Venture capitalists need to show their limited partners they can make money off their past investments if they have any hope of raising another fund in the future. That’s what’s driving a number of attempted startup stake sales this summer.
In two of the latest instances, Tiger Global Management and Chamath Palihapitiya’s Social Capital are trying to sell positions in their venture portfolios, as The Information reported. In some cases, notably Tiger’s sale of a stake in artificial intelligence startup Cohere, stakes are going at a premium. But a majority of these transactions are at a discount to the startup’s last price. This means for venture capital funds that aren’t distracted by their own portfolio stake sales, it’s a great time to buy.
