In the evolving landscape of U.S. venture capital, secondary transactions are increasingly becoming the preferred method for exits, surpassing traditional routes like IPOs and mergers and acquisitions (M&A). In 2024, approximately 70% of venture capital exits were executed through secondary transactions, reflecting a notable trend that is also emerging in Japan. The slowdown in IPOs has prompted funds to seek liquidity through secondary markets, with 11 U.S. venture-backed companies achieving valuations of $1 billion or more through public listings or acquisitions this year, more than double the number from the same period last year. Despite the rise of secondary transactions, they represent a small portion of the overall market, valued between $41 billion and $60 billion, compared to the $2.9 trillion in unicorn valuations. Analysts suggest that while secondary transactions are currently gaining traction, M&A may become the dominant exit strategy for startups in the future.