Venture Capital Secondaries – What Are They And Why Should Investors And Startup Employees Be Aware Of Them?

Exits aren’t easy these days. As shown in the graph below, over the past decade, IPOs have comprised the majority of VC exits. The IPO window has shown signs of thawing but has yet to truly reemerge. Though M&A is another option, on a macro level it isn’t large enough to offset a tepid IPO environment. So how can investors and startup employees achieve liquidity? It turns out there is a third option: secondaries. This article will explore what VC secondaries are, their growing prevalence, and what you should consider if selling in this market.  What Are VC Secondaries? I…...