Kleiner Perkins and Penn’s Endowment on India, loss ratios, and the rise of secondaries | E1919

Key Points

• The bar for IPOs has been set so high that companies now typically need over half a billion in revenue and a global scale, resulting in a longer journey to going public, often taking over 10 years.
• Sovereign wealth funds and large family offices from the Middle East are becoming increasingly sophisticated and active in venture capital, often focusing on larger ticket sizes and looking to seed new funds due to limited access to established VC firms.
• The surge in secondary markets for venture capital, driven by a lack of M&A and IPO activity, has raised questions about whether this liquidity solution is a temporary fix or if it will become a permanent fixture in the industry.