There are now 650+ US based unicorns with a total valuation of over $2.0T (CB Insights).
Moreover, according to Carta, the annual value of US VC secondary transactions reaches $50B, representing a turnover ratio (value traded / valuation) of around 2.5%.
So, how do these VC numbers compare with the US stock numbers?
* Indeed, the sum of the US unicorns’ valuations is impressive, but it pales when compared with the big tech valuations; Apple alone is reaching the $3.0T mark.
* And, given the transparency provided by the public market exchanges, the annualized US stock turnover ratio is much higher, in the 65% range.
The US VC secondary market is a sizable playing field, but since it is less accessible there is less turnover.
A lower trading turnover ratio demands a crafted investment approach to spot crown jewels covered up by shadows and fog.
Accordingly, Fabrica Ventures’ VC secondaries play is rooted on finesse and not on brute force.