In a significant move within the venture capital landscape, London-based Launchbay Capital has proudly announced the first close of its innovative €92 million VC secondary growth fund. This pivotal step, involving over 25% commitment from a cohort of pioneering investors, represents a strategic evolution from its original branding as Digital Horizon, signifying its transition from a primarily early-stage VC to a dynamic, multi-stage, data-driven fund manager.
Launchbay Capital’s secondary growth fund is ingeniously crafted to inject liquidity into growth-stage venture-backed technology companies, targeting potential exits within a three-to-four-year timeframe. The fund’s strategy capitalizes on the team’s deep-rooted venture expertise and a thorough understanding of the private capital markets. This approach empowers active management of growth investments, aiming to yield high accelerated returns beneficial for founders, businesses, and investors alike.
Alan Vaksman, the founding partner at Launchbay Capital, emphasizes the firm’s commitment to redefining the growth equity investment landscape. “In the increasingly complex terrain of private markets, our goal is to deliver transparency in pricing and liquidity to our partners,” says Vaksman. Launchbay’s data-driven valuation methodology underpins its approach, ensuring clear and swift pathways to liquidity and capital recirculation, crucial in today’s inflationary, post-pandemic market context.
The team at Launchbay Capital, composed of globally diverse, seasoned professionals, has a history of backing significant brands such as Klarna, Lemonade, and Monday.com. Their strategy for success hinges on a triad of principles: investment discipline, rigorous data analysis, and proactive portfolio management. This foundation, coupled with a proven track record, equips the firm to navigate market cycles with agility and resilience, executing investment solutions effectively.
Launchbay Capital distinguishes itself by focusing on the core fundamentals of venture businesses through a proprietary methodology. This approach, which goes beyond mere market trends and includes an in-house brokerage team dedicated to exit strategies, has shaped a tailored investment structure. This structure is designed to maximize liquidity opportunities and facilitate capital redistribution at various investment stages. Contrasting traditional venture capital investments that span decades, Launchbay Capital’s secondary growth fund adopts a four-year investment period, allowing investors to tactically realize returns, recycle capital more efficiently, and explore secondary exit strategies alongside traditional routes like IPOs or M&As.
Vaksman further highlights the distinctive nature of the fund: “Our approach directly addresses the challenges of valuation transparency, prolonged durations, and limited liquidity that are typical in traditional VC growth investments. Our fund is structured to write smaller tickets, focusing on growth-stage, venture-backed companies. This not only broadens investor participation and diversifies investment but also accelerates exits through the secondary market, offering the flexibility that is much needed in today’s industry.”
Since its inception in 2018, Launchbay Capital has been managing an impressive portfolio, now exceeding $300 million, featuring over 55 leading privately held global technology companies across diverse sectors like fintech, SaaS, and AI healthcare. With a track record of five successful exits in just three years, the firm has established itself as a frontrunner in providing strategies that enhance capital recycling, vital for reviving the venture business to its pre-2020 glory. Their early-stage access fund targets pivotal late Seed and Series A funding rounds, primarily in fintech and software infrastructure, while their proprietary direct digital investment platform offers access to private market securities of leading global technology companies.
Launchbay Capital stands out with its multifaceted investment solutions catering to various stages, including early and secondary growth funds, direct investments through its digital platform, and software solutions for private market brokers and asset managers. This extensive range solidifies Launchbay Capital’s role as a key player in reshaping the investment landscape, fostering growth, and driving innovation in the technology sector.
