What do you mean?
The word ‘exit’, brings excitement and potential apprehension to most people’s minds within the financial world. Investors crave it, PE/VC houses love it and founders sometimes enjoy it (albeit they may lose control of their baby along the way). But, for most companies, when does the opportunity arise? How long is a piece of string?
Now you may be reading this thinking “well I can sit on my tax relief and the company will provide an exit within 3-8 years”. Unfortunately in most situations this is not the case. Here at JP Jenkins we strive to create liquidity within a private market through our suite of services which assist with creating potential exits for shareholders, but also entry points for investors at a discount.
Secondary markets are booming, the zeitgeist of this year. Every company wants to provide a solution for private companies but not everyone has the answers, as we all know too well. Capital being raised in early stage businesses is at record highs and venture deals are growing. This is exponentially backed by a high number of IPOs. So, how easy is it to get into the doors of some of the more exciting startups? How hard is it to bridge the liquidity gap? How should you deal with the asymmetric level of information?
What is a secondary?
Secondaries are usually identified as a sale of shares by an existing shareholder to an external party. An existing shareholder has the opportunity to partially or fully exit their investment in the company.
Okay, so how can I do this?
Simple…. JP Jenkins runs an online trading platform. Companies have the opportunity to be part of our community. This is our marketplace, so to speak. They can benefit from our platform in a number of ways:
- Shop Window Facility (Further Visibility) – this works well for B2C businesses as they have another avenue for marketing to potential customers, clients and contacts.
- Price Discovery – utilise our platform for the purpose of having an indicative price for valuation and acquisition needs.
- Incentives for Staff & Shareholders – give shareholders and staff the opportunity to realise their value and liquidate their hard earned equity.
- Shareholder Updates & Investor Relations Tool – use the platform for the company benefit, to promote, engage and update investors on new services and products.
- Trading Facility – trade effectively and efficiently with no hassle. Our friendly team are on hand to support any investors/company needs.
- Wider Investor Audience – open up your company to a wider group of investors, with larger ticket sizes and smart money.
We understand both sides of the coin. Investors struggle to ascertain a sufficient amount of correct information from private companies to make suitable commercial decisions. This is why we encourage companies on our platform to provide as much information as possible to our market.
We work with all of our members to make sure that each company can provide an investment deck, summary of the company, video and/or financial reports. We also allow investors the opportunity to speak with management and ask vital questions before parting with their capital.
We are constantly working on improving our platform and ensuring we have the tools in place to help all parties access investment opportunities, sell shares and create a more fluid market for private companies.