Meitav Investment House and the Valoo platform are establishing a secondary investment fund. The fund will raise capital from institutional entities and qualified investors, and will be based on the Valoo platform, which identifies and executes secondary transactions in mature technology companies in Silicon Valley and Israel. Valoo was founded by Adi Weitzhandler, a Forbes 30 Under 30 alumna from the class of 2016, and Meir Steigman.
The secondary market refers to the opportunity for early investors, employees, and entrepreneurs to sell their shares or options in private companies before the companies go public .
According to investment bank PineBridge, the value of secondary transactions is expected to triple globally from $114 billion in 2023 to $417 billion in 2030. In the current state of the high-tech market, the secondary market in private technology companies is considered interesting. Alongside the risks, opportunities can be found. As exit waiting times continue to lengthen, the need for shareholders, especially employees, to diversify risk and access liquidity increases.
“Opportunities for Investors“
Sources close to the deal told Forbes Israel: “We are at a unique point in time, after years of rises in tradable markets, where we’ve seen significant growth in technology indices. On the other hand, we’re witnessing many private high-tech companies grappling with the implications of the industry crisis in general and in Israel in particular, and this is a point in time that may create opportunities for investors.”
The new fund by Valoo and Meitav Investment House is raising capital from institutional entities and qualified investors who seek to strengthen the diversification of their investment portfolio, based on monitoring, collecting, and analyzing data through the Valoo platform. The fund acquires shares directly from shareholders but works in unique cooperation with the company and its management team in transparency and with access to information.
Investments will be made in growing technology companies in leading sectors, from a pool of hundreds of companies on Valoo’s radar, which are found to have potential for exit in the coming years.
