According to one investor focusing on buying up secondary stakes, firms are having more and more conversations to make those deals happen. NewView specializes in buying up stakes of companies from other VC firms or from companies themselves, in addition to funding new rounds and follow-on investments. NewView also doesn’t always buy 100% stakes from firms, and sometimes the VC retains a large portion of the stake. That’s an impetus for why these conversations are happening, Viswanathan says: VC firms wanting to go back out and raise in the near future. It’s clear VC firms are feeling the squeeze as LPs keep a tight grip on their wallets.

Source: Forbes May 22, 2023 14:02 UTC