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Square Peg pays investors $ 650 million, as venture capitalist wins $ 1 billion

By on September 30, 2021 0

Bassat said the bulk of Square Peg’s returns had been paid out to investors over the past 18 months, and he expected the rivers to keep flowing.

“Vintages take time to mature,” he said. “Every year I now expect several outings, but not all of them will be amazing [results].

“The problem with the business right now is that there are plenty of opportunities for founders, employees, and investors to create value, and it’s not as binary as an introduction. on the stock exchange or a commercial sale. We’ve seen a lot of growth equity funds and PE funds come into this market … there are emerging secondary funds. It’s a much richer ecosystem with a lot of elements now in place.

Square Peg’s releases (partial or full) include Vend, Fiverr, UHG, Puresec, and Shipping Easy.

OneVentures ranks in the top decile of funds globally, with a return five times net of fees from its first fund and four times the invested capital of its second fund of $ 75 million, having recently sold 50 percent of its stake. in Employment Hero for 10 times invested in Capitale.

“The industry is really maturing and over the last couple of years it has started to show the potential of venture capital,” said Deaker.

Although AirTree did not reveal dollar figures, it said its first fund of 2014 was worth 19.6 times the $ 60 million invested. Of his portfolio companies, 23 are now worth more than $ 100 million and 4 have become unicorns or “decacorns”.

The return numbers indicate the potential of venture capital funds, while the majority of their most promising picks still remain private – such as Canva, Culture Amp, ROKT, SafetyCulture and others.

With many funds reporting a slight increase in incoming M&An inquiry, and with advanced global VCs and cross-funds becoming more active, sponsors including Hostplus and AustralianSuper can begin to expect regular paychecks.

“The world is changing. As companies stay private longer and longer, we are seeing more and more cross-funds replacing the original role of public procurement.
We have four unicorns now, a few more on the way, and we could sell secondaries in any of them tomorrow, ”said John Henderson, AirTree partner.

“Most venture capital funds have a 10-year lifespan and can be extended beyond. [What happens in the next 12 months] is a relevant question for the older funds arriving on this brand. We think about it closely when it comes to our 2014 fund – for this fund it will be a big year. “

Rampersand revealed that it was following a 40 percent IRR and returned 150 percent of money to investors in its 2013-14 first fund, while Dr. Chris Nave’s biotech fund, Brandon Capital (which has investment times longer than technology-driven VCs) first three funds obtained multiples of 3.9, 2.9 and 2.1 times, respectively.

“We saw liquidity coming in around the sixth year which was in line with expectations,” said Paul Naphtali of Rampersand.

“For a VC there is a fine line between continuing to support great companies, but also returning money to investors, but it’s our job to balance that, and at the end of the day our investors need to know that we are returning money at some point. “

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