When IPOs Freeze, Liquidity Finds Another Way

Why It Matters

Secondary markets now provide a critical exit path, preserving capital recycling and founder control while mitigating the risks of a volatile IPO window. This reshapes how venture capital returns are generated across the region.

Key Takeaways

• Secondary market volume projected $122 billion in 2025
• IPO fundraising only $21 billion, six times less
• Endeavor report recorded ten 2025 liquidity events
• Southeast Asian firms favor secondaries over premature IPOs
• Sovereign investors increasingly back structured secondary deals

Pulse Analysis

When public markets tighten, venture‑backed firms are turning to secondary transactions as a reliable liquidity source. The Endeavor Catalyst report highlights a surge in such deals, with global secondary volume projected at $122 billion for 2025—almost six times the capital raised via IPOs. This shift reflects a broader re‑evaluation of exit strategies, where founders and investors prioritize controlled, private liquidity over the uncertainty and valuation pressure of a public listing.

Southeast Asia’s unique market structure amplifies the appeal of secondaries. The region’s fragmented exchanges, ranging from Singapore to Vietnam, offer uneven depth and limited analyst coverage, making large IPOs risky. At the same time, sovereign wealth funds and state‑linked investors such as Temasek and GIC are actively participating in structured secondary deals, providing both capital and credibility. These investors help clean up cap tables, align incentives, and enable companies to stay private while still delivering returns to early backers and employees.

Strategically, secondary sales must be carefully designed to avoid governance pitfalls. Transparent pricing, clear communication with staff, and disciplined cap‑table management are essential to prevent shareholder misalignment. When executed well, secondaries act as a “release valve,” allowing firms to focus on fundamentals—unit economics, profitability, and sustainable growth—without the pressure of a premature IPO. As the IPO window continues to fluctuate, the secondary market is set to become an integral component of the venture playbook, especially for mature Southeast Asian unicorns seeking flexible, founder‑friendly liquidity options.