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RISE OF THE RECAPS
Changing dynamics across macroeconomic environments and capital markets have opened up numerous distressed investment opportunities as the amount of stranded capital has increased. Within the VC arena alone, there is an estimated $28 billion in stranded capital currently residing in venture-backed companies that have been unable to exit.
Most stranded assets are unable to raise follow-on funding for reasons that are both investor-related and performance-related. More broadly speaking, the continuous "disruption" of industries across the board have made Private Equity, Venture Capital, Infrastructure and Opportunity Zone investments develop new levels of investment risk and price volatility. These new market conditions leave a slew of abandoned or under-capitalized assets that often have significant unrealized social and/or environmental applications. These are the opportunities that have now become strong candidates for philanthropic re-capitalization.
SoTech Ventures specializes in unlocking access to $865B dollars in assets held within philanthropic institutions by providing investors with an innovative operating model that allows their assets to be seamlessly transitioned between private and non-profit corporate structures.