Our investment approach harmonizes quantitative research with fundamental analysis to achieve efficacious portfolio management.
Our investment approach harmonizes quantitative research with fundamental analysis to achieve efficacious portfolio management.
Our investment approach harmonizes quantitative research with fundamental analysis to achieve efficacious portfolio management.
Our investment approach harmonizes quantitative research with fundamental analysis to achieve efficacious portfolio management.
Concordia Capital
Our investment approach harmonizes quantitative research with fundamental analysis to achieve efficacious portfolio management.
Concordia Capital
Our investment approach harmonizes quantitative research with fundamental analysis to achieve efficacious portfolio management.
Concordia Capital
Concordia Capital
Our investment approach harmonizes quantitative research with fundamental analysis to achieve efficacious portfolio management.
Concordia Capital
Our investment approach harmonizes quantitative research with fundamental analysis to achieve efficacious portfolio management.
Concordia Capital
Concordia Capital
Concordia Capital
Concordia Capital
Our investment approach harmonizes quantitative research with fundamental analysis to achieve efficacious portfolio management.
Legal Disclaimer:
The materials on this website are for illustration and discussion purposes only and do not constitute an offering to buy any interest in any investment product sponsored or managed by Concordia Capital LLC or any of its affiliates. An offering may be made only by the delivery of a confidential offering memorandum or definitive documents relating to any such product to appropriate investors.
Concordia Capital LLC has not been endorsed or recommended by the U.S. Securities and Exchange Commission or by the securities regulatory authority of any state or non-U.S. jurisdiction.
Concordia Capital LLC has not reviewed any website that may be referenced herein and is not responsible for and does not endorse their content or policies. Concordia Capital LLC and its affiliates make no representations or warranties, express or implied, regarding the accuracy, reliability, completeness, suitability, or other characteristics of the information presented on this website, and they have no duty to update or correct any such information. Any content on this website is subject to change without notice.
This site and the information in it is not provided for distribution purposes. The information contained herein is proprietary and confidential to Concordia Capital LLC and may not be disclosed to third parties or duplicated or used for any purpose other than the purpose for which it has been provided.
The information in Concordia Capital LLC’s site and reports is not intended to contain or express exposure recommendations, guidelines. Statements made in this website and release may include forward-looking statements. Unless otherwise indicated, Performance Data is presented unaudited, and should not be relied upon as a precise reporting of gross or net performance, but rather a general indication of past performance.
Investing with Concordia Capital LLC can be speculative and involves varying degrees of risk. Concordia Capital LLC may recommend margin trading or other investing techniques that have various risk of investment loss. Past performance is no guarantee of future results.
This material is not intended to represent the rendering of accounting, tax, legal or regulatory advice. A change in the facts or circumstances of any transaction could materially affect the accounting, tax, legal or regulatory treatment for that transaction. The ultimate responsibility for the decision on the appropriate application of accounting, tax, legal and regulatory treatment rests with the investor and his or her accountants, tax and regulatory counsel.
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Check the background of our firm and investment professionals on FINRA's BrokerCheck:
Legal Disclaimer:
The materials on this website are for illustration and discussion purposes only and do not constitute an offering to buy any interest in any investment product sponsored or managed by Concordia Capital LLC or any of its affiliates. An offering may be made only by the delivery of a confidential offering memorandum or definitive documents relating to any such product to appropriate investors.
Concordia Capital LLC has not been endorsed or recommended by the U.S. Securities and Exchange Commission or by the securities regulatory authority of any state or non-U.S. jurisdiction.
Concordia Capital LLC has not reviewed any website that may be referenced herein and is not responsible for and does not endorse their content or policies. Concordia Capital LLC and its affiliates make no representations or warranties, express or implied, regarding the accuracy, reliability, completeness, suitability, or other characteristics of the information presented on this website, and they have no duty to update or correct any such information. Any content on this website is subject to change without notice.
This site and the information in it is not provided for distribution purposes. The information contained herein is proprietary and confidential to Concordia Capital LLC and may not be disclosed to third parties or duplicated or used for any purpose other than the purpose for which it has been provided.
The information in Concordia Capital LLC’s site and reports is not intended to contain or express exposure recommendations, guidelines. Statements made in this website and release may include forward-looking statements. Unless otherwise indicated, Performance Data is presented unaudited, and should not be relied upon as a precise reporting of gross or net performance, but rather a general indication of past performance.
Investing with Concordia Capital LLC can be speculative and involves varying degrees of risk. Concordia Capital LLC may recommend margin trading or other investing techniques that have various risk of investment loss. Past performance is no guarantee of future results.
This material is not intended to represent the rendering of accounting, tax, legal or regulatory advice. A change in the facts or circumstances of any transaction could materially affect the accounting, tax, legal or regulatory treatment for that transaction. The ultimate responsibility for the decision on the appropriate application of accounting, tax, legal and regulatory treatment rests with the investor and his or her accountants, tax and regulatory counsel.
