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Alternative Market Briefing

Venture capital secondaries tick up

Monday, June 02, 2025

Bailey McCann, Opalesque New York: Venture capital secondaries are growing at a rapid pace according to a new report from PitchBook. The market for venture capital secondaries has grown to $60 billion from $50 billion in 2024.

Transaction volume remains heavily concentrated among a small group of the most highly valued startups, reflecting cautious buyer behavior given trade war uncertainty and public market volatility.

According to PitchBook, the venture secondaries market follows venture trends relatively closely but with a lag of one to two quarters. As venture's exit stalemate stretches into its third year, corporate VC entities and other nontraditional investors may soon become prominent sellers.

"Altogether, we estimate the current US VC direct secondary market to range from $48.1 to $71.5 billion, which is intentionally broad to reflect the impact of outliers. The midpoint, about $60 billion, marks a notable increase from our 2024 estimate of $50 billion, primarily due to increasing valuations from top unicorns. Still, the market size remains modest relative to VC's liquidity needs, since it is only 1.9% of the $3.2 trillion in total unicorn valuations and is comparable with Q1 2025's primary VC exit value of $51.4 billion," the report says.

Alongside this trend, capital allocated to VC secondary funds has doubled since 2022, fueled by demand from new venture investors who view secondaries as a more accessible entry point to the asset class.......................

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