"There's about 1,200 unicorns in the world right now-and only 25 of them have actual liquidity in the secondary market," says Tom Callahan, CEO of Nasdaq Private Market... This highlights the limited liquidity for most unicorns.
"If you're just trying to establish a new position in a company, you have no access to any of that information, so you're really blind," Callahan says. This emphasizes the challenges investors face in assessing risk without access to vital company information.
For those couple dozen companies that are trading, Callahan says that interest has 'never been higher' from investors. This indicates a high demand for shares from a small subset of companies.
M&A deals have slowed down because of regulatory challenges from the Federal Trade Commission, and the IPO market is still pretty quiet... This paints a picture of a challenging exit environment for venture capital firms.
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