Introduction

When we published our whitepaper on the venture secondaries market in 2022, the industry was emerging from a significant tech reset. Valuations were beginning to compress, presenting a compelling tactical opportunity for disciplined investors. We anticipated a surge in LP selling activity and increased GP focus on generating liquidity.

Our projections ultimately materialized. LPs converted a record level of NAV into cash, with total venture secondary transaction value in 2024 tripling compared with 2022.1 GP-led transactions also moved firmly into the mainstream, embraced by both large-scale platforms and emerging managers. Transaction volume increased by $4 billion, reaching $10.4 billion in 2024, up 40% from 2023.²

Today, companies are staying private longer, growing larger, and accruing more value privately. These dynamics are reshaping how innovation is financed and where value is captured. In this paper, we examine why today’s environment is particularly fertile for venture secondaries, what it takes to succeed in this category and the strategies we believe are most compelling when targeting venture secondaries in today’s evolving market.

Shift in venture returns

The venture capital landscape has transformed in recent years. The average time from initial funding to IPO has ballooned from just four years in the early 2000s to approximately 13 years today (Figure 1).³ Companies are choosing to remain private longer, scaling to unprecedented levels before even considering a public debut. This shift is driven by multiple forces: broader access to late-stage private capital, a growing base of sophisticated private market participants, heightened scrutiny in public markets and greater opportunities for partial liquidity in the private markets.

More value is now being created and captured during the private growth phase than ever before. In 2015, VC-backed unicorns had a combined market capitalization of $381 billion. By mid-2025, that figure had reached approximately $6 trillion—a staggering 1,500% increase (Figure 2).⁴ This demonstrates how the balance of returns has shifted toward private markets investors, leaving public markets with far less of the upside that was once unlocked through earlier-stage IPOs.

1 Evercore. Secondaries Market Survey, 2022 and 2024 editions.

2 Lazard. Secondary Market Report 2024, including estimates of GP-led market volume and venture & growth equity market share.

³ PitchBook, as of July 2025.

⁴ PitchBook and CB Insights, as of July 2025.

Continue reading here

StepStone Slate Logo
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.