Seed investors are rethinking exits. Discover why many are selling earlier to optimize returns and manage liquidity in 2025.
Matilda
Why Seed Investors Are Now Selling Sooner Why Seed Investors Are Selling Earlier in 2025 Seed investors are starting to rethink their entire strategy — and the reason why seed investors are selling earlier is rooted in changing market dynamics and limited partner expectations. With fewer big exits and a drought in venture returns, many limited partners (LPs) no longer want to wait seven or eight years for a return. Seed fund managers are now being pushed to consider early secondary sales, even at the Series B stage, in order to secure liquidity and deliver faster returns. This trend reflects a broader shift in venture capital, where investors are prioritizing cash-on-cash results instead of just betting on billion-dollar exits. Changing Expectations Are Reshaping VC Strategy Experienced investors like Charles Hudson of Precursor Ventures are feeling the pressure. After years of accepting long hold periods, LPs are now scrutinizing when capital gets returned — not just how much. Hudson recently ran a fund analysis and found that …
