Geneva-based Giano Capital has launched a secondary market fund. The €50 million is dedicated to late-stage companies in the European tech and digital space. Founded by serial entrepreneur Alberto Chalon and Andreas Wiele, who is from a media and tech executive background, the fund will invest in up to fifteen European companies with ticket sizes ranging from €2 million to €25 million, 'including co-investments which will be offered to its Limited Partners to maximise returns'.
To make the cut companies must have an ‘outstanding founder team that have grown to a minimum of €30 million in revenues, an annual growth rate of at least 30% and a clear path to profitability and positive cash-flow’. Also be ‘supported by tier-1 investors and have the financial runway to aim for an exit in two to four years.’
"We are convinced that the Secondary Market will establish itself in the coming years as a new growth market between early-stage private companies and the public markets. Our ambition is to develop Giano Capital as a key player in this space," says Chalon. “We thank the many influential family offices, outstanding entrepreneurs and tech pioneers that have joined our fund as Limited Partners. They share our vision that the late-stage secondary market is the best opportunity to seek high VC-like returns with the limited PE-like risk.”
It says that its ‘strict criteria’ is ‘crucial to allow Giano Capital to limit its fund-life to 5 years’, cutting in half the time line of traditional 10-year funds ‘and to aim for an IRR target greater than 25%’.
"The time-to-exit has almost doubled for start-ups between 2010 and 2023. The current macroeconomic environment with rising interest rates and falling tech valuations will further exacerbate the liquidity shortage for founders, business angels and early-stage funds. At the same time, the market is also very appealing for new investors to invest in these top companies at attractive valuations," says Wiele. “With Giano Capital we offer a great solution to become one of the leading matchmakers in this market.”
Breaking the seal, it has made it first investment in Finn, a car subscription company. “We are very happy to welcome Giano Capital as our investors, as Alberto and Andreas bring a very unique entrepreneurial experience that will help us in the future growth of our company way beyond the capital contribution," says Maximilian Wühr, co-founder & CEO at Finn.
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