Of the five equal-weighted components in the Venture LP Distress Index, only one moved, and it was the Liquidity Haircut, the discount a buyer demands to take an LP's venture stake off their hands. It fell from roughly 30% to roughly 22%. The following analysis explores what the average actually contains, because the average is doing a lot of quiet work.
The Secondary Discount, Decoded
Why the one gauge that moved this quarter is a better price on a loss, not the end of one, especially for the 2021 and 2022 vintages
Reading brief
This analysis is part of Venture Capital 2.0’s continuing research on capital structure, governance, and post-power-law venture design.
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