Tommaso Cotto

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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🚀 Excited to back Leo Acciarri, Francesco Paolo Defendi, and Mattia Zarrelli - three founders combining strong engineering, platform building and software development skills - who are tackling the big workforce shift of our times: the rise of skilled blue collar workers. They are building Gyver, an enterprise workforce infrastructure company to shape the careers of 1 in 5 skilled blue collars in EU. As a first step, Gyver built an AI-powered recruitment platform, rethinking how millions of technicians and electricians find jobs by recreating trusted word-of-mouth recommendations on WhatsApp. Workers apply with one click, while employers finally gain access to talent that is otherwise out of reach. Why now? 📊 40%+ of European employers face skilled trade shortages, blocking progress in the energy transition and reindustrialization. ⚡ Gyver has already built Italy’s largest community of electricians (21,000+ strong), who now use WhatsApp to discover jobs, apply instantly, and stay engaged through conversational AI. 🏗️ Top employers in the electrical sector are already hiring through the platform (the likes of Enpal, Schneider Electric, ...) Really fast-moving, hands-on founding team solving a real-economy problem that truly matters. Thrilled to welcome you to the portfolio, team!

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𝗟𝗼𝗻𝗱𝗼𝗻 & 𝗣𝗮𝗿𝗶𝘀 𝗮𝗿𝗲 𝗲𝘃𝗲𝗿𝘆𝗼𝗻𝗲’𝘀 𝗱𝗮𝗿𝗹𝗶𝗻𝗴𝘀 ❤️ ... 𝗯𝘂𝘁 𝗳𝗿𝗼𝗺 #𝟯, 𝗣𝗘 & 𝗩𝗖 𝘀𝘄𝗶𝗽𝗲 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁 𝘄𝗮𝘆𝘀 Our latest Gain.pro data reveals how private equity (PE) and venture capital (VC) firms invest across Europe. 𝗩𝗖 = 𝗰𝗶𝘁𝘆 𝗵𝘂𝗯𝘀. 47% of VC-backed assets sit in 𝗧𝗠𝗧 (vs. just 17% for PE). No surprise VC portfolios cluster in innovation hotspots like 𝗕𝗲𝗿𝗹𝗶𝗻, 𝗠𝘂𝗻𝗶𝗰𝗵, and 𝗔𝗺𝘀𝘁𝗲𝗿𝗱𝗮𝗺. In fact, 25% of all VC assets are concentrated in just 11 cities. 𝗣𝗘 = 𝗯𝗿𝗼𝗮𝗱𝗲𝗿 𝗿𝗲𝗮𝗰𝗵. With stronger exposure to 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 (24% vs. 13% for VC) and 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗹𝘀 (22% vs. 7% for VC), PE portfolios spread far more widely. It takes 22 cities to reach 25% of PE assets, with 𝗦𝘁𝗼𝗰𝗸𝗵𝗼𝗹𝗺, 𝗠𝗶𝗹𝗮𝗻, and 𝗠𝗮𝗱𝗿𝗶𝗱 among the leaders. 🧲 Shared magnets: 𝗟𝗼𝗻𝗱𝗼𝗻 and 𝗣𝗮𝗿𝗶𝘀 remain the undisputed #1 and #2 destinations for both strategies. For more insights on the PE-backed asset pool in Europe, check out our 𝘌𝘶𝘳𝘰𝘱𝘦𝘢𝘯 𝘗𝘌 𝘈𝘴𝘴𝘦𝘵 𝘏𝘢𝘯𝘥𝘣𝘰𝘰𝘬. Link in the comments.

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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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