E419: Venture Capital Has a Liquidity Crisis

Venture capital was designed around a relatively simple model: invest in a startup, help it grow, and eventually exit through an acquisition or IPO. David sits down with Benjamin Black Powerlaw Corp. (Nasdaq: PWRL), Akkadian Ventures, Ben invests in growth-stage technology companies while providing alternative liquidity to founders, employees, angel investors, and venture funds. In this episode, Ben and David unpack the evolution of the venture secondary market, why great companies staying private longer creates an entirely different opportunity set, how sophisticated investors price illiquid private-company shares, and why liquidity itself is becoming a critical piece of venture capital infrastructure. The result is a different way to think about private markets: the investment opportunity doesn't end after the primary financing round. Highlights: Why venture secondaries have become a major private-market opportunity What happens when great companies stay private for much longer How Akkadian approaches growth-stage technology investing Why founders and employees increasingly need pre-IPO liquidity How investors price private-company secondary transactions The difference between primary and secondary venture investing Why venture funds themselves can become secondary sellers How liquidity can strengthen rather than weaken a cap table Guest Bio: Benjamin Black Powerlaw Corp. (Nasdaq: PWRL), Akkadian Ventures, an investment firm focused on growth-stage technology companies and private-company secondary transactions. Akkadian provides alternative liquidity solutions for entrepreneurs, employees, angel investors, and venture capital funds, giving Ben a distinctive perspective at the intersection of venture capital, growth investing, and the rapidly evolving private secondary market. Are you interested in sponsoring the How I Invest Podcast? Please email David Weisburd at david@weisburdcapital.com. We’d like to thank AlphaSense for sponsoring this episode! Sponsor: AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest/ to learn more. Stay Connected with David Weisburd: X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Pierce: https://www.weisburdcapital.com/ Stay Connected with Ben Black: LinkedIn:https://www.linkedin.com/in/benblack/ Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com. Disclaimer: This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Pierce. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions. (0:00) Why Venture Capital Is Finally Going Public (7:51) Why the 10-Year VC Fund Model Is Broken (11:41) Why Late-Stage Secondaries Are Getting Overcrowded (14:47) The Information Advantage in Private Markets (17:01) Why Ben Black Built a Public Venture Fund (22:38) What He Learned After Taking Venture Capital Public (26:52) Who Is Actually Investing in Public Venture Funds? (31:49) Why Startups Are Warming Up to Public VC Funds (38:17) How to Get Access to the Hottest Private Companies