Turbine, a fintech startup founded to help venture capital investors gain access to liquidity without offloading their fund stakes, has emerged from stealth with $22 million in equity funding.
The round was co-led by Alpha Edison and TTV Capital, with participation from Fin Capital, B Capital, and Sozo Ventures. The company also secured $100 million in debt financing from Silicon Valley Bank to support its lending activities.
Solving a Liquidity Crunch for LPs
In the wake of a sluggish IPO market and fewer VC exits, limited partners (LPs)—particularly individuals and family offices—have struggled with locked-up capital in VC funds. That challenge is what inspired founder Mike Hurst to launch Turbine. After selling his startup Exactuals in 2018, Hurst invested heavily in venture and tech stocks. When markets dipped in 2022, he found himself short on cash despite holding valuable fund positions.
Rather than liquidate at a loss, Hurst built Turbine, which offers credit lines secured by LP interests in venture and private equity funds. Similar to how margin loans use stock or home equity lines use property value, Turbine allows LPs to borrow against the appreciated value of their stakes—without giving up future upside.
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How It Works
For example, if an investor initially put $3 million into a VC fund and that stake is now worth $10 million, Turbine allows the investor to use the $10 million valuation as loan collateral. The current interest rate is around 9%, which, while not cheap, is still more attractive than selling on the secondary market at a steep discount.
“We’re offering LPs a way to access cash without compromising their long-term gains,” said Hurst.
TTV Capital’s Gardiner Garrard said he had long looked for a solution like this:
“LPs often came to me needing liquidity, but there weren’t great options. Selling their fund stake would usually mean accepting a significant discount.”
Early Customers and Expansion Plans
Turbine’s first adopters are the five VC firms that invested in the company, with their general partners already offering this credit option to their LPs. The startup now plans to scale its services to more VC and PE firms across the ecosystem.
As venture investors continue to navigate a tight exit environment, Turbine is positioning itself as a critical tool for financial flexibility—providing capital without forcing LPs to sacrifice valuable long-term positions.
