Global Venture Management Analyzes Why AI Has Been Privately Held for a Longer Time
An investment advisor based in San Juan outlined three forces that are reshaping when and how investors will come into contact with the growth of AI.
San Juan, Puerto Rico, October 13th / PRNewswire / -- An investment advisor focused on private technology companies, registered with SEC, Global Venture Management LLC, commented today that many of the most valuable artificial intelligence companies choose to remain private for longer periods because this trend is changing the way investors approach these companies and also affects the timing of returns that investors can obtain from them.
The fund manager of Global Venture Management, Damian Maggio, stated: "The best AI companies can raise billions of dollars without going public. This means that most of the growth may occur before IPO, and most investors will not be able to participate in it."
The company pointed out that there are three forces driving this trend:
- Large-scale private capital: Large-scale private financing rounds and strategic partners can now provide funding for growth, whereas in the past, such growth often required support from the public market.
- Active secondary market: Employees and early investors can sell their shares privately, thereby reducing the pressure to go public.
- Timing control: Founders can wait for the right market window, rather than being forced to go public at an inappropriate time.
Maggio said, "For investors, the question is not just which company to invest in, but also when and how to seize investment opportunities. The secondary market has become one of the main entry points, and this requires a careful due diligence of prices, structure, and liquidity."
Private equity investments carry higher risks, including insufficient liquidity and the potential for losing all of the invested capital.
About Global Venture Management: Global Venture Management LLC is a registered investment advisory firm founded in 2021, headquartered in San Juan, Puerto Rico. The company specializes in late-stage private technology companies. Website: www.globalventurecap.com
Disclosure: For general information purposes only. It does not constitute investment advice, nor is it an offer to sell or a solicitation to purchase any securities. SEC Registration does not imply possession of a certain level of skills or training.
Media contact:
Lisa Galego Global Venture Management | 516-267-7028 | [ email protected ]
