venturecapital

Crazy stat. 18 years for VCs to get fully liquid. I don't think it's sustainable. Secondary markets will become much more robust and liquid if incentives for going public don’t change in the medium term

Crazy stat. 18 years for VCs to get fully liquid. I don't think it's sustainable. Secondary markets will become much more robust and liquid if incentives for going public don’t change in the medium term https://x.com/jasonlk/status/1846216066260959710

Yeah this changes things. Luckily the energy towards early liquidity events via secondaries was strong already.

As tokenizing equity becomes more prevalent the admin costs of secondaries will plummet so I wouldn’t be surprised if the current concept of an IPO no longer exists in 20 years.

you probably don’t think about liquidity enough // it is what it is  // build value, not valuation

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Yup, most have 2-3, 1-year extensions but after that their options are limited to A) Liquidating positions in secondaries, B) Raising a Continuity Fund that buys the positions in the prior fund allowing LPs to cash out if desired C) Changing the LPA

Doesn't this make most 10yr funds not viable? They are obligated to return the capital right?

chad.degen.eth // Current: BizOps @ Alluvial,
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