While traditional venture fundraising slowed, secondaries emerged as a growing segment of private market activity, with its share of fundraising materially increasing between 2022 and 2024. Within a market seeing meaningful price dislocations and a constrained exit market, secondaries funds were well positioned to capitalize and offer LPs the promise of early, alternative liquidity.
This shift in LP interest reflects a venture ecosystem reshaping itself around resilience and adaptability. As liquidity constraints ease and exit activity gradually returns, the balance between established and emerging managers could stabilize, paving the way for more equitable capital allocation. The increasing role of secondaries funds highlights how the market is innovating to meet the needs of all industry participants, including employees, shareholders, VC firms, and LPs alike. The path to recovery may be gradual, but the foundations laid in 2024 suggest a more resilient venture landscape ahead.