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Revolut’s founder and CEO Nik Storonsky sold secondary shares in fall 2024 worth $ 200 - 350 million (source, source). Last night, the news came out that he’s opening the opportunity for a company wide secondary sale, driving liquidity to employees and early investors too.

What seemed rare just a decade ago has quickly become common practice, as exemplified by numerous cases such as:

The list goes on, and on, and on…

It’s taking longer than ever for startups to reach a traditional exit. IPOs are rare, and acquisitions can take 10+ years, leaving founders pouring years (and personal savings) into their companies with no guarantee of cash reward. Startups are also staying private longer than in decades past, which means early stakeholders wait much longer to realize gains (Seedblink, 2025). The 2025 founded Revolut is just one example.

In response, founder liquidity (basically selling a portion of one’s own shares for cash during a funding round) has shed much of its old stigma. Ten years ago, it was “taboo” for a founder to sell early equity, but today a modest secondary sale is often seen as a healthy way to “relieve the pressure” (Seedblink, 2025).

Both investors and founders are increasingly open to these transactions as a means to manage risk and reward in the long slog of startup growth. The question is: When is the right time and what is the right amount of shares to sell for a founder? That’s the topic of today’s episode!

Let’s dive in!

Recent data shows an increasingly bifurcated venture secondary market. AI startups now dominate the volume, accounting for 35% of all listed secondary activity in H1 2025, up from 23% in 1H 2024. Meanwhile, U.S.-based companies comprise 83% of volume, compared to 75% previously, highlighting both sector and geography concentration (Launchbay Capital, 2025).

Large, high-valuation players are capturing more of the action, with companies valued at $100B+ representing 33% of listed volume (vs. 13% in 1H 2024), and the “Private Mag 7” making up 44% (vs. 20%) of volume. AI startups continue to outperform, delivering median valuation growth of 17%, while newer companies (founded in 2020 or later) saw 70%median growth compared to flat growth for older cohorts (Launchbay Capital, 2025).

Secondary transaction volume hit a record $162B in 2024, up 45% year-over-year from $112B (2021 level). GP-led deals accounted for 44% of that volume, signaling that continuation structures are becoming central to liquidity strategies.

Non-U.S. secondaries are rising too, showing meaningful pricing strength: median discount to latest valuations is 13% for non-U.S. companies vs. 25% in the U.S., while non-U.S. “Mag 7” companies trade at just a 3% discount. Annualized YoY returns sit at ~17% in both segments (PM Insights, 2025).

Beyond volume growth, what’s striking in mid‑2025 is how secondary market pricing and segmentation are evolving:

Premium pricing is returning, particularly for highly liquid, top‑tier private companies. The median discount to the last primary round narrowed to –27% in H1 2025, compared with –39% a year earlier, reflecting tightening valuation gaps and rising buyer demand (PM Insights, 2025).

The most liquid segment, companies valued above $10 billion (often AI leaders), is trading at tight spreads or even at a premium to their last financing rounds. Tender offers have become routine in this cohort, especially as these companies use liquidity strategically for talent retention (Launchbay Capital, 2025).

This reveals a dual-speed secondary market: At the top, large AI or “Private Mag 7” firms are enjoying premium, liquid trading. For smaller, older, or less high-growth firms, pricing remains more challenging and segmented. This divergence signals rising stratification across secondary market tiers.