Myth #1: If It’s a Secondary Deal, It Must Be at a Discount
If I had a penny for every time I’ve heard the notion that secondaries equal discounts, I’d be a rich rich man. The perception that secondary deals automatically come with a markdown has persisted for years (and it’s not entirely without reason). Let’s zoom out to understand why this myth took hold in the first […]
Myth #2: Secondary sales are a bad signal
If founders are selling, something must be wrong I’ll admit, before living and breathing the secondary market, I too used to believe this pervasive myth. After all, it seems to make sense: Wait… they’re selling? Are they trying to run away? Do they know something we don’t? Will leadership push as hard after taking chips […]
Taking Control: The Informed LP’s Approach to Secondaries
When Limited Partners (LPs) explore the secondary market for their fund positions, conversations often begin with a seemingly straightforward question: “What’s the typical discount I should expect?” This focus on discount percentages, while understandable, misses the more nuanced reality that underpins truly successful secondary transactions. Each LP position represents a unique ecosystem of companies, commitments, […]
LP Secondaries: Emergency Exit or Strategic Option?
Professional investors will tell you that missing great investment opportunities is part of the job. We all have a “Facebook”, “Google” or these days, a “Wiz” story to cry about. What investors (professional or otherwise) don’t talk about is the missed opportunities to sell an asset at the right time for the right reasons. This is […]
Secondary deals and racing cars: building long term winners
VC money provides the fuel, secondary transactions the oil
What are direct secondary markets?
As the venture market continues to grow and mature, so does its direct secondary markets
The Game Has Changed
In the face of a downturn we must avoid the instinct to solely play defense, nor should we simply try harder- playing yesterday’s game