Fireside Chat

Holding company: more than the sum of its investees

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The dominant method for investing in early-stage and growth-stage companies is the fund (or its individual or family portfolio).  The underlying flaw in this model is that before investors invest, they worry about how they’ll get their capital back.  Even for the “patent capital” investors, they eventually need that return.

There is an alternative… the holding company.

These come in a few forms, but the most interesting are those that make minority investments just like funds.  But make those investment with the expectation that they are in perpetuity.  Forever.  That change makes the world of difference.  It changes the mindset from growing the investee to get out, to growing the investee because that is best for the investee, its employees, and community.

That is just the start.  A holdco of this style can indeed be worth more than the sum of its portfolio from this unique mindset.

This fireside chat will explain how that works, why this could be the solution to patient capital that is needed, and how investors can end up making more money with holdcos than they do making individual investments within or without funds.

Confirmed Panelists

Luni Libes, founder and Managing Director of Fledge

Unconfirmed Panelists

Shaula Massena, co-creator, Seattle Impact Investing Group

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1 comment

  1. I’m known in the SOCAP community as the loud voice advocating for “Investing without Exits” using revenue-based finance. I’ve taught that workshop at four SOCAPs, and spoken on panels on that topic at two others.

    This is the next step in alternative investment structures. One that could, given sufficient proof, create a trillion dollars of investment flows.

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