Late-stage vehicle
Midas II: top companies, at a large discount.
The Midas I method, applied again: top late-stage companies, where there is a time-sensitive need for capital, at a large discount to the last round. Details in the memorandum.
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At a glance
- Strategy
- Top late-stage companies, at a large discount to the last round
- Structure
- Delaware limited partnership; CrossWork, LLC as general partner
- Portfolio
- 12 to 18 positions
- Deployment
- Paced across the investment period, position by position.
Midas II is open to verified accredited investors. Terms, including fees, are in the offering documents, available on request.
The value proposition
Side by side with a top-tier fund.
| A top-tier fund | Through CrossWork | |
|---|---|---|
| The companies | Late-stage category leaders | The same cap tables: companies valued at $1B+ with $100M+ in revenue |
| The price | The round price | Where there is a time-sensitive need for capital, at a large discount to the last round |
| The check | A large minimum to get in | A smaller minimum |
Terms are set out in the memorandum.
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Next step
Existing CrossWork investors can sign in to review Midas II and read the memorandum in the portal data room. New investors can request access.
The window
Why a large discount exists now.
Top companies are staying private longer than ever, and time-sensitive needs for capital arise along the way. In past cycles, the private window on each generation of leaders closed with the listing.
Cloud · 2010 to 2012
Cloud software leaders such as ServiceNow listed within a few years of their last private rounds, and the pre-IPO window on them closed with the listing.
Mobile · 2008 to 2013
Facebook listed in May 2012 and Twitter in November 2013. The late-stage private windows on both closed with those listings.
Now · 2026
Cerebras listed in May 2026. OpenAI and Anthropic have filed confidentially for IPOs. The window is narrowing.
Sources
- 4. SEC EDGAR, 2012: ServiceNow, Inc. prospectus (Form 424B4).
- 5. Facebook Newsroom, May 17, 2012: Facebook announces pricing of initial public offering; shares expected to begin trading on the Nasdaq Global Select Market on May 18, 2012.
- 3. SEC EDGAR, November 6, 2013: Twitter, Inc. prospectus (Form 424B4).
- 1. CNBC, May 13, 2026: Cerebras prices IPO above expected range.
- 2. TechCrunch, June 8, 2026: Following Anthropic, OpenAI files confidentially for IPO.
Construction
The mandate
What the fund buys, how much of it, and how long it holds.
- 01
Entry criteria
We look for companies valued at $1B+ with $100M+ in revenue and a visible path to liquidity: an IPO, a tender or a strategic sale. No pre-product bets. We invest where there is a time-sensitive need for capital, at a large discount to the last round.
- 02
Concentration
Twelve to eighteen names, each one argued for in writing and reviewed by operators who know the category.
- 03
Sizing and reserves
Position sizes reflect conviction and liquidity path. Capital is held back for follow-on opportunities and fund expenses rather than fully deployed on day one.
- 04
Holding through liquidity
We expect to hold through an IPO and to distribute cash or shares once positions can be sold or transferred.
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Focus
Where we look
Top companies in any sector that meet our criteria, and two areas in particular. Qualitative map; no holdings are implied.
Focus map
The infrastructure AI runs on
- Chips and computePurpose-built silicon is collapsing the cost of every AI task.
- Power and coolingAI data centers need more power, and new ways to remove heat.
- Data centers and networksThe buildings, fiber and switching that connect it all.
AI delivered as a service
- Outcomes, not licencesCompanies that sell the finished work to the end customer, priced as a service.
- Services rebuilt on AIService businesses whose delivery AI makes faster, cheaper and better.
- Physical AIMachines that do the work in factories, warehouses and fields.
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Discipline
Discipline: two positions, two lessons
Still held
Stripe
Held for durable, profitable payments infrastructure that sits underneath a growing share of internet commerce.
Written off
Thrasio
We wrote the position off. The lesson we apply now: organic, low-debt growth.
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Archive
On the record in 2011. Research on Facebook and Twitter, months before the Facebook IPO.
In November 2011, months before Facebook listed and two years before Twitter did, we published research on both under the MidasLP name.
- Nov 2011MidasLP research: Facebook
- Nov 2011MidasLP research: Twitter
- May 2012Facebook IPO
- Nov 2013Twitter IPO
“Facebook is expected to own 72% of all social network advertising revenues and 6.1% of worldwide online ad spending in 2012.”
“Twitter is a real-time information network that allows its users to connect to the latest information about anything they find interesting.”
Original MidasLP research, November 2011.
Sources
- 5. Facebook Newsroom, May 17, 2012: Facebook announces pricing of initial public offering; shares expected to begin trading on the Nasdaq Global Select Market on May 18, 2012.
- 6. Intercontinental Exchange (NYSE), November 7, 2013: Twitter celebrates initial public offering and first day of trading on the New York Stock Exchange.
Risk
Risk factors (summary)
Investing in the fund involves substantial risk. The full risk factors are in the memorandum; read them before investing.
- Loss of capital. You can lose some or all of your investment.
- Illiquidity. Interests cannot be readily sold or redeemed; plan to hold for the full term.
- Exit risk. IPOs, tenders and sales may not happen, or may happen later or on worse terms than expected.
- Valuation uncertainty. Private-company prices are estimates and can change sharply.
- Concentration. A portfolio of 12 to 18 names means each position matters.
- Transfer and consent risk. Transfers of private shares need issuer consent and can be blocked, delayed or repriced.
- Company and technology risk. Products, models and markets can fail or be overtaken.
- Market risk. Public-market conditions affect listings, lock-up expiries and prices.
- Financing and dilution. New rounds can dilute positions or rank ahead of them.
- Access and deployment. The fund may not find enough suitable positions on acceptable terms.
- Information limitations. Private companies disclose less, and less often, than public ones.
- Key persons. The fund depends on a small team and its advisor network.
- Conflicts of interest. The general partner and its affiliates manage other vehicles and relationships.
- Fees, expenses and taxes. Fees, carried interest, expenses and taxes reduce what investors receive.
- Forward-looking statements. Plans and expectations here may not be achieved.
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Three edges
Why we can reach what others cannot
- 01
Access through the board
Positions come through an advisory board of former operators, not through public channels.
- 02
An operator bench
Advisors bring deal flow, sit in diligence and open doors to management.
- 03
Late-stage discipline
Revenue, a liquidity path and price discipline before conviction.
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Discipline
Real companies. Real revenue.
What we buy, and what we do if the cycle turns.
Many investors worry about an AI bubble. So do we. That is why we look for companies with real revenue, real customers and a visible path to liquidity, rather than pre-revenue stories.
Bubbles are a pricing problem; discipline on revenue and price is the answer.
Roughly $100M+ in annual revenue and a $1B+ valuation, with a visible path to liquidity.
- Top late-stage companies
- Valued above one billion dollars
- Above one hundred million dollars of revenue
- A visible path to liquidity
- Bought at a large discount, through the advisory board
If the cycle turns
- Real revenue only.
- We also hold non-AI businesses that benefit from AI's cost savings.
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