Angels are waiting ten plus years to unlock liquidity
provides angels and other early-stage investors in private companies with an attractive, immediate exit alternative to quickly and efficiently sell some or all of their equity holdings. We purchase common or preferred stock “as-is where-is” with no requirements to amend the existing capitalization or governance structure of the company. We work collaboratively with venture capitalists, officers and directors to provide an efficient and rapid evaluation and transaction process. All information will be managed in strict confidence.

Angel Investors

Angel investors take much of the early risk in starting a new company in anticipation of big rewards; however, with the time to liquidity expanding – currently an average of nearly ten years – waiting for an exit event is becoming increasingly difficult to manage.  BrownSavano can help Angel investors:
  • Unwind an excess allocation to a single company;
  • Obtain partial liquidity when the holding period for an illiquid investment is substantially longer than planned;
  • Avoid dilution by freeing up capital to invest in a new round of financing;
  • Secure gains for tax or estate planning purposes;
  • Achieve early partial liquidity in advance of an IPO and the attendant six-month lock-up;
  • Cash-out equity even if an organization’s merger, acquisition or IPO has been postponed; and
  • Hedge risk if institutional investors are adopting a high-risk growth strategy which jeopardizes existing, unrealized gains.
 

 

 
Venture Capitalists, Officers, and Directors

With roots in venture capital, the BrownSavano team has extensive VC relationships and success acting as a complementary and valuable investment partner. Our focus is on purchasing minority interests in venture-backed companies directly from individual shareholders, including founders, former and current executives, angel investors and corporate strategic investors. Our due diligence and negotiating process is non-disruptive to management and the board. Generally, we do not seek board participation or special rights. 

As a shareholder, our interests are highly aligned with the company’s management and board.  We reserve fresh capital for future company needs and are often in a position to quickly lead and price a new round of equity funding.  With decades of investment experience across hundreds of companies and transactions, we have deep domain expertise and a Rolodex of contacts that we make available to management and the board on an as-needed basis. 

We welcome co-investments from existing VC shareholders and management regardless of whether or not first refusal rights exist for stock that we have negotiated to purchase. In many cases, we can act as an independent, third party pricing agent that facilitates a secondary purchase by existing VCs, as we negotiate to buy a portion of the shares being offered and existing VC shareholders buy the rest on the same terms.

While not our primary focus, we will entertain purchasing stock directly from VCs under the following scenarios:
  • A fund is over-allocated to a single investment;
  • A fund is out-of-sync with an early or late-stage investor regarding exit timing or risk profile;
  • A fund needs a third party transaction in a partial sale to justify a markup on an existing investment;
  • An old fund needs to free up cash reserves for other portfolio requirements, management fees or LP distributions;
  • A VC needs cash to avoid a dilutive round; and
  • A fund is nearing the end of its life and several investments remain to be liquidated.
 Prospective Sellers
Picture of Bond Street Wharf

If you are a shareholder in a dynamic private company, contact us to learn more about BrownSavano.
 
 
 
 
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