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This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

    • Jun 10, 2020

VC Fund Secondary: Buy the Winning Ticket at Halftime (at Half Price)

VC Fund Secondary: Buy the Winning Ticket at Halftime (at Half Price)


Skip The J-Curve: Buy Venture Capital Funds After They’re Already Winning


Venture capital (VC) is notorious for its high risk and long-term commitment, as most startups fail and most investments typically yield no return. Traditional VC funds often don't make distributions in the first five years, and exits can take up to 15 years, making it a challenging asset class for those lacking patience. However, the upside potential is considerable, with top VC funds significantly outperforming other markets and occasionally delivering exponential returns.


An alternative approach to conventional VC investment is entering the market through secondary VC funds that have already demonstrated success, a strategy known as "skipping the J-curve." This method allows investors to buy into VC funds at a midway point, often at a discount, as original investors seek liquidity. This secondary market presents a unique opportunity for new investors to capitalize on proven winners without enduring the initial slow and uncertain phase.


Access the entire article to delve deeper into the world of secondary VC investments. Discover how you can skip the traditional J-curve and tap into the growth potential of venture capital with shorter liquidity periods and fewer risks. Learn how investing in funds that are already winning can provide faster returns and significant discounts, offering a smarter pathway into high-stake venture capital markets.



If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • Skip The J-Curve: Buy VC Funds After They’re Already Winning

  • Why VC Secondary? No “Blind Pool,” Faster Growth, Shorter Liquidity

  • Fund Secondary vs. Company Secondary

  • Seller Motivations: Strategy, Tragedy, Liquidity, Victory




Thanks to our Contributor


Practical Venture Capital Logo


Practical Venture Capital is a Silicon Valley VC secondary firm that buys fund interests from LPs and GPs in top-performing VC funds.

Access PrimeAlpha Alternatives Education, Research, and Database of Managers and Investors
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