Tomasz Blicharski

The VC secondary market is on fire. But many LPs are rushing in without fully appreciating the risks. VenCap International plc has been active in VC secondaries (LP positions only) since 1987 — and this is one of the hottest markets we’ve seen. In the first half of 2025 we reviewed $6.5bn of secondary VC deals — a 41% jump from the $4.6bn we saw in the same period last year. This includes both GP-led and LP-led deals. Here are 4 lessons we've learned from nearly 40 years of buying secondaries: 1️⃣ Power law still rules – a few companies will drive most returns. 2️⃣ Quality over discount – our best deal was bought at a premium to NAV. 3️⃣ Know the valuation policy – different VCs can value the same company very differently. 4️⃣ Factor in manager behavior – holding winners vs. selling early can make or break returns. VC secondaries ≠ PE secondaries. The risks are different — but for LPs who can access the right deal, at the right price, the rewards can be exceptional.

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Happy New Year to all! In many recent discussions with investors, LPs, founders and with the Key Capital team, the transition from "Founder and CEO" to "CEO and Founder" emerged as a subtle yet meaningful point for investment decisions, especially for secondaries and later staged companies. Most people agreed with the concept as it is signifying changes in roles, responsibilities, and identity of both the founders and their companies. A point of "maturity", if you want to simplify it. Especially since this evolution symbolizes a founder's progression from being the visionary creator of a company to the operational leader of a mature organization. The contention in these discussions is the belief that not many founders around the world are ready to be CEOs and raised some interesting thoughts about when to invest in a company (especially secondaries). Here are some of the key points raised by various people in these discussions. I welcome your comments and feedback. 1. The Founder’s Early Role: Visionary and Creator. Founders play a crucial role in shaping the company's origin story, ideating, and launching products or services to fill market gaps. Initially, founders embody the company's ethos, drive its culture, and handle various tasks from product development to fundraising, reflecting a personal connection to the business. This exciting phase is how VC is well known in the region. All agreed, this is a "honeymoon" phase. 2. The Scaling Phase: From Ownership to Stewardship. As the company expands, founders transition from hands-on creation to focusing on strategy, operations, and organizational leadership. Hiring the right people, firing the wrong people, and keeping all stakeholders aware of what is going on. Thus, scaling involves team building, process establishment, and stakeholder management, such as with investors, board members, and employees. All of these skills are rare in one person and therefore the never ending discussion about "what are the signals for a founder becoming a CEO?". 3. Becoming/Transitioning to “CEO and Founder.” Prioritizing the CEO role over the founder identity solidifies this shift. CEOs concentrate on operational excellence, financial management, and delivering shareholder returns, emphasizing professional leadership over personal vision. This evolution reflects the maturity of founders in balancing their ownership legacy with leadership responsibilities. Successfully navigating this transition entails embracing the organization's growth beyond the founder's initial vision, acknowledging the natural progression in scaling a company. Managing investors (both equity and debt) becomes a significant part of the job. The journey from "Founder and CEO" to "CEO and Founder" marks a significant milestone. While the two are not separate from each other but represent the "mindset" a person wakes up to each day and interacts with the world around them.

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