Private Markets

VC secondaries, explained

With IPOs and M&A still deep below 2021 levels, secondary sales — not exits — have become how venture capital actually returns cash. Here is every piece we've written on how the market works, who buys, and what it costs to sell.

The full picture

Each piece below covers a different angle of the same market — read the one that matches what you're trying to understand.

$112B+
Why secondaries are booming

With IPOs and M&A running ~70% below 2021 levels, secondary sales have become the main way VCs and LPs actually get paid.

$180–200B
The market in numbers

Volume is tracking toward $180–200B in 2026, up from ~$60B in 2019, as LPs sell stakes at 10–15% NAV discounts to fix a liquidity drought.

$72B
GP-led secondaries, explained

Continuation vehicles now make up over half of all secondaries volume — how they work, why GPs use them, and what they cost LPs.

The quiet exit
Continuation funds

A GP moves a prized portfolio company into a new vehicle instead of selling it — extending the hold while giving existing LPs a cash-out option.

$220.9B
Crossover & pre-IPO investing

Hedge funds and mutual funds buying into late-stage private rounds — concentrated in a small number of the biggest names.

Employee liquidity
How employees cash out

How early employees and angel investors sell vested equity on the secondary market before a company ever goes public.

4 platforms
The platforms, compared

Forge Global, Hiive, EquityZen, and Nasdaq Private Market compared — fees, minimums, accreditation, and who owns each one in 2026.

The bigger trend
The primary market is shrinking

Why secondary trading volume is growing faster than new primary investment — and what that means for how venture capital works going forward.

Case study: Robinhood Ventures (RVI / RVII)

The closed-end fund structure retail investors use to buy pre-IPO exposure through Robinhood is itself a secondary-market vehicle — it holds private-company stakes acquired on the secondary market and trades at a premium or discount to that NAV on the NYSE. We track it in depth.

RVI fund dashboard →RVII fund dashboard →What RVI actually holds →

Frequently asked questions

What is a VC secondary market transaction?
A secondary transaction is the sale of an existing stake in a private company or VC fund — as opposed to a primary transaction, where new capital goes directly to the company or fund. Sellers include LPs cashing out fund stakes, early employees selling vested equity, and GPs moving assets into continuation vehicles.
Why is the secondaries market growing so fast?
IPO and M&A exits have run roughly 70% below 2021 levels, so LPs and employees who need liquidity increasingly sell on the secondary market instead of waiting for a traditional exit. Volume has grown from roughly $60B in 2019 toward $180–200B in 2026.
What is a GP-led secondary or continuation fund?
A GP-led secondary is a deal a fund's own manager initiates — typically moving one or more prized portfolio companies into a new continuation vehicle so existing LPs can cash out while new investors fund a longer hold. GP-led deals now represent more than half of total secondaries volume.
What discount do LP stakes trade at on the secondary market?
Pricing varies by fund quality and vintage, but LP stakes in venture funds have recently traded at roughly 10-20% discounts to net asset value, tighter than in prior downturns as buyer demand for private-market exposure has stayed strong.
Can startup employees sell their equity before an IPO?
Yes, at many later-stage companies. Employees with vested shares can sell through company-sanctioned tender offers or, less commonly, through private secondary marketplaces — subject to the company's transfer restrictions and right of first refusal.