Tech Today with Eric Tarczynski How Liquidity Droughts Break Venture Cycles with Beezer Clarkson
Jun 10, 2025
In this engaging discussion, Beezer Clarkson, Managing Director at Sapphire Partners, dives into the current landscape of venture funding from a limited partner's viewpoint. She explores the liquidity drought and its impact on fundraising, emphasizing the need for emerging managers to adapt. The rise of secondary markets as a solution for private company liquidity is examined, alongside why LPs maintain faith in venture's long-term prospects. Beezer also touches on exciting tech developments like Apple's Liquid Glass and the implications for the venture ecosystem.
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Venture Fundraising Hits New Low
- Venture fundraising is hitting a new low in Q1 2025, with liquidity droughts deeply affecting the market.
- LPs face net negative cash flow as capital calls exceed liquidity returns for multiple years.
Venture's Long-Term Importance
- Venture remains vital due to its role in innovation and building future leading companies.
- Returns may be delayed structurally, with longer private company durations impacting LP cash flow timelines.
Secondary Markets Normalize Liquidity
- Secondary markets are expanding as a normalized, non-taboo liquidity exit option for LPs.
- Though promising, secondaries still won't substitute public markets liquidity and have natural caps.