The IPO Has In Effect Gone Private…
“the Pre-IPO market has become the IPO market of the past…”
On October 9, 2019, our newest strategic partner FNEX announced the FNEX Ventures Fund (XFNEX) to be listed on the NASDAQ.
This fund is effective and once launched, will be operating as a closed-end interval fund, with pooled holdings of late stage venture backed private companies (pre-IPO companies).
The IPO has in effect gone private. Even Reuters has acknowledged this, stating “the Pre-IPO market has become the IPO market of the past, but is only available to investors such as venture capital firms, mutual funds, and hedge funds.” Companies are staying private much longer these days, and much of the value inflection that is created in a company’s growth cycle is occuring while the companies remain private. The retail investor is cut out of this market, which is traditionally reserved for institutional investors. XFNEX aims to provide the average investor with exposure to this private market of stocks. said Todd R. Ryden, CEO of FNEX, LLC
The release further quotes Chad Manberg, a certified Financial Planner at Strategic Income Group of Chandler Arizona:
I am very excited about a strategy like this coming to market. Retail investors have typically been cut out of Pre-IPO growth opportunities, and funds like this give our clients access to an investment and asset class they haven’t had in the past.
See the full press release