The IPO is usually one of the most anticipated moments for investors, but a Brazilian manager decided to follow a different path to capture value before going public. In March 2024, the Staged Ventures structured an investment in on the secondary market, at a valuation of US$186 billion. Less than two years later, the manager opted to exit the operation, obtaining a return of 3.48 times the allocated capital – with the company worth around US$800 billion.
But why not wait for it? The decision to sell the position followed a pragmatic logic. For Flavio Pripas, general partner at Stageda return above three times is already considered quite out of the curve for this market. In practice, he states that the investment guaranteed gains of 77% per year for investors, while traditional venture capital offers over 35% in the best cases.
The exit proposal was put to a vote among the vehicle’s investors, with a tight result: 50.98% opted for the sale.
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But there are still other reasons, which go beyond simply financial returns. As it is a strategic company, the SpaceX faces questions about the real possibilities of going public, as this would also mean opening up sensitive information about the operation to the market. In other words, there is a chance that the IPO will not happen.
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Furthermore, Flavio explains that waiting for an IPO is not always the best alternative, especially given the lockup rules that normally prevent the sale of shares for months after the IPO. He cites as an example the case of Figmawhose IPO was marked by strong initial appreciation, followed by a significant drop in the subsequent period, when investors were still prevented from trading the shares.
“We invest in pre-IPO and growth stage to seek returns of 3 times to 5 times in three to five years. It is not a model to deliver 20 times. And the case of SpaceX It was in less than two years. It’s spectacular. If I wait until the IPO, the exit comes full of rules”, says the general partner at Staged.
The North American rocket and satellite manufacturer plans to hold an IPO later this year, with the aim of raising up to US$50 billion, through a dual-class share structure, which would allow executives like Elon Musk to maintain control of the company.
Secondary market
The investment of Staged already SpaceX illustrates a dynamic that is still uncommon in the Brazilian market: the negotiation of shares in private companies through the secondary market. According to Flavio Pripas, this type of operation is much more common in the United States, especially in larger companies. In Brazil, the lack of liquidity and structured participants makes this type of transaction rare.
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Founded between the end of 2022 and the beginning of 2023, the Staged was born with the proposal to connect Brazilian investors to these opportunities. For the executive, the main differentiator in being able to access this type of opportunity is the relationship. “The key word is access”, he states.
In addition to SpaceXthe manager also structured investments in xAIElon Musk’s artificial intelligence company, which was recently acquired by SpaceX. “We were surprised by the M&A. The North American market is so dynamic that it ends up generating this type of opportunity”, says the investor.
Currently, the Staged has six companies in its portfolio: Digibee, You guys, The Bakery e Cohesityin addition to the xAI and from SpaceXwhose stake has just been sold. The manager is led by Flavio Pripas (formerCube e Redpoint), alongside Geraldo Neto (Gavea Angels), com (Shark Thank) no time.
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Since the creation of the manager, the Staged has already structured more than US$30 million in investments for individuals, always through specific vehicles per company. The internal goal is to invest around US$10 million per year, spread over two or three opportunities.
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