The upheaval in the markets created an opportunity

The year 2021 was in many ways the year of the unicorns – a year in which many companies were valued at more than a billion dollars and their future seemed secure, then 2022 arrived, and with it, a shake-up in the markets, fear of a crisis and declines in the value of technology companies.

The new situation in the high-tech industry created an opportunity that did not exist before. Companies that have remained unicorns or reached a value of over a billion dollars in the recent period – are here to stay. They survived significant declines in value and proved that they have a stable business model that enables decent income and, above all, business data that proves they are worthy of the title.

The current value of those companies embodies a crisis market and, in many cases, does not reflect their true value. Therefore, the world’s leading investors take advantage of the opportunity created by the market to purchase shares in unicorn companies. In some cases, the companies even continued to show growth during the crisis, and it is estimated that they came out strengthened by the disruption, and entering at this time, according to an updated value, is an excellent opportunity that occurs once every few years.

What are unicorn companies?

These are technological giants whose value exceeds one billion dollars – they are already very successful and operate in the market but have not yet been issued on the global stock exchanges. The name “unicorn” was coined because of their rarity.

The investment fund we established, Together Unicorn Fund, in 2020, for the first time, allowed private investors in Israel to invest in these private technology giants and thus, diversify their investment portfolio and spread it while exposing them to companies we carefully selected – and are already changing the world today.

The third fund in the series was launched after extremely successful fundraising for the first two funds. Investors who want to invest starting at $30,000 will be able to invest in huge companies that lead the business world, some of which are expected to make an exit by sale or issue in the coming years. Investment in this innovative model is carried out through “micro funds” – a dedicated investment in selected private stock baskets, with each portfolio having characteristics of stock distribution, entry price, and specific expected redemption date.

Stable and strong companies

Together’s fund is open to investment as mentioned above, starting at $30,000, and will include several companies whose characteristics meet the criteria of unicorns, and the minimum value of each company exceeds $1 billion.

The unicorns are selected by a professional and leading investment committee in their field, which includes senior executives from the high-tech, finance, and investment industries. Each potential company nominated for investment in a micro fund is presented to the investment committee and includes a professional analysis performed by senior analysts.

In addition, to reduce the risk and increase the chance, the fund’s policy is to diversify investments in several unicorn companies and in a variety of carefully selected categories. The micro fund is professionally managed by the managing partner and includes locating, examining, managing, reporting, and periodically reviewing the status of the micro fund to the partners.

Investment benefits

• An opportunity for investors to enter a market that was only accessible to those with significant capital and institutional entities.
• An opportunity to enter the secondary market under low threshold conditions – starting at $30,000.
• A unique and innovative investment model through “micro funds.”
• Professional company selection that includes filtering the companies based on value, entry price per share, expected date of issue, business analysis, and examination of market sentiment.
• Dispersion of several companies in each micro fund and thus the spread of risk.
• An opportunity for quick liquidation of the investment because of purchase or issue.

The liquidity methodology

The fund includes shares in companies selected by the fund manager and thus, ensures diversification and better risk protection. Also, the fund is professionally managed by the manager and will include a comprehensive analysis of the companies and their value, the share price of the shares offered for purchase by the fund, and the expectations for the future – to choose the best deal for the fund.

Since these are mature companies, liquidated shares are also expected to be significantly faster compared to young startups. During the exit event of the company’s acquisition, merger, or stock exchange listing, holding of the property will be realized, when the fund manager will regularly monitor the portfolio and the potential for maximizing returns according to the value of the funds raised.