​
Check the background of our firm and investment professionals on FINRA's BrokerCheck:
RETURNS: January 31st, 2021 - February 28, 2021
Median account performance: +2.25%
Range: [+1.19% - +2.84%]
S&P 500: +2.61%
Disclaimer: Concordia Capital caters to clients with diverse risk tolerances. For a more meaningful interpretation of returns, please refer to your monthly account performance email.
RETURNS: January 31st, 2021 - February 28, 2021
Median account performance: +2.25%
Range: [+1.19% - +2.84%]
S&P 500: +2.61%
Disclaimer: Concordia Capital caters to clients with diverse risk tolerances. For a more meaningful interpretation of returns, please refer to your monthly account performance email.
RETURNS: January 31st, 2021 - February 28, 2021
Median account performance: +2.25%
Range: [+1.19% - +2.84%]
S&P 500: +2.61%
Disclaimer: Concordia Capital caters to clients with diverse risk tolerances. For a more meaningful interpretation of returns, please refer to your monthly account performance email.
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INSIGHT
What Our Firm Learned from 2021 IPO Markets
2021 was a hectic year for investors, startup founders, and financial intermediaries. Here are three important lessons our team (and many other investors) learned in 2021.
1. Don’t Overpay
In 2021, software M&A and growth capital investments all increased significantly. Growth capital invested in the U.S. totaled $78.3 billion in 2021, more than double compared to 2020. While this meant higher deal activity and more investment in software, it also meant much higher valuations for companies in the sector driven by demand and low interest rates. Throughout the year, numerous investors paid a premium for fast-growing startups that may have been quality companies but did not deserve the price tag.
As a result, these investors suffered more than they gained from the boom, and their funds underperformed. What we saw reminded us of a similar phenomenon that happened in the tech markets more than 20 years ago. In March of 2000, when the NASDAQ reached a price of $5,048 and valuations for companies like Pets.com were reaching record peaks, many venture capitalists were liberal with their investments and pumped money into companies that ended with “.com.” Less than two years later, many top tech companies had halved in value, falling back to more realistic valuations.
2. Raising at a High Valuation is Worse for All Stakeholders
At first glance, raising at a high valuation seems like a great deal for everyone besides the investor. However, our team found that oftentimes, founders who raise at a high valuation have a much harder time raising more capital in the future. Investors are more wary of the company’s fundamental value and fear overpaying. Focusing on doing less with more (the “day one” mentality popularized by Bezos) has shown to catalyze strong outcomes better than the approach of writing large checks hoping companies grow into the investment size. It prevents further dilution on the cap table and keeps existing investors in a more stable position. In general, it is better to ensure that all stakeholders benefit from a transaction, especially if raising more capital in the future is an important factor in growing the business.
3. Have a Strong Investment Thesis
Lessons from periods like the dot-com bubble and the 2020-2021 IPO surge highlight the importance of a robust investment thesis. While tempting, raising capital at high valuations can backfire, as seen with founders struggling to secure future funding and dilution concerns for existing investors. Anchoring decisions on solid fundamentals, market potential, and sustainable growth mitigates risks. The dot-com bubble's burst revealed the dangers of hype-driven investments, while the IPO surge showed challenges post-public offering. A well-defined investment thesis ensures prudent investor attraction and positions companies for enduring success amidst market volatility.
To understand these concepts and the danger involved, let's take a look at Olive AI, a startup that developed healthcare automation solutions for hospitals and doctor’s offices. Olive AI's quick ascent and subsequent collapse stand as an important reminder of the pitfalls that can accompany sky-high valuations based primarily on hype and the erroneous idea that actual core product market fit can be replaced by unlimited VC funding. Once known as an impressive digital health unicorn, Olive's trajectory shifted dramatically as it struggled with the consequences of its own success and the winding down of the COVID-19 pandemic. Despite initial promise and a valuation of $4 billion, Olive ultimately succumbed to the weight of its inflated expectations, announcing its shutdown amidst a flurry of financial struggles and strategic missteps.
The company's demise can be attributed to a combination of factors, ranging from a lack of focus and toxic internal culture to the unchecked influx of venture capital funds. Olive's rapid expansion and attempts to diversify its offerings led to a loss of sight of its core products and customers, exacerbating its financial woes. As the digital health funding boom of 2021 tapered off, Olive found itself unable to sustain its growth trajectory, culminating in layoffs and divestitures. The saga of Olive AI serves as a cautionary tale for the broader startup ecosystem, underscoring the dangers of prioritizing hype over substance and the perils of chasing lofty valuations without a solid foundation of sustainable growth.
NEWS/ INSIGHTS
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