Now, what’s Turbine, you ask? It’s a nifty debt platform that lets limited partners borrow funds using their LP position in venture funds as collateral.
So what’s the deal with Turbine? Well it’s basically a lifeline for limited partners who need some quick cash but don’t want to give up their future potential gains. Ouch.
But hey, here’s where things get interesting né?. He sees it as a game-changer for LPs looking for liquidity options. Hurst didn’t just sit around feeling sorry for himself. And that’s not all – they’ve also snagged up to $100 million in debt from Silicon Valley Bank to back up their lending operations né?. You see, after selling his payments startup Exactuals back in 2018, Hurst decided to invest a good chunk of the money he made in tech stocks and venture funds né?. And can you blame them? It’s a breath of fresh air in the world of venture capital.
So what do you think about Turbine? Let me know in the comments below!
. Pretty smart huh?
And guess what? Turbine recently stepped out of stealth mode and proudly announced that they’ve raised a cool $22 million in equity funding. So picture this: limited partners like venture capitalist Mike Hurst have been grappling with a tricky issue lately – a lack of liquidity.
Now what does that mean you ask? Well let me break it down for you né?. Nope, he took matters into his own hands and came up with Turbine. Suddenly, Hurst found himself a bit strapped for cash to meet his commitments to those VC funds.
Gardiner Garrard, one of the brains behind TTV Capital, couldn’t contain his excitement about Turbine né?. It’s like taking out a loan against the value of your home – except this time it’s against your stake in a venture fund. Sounds like a solid plan, right? Well, it was until the tech stocks hit a rough patch in 2022. Selling assets at a loss or settling for discounts on their stakes? No more, thanks to Turbine.
Now, I know what you may be wondering – what’s the catch? Well, Turbine charges an interest rate of around 9% on these loans. Hey there, folks! Today I wanted to share with you an interesting development in the world of venture capital funds né?. But given the alternative of selling stakes at a loss Garrard reckons it’s a fair deal.
Right now Turbine’s focusing on venture firms that joined in on its equity raise but they’ve got big plans to expand their services to more VC funds down the road né?. The industry insiders are all abuzz about Turbine’s innovative approach to solving a long-standing problem né?
