Although public markets have flared up newcomers in 2025, the fact is that there are many startups who have raised a large amount of venture capital, which is not just ready to make a decision.
In the upper part of it, most of these companies are too large, or just don't want or do not need to get. However, they are under pressure to provide liquidity equally to investors, shareholders and employees.
In this way, many companies are turning to secondary transactions. In just 2025, several larger startups sold secondary shares. In March, the startup ramp of the cost management made its price about $ 13 billion after selling Million 150 million secondary shares. A group of investors bought secondary from employees and early investors.
In February, the HR Company Dell, who was transformed from Finctic, sold General Catalist $ 300 million and an unknown “independent investor”-paid to investors.
According to a CNBC August 15 report on August 15, recently, Openi is preparing to sell about 6 billion stocks as a secondary sales part that will value the company about $ 500 billion.
With the lack of less than IPOs and M&A, it is no surprise that GPS and LPs are referring to secondary transactions as a creative lifeline to unlock the liquidity and reset the fund timelines, “Law firm Foli & Lordner's Partner of Goshin Goshin.
In an email interview with Crunchbase News, Randiz told his views what the pace is going on, how these deals have been formed, and much more.
Apart from clear (companies not yet to go public), is its pace in secondary transactions running well?
Liquidity needs are pushing this demand in secondary markets. Some investors need cash. Some people want to transfer dollars in other investments or reuse their departments. They are willing to sell some private investments for the waiver, which in many cases, has been delayed or delayed by the current M&A and IPO climate.
Meanwhile, the founders and employees are looking for a rapid risk, diversity and liquidity solution for a section of their private company employer holdings, especially when the path to organic liquidity is longer.
How are these deals formed exactly? Does it varies by the company's age, size and price?
The seller of the interests of the private company will have to keep in mind the sales transactions to comply with the various restrictions imposed on these private shares and create their sales transactions. These include the first denial, the right to drag and tag rights, and when they seek the company's information in connection with the diagnosis of transactions, the company's privacy provisions.
Sellers also have to understand the company's final saying. It has the right to approve the transfer and when considering the consent of the sale, you can ask many questions around the price of sales and the impact on the cap table. There are some relationship reservations to rotate in these processes.
In addition, transfer documents do not have too much magic and in general, transactions relatively straight take up the sale of straight stock purchases.
Pricing comes with the basic company's attractiveness and the risk of the risk and reward.
There are examples where buyers are asked to buy derivative securities or other equipment, which means that the basic private company is to imitate the economy of equity or buy equity through other holding companies or SPV (special purpose vehicles). Buyers should clearly understand what these requests run. Those transactions often create important legal, tax and regular compliance concerns.
How are they changing the fund strategy and investors' relationships?
For the interests of the Portfolio Company, a developing secondary market has given fund managers to some special events, especially while searching for liquidity opportunities for old vintage funds, away from traditional M&A and IPO routes, which have not been so strong recently. Fund managers are still under a lot of pressure to get out and produce DPI (division of the capital in payment).
Investors want liquidity. The basic portfolio company's secondary transactions prices are very different, and large -scale the company's basic principles and upside -down. At the same time, other managers are becoming buyers at the moment, trying to benefit the pricing discounted opportunities. Secondary funds cannot maintain investors' demand and investment opportunities these days.
Example: Dom Gazman
Be the latest with the current funding round, acquisition and more with the daily cranch base.
