Meitav Investment House is seeking $100 million from institutional and qualified private investors to invest in private technology company shares. The investing house’s alternative investments division will run the new fund.
The fund will use Valoo’s technology secondary platform, which finds, evaluates, and trades mature firms worth over $1 billion from Israel and the US. Secondary deals buy existing shares from early-stage investors, entrepreneurs, or former workers. Liquidation events like IPOs or sales offer returns.
The closed fund has raised some of the money and will soon request the remainder.Found that 12% to 15% of private high-tech company shareholders want to sell. About 600 companies have shares for sale on Valoo.
Read also- Israel-Based Enso Secures $6 Million in Seed Round Funding
Recent growth has boosted the secondary industry. The Wall Street IPO market is quiet, but early-stage investment funds must sell their holdings. Venture capital firms like Israeli Viola and American Tiger Global sold Redis shares a few months ago. In the massive Wiz fundraising, investors and veterans sold a lot of shares.
Share redemption transactions are a straightforward way for companies to compensate employees in a macroeconomic environment that does not allow salary increases. Armis workers sold tens of millions of dollars in shares a few months ago.
Buying companies via secondary deals, which are either at the previous fundraising valuation or much below it, might yield larger returns at an IPO or sale. Shareholders, especially employees, require risk diversification and liquidity as exit periods lengthen. Shares can be bought at lower multiples than before, especially when Wall Street is talking about the IPO window not opening until 2025.
Read also- HongKong-Based Kodifly Raises Around $750K in Funding
Shares of listed technology businesses plummeted at the start of the crisis, favouring private companies, which felt the slowdown months later. Public tech businesses trade at high multiples, some say too high, while private sector values remain modest. Thus, PineBridge projects that global secondary trades will quadruple from $114 billion in 2023 to $417 billion in 2030.
Adi Weitzhandler and Meir Steigman founded and operate Valoo in 2019. The platform has 600 companies and hundreds of tens of millions of dollars in transactions. Over the years, transactions have been made with well-known Israeli companies like Payoneer, which was issued less than a year after the transaction, and privately owned companies like Via and Fundbox.
About Meitav
Meitav is one of Israel’s biggest and most prestigious investing houses. They manage approximately NIS 133 billion for thousands of private, business, and institutional clients thanks to our decades of experience and the work of about 800 talented and committed workers under the direction of Ilan Raviv.
