VCs will get liquidity in 2024 from the secondary market, not IPOs ➿➿➿➿➿➿➿➿➿➿➿➿ 📌In 2023, many VCs thought 2024 would see the IPO market bounce back, according to TechCrunch. Yet, with Q1 almost done, there's hardly a major IPO in sight except Reddit. Speculation about potential IPOs, like Shein and Turo, continues with little action. Despite hopes, a Reddit IPO might not kickstart a wider trend, with big names like Databricks, Stripe, and Plaid steering clear of going public this year. High interest rates and low valuations from the 2021 highs make IPOs less appealing. 📌But it's not all bad news. The secondary market, where private shares are sold, is booming as an alternative to IPOs. It's grown massively, with transactions reaching $138 billion in 2023. This market allows companies to offer liquidity without the pressure of going public, showcased by Stripe's $65 billion secondary sale. Even venture funds are getting in on the action, buying or selling shares to manage their portfolios. While the IPO freeze might continue, the secondary market thrives, offering a workaround for companies and investors alike. #venturecapital #venture #investments