In Parts 1 and 2 of our Venture Capital Investing for Private Investors series, we discussed how technology has enabled more investors to harness the growth potential of private companies and the macro backdrop related to investing in these types of companies. Here, we will share why size matters for private deals.
In Part 1 of our Venture Capital Investing for Private Investors series, we discussed how technology has enabled more investors to harness the growth potential of these companies. Here, we will share some macroeconomic considerations specific to this asset class.
Consistent with our mantra of delivering contemporary solutions to sophisticated investors, SWS Partners is continuously developing expanded opportunities for our clients. To do so, we have prioritized staying abreast of changing trends and demographics. The confluence of these factors has led us to spending more time and attention on venture capital investing. We simply define venture capital investing as investments in high growth, private companies, or those that are not listed on an exchange, such as the New York Stock Exchange or NASDAQ. Peloton, SoFi, Instacart, SpaceX, and Airbnb are common examples that fit this definition.
If you have been following our briefings, you know that we have a blunt view of the financial services industry and how sophisticated investors can gain an edge in mitigating financial complexity and planning for their financial destinations. We have stated ad nauseam that there’s no longer a secret sauce when it comes to asset allocation or portfolio rebalancing. Computers do this stuff now and the services themselves are a commodity, so we don’t think that investors should pay for it.
So how can investors gain an edge?