With IPOs slowing significantly, limited partners in venture capital face severe liquidity challenges due to locked funds. Entrepreneur Mike Hurst experienced this firsthand after investing proceeds from his startup sale into VC funds just before a market downturn. To address these challenges, he founded Turbine, a platform enabling LPs to leverage their fund positions as collateral for loans, similar to a home equity line. Turbine has raised $22 million in equity funding and secured up to $100 million in debt financing.
Firms kept coming for capital calls and new investments. I wanted to make them, but I didn't want to mortgage the house, take a margin line or sell Amazon at $90 when I knew it was going back to $210.
Turbine provides a way for limited partners to access funds using their fund stakes as collateral, much like a home equity line of credit.
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