2471: Shaires Holdings: Bringing Anthropic, Stripe and ByteDance to AIM Investors

Speaker A: Do you hear that? That sound right? That means that summer's officially here. It means that grown adults just sprint into the street for a frozen dessert shaped like a cartoon. But this summer, Mint Mobile has a better treat. Every plan, including Unlimited, is $15 a month. And unlike ice cream, it won't, uh, drip down your wrist or look nothing like the picture.

Speaker B: Does anyone have any cash?

Speaker A: Give it a try@mintmobile.com Switch upfront payment

Speaker C: of $45 for 3 months, $90 for 6 months or $180 for 12M month plan required. $15 per month equivalent to taxes and fees. Extra new customer offer for initial plan term only. Greater than 50 gigabytes. Me slow when network is busy. See Terms.

Speaker A: Hi, Ryan Reynolds here for Mint Mo. Looking for a beach read this summer. May I suggest your big wireless bill? It's got suspense, mystery, a slightly flat emotional arc, and a shocking twist where you realize you've been overpaying the entire time. Fortunately though, Mint's story is better. Every plan $15 a month, even unlimited. That's it. Happy ending, zero tears. Give it a try@mintmobile.com Switch upfront payment

Speaker C: of $45 for three months, $90 for six months, or $180 for a 12 month plan required $15 per month equivalent taxes and fees. Extra initial plan term only greater than 50 gigabytes. Me slow when network is busy. See Terms.

Speaker D: The Vox Markets podcast. Nothing in this podcast is intended as investment advice and the people in this podcast may hold positions in the stocks they talk about. Do not buy anything based solely on a tip or recommendation. Please do your own research.

Speaker B: Shares holdings is building an AIM listed gateway to some of the world's most valuable tech private technology companies including Anthropic, um, Stripe Binance and Figure AI. Joining me to explain the strategy and the opportunity for public market investors is the CEO of XFL Vec. Welcome to Vox Markets.

Speaker E: Thank you for having me.

Speaker B: It's great to see you and thank you. I know you're busy, but, um, now for anyone coming to shares for the first time, what is the company and how does an AIM quoted business end up with exposure to such great, ah, companies such as Anthropic.

Speaker E: Well, it's very intentional. Uh, our purpose is to really democratize access to some of the best private companies, you know, that are being built as we speak in this, you know, AI revolution. Yeah, if you will. Um, AIM is a, you know, is a perfect frontier market to pair with an endeavor such as, like, such as this. Because there has, there's nothing like this in the uk. Uh, candidly being a public entity gives us the level of transparency that a lot of the companies uh, that are in our portfolio desire. They want to know who the investors are, they want to know that they're long term investors alongside them. And uh, to be able to provide that access to high quality private companies at this early stage is uh, is, you know, is a real need that we're trying to fill, particularly in the uk.

Speaker B: So why these seven companies and why now? What's made this the right point in the AI cycle to build the portfolio rather than two years ago, for example?

Speaker E: Well, that's a great question. Uh, you know, the first wave of any cycle, uh, is the pioneer wave. It's where you take ultimate risk to make sure that you can create those, uh, you know, those new leaders. That's what was occurring over the last five years. Where we are today is there have been uh, there has been an order established. There are these real legitimate companies that are on their way to the, call it the high growth, the hypergrowth phase. Uh, and so it's a perfect time from a risk reward perspective where you're not taking, you know, viability risk, you're really capitalizing on hopefully the, the growth trajectory that they all bring to, to bear here over the next five, 10 years.

Speaker B: You mentioned at the top there, there's a unique exposure, but I mean, you know, investors in the uk, you know, they can get tech exposure uh, to private technology through London Trust for example. What's the difference about the way shares is, is put together?

Speaker E: Well, that's another good question. I mean our strategy, which we believe is differentiated is that uh, everything we own, um, will be a concentrated portfolio of private AI frontier and AI beneficiary names. So it's not commingled with a variety of other situations. So firstly, I think we're pure play. Secondly, we are far more concentrated. Uh, right now we have seven companies in our portfolio that probably will, will grow to about 15 when we're all said and done. But the idea is to pick the right companies that we think have the best shot, uh, to become leaders and provide real returns, significant returns, uh, uh, to our investors and stakeholders over the long term.

