MISSION
Over the past decade, the secondary financing market has shown significant growth. This increases the demand for a partner search tool and solutions to simplify secondary deals.
In 2010 the number of secondary deals was 500+ per year, but in 2021 the number of deals exceeded 2,500.
In 2010 the volume of secondary deals was 9 billion, in 2021 the volume of deals was 48+ billion.
The significant growth is due to the fact that more and more companies remain private for a longer period, the average path to an IPO is 12 years. 15 years ago, the average path to an IPO was 6 years.
Reason
Investors who have fulfilled the profit plan in portfolio companies are waiting for an IPO to obtain liquidity. Is it practical when the most precious resource, namely time and profit, can already be reinvested at a more early stage bringing an even greater return on investment?....
Problem
Secondary offers are not grouped together in one place, which complicates the search a counter party for trades and does not allow to form an overall picture of the market. Thus, the private capital market does not look as liquid as it actually is. By displaying all existing orders in one place, the picture clearly changes in favor of liquidity. Also, in frequent cases, there are several brokers in transactions, which can slow down and complicate the transaction process. By providing a tool where a holder or an investor can place its order without the help of third parties, the need for third party services is reduced. On the platform clients can find both trades through brokers as well as direct trades, which clients make with net price without additional fees.
Solution
The task of Birel is to accumulate capital in the secondary market and connect buyers and sellers of private assets and make the process of finding liquidity more convenient.