startups led by entrepreneurs outside the traditional Silicon Valley mold. With a mission to empower underrepresented talent, they invest in a diverse range of sectors such as B2B SaaS, Fintech, and Healthcare. They also stay ahead of industry trends, ensuring their agility in the ever-evolving startup financing landscape. In addition to financial support, New Stack Ventures offers strategic guidance and mentorship to portfolio companies. 

The Full Ratchet podcast is a popular and influential resource in the world of venture capital and startup investing. Hosted by Nick Moran, a seasoned venture capitalist himself, the podcast features in-depth conversations with industry experts, successful entrepreneurs, and thought leaders, providing valuable insights and analysis on various topics related to startups, fundraising, and investment strategies. 

Zeke Trezise is a dedicated venture capital investor with expertise in early-stage investments. His diverse industry knowledge has helped build a balanced and robust portfolio for New Stack Ventures while supporting the success of numerous startups.

Zeke comes from a family of entrepreneurs and has always had a strong interest in business and finance. Zeke's background includes working with startups, sourcing new promising startups, and assisting with diligence on investment deals. He believes in the importance of focus and clarity in startups, and his role primarily revolves around deal flow and evaluating potential investments. 

Zeke is also interested in the trends and developments in the venture capital world, including the democratization of access to investments and the impact of crowdfunding.

Visit New Stack Ventures at newstack.com, www.linkedin.com/company/new-stack-ventures, and on twitter.com/newstackvc?lang=en. Listen to The Full Ratchet podcast here fullratchet.net 

Reach out to Zeke at zeke@newstack.com, and on www.linkedin.com/in/zeke-trezise

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https:/_/tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.