Current Investment Environment in Late-Stage Venture

We are excited to announce the next webinar in the Collective Insight Series that took place on September 17th at 10am PT.

Ankit Misra, Chief Investment Officer, has joined Collective from JPMorgan Chase where he was responsible for strategic equity investments. He discusses current market conditions and trends in the late-stage venture asset class.

1. General economic outlook and broader market sentiment: Market volatility is elevated due to a combination of factors: increased government spending, depletion of excess savings accumulated during the pandemic, ongoing geopolitical tensions, complex interconnections of global markets and anticipated rate cuts to mitigate these factors.

2. Equity valuations/multiples and concentration within equity markets: Valuation multiples have returned to their historical averages for the market as a whole but concentration in the top 10 companies is at a 30+ years high. Many analysts expect rotation of public market capitalization into small caps and reopening of the IPO window.

3. Private market trends (market data and deal structures): In today's market, it's important to consider factors beyond traditional valuation multiples due to the rise of structured deals with higher liquidation preferences. Additionally, while the bid-ask ratio stabilized earlier this year, we have seen that the secondary market activity has shifted towards special purpose vehicles (SPVs).