Speaker B: Now uh, I was fascinated to read that. One of the more unusual features I'd say is that you can issue your own shares in exchange for private stock rather than paying cash. Talk me through how does that work and why, why would a founder or an early employee want to take that?

Speaker E: Well again, you know, so the whole idea Was to try and democratize it, to bring as many people who have a vested interest in making the cycle as successful as possible together. You know, so on one side we have the investors who perhaps you know, make an investment in the shares uh, of our company. And on the other side, you know, we, we, we are really good partners with the companies whom, whom with uh, you know, we have partnered up and we are investing in. So you know, a lot of these companies have experienced a significant increase in the valuation since they started. So if you were employee number five in company X, you know, on paper you have made uh, a lot of money. But in, in actuality there's not a lot of liquidity. There's not a, there's a, there's not a real easy way for you to cash in that, to perhaps buy a home or send your child to private school or whatever else you might have as personal objectives. So providing a pathway to liquidity where they can exchange their concentrated position in one stock, uh, into a portfolio of huh, like kind stocks that they know are a great basket to have in the long term. Uh, yet if they need to liquidate some they can, you could, they can go out and sell those shares in the market, uh, at the quoted price. So you know, I think it's uh, it's developing that overall ecosystem that brings in all of these constituents and really build together for the long haul.

Speaker B: Now the names on your list there, I mean these are companies that you know, have uh, a long list of suitors and people looking to invest in them. And you know, they've got a, they can choose, they can pick and choose. Why would they choose shares over, you know, what does shares offer them, uh, make them so willing to let you in through the door?

Speaker E: You know, I'd say first and foremost, you know, uh, everything's about the people. So you know, you build relationships over the uh, you know, over your business career and you build a track record and reputation. So you know, at a time when you know, the high profile companies have a choice of whom they take uh, capital from, they'd rather take it from people that they know are long term can see their objectives and have seen them before. Right. So uh, one, I'd say that's uh, that's a big part of it. Uh, you know, our management team and board have extensive relationships at the company level. Uh, not just for the companies in our portfolio, but also those in our pipeline. So I say that that's the first thing. The second is what I, you know, as we talked about this in kind of, um, you know, uh, exchange value, uh, has some real merit for people, uh, you know, at the company. So you know, uh, today, when you have your choice of choosing who you would like to come alongside you on the cap table, you know, why not take somebody who not only provides capital on the way in, but also, you know, provides an orderly way for your stakeholders to cash out on the way out, uh, and not have to wait for one singular event, uh, like the uh, the IPO of the underlying company.

Speaker B: Now, you know, you're, you're a distant cousin from across the pond, let's say an American and you know, uh, Rizzy Traverse, they're a Silicon Valley firm. Investors in the UK are going to be asking themselves, why is this coming to London? Why build this in London? What did aim, you know, what does Lane let you do structurally that other venues wouldn't, you know?

Speaker E: Yeah, firstly, you know, you want to go to places where you're invited rather than to be a me too. So, you know, there is a need in the UK market in particular that has not been able to participate in this wave thus far. So, you know, go to a place where, where there's an opportunity. Um, secondarily, you know, there's been a lot of effort, uh, by the exchange and others to create a, uh, conducive environment for high quality, uh, companies to come and list on the aim. So you know, we can, we can build this company the way we want to build it for the long haul combined, uh, you know, interest and alignment of interest for, uh, you know, for our shareholders and ourselves. You know, this is an internally managed company. Uh, we only make money so long as our shareholders make money. So with that sort of alignment of interest, uh, you know, the vehicle that the, the AIM allows us to be is much central to our core thesis of building together.

Speaker B: Now you've used AIM's new capital access window alongside the institutional placing and with retail offering running, you know, at the same time. What is that mechanism and why did you use it?

