Andrea Baronchelli

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.

158

17 Comments

𝐏𝐄 𝐯𝐬. 𝐕𝐂 𝐢𝐧 𝐄𝐮𝐫𝐨𝐩𝐞: 𝐀 𝐭𝐚𝐥𝐞 𝐨𝐟 𝐭𝐰𝐨 𝐟𝐨𝐨𝐭𝐩𝐫𝐢𝐧𝐭𝐬 Our latest data at Gain.pro highlights how PE and VC firms invest across Europe: ▪ PE-backed businesses are widely spread across the continent ▪ VC-owned assets are clustered in cities 📊 Sector focus drives this: – VC assets = 47% TMT (vs. 17% for PE) → drawn to innovation hubs – PE = 24% Services + 22% Industrials (vs. 13% & 7% for VC) → broader geographic reach beyond capitals 🌍 Top destinations: – Both: London & Paris lead – VC: 25% of assets in 11 cities (Berlin, Munich, Amsterdam next) – PE: 25% spread across 22 cities (Stockholm, Milan, Madrid stand out) ➡️ Same continent. Very different maps.

84

2 Comments

The acceleration program within our B2B AI Access Fund, launched on June 5 at the Central Asia Venture Forum, has come to an end. Over three months, the teams achieved truly impressive results. Out of ten participants, all showed growth in their numbers: some made pivots, others found their product–market fit, and some managed to scale. For us, this is a major milestone because the program was focused exclusively on B2B — only products that create real value for businesses. A mandatory requirement was the application of artificial intelligence technologies. This is not just a trend but a profound technological shift that we pursue and believe in. The startups that went through this acceleration are already demonstrating rapid growth today. If you are interested in investing in such projects or learning more about them, feel free to reach out. I’d be glad to share insights on where AI is heading, how startups in this field are transforming, and what new opportunities this opens up for investors.

52

3 Comments

⌛ The next decade will redefine what a VC Fund is and does. 💾 Many VC funds are still run on WhatsApp, spreadsheets, and manual reporting. 💣 It works… until it doesn’t. The future of venture won’t be won by who raises the biggest fund: It will be won by who builds the smartest operations. ➡️ Because here’s the shift: 📌 Your Ops determine whether you turn management fees into real insights or just noise. 📌 Your Ops will facilitate a lean team covering the ground of what a much larger one could have done previously AI could be your hidden team member: 📌 Turning meeting notes into real-time intelligence 📌 Surfacing risks in portfolios before they blow up 📌 Freeing people to spend less time chasing info, more time creating value ⚰️ Funds that don’t adapt won’t just lag. They’ll disappear. I’ve unpacked why in my latest piece. Link in comments.

42

2 Comments