Adam Kocik

The VC secondary market is on fire. But many LPs are rushing in without fully appreciating the risks. VenCap International plc has been active in VC secondaries (LP positions only) since 1987 — and this is one of the hottest markets we’ve seen. In the first half of 2025 we reviewed $6.5bn of secondary VC deals — a 41% jump from the $4.6bn we saw in the same period last year. This includes both GP-led and LP-led deals. Here are 4 lessons we've learned from nearly 40 years of buying secondaries: 1️⃣ Power law still rules – a few companies will drive most returns. 2️⃣ Quality over discount – our best deal was bought at a premium to NAV. 3️⃣ Know the valuation policy – different VCs can value the same company very differently. 4️⃣ Factor in manager behavior – holding winners vs. selling early can make or break returns. VC secondaries ≠ PE secondaries. The risks are different — but for LPs who can access the right deal, at the right price, the rewards can be exceptional.

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It’s no longer enough to just buy well and hope for multiple expansion. Time to roll up your sleeves. GPs have been hearing this from LPs for years — especially during fundraising. #Operational value creation has become the main act in private equity, not the footnote. Why? - Because with rising competition, more dry powder, and tighter exit markets, helping your portfolio companies actually improve is the only real edge left. I’ve kicked off a short YouTube series on how experienced funds approach value creation — where it starts, what works, and what LPs are now asking about in diligence. We started with a fireside chat featuring Anne Arlinghaus from KKR Capstone (link below in comments). In Part 1, I cover: • Why the real work begins long before the ink is dry • The go-to value levers (and why overhead reduction is just the start) • How firms are building internal ops teams — and tracking impact If you’re curious what “hands-on” really means — or what it takes to become an Operating Partner — this one’s for you. 🎥 Watch the full video here: https://lnkd.in/drfgcsMV Next up: Buy & Build — and yes, it’s as messy as it sounds. #PrivateEquity #ValueCreation #OperationalExcellence #PortfolioCompanies #GPstrategy #LPperspective #INSEAD Arnaud Bonzom Bowen White Michael Prahl Harsh Temurnikar @

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I shared this M&A Due Diligence Gantt Chart before. Went viral. 🔥 Sharing again, now with a fresh lens on what it doesn’t show. 👇   This template is solid. (will share the download link in the comments)   But having bought and sold multiple companies, I’ve learned the real value is in the process you build around it.   Three things I’d add:   – Founder transition readiness   Is the seller truly ready to step back? Half the deals I’ve seen fall apart because the founder says they’re done but can’t let go.   – Cultural integration assessment   If the values don’t align, walk away. No amount of financial engineering can fix a culture clash.   – Durable demand validation   Will this business survive a recession? A trend shift? If it’s trendy or seasonal, it’s not durable.   The template is great for staying organized.   But smart acquirers know, we’re not just buying assets.   We’re buying a business that needs to run without the founder.   So don’t just focus on the numbers.   A great EBITDA means little if the business can’t survive the handoff.   #merger #founder #entrepreneurship #acquisition #investment ____ P.S. My newsletter (Join 20,000+ subscribers): https://lnkd.in/dNVbGxXv

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Don’t decide in the board room how AI should be used in the org. Give everyone in the company access to the best AI tools and let them figure it out. This was brilliance delivered by Victor Riparbelli (Synthesia) during last weeks chat w Anton Osika (Lovable) and Des Traynor (Fin). Those who dare to unleash AI in their orgs will have massive gains. Just control that your data is protected (better paying for enterprise tools than having employees run with free unsafe options on their own). And then you can figure out the guardrails etc. as you go and see where they are actually needed. There are of course nuances here depending on what type of business you are etc… But you get the point.

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𝐏𝐨𝐰𝐞𝐫 𝐥𝐚𝐰 𝐢𝐧 𝐕𝐂 The latest Dealroom.co Power Law 2025 report highlights: 👉 Just 2% of companies create 89% of all value. 👉 0.02% of companies create 61% of total returns. 👉 Only 1.2% of VC-backed startups ever become Unicorns, and 1.4% hit $100M+ in revenue. This is why: - Early-stage investing is a game of outliers. - Founders need to be clear on power law dynamics when building and fundraising. - Investors need conviction to double down on the rare few companies that truly break out. For founders, playing the traditional VC game: - You are not aiming to be “average” – you’re building something that could sit in the top 1%. - Traditional VC investors are not looking for “safe bets,” they’re looking for outliers – the kind of vision and execution that moves the needle. 👏 Huge congrats to LocalGlobe/Phoenix Group for topping the EMEA & UK rankings – proof of their long-term conviction in founders. 👏 Special shout-out to Chris Adelsbach for making the top 25 UK list as an angel investor! 👇 Full report in comments HSBC Innovation Banking Lauren

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