Secondary Markets Are Growing

Secondary markets, where shares of private companies are bought and sold, are growing to be as large as public stock markets and company buyouts. This growth is changing the way company founders think about getting cash from their businesses.

Historically, the primary paths to liquidity were clear, go public or get acquired. But as companies stay private longer and grow to much larger valuations before exiting, those traditional endpoints are happening later, and less predictably. That gap has created demand for an alternative way to unlock value, and secondaries are filling it.

What’s changed is both scale and sophistication. The secondary market is no longer a niche, opportunistic space. Dedicated secondary funds are raising billions, institutional buyers are actively seeking exposure, and transactions are becoming more structured and repeatable. In some cases, the volume of secondary transactions in private markets is beginning to rival the capital flowing through IPOs or M&A in a given year.

For founders, this means liquidity is no longer tied to a single “end event.” Instead of waiting 10+ years for an IPO or acquisition, there are now multiple points along the company’s lifecycle where liquidity can be introduced through tender offers, structured secondaries, or continuation vehicles.

This has real implications. It changes how founders think about employee retention by offering partial liquidity, which can keep early team members motivated without forcing them to wait indefinitely. It also affects investor alignment, as early investors can realize returns while still maintaining exposure to upside. Additionally, it impacts personal risk, allowing founders to de-risk slightly without signaling a lack of conviction.

It also changes expectations. Investors, employees, and even founders themselves increasingly view liquidity as something that can happen in stages, not all at once.

At the same time, with greater scale comes greater scrutiny. As secondaries become a core part of the private market ecosystem, pricing, transparency, and fee structures matter more. Poorly structured transactions can create misalignment or signal weakness, while well-executed ones reinforce confidence and stability.

Secondaries are no longer a backup plan. They’re becoming a third pillar of liquidity, alongside IPOs and acquisitions. For founders, understanding how and when to use them is quickly becoming part of building a modern, durable company.