90 days is our current hold period. From the date of purchase, members must hold the asset for 90 days before selling and cannot use those shares to purchase another security on the platform.
Cost basis uses the First In, First Out method. I.e., the oldest shares in your portfolio will be “sold” first.
The share price is calculated the at the time of your trade and can vary during times of high market activity.
Investors can leverage their current Linqto equity by selecting shares as a funding source when making a purchase order, enabling them to invest in new shares with a different company. With this feature you will be able to see how much proceeds will be used, as well as their value per share for the new purchase before executing the trade order. Note that shares are used first for a purchase, and cash in your account can cover any remaining balance.
Linqto's vision is "Your Access to Private Investment". Our mission is to make investing in private companies as easy and accessible as investing in the public stock market. Our platform features high growth, technology driven companies who we believe will go public or be acquired within 5 years. Ripple, Polysign, Epic Games, Zipline- these are just a few of the companies we have featured on our platform. Robinhood, Coinbase, and SoFi are examples of companies that our investors were able to purchase before they were publicly traded and experienced an IPO within a year.
There are many reasons to invest in private equity. First and foremost, the private markets have far outperformed the public markets. Over the past 25 years, the average internal rate of return (IRR) for the top quartile of VC funds has ranged around 25% according to the Cambridge Associates Venture Capital Index. Over the same period, the S&P 500 returned around 10% per year. On a fundamental level, these investments are generally riskier and therefore demand higher returns on investment.
In today’s market, companies are staying private for much longer than they used to. The median age for tech companies going public in 2000 was 4-5 years compared with 12 years in 2018. The returns generated by these companies during their growth phase are only achievable by accessing the private share market. As an investor, this makes it essential that you gain an earlier entry point to these companies by investing in private company shares.
Linqto is structured in a unique way that benefits everyone involved in the private equity investment process.
For investors, we offer access to top private companies with industry-low minimums and no fees, all through a simple to use platform backed by world-class customer support. Plus, we believe so strongly in every company on our platform that we keep some equity for ourselves, so we're invested right alongside our investors.
For founders and employees of private companies, we provide a mean to realize the value of their equity at a fair price without needing to wait for their company to IPO or be acquired. We handle all the necessary paperwork and negotiations with the company to make it a stress free process for the individual.
For private companies, we provide your employees and investors with a path to liquidity while serving as only one investor on your cap table.
Linqto primarily invests in mid-to-late-stage private companies within the technology industry. Linqto does not participate in seed rounds or any type of project financing – companies must be generating revenue at a minimum with institutional venture capital or private equity investor backing. We source shares for our platform via secondary transactions with private market brokers, venture capital firms, existing and former employees, and other insiders. We also source shares by participating in primary financing rounds alongside other institutional investors, investing directly in a company through a priced equity round.
Linqto targets companies that are leaders within the sub verticals of tech: artificial intelligence, blockchain and digital assets, enterprise software, networking and IoT, hardware, and FinTech – among others. We believe these verticals represent the core pillars of the technology ecosystem and will drive the growth of the modern economy going forward.
Linqto seeks to invest in visionary management teams that have a proven track record of bringing timely products and services to market. We strive to invest alongside other reputable investors and look for companies operating within a large total addressable market with limited competition, high barriers to entry, high switching costs, and few external risk factors. Most importantly, we invest in companies with strong unit economics, high growth rates, attractive margins, multiple revenue streams, a path to profitability, and a proven competitive moat.
As the largest single segment of the private market, we believe the technology vertical will continue to outperform through a consistent pipeline of innovative new products, services, and features. Linqto will always strive for favorable investment entry points with attractive discounts relative to select peers and the broader market. Through multiple origination channels, we believe we have an investment process that can provide our customers with outsized risk-adjusted returns.
Linqto purchases shares from current and former employees, early investors and advisors of the company. They are typically selling only a portion of their holdings in order to cover costs associated with exercising and paying taxes on the remainder of their shares, for life events such as purchasing a home or preparing for a child, or to diversify their holdings.