Scott (HarbourVest) - Unknown Last Name
speaker
382 appearances
1 recordings
1 series
first heard Jul 2026
last heard 27 Jul
Scott (HarbourVest) - Unknown Last Name’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in Jul 2026 with 1.
Appearances
We've seen the secondary market evolve and that's created liquidity decisions, sell decisions for investors that own positions in some of these market defining companies.
And getting that decision right or wrong is consequential.
There are mechanics that are in place because of how this industry has been built that trigger decisions around liquidity.
The reality is most venture funds are 10-year closed-end drawdown funds.
So if you own an amazing asset, but you're getting to the end of the life of your fund...
If a natural liquidity event is not there for you to take, I think you need to create one.
And that's where you might tap into the secondary market to do it.
So this is where I think that the innovation around the secondary market has been critical and important, and it's become kind of a tool and fundamental to venture and venture capital.
You now have an opportunity to continue to hold your interest
that sits in a fund that's now past its 10 year term, but either wrap up the fund that has a 10 year term and move your interest into a new vehicle or give your investors the opportunity to take a liquidity event or stay in the fund and extend the life of the fund.
I mean, there are funds that are in companies that we can talk about that have been in existence for over 20 years.
And the managers consciously went to their LPs
in year 13, 14, 15 and extended the life of the fund for 10 years, making it a 25 year fund, which is a bit of an outlier.
It's an anomaly.
But when you think of the case, it absolutely made sense.
It seems obvious in hindsight, but the reality is when you're making those decisions, the
dispersion of points of views is very broad.
And that exists not only like inside investment committees, but it also exists when you have to look your LPs in the eye and tell them what you're doing when you've kind of clearly gone beyond the regular term of your fund.
Free ride meaning no economics on the deal?
I don't think they always underrate it.
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