Skip to Content
Quarter-End Insights

Venture Capital Outlook: Despite Slow Volume, Liquidity Prospects Remain

We expect ample opportunity in the VC-backed IPO market as alternative liquidity routes gain popularity.

  • Driven by a group of aging, more cash-efficient businesses, we see ample opportunity for the IPO markets to open up for VC-backed listings.
  • We maintain our expectation to see continued use of alternative liquidity routes, with various private tech-focused SPACs already coming to market.
  • As the Spotify direct listing nears, we believe the massive trading volume seen in its direct secondary shares may help better price the final listing. Should this be the case, we think that direct secondaries may become a mainstay in the late-stage venture markets.

Despite pure exit activity coming in relatively subdued through the first part of the year, we actually see ample opportunity for VC-backed public offerings to pick up steam as we continue to progress through the next few quarters of 2018. Late-stage capital is certainly available to continue funding such companies, however, we see a plethora of increasingly mature companies that have been able to build cash-efficient business models that are attractive to institutional shareholders on the public side. In our opinion, this has been a factor of some natural maturation of the general venture market, in addition to the aging of many of the subscription-based software businesses that have received venture funding over the last decade or so.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.