In this podcast episode, the focus is on the rapidly expanding market of venture capital secondaries, where current investors sell their shares in private companies. Guest Ravi Viswanathan, founder of a venture secondary fund, shares insights into what’s driving this growth. Key factors include the longer duration companies remain private before going public or being acquired, the increasing need for liquidity among investors, and the mismatch between fund lifecycles and investment timelines.
Ravi highlights his firm’s strategy, which emphasizes building strong relationships with company management and providing operational support, rather than just seeking discounts. He discusses the changing landscape of pricing, the different types of sellers—such as venture capital firms and individual investors—and the rising significance of relationships between general partners in this evolving market. The conversation also addresses the challenges posed by information asymmetry and transfer restrictions in secondary transactions, as well as the promising future of this sector.
