Figure 1: U.S. VC Investments and Liquidity Events 2001-2009
As a result of this disparity, the direct secondary market has emerged as an alternative liquidity vehicle for investors and founders/employees of venture-backed companies, and it has become an important instrument for investors, companies and employees to address a variety of issues that they face.
While this booklet is specifically targeted towards venture capital-backed companies, many of the issues and dynamics discussed also apply to other private equity investment, such as buyouts and companies without existing professional investors.
