Market turmoil

When I introduce Secfi to other operators and investors, one of the questions I almost always get is how the market effects our business. Our financing contracts require clients to only pay us back after an IPO or an exit so there are of course market forces in play. A tough market means less IPOs meaning we get paid back less.

It’s a valid concern, but something that we aren’t too concerned about. We know market downturns are going to happen so we’re always prepared for when they come. While we can’t time or predict the market, we know that corrections happen often and prepare for them accordingly.

Furthermore, while we cannot ignore 50%+ drawdowns in tech, we also play the long game. We believe in the companies we partner with in the long run despite what may be happening in the markets today. Innovation does not stop when there is a correction in the market. We are betting in the future and the future is tech.

Our financing is made to protect clients in these downturn events. While it may be stressful to hear that an IPO has been pushed back, clients can rest easy knowing that they’re not on the hook to pay back anything during these periods of correction.