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VC secondaries market to top $130bn by 2023

Having passed the $100 billion mark in 2021, research by venture capital secondaries specialist Industry Ventures suggets the VC secondaries market could top $130 billion by 2023 according to a report by SecondariesInvestor.

Having passed the $100 billion mark in 2021, research by venture capital secondaries specialist Industry Ventures suggets the VC secondaries market could top $130 billion by 2023 according to a report by SecondariesInvestor.

Industry Ventures’ How Big is the Secondary Market for Venture Capital? report reveals that the  venture capital secondaries market is far bigger than most estimates suggest, with around $105 billion transacted in 2021, split roughly 60/40 between LP interest and direct secondaries.

This equates to a 72% increase on 2020 and a 40% uplift on the  $75 billion seen in 2019.

The report says that the growth stems from a rapidly expanding primary market with VC funds having raised $1.7 trillion in the last 10 years compared with $406 billion in the previous decade.

Much of this was raised by growth equity and late-stage VC funds to invest in companies becoming larger and larger under private ownership. This has coincided with a raft of non-traditional VC investors entering the market.

Industry Ventures expects that growth to continue driven by further increases in the size of the primary market as well as well as increasing acceptance of GP-led transactions as a means of providing liquidity for LPs.

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