This week we have three deals with disclosed transaction prices and the largest transaction we’ve seen in several months.
This week we have three deals with disclosed transaction prices and the largest transaction we’ve seen in several months. Irish private equity firm, VentureWave Capital, took a majority stake in Funderbeam with an investment of $40M, implying a valuation materially above that value. While at first glance the strategic rationale of an Irish private equity firm buying a blockchain fundraising platform is unclear, VentureWave currently operates Vestiver, a platform that connects companies seeking to raise capital to institutional investors. The combination of these two groups will enable them to offer a full suite of capital raise services and intends to create increased liquidity and investment access to institutional investors.
Liquidity in private capital markets has always been a challenge that’s been largely accepted by the institutional investors that invest into private equity. While new blockchain technology technically enables investors to instantly trade and achieve liquidity, the challenges remain on the regulatory side.