Venture capitalists are navigating uncertainty, especially regarding tariffs imposed by the Trump administration. Precursor's managing partner Charles Hudson emphasizes closing mid-stream capital raises promptly and suggests a longer investment period to ensure returns for limited partners. The secondary market is anticipated to dominate investor liquidity in the coming years, as many VCs adapt to more disciplined selling practices due to economic conditions, including rising interest rates. This shift reflects a broader change in venture capital strategy, moving away from the traditional waiting for IPOs.
To the extent you are mid-stream in raising capital, get that closed as soon as possible. We repeat, close anything mid-stream ASAP.
Hudson predicted that selling stock in private startups on the secondary market will make up the overwhelming majority of liquidity that investors see over the next five years.
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