For employees and founders a secondary transaction can provide liquidity and align stakeholder interests as their company scales. Early stakeholders hold a large, concentrated, illiquid, and volatile asset. Something that no financial advisor would support!
By seeking liquidity, employees and founders take the opportunity to adjust their personal holdings into a more advisable, diversified portfolio. Diversification provides a safety net to take the necessary risks to ensure that the company that they’re operating can realize its full potential. In addition, the capital access can support their current lifestyles comfortably, allowing them to focus on value creation without the distraction of scraping by personally.
As the private market ecosystem continues to grow, secondary markets provide a vital mechanism to enhance liquidity, foster stability, and support the broader venture capital ecosystem. By actively participating in this space, we aim to create value not just for our investors but also for the entrepreneurs and innovators driving transformative change in their industries.