Capturing AI Value in a Human-Dependent Market
With recent news of OpenAI planning to sell employee shares at a valuation of $86 billion, it's evident that the demand for AI investment is on the rise.
On the RMS platform, bids for names like OpenAI, Anthropic and Scale AI are leading the sector with year-to-date trading at an average increase of just over 19% compared to respective previous rounds.
Navigating Complexities
Navigating the intricacies of private market investing requires a robust Rolodex and technical expertise far exceeding that of most investors.
Buy-side investors evaluating private AI investments are now faced with two fundamental questions: Does investing in OpenAI or another AI business meet individualized strategic investment goals, and if so, how does one proceed with both conducting due diligence and dealmaking? The second part can be the true make or break question.
The primary challenge we see lies with the scarcity of available information, a common characteristic of private secondaries deals and one that we’re looking to remedy through increased investment in data and technology.
To navigate these complexities, it's crucial to collaborate with a dedicated broker-dealer, who comprehends the nuances of the market and who has the experience and contacts to address them. This has never been truer than in today’s landscape, with the AI sector making private shares difficult to attain due to company-specific red tape, sophisticated structuring, and the need for high-level permissions to complete trades; all of which can be seamlessly shepherded by working with expert, industry-specific advisors. The right partnership can also help solve the intricate ownership structures and overcome the legal complications that may obstruct closing deals.
Universally attractive, accessible to few
OpenAI’s swift rise from a $29 billion valuation in April of this year to its current share sale nearing $90 billion demonstrates that AI is unquestionably the next frontier for investors. While there is an enticing opportunity to become an early investor and reap exponential benefits, the opacity and extreme complexity surrounding AI companies demand a strategic approach.
If you are interested in learning more about how our elite team of market experts is helping investors access OpenAI and the entire burgeoning AI sector in the private markets, please reach out: https://www.rainmakersecurities.com/schedule-meeting