It's not a new concept that's for sure, but this just seems like another VC fund with not much of a difference.
When you get past the fees discussion and everything else what you end up with is $600MM in capital to invest.
That isn't enough to buy a single unicorn, regardless of valuation, so you are buying a secondary stake, but then the shares you purchased still don't have liquidity until the company itself decides to IPO.
So this doesn't really do anything to improve the IPO landscape, and it's just a fancy shell for buying secondary shares.
Unless, through their purchase of secondary shares they are also going to receive updated financials which they will be reporting under their umbrella company. But without those other companies being public, the data doesn't undergo as many controls and scrutiny, and without a controlling stake of the company they invested in, they can't force much change or anything else, so ultimately you still end up with little transparency into the financials of the underlying companies.
If anything, this just delays the IPO landscape further as now there is another secondary market to sell shares, which means founders and other key people can cash out, and wait on the eventual IPO.
When you get past the fees discussion and everything else what you end up with is $600MM in capital to invest.
That isn't enough to buy a single unicorn, regardless of valuation, so you are buying a secondary stake, but then the shares you purchased still don't have liquidity until the company itself decides to IPO.
So this doesn't really do anything to improve the IPO landscape, and it's just a fancy shell for buying secondary shares.
Unless, through their purchase of secondary shares they are also going to receive updated financials which they will be reporting under their umbrella company. But without those other companies being public, the data doesn't undergo as many controls and scrutiny, and without a controlling stake of the company they invested in, they can't force much change or anything else, so ultimately you still end up with little transparency into the financials of the underlying companies.
If anything, this just delays the IPO landscape further as now there is another secondary market to sell shares, which means founders and other key people can cash out, and wait on the eventual IPO.