G Squared Founder Advocates for Secondary Offerings Amidst Extended Private Market Stays

Larry Aschebrook, founder of growth-stage venture capital firm G Squared, is championing secondary offerings as a crucial component of fundraising strategy for founders. His advocacy comes as venture-backed companies increasingly remain private for longer periods, necessitating alternative liquidity mechanisms for early investors and employees. Aschebrook's firm has built its investment strategy around these transactions, providing a pathway for existing shareholders to sell equity.

"G Squared founder Larry Aschebrook makes his pitch for why founders should incorporate secondary offerings into their fundraising strategy," Inc. magazine stated in a recent social media post. This approach allows a startup’s existing shareholders, including employees, to sell their equity to new investors, offering liquidity without a full company exit. This model has gained prominence as the median IPO age has nearly doubled over the past decade, from approximately seven years to nearly eleven years between 2014 and 2024, according to Morningstar data.

G Squared, founded by Aschebrook in 2011, specializes in growth-stage technology investments and has deployed over $5 billion across more than 140 portfolio companies. The firm’s focus on the secondary market addresses the challenges faced by companies and investors in a climate where initial public offerings have slowed to historic lows. G Squared recently raised $1.1 billion for its sixth flagship fund, bringing its assets under management to approximately $4 billion, specifically targeting these secondary market opportunities.

Aschebrook has previously noted that many fund managers faced pressure from institutional investors to return cash, a difficult task given the frozen IPO environment. "For years, companies and traditional growth managers viewed secondaries as something that was bad," Aschebrook told the Financial Times. "Thankfully, finally it’s our time to shine." This perspective underscores the evolving acceptance and necessity of secondary transactions within the venture capital ecosystem.

The firm's strategy helps alleviate the pressures of staying private longer by supporting companies with transitional capital. This provides flexibility for founders and early stakeholders, allowing them to realize returns without waiting for a public listing or acquisition. G Squared’s sustained success in this niche highlights the growing importance of secondary offerings in today's venture capital landscape.