Secondaries market to grow as European VC struggles to exit

Our managing partner Olav Ostin was recently interviewed by Leah Hodgson for a PitchBook Data article on the growth of the European venture secondaries market.

Olav discussed how increased volatility in the public markets for tech companies has reduced appetite for VC-backed exits in Europe and how this in turn has caused Europe’s secondaries market to heat up.

As Europe’s VC ecosystem becomes larger and more mature and with VC-backed companies remaining private for longer, secondaries are growing more appealing.

“If you have assets left in a fund at the end of its lifecycle, then you’re going to have to do a secondaries deal. In the good times, LPs might give you more time, but there’s no incentive when the markets go down. I think we’re going to see a tsunami of these deals in 2022.” – Olav Ostin, Managing Partner, TempoCap.

Read more: Pitchbook

Source: Pitchbook