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

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

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

That's why Sequoia bought back Stripe shares from it's LPs:

That's why Sequoia bought back Stripe shares from it's LPs: https://www.axios.com/2024/09/09/sequoia-capital-stripe

I expect a lot of folks to raise growth funds to buy their own bags too

Tricky. LPs don't love cross-fund investing, that's why Continuity funds re preferred over Growth funds (cleaner structure, less conflict of interest). Growth funds are also trickier to raise in current cycle (bloated valuations in late stage). That's why CRV gave money back to LPs

Tricky. LPs don't love cross-fund investing, that's why Continuity funds re preferred over Growth funds (cleaner structure, less conflict of interest). Growth funds are also trickier to raise in current cycle (bloated valuations in late stage). That's why CRV gave money back to LPs https://techcrunch.com/2024/10/02/venture-firm-crv-returns-275-million-citing-overvaluation-of-mature-startups/