Uncertain Times for Market Liquidity

by AVC

Investment options starkly vary in terms of return.

And the global investment market – especially for venture capital firms – is moving toward smaller returns. Over the past decade, ROI per investment has shrunk. The most glaring example of this has been the IPOs of venture-backed companies. Once a goldmine for liquidity, they’re no longer as lucrative of an investment.

An emerging trend has arrived on the scene, however. The bigger fish are investing in the smaller fish. Angel and VC stakes are being bought up by larger VC firms, growth equity firms and hedge funds. This pocket is creating some excellent investment opportunities. And the fact that it is still growing and expanding makes it teem with potential.

Although recent history indicates that there is some cause for concern, there are bright spots as well.