The financial markets sometimes create fascinating anomalies that savvy investors can capitalize on. In this episode, we explore one such opportunity that emerged from the collision of excessive market liquidity, the 2020-2021 IPO boom, and the subsequent market correction.
This perfect storm created what my guest, Elie BouJaoudé, calls "moonshot companies" – high-potential technology ventures with VC characteristics that went public during the frenzied markets of 2020-2021 but are now trading at valuations closer to their private market days. These companies still have all the disruptive potential that made them attractive venture investments, but with the added benefits of public market liquidity and transparency.
What makes this opportunity particularly compelling is that many of these companies still have their original venture capital investors on board. As Elie points out, these VCs haven't exited despite the public listing – a strong signal of their continued belief in the companies' long-term potential. It's essentially a chance to invest alongside sophisticated venture investors but without the typical 8-10 year lockup period.
Key Topics Covered
The market anomaly that created this opportunity window
How excess liquidity pushed VC-backed companies into premature IPOs
The subsequent correction that brought valuations back to earth
The exciting technologies in Elie's portfolio: flying taxis, quantum computing, small modular nuclear reactors
Why these publicly traded companies still maintain their venture potential
How GenTwo's AMC structure provides the ideal vehicle for this investment approach
The advantages of this strategy over traditional venture investing: liquidity, flexibility, and transparency
About My Guest
Elie BouJaoudé is an investment manager with 20 years of experience across multiple aspects of private market investing. He started in private debt before moving to venture capital, then became an entrepreneur himself with a successful exit. After managing growth and late-stage investments for a Geneva-based asset manager from 2016, he developed his current strategy of applying venture capital thinking to select public equities following the 2022 tech market correction.
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