E131: Photorealistic avatars; Tiktok, HeyGen, ElevenLabs | 2ndary market dislocation; Revolut, ScaleAI, Anduril, Groq, Epic Games | Tender offers good or bad; DPI for VCs, employee liquidity, structured tenders

Send us Fan Mail00:16 - Photorealistic avatars- Full pod at www.youtube.com/@thisweekinpreipostocks- Tiktok avatars for advertising announced- HeyGen round at $500m (built on top of OpenAI/ElevenLabs, $24/month subscription fee, 40,000 customers, $35m ARR in 2023)- Dillon uses ElevenLabs to publish research video in chinese and Spanish- Disruption in the entertainment industry by AI-generated content and avatars18:42 - More secondary market dislocation- Full pod at www.youtube.com/@thisweekinpreipostocks- Revolut at $40b, secondary at $23b … 75% higher vs secondary- UP dislocation: Scale AI closed $13.8b valuation, secondaries at $7.4b last week- DOWN disclocation: Anduril targeting $12.5 valuation, secondaries at $13.2b and Groq targeting $3.0b valuation, secondaries at $4.4b- Are secondaries misjudging company valuations or are companies “managing” their valuations- Time between primary rounds is a factor to secondary market price accuracy24:08 - Tender offers – good for companies, good for investors?- Full pod at www.youtube.com/@thisweekinpreipostocks- VCs need liquidity, DPI back to LPs (distribute cash back to investors)- Employees need liquidity; options expire, life (house, wedding, kids in college, etc)- Structured tenders (e.g. a tender every year or every 6 months) is smart; natural price for stock, no surprises/volatility once stock is public and out of blackout window- Secondary funds are popping up all over the place … SecondaryLink highlights a new fund every week that is raising billions to buy these assets- No IPO for Stripe? “…tenders to happen annually going forward…”