Investors are turning to private deals

Investors Lyft

Two well-known investors in Lyft have cut their holdings in the ridesharing company, underscoring how investors are turning to private deals to find liquidity amid a dearth of tech initial public offerings. Andreessen Horowitz and Founders Fund, both venture capital firms, each sold about $75 million worth of Lyft shares to Prince Alwaleed bin Talal of Saudi Arabia… The selldown is unusual because Andreessen Horowitz and Founders Fund have both been prominent supporters of Lyft, the ridesharing company locked in competition with Uber in the US market. But as Silicon Valley IPOs have slowed to a trickle, some tech investors have sought ways to take money off the table and get liquidity for their investments sooner rather than later… This transaction took place as part of Lyft’s December fundraising round, in which the company raised $1 billion at a valuation of $4.5 billion.

 

Leslie Hook and Richard Waters

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