Who we are
Confident with your money
Starport Capital is able to draw upon years of professional financial planning experience and expertise in a wide variety of industries to offer clients advice and services. The Silicon Valley team is comprised of seasoned professionals with experience in start-ups and blue-chip companies and a wealth of knowledge of successful IPOs and market trends. This group helps us specialize in private company offerings in primary and/or secondary markets at late stages. Our services extend beyond finding exceptional investment opportunities to also guide our clients from initial participation to exit so they can invest confidently.
Starport Capital understands that investing in late-stage private companies presents both exciting and high-risk opportunities, particularly in today's volatile market. It is, however, with the utmost pride that we are able to help our clients achieve satisfactory investment returns. In this fast-changing economy, we adhere to the latest trends and work with our clients to ensure they feel confident and comfortable about their investments, since we are committed not only to meeting, but exceeding their expectations.
What we do
Beyond Investment
As an investment group serving the secondary transaction market, Starport Capital is highly discerning in selecting companies to include in its portfolio. There are a number of criteria that we use in our selection process, including systematic analysis of revenue, innovation, growth, founding team, and valuation.
Our opportunities:
The share price of technology startups released after a long stint in private becomes volatile.
Employees and early investors are eager to sell after a long wait (usually 8-12 years).
A cyclical media sentiment and frequent adjustments by analysts drive wildly fluctuating demand at IPO's.
An imbalanced stock supply and demand affects company intrinsic value, distorts price, and creates profitable investment opportunities.
Our strategies:
Profit from volatility around corporate events such as IPOs, secondary offerings, and lockup periods.
To identify distorted market prices in an unbalanced supply/demand situation, deep research into intrinsic value is required.
Invest in undervalued stocks with solid fundamentals to maximize your return on put options by selling high premium out-of-money options.
What we value
For a Secure and Planned Future
As pioneers in the secondary market since 2011, Starport Capital offers LPs diversified access to an asset class usually reserved for institutions. It is our belief that the secondary market for private stock will continue to offer attractive investment opportunities.
IPOs are taking longer - the average time from first VC funding to IPO has increased from 3-4 years to 7-10 years currently. Due to this, a secondary market for shares of leading private companies has grown. This is because employees and early investors seek liquidity and investors seek access to the next generation of Fortune 500 companies. Market conditions are expected to remain favorable for buyers in the next 12-18 months, as the market has cooled off since its peak in 2015.
The secondary market could be a lucrative entry point for investments in leading tech companies for Starport Capital. A source of below-market priced stock can be found among former employees of target companies with expiring stock options. As a result, they are compelled to part with their stock at lower levels than they might otherwise. This is due to deadlines, a lack of a liquid market, and a large financial hurdle. In this way, the Fund and the seller both benefit, since a complex loan with poor terms and no post-exercise liquidity is often the seller's second-best financing alternative. Through this strategy, the Fund has been able to purchase shares of growth-stage companies at 40%-50% discounts from their most recent round of financing. With our scaled approach, we are able to identify, source, and execute niche opportunities.