HomeMost PopularBank On U.S. Innovation With 15% Yield: TriplePoint Venture Growth

Bank On U.S. Innovation With 15% Yield: TriplePoint Venture Growth

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Flag of USA on a processor, CPU Central processing Unit or GPU microchip on a motherboard. US firms have become the latest collateral damage in US-China tech war. US blocks sales of AI chips to China.

Co-authored by Treading Softly.

America has always been a hotbed of invention and innovation, with numerous entrepreneurs striving to achieve the American Dream. From everyday devices to groundbreaking advancements, America has nurtured countless remarkable innovations.

If you think about it, some of the simplest innovations have had the greatest impact. For instance, the inventor of the intermittent wiper blade system had to fight the big automakers for years to receive fair compensation for his invention.

Today, most inventors turn to venture capital firms for funding their startup projects. These firms provide the necessary capital upfront in exchange for potential substantial returns in the future.

Within the market, there are opportunities to invest in companies engaged in venture capital activities and earn attractive income. Some of these companies offer equity investments, while others provide loans or capital with interest requirements to protect their investments.

One such opportunity is TriplePoint Venture Growth (NYSE:TPVG), a Business Development Company (BDC) that focuses on venture-backed companies. TPVG primarily provides lending to companies in the late stages of the venture capital cycle, looking for near-term liquidity events such as IPOs or acquisitions.

The venture capital sector faced challenges earlier this year due to rising interest rates, poor IPO conditions, and the collapse of Silicon Valley Bank. However, TPVG has benefited from its floating-rate loans and fixed-rate debt, resulting in increased return on assets and return on equity.

While TPVG has experienced some credit losses and bankruptcies among its portfolio companies, the majority of its investments are performing well. Management expects the situation to improve over the next few months, with some troubled companies already showing signs of recovery.

TPVG’s NAV (Net Asset Value) may recover as troubled companies resolve their issues and TPVG’s equity portfolio starts seeing gains again. The company’s strong Net Investment Income (NII) has consistently covered its dividends, and any recoveries or successful IPOs will further boost its NAV.

Investing in TPVG offers an opportunity to benefit from the management team’s selectivity and expertise in the venture capital sector. By capitalizing on the current market conditions and the potential for future innovation, investors can secure a double-digit yield while supporting American entrepreneurship.

Conclusion

TriplePoint Venture Growth presents a compelling investment proposition for those looking to participate in the venture capital sector. With a proven track record and a focus on high-potential companies, TPVG offers the potential for attractive returns. By investing in TPVG, individuals can contribute to fueling innovation in America while earning a strong income. It’s a win-win situation that aligns financial goals with the pursuit of the American Dream.

Take advantage of the Income Method and explore the beauty of income investing with TPVG.

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