Private markets capture an ever-growing share of created wealth
It used to be possible to make fortunes in the public markets.
Not as superstar traders, but as boring long-term holders with a bit of flair.
- Amazon IPOed in 1997 with a valuation of $438M. Buying $1,000 of shares then and forgetting about them would mean that, as of June 2022, even though we’ve just suffered a big write-off, you’d be a millionaire (~$1.6M as of this writing). [1]
- And you don’t have to get in at the IPO. In 2002, Apple total market cap was ~$5B. Had you invested then and never sold, you’d have made ~500x.
These multiples will become rarer and rarer.
Not because younger companies will never grow as big as Apple, Google, Amazon – we certainly hope some will.
Because they are staying private much longer. [2]
This means that a much larger share of wealth is created in Private Markets that only Ultra High Net Worth Individuals or institutions can access.
There are hundreds of billion-dollar companies which, for all the advertisements they get, are inaccessible to retail investors.
We will change this.
With Roundtable, we’re introducing private markets to the many.
Roundtable: introducing co-investments in private markets
Roundtable will enable European investors to invest:
- first, into start-ups, on a deal-by-deal basis by co-investing with Business Angels
- then, into solo-GP funds, enabling them to participate in Business Angel’s investments in one go
- finally, into professional Venture Capital and Private Equity funds
How?
Let’s start with what we will not be: yet another crowdfunding platform.
These platforms suffer from adverse selection: most start-ups raising with them previously failed to raise with professional funds and business angels.
Instead of helping founders make use of less-informed investors, we help existing Business Angels (BAs) – who already have deal flow, investment strategies, and track record – deploy other investors’ capital for them.
We’re building a network where Business Angels can build private or public communities with whom they can share deals and co-invest. Investors will, through the power of their networks, access deals in the private markets they would have never been able to access before.
The benefits are simple for both sides:
- BAs can invest larger tickets more often, improve their reputations within their ecosystem, and have access to even better deals in the future. They can also charge investors when they deploy capital.
- People who want to invest gain access to deals they could only dream of, and can invest even small amounts.
After enabling deal-by-deal co-investments, we will support solo-GP funds, small investment funds operated by a Business Angel, giving exposure to all their deals with one check.
Eventually, we will open investments into professional Venture Capital and Private Equity funds.
We aim to become an innovative social private asset manager in Europe, with investments offered and made by the people, with the people, for the people.
Want to know more?
Do you want to build Roundtable with us or simply know more?
Contact us at contact@roundtable.eu, or join our waiting list on www.roundtable.eu
- 13,333 shares going from $0.075 per share (taking stock splits into account) to $125 per share
- Just look at Stripe with its $95B valuation. To put it in perspective, a 500x would value it at ~2x the USA’s GDP
