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VCs will get liquidity in 2024 from the secondary market, not IPOs
VCs are losing hope that IPOs will return this year and don't care much because they've mastered the secondary markets.
Plus, some of biggest names that were expected to go public this year — Databricks, Stripe and Plaid — have either directly said they won’t IPO in 2024 or have held funding events that imply they aren’t going out any time soon. This secondary sale shows that investors are willing to keep building Stripe’s valuation back up towards its 2021 high and that it’s easy for employees to get cash for some of their stock prior to an IPO event. Nate Leung, a partner at Sapphire Ventures said that firms can choose to offload some shares to free up some cash, while keeping some of their stake.
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