Private Markets, Angel and Secondary Investing, Sacra

Sacra

Private Markets, Angel and Secondary Investing

Bringing transparency to private markets so investors, founders, and employees can build on conviction. Sacra delivers deeply researched insights on the private companies shaping tomorrow's markets. By surfacing the data, context, and operator perspective that are missing from private markets today, we help secondary buyers and sellers price equity accurately and unlock liquidity for the people building these businesses.

Private Capital Markets

<ul><li>Carta's decision to get out of the secondaries business appeared to happen quickly, but it was the end product of years of internal deliberation over the best way for Carta to unlock liquidity in the ecosystem while maintaining alignment with their customers.</li><li>Because Carta is a system of record and controls the cap table for ~35% of venture-backed startups, it will still be a crucial player in facilitating secondary sales—the decision to get out of the secondaries business has more to do with whether they want to broker deals themselves or let other companies do the dirty work.</li><li>Ultimately, the ecosystem does still need liquidity as private companies progress from the "heads down and build" stage where being private is about control, and towards the pre-IPO stage where liquidity relieves the pressure to go public.</li></ul>

Carta's decision to get out of the secondaries business appeared to happen quickly, but it was the end product of years of internal deliberation over the best way for Carta to unlock liquidity in the ecosystem while maintaining alignment with their customers.Because Carta is a system of record and controls the cap table for ~35% of venture-backed startups, it will still be a crucial player in facilitating secondary sales—the decision to get out of the secondaries business has more to do with whether they want to broker deals themselves or let other companies do the dirty work.Ultimately, the ecosystem does still need liquidity as private companies progress from the "heads down and build" stage where being private is about control, and towards the pre-IPO stage where liquidity relieves the pressure to go public.

<ul><li>Noel Moldvai and Adam Crawley are the co-founders of Augment.</li><li>Augment solves lead gen by being a platform, but also opens it up to the broader ecosystem, allowing these independent brokers to be able to capture a larger audience, and do more deals.</li><li>Our ATS went live in July and gave us the freedom to push harder.</li></ul>

Noel Moldvai and Adam Crawley are the co-founders of Augment.Augment solves lead gen by being a platform, but also opens it up to the broader ecosystem, allowing these independent brokers to be able to capture a larger audience, and do more deals.Our ATS went live in July and gave us the freedom to push harder.

Noel Moldvai And Adam Crawley, co-founders Of Augment, On software-enabled Secondaries Markets

<ul><li>This materializes in many ways—one common not so fun scenario is when all of your equity expires and goes to zero because of something called the post-termination exercise window.</li><li>To answer more directly, we do a ton of post-liquidity diversification strategies where we show you the implications of holding a concentrated positions and build tax-aware scenario plans to help you model the implications of various decisions.</li><li>Clients walk away from their onboarding having learnt something about their financial situation and they build confidence that Compound is the right partner to entrust with their most important financial decisions.</li></ul>

This materializes in many ways—one common not so fun scenario is when all of your equity expires and goes to zero because of something called the post-termination exercise window.To answer more directly, we do a ton of post-liquidity diversification strategies where we show you the implications of holding a concentrated positions and build tax-aware scenario plans to help you model the implications of various decisions.Clients walk away from their onboarding having learnt something about their financial situation and they build confidence that Compound is the right partner to entrust with their most important financial decisions.

Jordan Gonen, CEO Of Compound, On software-enabled Wealth Management

<ul><li>With growing income inequality as a tailwind, we&#39;ve seen Match.com give way to Raya, Uber give way to Blade, and Mint give way to Compound.</li><li>Among these high-ARPU &quot;luxury&quot; apps, Compound is unique in having the potential for asymmetric upside as they grow upmarket from the rich to the ultra-rich.</li><li>The ambition for these modern wealth management platforms is to break the dominance of prestige wealth management brands like J.P. Morgan and Goldman Sachs: to capture the tech workers who would be future clients of those firms by catering to their liquidity and diversification needs <em>before </em>IPO.</li></ul>

With growing income inequality as a tailwind, we&#39;ve seen Match.com give way to Raya, Uber give way to Blade, and Mint give way to Compound.Among these high-ARPU &quot;luxury&quot; apps, Compound is unique in having the potential for asymmetric upside as they grow upmarket from the rich to the ultra-rich.The ambition for these modern wealth management platforms is to break the dominance of prestige wealth management brands like J.P. Morgan and Goldman Sachs: to capture the tech workers who would be future clients of those firms by catering to their liquidity and diversification needs before IPO.

Compound, Savvy, And The Mint For The 0.1%

<ul><li>The first big secondary trading platform, SecondMarket, launched in 2009 and did $100M in transaction volume, growing to $360M in 2010 and $558M in 2011.</li><li>Now, we’re seeing the emergence of a new atomic unit of value that companies like AngelList, Carta, Sydecar and Allocations are going after—LP interests in funds and SPVs.</li><li>LP interests in funds and SPVs have the potential to unlock private markets liquidity because they sit on top of the cap table and can be traded permissionlessly, without company approval.</li></ul>

The first big secondary trading platform, SecondMarket, launched in 2009 and did $100M in transaction volume, growing to $360M in 2010 and $558M in 2011.Now, we’re seeing the emergence of a new atomic unit of value that companies like AngelList, Carta, Sydecar and Allocations are going after—LP interests in funds and SPVs.LP interests in funds and SPVs have the potential to unlock private markets liquidity because they sit on top of the cap table and can be traded permissionlessly, without company approval.

Sydecar And The New Atomic Unit Of The Private Markets

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Workflow software for private fund managers to onboard and verify investors at scale

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Carta And The Future Of Liquidity

First, Karri Saarinen from Linear tweeted a screenshot of a Carta sales rep reaching out to a Linear investor to gauge their interest in selling...

Sacra

Noel Moldvai And Adam Crawley, co-founders Of Augment, On software-enabled Secondaries Markets

What is Augment? What inspired you to build it...

Sacra

Jordan Gonen, CEO Of Compound, On software-enabled Wealth Management

Sacra interview with Jordan Gonen, CEO of Compound.

Sacra

Compound, Savvy, And The Mint For The 0.1%

TL;DR: We interviewed Carta CFO Charly Kevers, Savvy CEO Ritik Malhotra, and produced a report on Betterment to learn more about the evolution of...

Sacra

Sydecar And The New Atomic Unit Of The Private Markets

LP interests in SPVs are the next frontier, taking over from the cap table as the atomic unit of the private markets. Read our interviews...

Sacra

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