Speaker E: So the Catalaxis window was one of those, you know, innovations that uh, made it really interesting for us. As we were investigating, you know, which venue, um, several things, uh, like the Capital Access Window kept bringing London back to the forefront for us. Um, the principal idea behind uh, that is to create uh, a orderly environment where people can make the decision to invest, where the information is static, uh, where there's not a lot of volatility or trading in the stock, where an artificial factor starts to affect a fundamental decision of making an investment in this company. So the capital access window obviously results in a trading halt of the stock while we are having these conversations with both our retail and institutional, uh, stakeholders or potential stakeholders. And uh, the second advantage is everybody gets in at the same price. So there's an alignment of interest there. Again,

Speaker B: now the holdings are private obviously, and by their very nature there's no live price for any of them. So how do you value the portfolio and uh, how often will investors actually be able to see sort of a net asset value?

Speaker E: Yeah, again, uh, yet another good question. The whole idea is to create um, a fair mechanism to value the portfolio. Uh, the, you know, the most reasonable way to do that is to price the value of that uh, investment at the same valuation as the last round that the company raised primary capital from a variety of different, you know, uh, institutional sources. Okay, so that's the best sort of mark though that we can establish. Um, shares is actually retaining a third party independent, uh, firm to make uh, an independent appraisal of our, uh, of our assets and our investments on an annual basis as is required. And that will be published, uh, you know, ah, as soon as the, the year is done. Uh, in addition to that, management is going to maintain a quarterly estimate of our value. We will not move up the valuation of our initial investment until there's a bona fide, you know, third party mark like a, uh, an investment round. Uh, the only exception to that would be, you know, private, uh, companies of very large magnitude that have an active secondary, uh, market. Uh, but that again will be left to our independent appraiser to determine what that value is.

Speaker B: Now this sounds like a unique opportunity for investors, but you know, at the same time, you know, as an investor you've got to ask yourself, or, you know, what are the main risks, you know, what would invest or what they should, should they be weighing up here?

Speaker E: Well, I mean, uh, you know, there's a fairly lengthy, uh, list of risk factors which I would encourage them all to take a look at. But uh, principally, you know, this is a, this is a new venture. So there won't be, you know, massive amounts of liquidity in the stock and the trading. And as is the case with, you know, investing in any private company, uh, there's always a risk of capital. So I'd say those are the two that, you know, uh, I would, I would make sure that people take into account before they, they make a decision to join us in this journey.

Speaker B: So as of today, you've got seven holdings, um, and you've talked about growing out to around 15. Uh, so talk to me. What does the next 12 months look like?

Speaker E: Well, um, you know, that's obviously to be determined. Our intention is to be very, very, uh, you know, judicious about each of the companies that we include in the portfolio. So I would see us expanding potentially the stakes that we have in the seven companies today, and then, uh, probably at the cadence of, you know, probably two companies a quarter over the next four quarters to add interesting new names, uh, that would add, uh, a lot more texture and potentially more upside to the, to the core portfolio.

Speaker B: Well, Vec, it's been fascinating talking to you, and thank you so much for your time. I really enjoyed it. I'm really looking forward to catching you, uh, with you again soon.

Speaker E: Of course. Glad to be here.

Speaker D: The Vox Markets podcast. Nothing in this podcast is intended as investment advice. And the people in this podcast may hold positions in the stocks they talk about. Do not buy anything based solely on a tip or recommendation. Please do your own research.

Speaker F: Here on the job site with Dale, who's a framing contractor.

Speaker E: Hey, good morning.

Speaker F: Dale traded up to Geico Commercial Auto Insurance for all his business vehicles. We're here where he needs us most.

Speaker E: Yep, they sure are.

Speaker F: We make it easy for him to save on all his insurance needs, all in one place with coverage that fits his business and bottom line. Oh, I shouldn't have looked down.

Speaker E: It's all right.

Speaker F: We're so far up here.

Speaker C: Look at me.

Speaker E: Take a deep breath.

Speaker F: No, I'm good. So good.

Speaker E: Get a commercial auto insurance quote today@geico.com and see how much you could save. It feels good to Geico Looking for

Speaker C: the best of vrbo. Discover vacation rentals of the year. Top quality homes guests love from across the country. Our curated list takes the guesswork out of planning so you can spend less time searching and more time packing. Book your next day now with VRBox.