Next Round Capital
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“The secondary market is in a quandary because people can’t figure out what stuff is worth right now,” Smythe said. “Buyers are demanding lower prices, making liquidity difficult for many of these names.” Sellers, meanwhile, “don’t want to accept the reality of how much less they’re worth now.”
Ken Smythe, the chief executive of Next Round Capital Partners, an advisory firm, said he was representing investors looking to sell Bolt shares worth several hundred million dollars. But even at a valuation of $8 billion, he said, they were having trouble finding buyers.
“People don’t have faith in this kid or the management team,” Mr. Smythe said, calling Bolt “a ghost ship sailing in the middle of the night without a captain.”
Investors are getting very weary of these high-cash burn instant delivery companies,” said Next Round Capital CEO Ken Smythe, who advises institutional investors buying and selling stakes in private startups.
Would-be investors in the apps have been scared off by the poor market performance of Doordash and the intense capital needs of the fiercely competitive delivery market, Smythe said. “They are saying, ‘Just look at DoorDash’s stock,’” Smythe said of potential investors. “If Gopuff needs to raise additional capital, it may not be pretty.”
Next Round Capital helps private company shareholders achieve liquidity by carefully matching them with institutions, family offices, and other active private share buyers.
Next Round Capital’s liquidity solutions in venture backed companies have allowed us to close over $1bln+ in private share deals for leading institutional investors, family offices, and employees globally.Full Transactions List
“Next Round helped us secure over $100mln in SpaceX shares directly on the cap table of the company. No other brokers even came close to delivering on this level.”
“Next Round helped us create liquidity for a partial amount of our substantial stake by going out to only a very qualified number of buyers interested not only in gaming companies but also those specifically interested in Epic Games.”
“Next Round created a thoughtful liquidity solution for my options holdings delivering a flawless transaction on every level.”