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Bailey McCann, Opalesque New York:

Venture capital has had a volatile 2025. The year opened on a fairly positive note with several IPOs, the Liberation Day tariffs slowed everything down across all asset classes. Markets have started to normalize a bit as we enter the summer and investment bankers are cautiously positive about the second half of the year.

According to a report from PitchBook, VC-backed companies have emerged as significant buyers in the market, particularly well-funded AI startups. In total, approximately 36% of completed M&A transactions have involved a VC- backed company as the buyer, marking a new high.

Secondaries are also becoming a key focal point as GPs and LPs manage low liquidity and sluggish exits. " The secondary market remains concentrated but shows a promising growth trajectory before it potentially becomes a standard aspect of VC," the report says. "Our estimates indicate that the size of the secondaries market has increased rapidly, and until full liquidity events can be achieved for unicorns, secondaries are likely the best option for VC."

PitchBook's current estimate of the US VC direct secondary market ranges from $48.1 billion to $71.5 billion, with a midpoint of $60 billion-a significant increase from the 2024 estimate of $50 billion.

There are some positive indicators going into the second half of the year. PitchBook data shows that VC valuations are rebounding - albeit slowly. With 36% annualized growth, companies ra......................

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