Liquidity drying up for VC firms as investments age
Singapore
THE pressure is mounting on venture capital (VC) funds to show real cash returns to investors, but as exits are delayed and market conditions remain rocky, some early VC funds might be burdened with a backlog of ageing investments.
As they look to divest their shares in portfolio companies to realise returns, fund managers will have to decide between offloading shares at a discount in the secondary market, or asking investors for more time - and they are treading a thin line because this might in turn affect their ability to fund future bets, observers said.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Startups
High Court dismisses bid by co-founder and CTO to liquidate Cake Group
Semiconductor unicorn Silicon Box vows to avoid geopolitical mire
A cheat sheet of startup and tech M&As in South-east Asia
Zilingo ex-CEO’s criminal complaint is retaliation against whistleblowers: source
Gojek and ComfortDelGro Taxi to send untaken rides to each other’s platforms
SG fintech firm Bambu shuts down after missing profit targets, says founder