How VC Firms Are Building Their Own Secondaries Market

Lucas and Luna explore the quietly growing trend of VC firms creating their own internal secondary markets for limited partners. With traditional secondary sales often requiring discounts of 20 to 30 percent, firms like a16z and Sequoia have begun offering structured liquidity programs that let LPs sell stakes back to the fund or to a dedicated vehicle managed by the GP. Lucas breaks down how Continuation Funds work, why they're gaining traction in 2026, and what it means for LPs who want liquidity without the fire-sale discount. Luna pushes on whether this creates a conflict of interest between GPs and LPs, and whether smaller limited partners are being left out. The episode uses the specific example of a $200 million continuation fund raised by a mid-size growth firm earlier this year, showing how the mechanics play out in practice. #VentureCapital #Secondaries #ContinuationFunds #Liquidity #LPs #GPs #PrivateEquity #PortfolioConstruction #a16z #Sequoia #StartupInvesting #Illiquidity #FundTerms #FexingoBusiness #BusinessPodcast #Finance #Investing #LimitedPartners Keep every episode free: buymeacoffee.com/fexingo