Why the venture secondaries market will be multiples bigger than the primaries market
"In every other asset class, that's the case. The stock market is all secondaries. Real estate is predominately secondaries. Debt is mostly secondaries. Same thing will happen to venture."
New @ThePeelPod with @HansSwildens at Industry Ventures
We talk through how VC secondaries evolved from a $250M to $150B market over the past 25 years, acquiring Enron's VC portfolio during the Dot Com Collapse, and why asset managers are acquiring venture firms
0:00 Inside Goldman’s $22B venture bet 7:57 1,600 funds over 525 firms 11:11 Why scale lets you “see the cube” 14:17 Most humbling lesson in 26 years 16:19 Three types of Seed funds 18:47 LP's evolve every fund cycle 22:00 VC is a sales game 24:38 A strong CRM is non-negotiable 29:06 Buying secondaries during the Dot Com Collapse 31:33 Triangulating opinions across GP’s, founders, and LP’s 37:22 Seed without differentiation doesn’t work 42:16 Biggest mistakes by first-time GP’s 44:31 Buying Enron’s VC portfolio at a 99% discount 50:15 Entrepreneurial finance is underappreciated 52:15 Why asset managers are acquiring venture firms 58:47 Why it’s hard to start venture programs 1:03:20 Secondaries: $250M to $150B market in 25 years 1:08:06 Continuation funds & debt structured secondaries 1:12:02 “Secondaries might be multiples bigger than primaries” 1:19:52 How to structure secondary transactions 1:26:00 What happens after SpaceX, OpenAI, Anthropic IPO’s 1:30:35 How Seed survives the asset manager era 1:35:16 How to manufacture liquidity 1:41:41 How AI is impacting secondary markets
