🚀 Company-Led Secondaries: It's on ! 🚀
Vinted, Moneybox, Monzo… These companies have recently jumped on the company-led secondaries bandwagon, and they’re not alone!
Look at the numbers:
- Vinted did a secondary round of €340 million, leading its valuation to €5 billion.
- Moneybox completed a secondary transaction of £70 million, pushing its valuation to $550 million.
- Monzo executed a secondary sale two weeks ago, bringing its valuation to $5.9 billion.
Let's not forget Revolut, GoCardless, BackMarket and many other recent exemples of massive liquidity events.
Is there an after-party you don’t know about? Why is everyone suddenly doing this?
🎉Today, we’re unveiling the reasons behind this new trend:
1️. Bringing in Strategic Partners: New strategic partners can be brought in without the need for a costly and time-consuming primary round. Instant captable level up with minimal work in the perspective of the next major round or upcoming IPO. 🎮
2. Cap Table Cleanup: If investors are no longer engaged in your project, it’s better to let them exit rather than having them sell their shares immediately after the IPO lock-up period ends. It’s like cleaning up your browser history before lending your laptop – no surprises allowed! 💻
3. Controlled Liquidity: Avoiding wild liquidity by managing shareholder exits in a controlled manner. Because no one likes surprises, especially when they disrupt the peace of your cap table. 🦁So, ready to ride the company-led secondaries wave? 🌊
At Bryan, Garnier & Co we can help companies navigate these transactions. If you want to know more about company-led secondaries, you can check our whitepaper on this subject or contact us at secondaries@bryangarnier.com.
