TempoCap Managing Partner, Olav Ostin, speaks to Sifted: Founders and investors say the price still isn’t right for most European VC secondaries

In his latest feature for Sifted, Olav is quoted discussing the wave of down rounds and its impact on the secondaries market. According to Sifted, “With everyone scared of downrounds, it’s still hard to snap up secondary stakes — but growth investors are pushing for deals.”

Ostin argues that founders are scared of downrounds — where investors might assign them a lower valuation than a previous round — even if that happens in a secondary transaction.

“We are seeing a lot of late-stage companies at the unicorn stage not wanting to share any financials with anyone to avoid a secondary market taking place and an embarrassing valuation being shared in the market,” he says. With the exception of Swedish fintech Klarna, most billion-dollar-plus companies in Europe have been coy about changes in investor or internal valuations”.

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Source: Sifted