Welcome back to the year 2014

Welcome back to the year 2014.

FIFA World Cup has the Indian football fans in a chokehold, while movie fans throng to the silver screens all year to watch the best Hindi films of the year: Queen, Mary Kom, PK, and more. The tech fans are counting down the days to the much-anticipated iPhone 6 launch in India. Apple’s AI assistant Siri is the most advanced artificial technology and users feel it possibly cannot get any better than this.

But,

Was it possible to order sushi online?
No.

Or an iPhone delivered to your doorstep in 10 minutes?
No.

Step out of your home without credit cards or cash?
No.

Pay zero brokerage fee on online stock trading?
No.

Stream any movie or TV show you want online?
No.

Engage in a back-and-forth voice communication with AI?
No.

All of this felt too good to be true, until Zomato, BlinkIt, UPI, Zerodha, Netflix and OpenAI made it happen in just a decade.

Back then, the future we live in today seemed unimaginable.

Back then, asking your phone to write an email or personalize a resume seemed like science fiction. Fast forward to today, and OpenAI, founded just a year after 2014, has become a pioneer in the field of Artificial Intelligence.

OpenAI’s technology is now woven into the fabric of our daily lives in ways we might not even realize. It helps us write more compelling emails, explain complex topics, and even give movie recommendations! These are just a few regular examples – OpenAI’s reach extends to content creation, code generation, and even artistic endeavors. Sora, OpenAI’s pathbreaking generative artificial intelligence model, specializes in text-to-video generation of up to 60 seconds featuring highly detailed scenes and complex camera motion. And with the latest GPT-4o, GPT-4o, a new kind of AI model that you can communicate with in real time via live voice conversation, the true impact of OpenAI’s vision is yet to be witnessed.

And remember those rare nights when ordering food online felt like a special treat? It was a decision reserved for special occasions, a break from the usual routine of home-cooked meals. Imagine tired parents, longing for a night off from cooking, or families celebrating a special occasion. Zomato saw the potential to make this a more accessible and diversified option, not just for special occasions, but for busy weekdays too. In 2015, Zomato ventured into food delivery, forever changing the game.

Who could have predicted that a service like Zomato would become so ingrained in our daily lives, that one could order Mughlai and Japanese, two extremely different cuisines from one refined app? Today, it’s an expected service. This convenience, once unimaginable, is now an essential need for modern India, making weeknight meals, last-minute gatherings, and even just a break from the kitchen routine a breeze.

The entertainment world too has seen its share of long-term plays. Take Sony’s Playstation 4. Believe it or not, the development of this beloved console began in 2008, a full six years before it hit store shelves. Gamers patiently awaited its release, knowing that Sony was crafting something special. The wait was undoubtedly worth it. The PS4 exploded in popularity, offering stunning visuals, immersive gameplay, and a treasure trove of unforgettable titles. A decade later, the arrival of the PS5 felt like the culmination of that long journey, further revolutionizing the gaming experience.

The story doesn’t end there! Gamers around the world are now eagerly awaiting the release of Grand Theft Auto VI. Grand Theft Auto V, released in 2014 for the PS4, remains a cultural phenomenon. Even a decade later, players are engrossed in the sprawling world of Los Santos, a testament to the enduring quality of Rockstar Games’ work. The wait for GTA VI may feel agonizing, but for those familiar with Rockstar’s commitment to excellence, the anticipation only heightens the excitement.

Even in the realm of scientific exploration, patience has yielded extraordinary results. Let’s take a moment to celebrate the incredible journey of our nation’s space agency, the Indian Space Research Organisation (ISRO). Back in 2008, Chandrayaan-1 dared to dream, making us the fifth country to touch the lunar surface, the first to reach the moon’s south pole, and prove the existence of water on the Moon – all in one go. While the landing wasn’t soft, it was a giant leap for India, putting us on the world map of lunar exploration. This wasn’t the end of the story, but the beginning of an even more inspiring chapter.

For over a decade, ISRO persevered, meticulously planning and building on the knowledge gained from Chandrayaan-1. Fast forward to 2023, and Chandrayaan-3 etched its name in history. Vikram, the lander, successfully performed a soft landing in the lunar south pole region, a feat that took over 15 years of relentless work by countless ISRO scientists and engineers.

A feat that scratch that
A feat that humanity has never achieved before.

This wasn’t just a scientific triumph; it was a moment of immense national pride for every Indian.

We tell these stories to drive a crucial point: the most rewarding visions often take a longer time to mature. The initial spark of an idea may seem far-fetched, but with sustained effort and long-term vision, it can blossom into something truly groundbreaking.

What if you had a time machine, one that whisks you back to 2014? You’d excitedly explore avenues to invest in a promising startup called Zomato, wouldn’t you? But there’s a catch: you can’t sell your stake for, say, a night out with friends fueled by their delicious food deliveries (which wouldn’t exist yet!). Sounds crazy, right?

Welcome to the world of private markets. Here, investments can feel like putting your money in a time-locked vault – you know it’s in there, but you can’t readily access it. It’s the illiquidity factor, often seen as a drawback.

But what if we look at it from a different angle?

Think back to the groundbreaking PlayStation 4. Its development wouldn’t have been possible without the time Sony took to meticulously craft a gaming masterpiece. This journey from good to great often requires a significant investment of time and resources – something readily available in the private markets.

This extended investment horizon can be daunting for some investors accustomed to the quicker pace of public markets. However, this very illiquidity – the inability to easily buy or sell your investment – presents a unique set of advantages for those willing to play the long game.

• Catch Lightning in a Bottle
  For starters, private markets give you a chance to invest in companies with the potential for explosive growth. These ventures often operate in disruptive sectors with the ability to revolutionize entire industries. Institutional investors, the primary players in private markets, expertly identify and diversify their investments across high-performing funds. This strategy aligns the interests of investors with the funds they invest in. Companies in the private space can boldly prioritize long-term value creation.
• Marathon, not a Sprint
  Public markets involve a single upfront investment, while private markets function through staged commitments. In private markets, you invest capital over a set period (drawdown period) followed by a longer period where you receive returns. This creates a multi-year investment cycle compared to the two-transaction model of public markets.
• Locked In, Leveled Up
  Furthermore, illiquidity often translates to an illiquidity premium. Since investors are committing their capital for a longer period, they get to navigate through cycles of the market, typically compensated with potentially higher returns and opportunities for outsized gains when these companies eventually exit the private market through an IPO or acquisition at multifold valuations.

Frequently Asked Questions

Put simply, yes, private markets are not for everyone. The longer investment horizon and illiquid nature require patience and a tolerance for risk. However, for those who understand the potential benefits, private markets can be a powerful tool for building long-term generational wealth.

If you think about it, investing is pretty much like gardening. You either have the chance to buy a blossoming flower, beautiful but with limited growth potential, or buy the seed and with a pinch of patience, enjoy an overflowing orchard in due time.

After all,
All good things come to those who wait.