DEVELOPMENT OF THE SECONDARY MARKET AS NEW SOURCE OF LIQUIDITY FOR VENTURE CAPITAL AND PRIVATE EQUITY FUNDS
Abstract
The aim of this paper is to present secondary market as new source for liquidity for venture capital funds as IPO transactions tend to be less ava- ilable for smaller companies. Changing trend on IPO market especially in US and Europe has brought the question on exit possibilities for venture capital funds as well as for their fundraising. Emerging of the secondary market hel- ped the investor to maintain liquidity and enable small companies to retain financing form venture capital funds. This paper analyse the cause of the se- cond market development and discusses its benefits.References
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