Sova VC has launched a new $50 million liquidity fund aimed at providing shareholders with early returns via the secondary market. In so much, this facilitation gives Sova an opportunity to broaden its portfolio through minority stake investments during the ebb and flow of the fundraising cycle. Sector agnostic, Sova says that the typical investment will range between $1.5 million and $9.5 million.
While secondary market transactions don’t often make the regular news cycle, they do have their own place at the VC ecosystem table. More often than not, this financial transaction allows founders, angel investors, CEOs, managers, employees, and other early-stage investors, or shareholders the ability to obtain partial or full pre-exit liquidity.
Founded in 2020, Sova VC launched its first fund in January of 2021 and primarily targets Late-Seed and Series A startups working in the B2B and B2B2C marketplace and software platform areas. Portfolio investments include translation service Smartcat, on-demand laundry services Laundryheap, connecting engineers and manufacturers marketplace Geomiq, and subscription-based nutritional supplements maker and vendor Feel.
Sova VC’s new liquidity fund is cornerstoned by Cyprus-based Luna Wealth.
“The new fund is a key part of our plan to grow and enhance the Sova VC platform of services and provide a range of value-added supports to entrepreneurs and investors, through the various stages of the investment cycle,” commented Sova VC managing partner Alexander Chikunov. “At the same time, it allows us to take advantage of emerging market opportunities in our key markets across the UK and Europe, by helping address the shortage of early liquidity opportunities in fast-growth companies, where the investment cycle can have a very long-tail for founders, employees and early shareholders.”