OPEN (OPENVC.COM)

We launched our alternative investment product marketplace through SEI Access, offering wealth managers and advisors in the U.S. a digital, public market experience for private markets. https://lnkd.in/ePNGQp4X #SEIC

At Future Proof Citywide, six standout emerging managers will take the stage to showcase their investment strategies in venture capital, private equity, real estate, public equity, and alternative strategies. Each will have six minutes to present to an audience of allocators, wealth managers, investment professionals, the media, and more. This year’s finalists: - OPEN (OPENVC.COM): Bringing index investing to venture capital. - StockSnips ETFs: AI-driven sentiment investing in public markets. - Convexitas: Semiconductor sector investing with risk-managed upside. - Excel Group: Transforming struggling hotels into profit machines. - AVANT BIO: Private equity focused on life sciences and healthtech. - Sparkline Capital: AI-powered investing that values intangible assets. Catch their live presentations at Future Proof Citywide and get a glimpse at the future of investing. March 16-19 | Miami Beach Register now: https://lnkd.in/gcyuTv5F Read more: https://lnkd.in/ehgn26pk

Sometimes, investing can feel a little dull. But what if I told you I just spoke with a team that’s changing that, giving investors access to the exciting private companies you hear about every day long before they go public? The kind that dominate headlines but have historically been out of reach? If you’re an RIA who believes alternatives should be part of a client’s portfolio, this is one to watch: NYSEOVC, the Open Venture Capital Unicorn Index OPEN (OPENVC.COM) It tracks the valuations of the 20 largest private companies—think SpaceX, OpenAI, Stripe— again, before they go public. For those with substantial net worth, they’ve also launched a private closed-end fund, “The Unicorn” designed to give exposure to this space without the typical barriers. The structure is built for institutional quality, backed by NYSE and ICE, with a 2% management fee and 0% performance fee. If you’ve ever had clients ask, “Why can’t I invest in SpaceX?” Here's your answer. I had a great conversation with one of the cofounders today and would be happy to connect you for a deeper dive, or if you're like me you're just eager to hear how they pulled this off. If you message me individually I’m also happy to share their pitch deck.

How will Chime's IPO be valued? Bloomberg reported last week that Chime hired Morgan Stanley to lead its 2025 IPO. This is news for a few reasons: 1) Picking banks is a concrete IPO planning milestone. There have been <25 US Tech IPOs since 2022 versus 125+ in 2021, according to FactSet. Signal that the IPO window is opening should make bankers, investors, and the secondary markets happy. 2) Chime was founded in 2012. Founders, employees, and investors have been waiting over a decade for this liquidity event. A positive IPO may influence other mature 'startups' to fast follow (looking at you Stripe, Canva). 3) The company's last venture funding round will have almost no bearing on IPO price expectations. Bankers will have their hands full pricing the stock issuance correctly. Let's dig in on point 3. How might a reasonable investor value Chime's IPO? 🚫 Look at last funding round? No. The company's last round valued it at $25B, but was completed in the peak 2021 fundraising environment so isn't useful for this exercise. 🟡 Look at secondary market trades? Maybe. But this is just a small part of the story. Recent closed secondary trades on Caplight Data implied a valuation between $8.5-9B. These were small lots and could indicate sellers optimizing for liquidity now vs. pinpointing fair market value. 🟡 Private comps? Maybe. Fellow 'neobank' Revolut is not a perfect comp (diversified revenue streams, different core use cases, different bank regulatory frameworks), but just received 20x+ EV/Rev based on 2023 revenue of $2.2B (per the company) & recent secondary sale valuing it at $45B (per Bloomberg). With a multiple like that, I imagine this deal shows up somewhere in Chime's IPO roadshow materials. ✅ Public comps? Definitely. Caplight's public comps analysis is below. Nubank is trading at 12x EV/LTM rev, the ARK Investment Management LLC Fintech ETF trades at 9x currently (when evaluating all fund constituents). Jeff Kauflin at Forbes reported Chime's annualized recurring revenue at $1.5B in May, growing ~30% yoy in 2023. At 9x revenue the company could yield a $13-15B valuation, depending how realized revenue shakes out this year. So what do you think? Where do new consumer-facing Fintechs price on the IPO market? DISCLAIMER: This is for informational purposes only and does not constitute an offer to buy or sell securities. All investments carry risk, and by investing in securities of private companies you may lose some or all of your investment. Consult with your financial advisor or an investment professional before making any investment decisions. #secondaries #preIPO #privatemarkets #IPO #venturecapital #fintech