Matthew Liebowitz, General Partner at Plaza Ventures, discusses the fund size of their Canadian secondary tech fund with Nathan Latka.
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“It's a fifty million dollar fund.”
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More from Matthew Liebowitz
Disclosure
Plaza Ventures raises annual funds, seeding one-third with internal capital
“So instead of raising a large one year, 10 year monolithic fund, we raise one or two funds every year. We seed each of the fund with about a third of our own capital.”
Matthew LiebowitzApr 11, 2019▶ 2:581356 Early Employee Who Wants to Sell A Few Shares? Plaza Ventures New Model Is What You Need.
Disclosure
Plaza Ventures operates on a zero-fee, 20 percent carry model
“We don't actually charge any management fees in any of our funds. We take a 20% carried interest after a hundred percent return to capital. So, so think of us as a zero and 20 model.”
Matthew LiebowitzApr 11, 2019▶ 3:361356 Early Employee Who Wants to Sell A Few Shares? Plaza Ventures New Model Is What You Need.
Disclosure
Plaza Ventures Deploys 40% to 60% of Capital on Day One
“Whereas what we're saying to our LPs is, Hey, here's where typically 40 to 60% of your capital is going on day one. So we've already diligenced these companies, and we basically raise a fund in lockstep with doing the investments.”
Matthew LiebowitzApr 11, 2019▶ 5:051356 Early Employee Who Wants to Sell A Few Shares? Plaza Ventures New Model Is What You Need.
AssertionSupported
Plaza Ventures is the first dedicated tech secondary fund in Canada
“There's definitely, we identified about 40 groups in the U.S. That do this either as a core focus and or a sleeve on their platform, but we're first to market, believe it or not, in Canada.”
Matthew LiebowitzApr 11, 2019▶ 7:141356 Early Employee Who Wants to Sell A Few Shares? Plaza Ventures New Model Is What You Need.
AssertionNot checkable as stated
Canadian tech companies now scale to $100M+ revenue before exiting
“It used to be that you know, a company would get to five, ten million revenue and then sell. Now companies are much more bullish and are looking to go to a hundred million plus in revenue, and thus they have a lot more of an employee base that's underneath the…”
Matthew LiebowitzApr 11, 2019▶ 7:541356 Early Employee Who Wants to Sell A Few Shares? Plaza Ventures New Model Is What You Need.
Disclosure
Plaza Ventures Targets 18 to 36 Month Secondary Liquidity Windows
“So we are not buying out other VC funds. We're not, the pitch is to the, to management is not, Hey, We're investing in your company and thus it could delay an IPO. It's actually quite the opposite. We're actually going down a level or two and going and buying …”
Matthew LiebowitzApr 11, 2019▶ 8:561356 Early Employee Who Wants to Sell A Few Shares? Plaza Ventures New Model Is What You Need.
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