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Annualized Returns of 26%, calculated as of 30 June 2020
What do the returns represent?
IPOGO’s affiliate, IPOGO Advisors, sponsors and forms a single purpose limited liability company to hold the restricted securities of a private company. Qualified investors familiar with the risks and rewards associated with investing in the securities of private companies and able to bear the associated investment risks, including the risk of a loss of their investment, may invest in the securities of such a vehicle. Each such vehicle holds the equity of only one private company. The vehicle is the owner of the shares of the underlying company and the qualified investor owns an interest in the vehicle. We summarize below under “Risks” the risks associated with investments of this type.
From time to time, the private company the securities of which are held in a vehicle may determine to enter into a merger or sale transaction, to undertake a direct listing, to undertake an initial public offering, or to undertake another liquidity event. Not all private companies will undertake an IPO, direct listing, merger or sale, or other liquidity event, and not all such events will result in successful investments. See “Risks” below. In any event, IPOGO has no discretion over any such monetization event. The single purpose vehicles remain in place until such an event occurs.
How should you evaluate these data?
The annualized return information provided below is provided solely for illustrative purposes. For illustration, $10,000 invested in a portfolio with an annualized return of 26% would generate gains equivalent to $2,600 per year. The annualized returns presented are across 159 single-company vehicles in 38 companies that have had exits since 2015, with an average hold period of 17 months. No individual vehicle achieved exactly the average annualized returns. Investments in individual vehicles may have annualized returns and hold periods that are higher or lower than this average.
What is the basis of this presentation?
Information shown regarding realized returns, on a time- and dollar-weighted basis, net of fees, is provided for informational purposes only and is calculated based on exits for those companies that have had exits.
Performance for any individual company or for any particular vehicle may not be consistent with the overall information shown above. Each company will be subject to particular risks associated with its sector, its management, and other factors, which will be described in detail in connection with an investment in the securities of that company.
Historical performance, particularly short-term performance, is no guarantee of future returns. Investment returns will vary over time, depending on many factors outside of our and outside of your control, including, but not limited to, overall economic conditions.
Returns on actual investments also will fluctuate depending on the timing of your investment, the length of your holding period, and the timing of a liquidity event, if any, for the particular company, among other factors. As a result, individual investors may experience a gain or a loss on their investment. Return information gives no effect to tax treatment. Consequently, you should not place undue reliance on the return information, which may not be representative of any individual investor’s experience, and which is provided for illustrative purposes only.
Current performance for any individual investment may be higher or lower than the performance data shown above.
Any investor who engaged in sales of their interests at prices above (or below) the exit price of the vehicle may have received a lower (or higher) investment return and paid additional fees (typically 5% of the sale amount). Any investor who purchased existing investors’ interests at prices above (or below) the entry price of the vehicle may have received lower (or higher) investment returns and paid additional fees (typically 5% of the purchase amount).
All investments are subject to risks and you should read carefully the offering materials related to any particular proposed investment. For example, you should consider that:
- Investments in the single-purpose vehicles are not diversified investments;
- You will have limited rights as an investor in a single-purpose vehicle;
- The securities will be restricted securities and will not be readily transferable;
- The securities of private companies are subject to heightened risks;
- The private company in which a single-purpose vehicle invests is a private company with a limited track record that may compete against publicly traded companies or other better established competitors;
- Private companies are not subject to regulatory oversight and supervision by the Securities and Exchange Commission or by a national securities exchange;
- A private company may not have formalized corporate governance policies and procedures;
- A private company may not have ready access to capital or to funding and may not be able to withstand economic downturns;
- A private company may be dependent on key managers;
- Investors in the securities of private companies must be willing to suffer the loss of their entire investment;
- Not all private companies will achieve a liquidity event, like an IPO, direct listing, or M&A opportunity and, even if a private company does achieve a liquidity event, that does not guarantee a successful investment; and
- Many private companies will not adequately provide for D&O and other insurance.
Exits Highlight
Robinhood
FinTech
Est. Val.: $11.65B
Grab
Transportation
Est. Val.: $14.93B
Circle Internet Financial
FinTech
Est. Val.: $3.01B
Instacart
Food Delivery
Est. Val.: $17.71B
Planet
Food Delivery
Est. Val.: $17.71B
Ripple
FinTech
Est. Val.: $10.09B
23andme
Healthcare
Est. Val.: $2.51B
Postmates
Food Delivery
Est. Val.: $2.33B
Virgin Hyperloop One
Transportation
Est. Val.: $423,184,824
Getaround
Transportation
Est. Val.: $838,102,328
DoorDash
E-Commerce
Est. Val.: $16.08B
Nextdoor
Social Networking
Est. Val.: $2.18B
About the terms used here
- “IPO” and a year refers to a company that conducted a public offering of securities in the listed year, and includes a direct listing.
- “Acquired” refers to a company that was purchased by, or merged with, another company.
- “Shut Down” refers to a company that ceased operations without being formally liquidated.
Not all companies that were Acquired or that conducted an IPO resulted in a successful investment. A company that was Shut Down or Liquidated resulted in a complete loss of investment.
