Pronounced Destiny

The Destiny Tech 100

Destiny Tech 100 is designed to be an exchange-listed portfolio of the Top 100 High-Growth Tech Companies.🦄✨

The Destiny Tech100 will be a portfolio of the top 100 venture-backed private technology companies — providing everyday investors access to these private market leaders for the first time.

To be eligible for inclusion in the Destiny Tech100, companies must have been vetted by top US institutional investors and meet key health metrics. Further, the companies in the portfolio will generally have reached level of maturity and stability expected of a late stage venture-backed company.

Today, the Tech100 is a Maryland corporation that has raised funds privately. The fund may eventually become a registered fund listed on an exchange, which would grant unfettered access to any individual in the U.S. or around the world to buy a share of Destiny Tech100 without any requirements for assets, income, or net worth.

Portfolio Details

Name

Destiny Tech100

Listing Venue

To Be Determined

Annual Management Fee

2 - 2.5%

Target Portfolio

100 Companies

Current Portfolio

3 Companies

Current Portfolio

Portfolio construction is in progress and %’s will change as we add more companies. Data up to date as of October 12, 2021.

Current Portfolio

Cash

92.1%

As we continue to build our portfolio of exciting and transformative companies we will continue to publicly communicate our progress with you, and our community every step of the way.

These private companies are shaping our collective future, and we invite you to be part of their journey — and ours.

Eligibility Criteria

To be eligible for inclusion in the Destiny Tech100, companies must generally meet the following key health metrics:

Vetted by U.S. Institutional Investors

The company must have recently raised over $50M from reputable U.S. institutional investors.

Healthy Liquidation Preference Ratio

Company’s outstanding preferred stock liquidation preference must be healthy relative to current market capitalization.

No burdensome financial structures or heavy debt

Company’s financial structure must not be burdensome (e.g. ratchets with significant penalties, heavy debt loads) that would create undue risk of impending financial distress.

No opaque foreign legal structures

Company’s corporate structure and governance must be transparent and within the range of standard corporate structures.

No unsually high turnover, or cultural health red flags

Company’s executive team must not have had unusually high turnover over the past 18 months, or have internal cultural issues that concern us.

Investment Strategy

The Destiny Tech100 will simultaneously weight heavily into two categories of companies

Large Cap

These companies, valued at $10B+, provide stability to the portfolio while still sitting in the high growth tech category.

Medium Cap

As newer members of the unicorn ranks, valued between $750M - $10B, these companies have the potential to yield a 10-50x return.

Governance

The Destiny Tech100 board will make the final determination on the inclusion, pricing, and weighting of companies in the Destiny Tech100, based upon recommendations by its investment oversight subcommittee.

If a company does not meet the inclusion criteria , it will be excluded from the portfolio by default, and can only be included by an affirmative decision of the board.

Company Ranking

We track metrics that are indicative of each company’s health and growth which are used to refine the weighting of the portfolio.

Positive Investment Signals

After filtering companies for those eligible for inclusion in the Tech100, we track metrics that are indicative of each company’s health and growth. Along with market capitalization and secondary market trading data, these signals are used to further refine the ranking and weighting of the portfolio.

Destiny Tech100 will be diversified across 100 companies from the private market ecosystem. All the companies included in the portfolio generally have a proven track record and have reached the level of maturity and stability expected of a late stage venture-backed company.

Upside Opportunity Metrics

For many companies at this stage, there is a real opportunity to achieve a 10-50x return. These signals are used to refine the ranking and weighting of the portfolio with the purpose of maximizing these occurrences.

Cultural Health Metrics

A company’s culture is a critical part of recruiting and retaining a top-tier team.

Financial & Pricing Considerations

We are disciplined in our investing, taking into account transaction structures and market pricing dynamics to ensure best execution.

Upside Opportunity Metrics

For many companies at this stage, there is a real opportunity to achieve a 10-50x return.

Total Addressable Market Size

A large underserved market is a great place to be as a high-growth tech company. Larger markets create opportunities for larger outcomes.

Market Growth Rate

The size of the market is important, but often even more important is the rate at which the size of the market is growing.

Many of the iconic companies of the last generation achieved their success by dominating a smaller market and maintaining their advantaged position as the market expanded by orders of magnitude.

Company Growth Rate

It will come as no surprise to you that a company’s growth rate is highly correlated with investment performance. Beyond being a clear indication that a company has strong product-market fit and is executing well, growth rates are also highly correlated with future funding rounds, IPOs, and acquisitions.

Asset-Light, Software, and Platform based Business Models

We are big believers in the power of software to create revolutionary new ways of conducting commerce, running businesses, and communicating.

Destiny Tech100 will lean heavily into companies that are powered by software at their core. These kinds of companies tend to grow faster because of the low marginal cost of distribution, and tend to do so while delivering superior financial performance.

Network Effects Models, and Economies of Scale

What do Apple, Google, Microsoft, Facebook and Amazon all have in common? At their core, they all have the property that the larger they grow, the stronger their market position becomes.

These companies have enjoyed the benefit of their market position to grow to incredible sizes – to the point that today, all of them are subject to serious antitrust scrutiny.

While we are believers that competition is important for a functional and fair economy, there is no denying the fact that the best investments end up being ones that can benefit from these kinds of structural advantages.

Cultural Health Metrics

A company’s culture is a critical part of recruiting and retaining a top-tier team.

Health Diversity Metrics

We believe that talent is evenly distributed around the world across all races, genders, sexual orientations, and ages. Companies that best leverage the available talent pool tend to do better than those that do not.

Strong Cultural Health and Employee Reviews

We live in a world where employees have a voice and can share cultural issues on a wide rage of platforms. These reviews tend to be correlated with long-term success as they indicate that the company has been investing in creating a great culture.

Positive Enviornmental, Social & Corporate Governance (ESG) impact

Companies with an inspiring mission have an easier time recruiting the best talent. This creates a strong correlation between having a positive impact and long term financial performance.

Companies with a negative ESG impact also often have a harder time dealing with regulators, future funding rounds, IPOs, and acquisitions.

Companies that focus on creating a great culture tend to be long-term focused across the board.

Which aligns their goals with ours.

Financial & Pricing Considerations

We are disciplined in our investing, taking into account transaction structures and market pricing dynamics.

Structure of Transaction & Class of Stock

We take a structure-agnostic approach to investing, giving us the broadest availability of supply in prospective portfolio companies at attractive price. We analyze the structure of a given transaction and class of stock being purchased in the context of its price to evaluate its attractiveness.

Transparency of Financial Disclosures

We evaluate information on prospective companies from a broad range of sources, including directly from the company, secondary marketplaces, private company research firms, industry publications, and third-party commissioned analysis.

Recent & Historical Secondary Market Pricing

Data from secondary markets (Forge, SharesPost, CartaX, and others), independent broker-dealers, and investment banks can be incredibly valuable in determining approximations of market pricing.

This pricing may differ from the preferred stock price in recent financing rounds, and provides insight into what may be attractive or undesirable prices for a given transaction.