The venture capital industry is experiencing a notable shift with the growing prominence of secondary markets as an alternative to traditional initial public offerings (IPOs). Tomasz Tunguz of Theory VC describes secondaries not as a temporary trend but as an evolution in venture capital, reflecting the maturation of the asset class. This shift is partly driven by the rise of retail investors participating in secondary transactions and the increasing delays in IPOs, which are becoming more common. According to data from CB Insights, there are approximately 1,200 private companies valued over $1 billion in 2025, while public markets have seen a slowdown in growth. Venture capitalists are seeking liquidity options, especially as companies need to demonstrate $500 million in annual recurring revenue (ARR) with high growth to qualify for public listings on exchanges like the NYSE and NASDAQ. The secondary market is attracting substantial capital for pre-IPO firms, raising questions among angel investors about whether to sell or hold their stakes. This evolving landscape suggests that secondary markets are becoming a critical component of venture capital strategy and investor access to high-growth companies.