The secondary venture capital market has been on the same roller coaster ride as the broader venture capital market in recent years, but looks set to disintegrate in 2023.
Like VC in general, the secondary market was active in 2021 with a slew of new players, does that sound familiar? – entered the space as cross-investors and traditional venture capitalists looking to buy secondary holdings to access interesting companies where they could not access primary capital. As the market shifted in 2022, shadow companies stabilized at the same volume as their venture capital backed counterparts. amid conflicting assessments and expectations.
But while it’s unclear whether the risk market has bottomed out — some investors believe it has, while others fear the worst is yet to come — the supporting companies are collapsing. Data shows that the number of transactions picked up again in the second half of 2022, and many investors think 2023 could be a big year.
Source: La Neta Neta
Jason Jack is an experienced technology journalist and author at The Nation View. With a background in computer science and engineering, he has a deep understanding of the latest technology trends and developments. He writes about a wide range of technology topics, including artificial intelligence, machine learning, software development, and cybersecurity.
