New data shows average venture capital secondary deal size jumped 118% since 2023
NEW YORK CITY, NY / ACCESS Newswire / May 15, 2025 / A new report from Sydecar, a Special Purpose Vehicle (SPV) and fund administration platform, analyzes 319 venture capital secondary deals closed on the platform from January 2023 through April 2025, revealing how SPVs are increasingly being leveraged in secondary markets and where capital is being concentrated in today's liquidity-constrained market.
The dearth of IPOs and M&A transactions over the past three years has left Limited Partners (LPs) with less capital to invest back into new funds, pushing both managers and LPs to look for alternative paths to liquidity. As a result, managers are looking to secondary markets to generate liquidity for their LPs, often using SPVs to facilitate these transactions.
Key findings from the report include:
The Rise of Secondary Activity: From 2023 to 2024, Sydecar saw a 198% increase in secondary transactions closed on the platform. Additionally, the average total raise per transaction rose 63%, while LP participation climbed 27% year-over-year.
SPVs are Powering the Secondaries Surge: Secondary SPVs - dedicated vehicles used to invest in a secondary asset from an existing holder of a security - have become more prominent in the market recently. In fact, Sydecar saw a 48% increase in the number of secondary SPVs between Q1 2025 and Q4 2024. Additionally, in two years, the average secondary SPV size jumped 118%, from $943K in 2023 to $2.06M in 2025.
AI and Defense Take The Lead: In Q1 2025, nearly 80% of secondary deal allocation went to AI (50%) and Aerospace and Defense (28%), which also saw the highest LP participation, averaging 22 LPs per deal.
"Due to the lack of liquidity in the market, it's harder than ever to return capital to investors," said Nik Talreja, CEO and co-founder of Sydecar. "GPs are increasingly embracing secondary SPVs as a faster, more flexible way to return capital to LPs, especially because these vehicles sit above the cap table. As this model continues to surge, we're seeing growing interest from retail and private wealth investors, bringing new capital into the ecosystem and fueling momentum for secondaries."
The full interactive report, including detailed charts and sector breakdowns, is available on Sydecar's website.
About Sydecar
Sydecar makes it simple and efficient for venture fund and syndicate managers to form Special Purpose Vehicles (SPVs) and funds by automating banking, compliance, contracts and reporting. Sydecar eliminates operational headaches, freeing up time and resources so managers can focus on building portfolios, strengthening track records and fostering stronger relationships with limited partners. Founded in 2021, Sydecar is on a mission to build the infrastructure that powers private markets.
To learn more, visit https://www.sydecar.io/ or check out LinkedIn and Twitter.
Media contact:
Tisha Ferraro
sydecar@calibercorporateadvisers.com
SOURCE: Sydecar
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/sydecar-report-shows-nearly-80-of-secondary-deal-allocation-went-to-1027381
