Podcast Summary: How I Invest with David Weisburd

Episode: E342 – The Rise of Venture Secondaries
Date: April 7, 2026
Guest: Jamie, Founder of Altra Venture Partners
Host: David Weisburd

Episode Overview

This episode explores the emergence and evolution of venture secondaries, particularly in late-stage private technology companies. Jamie, founder of Altra Venture Partners, delves into the forces shaping the secondary market, the unique characteristics of late-stage secondaries, fund construction, information asymmetry, deal sourcing, and the challenges and opportunities facing both managers and investors in this changing market. The discussion intertwines market history, technical insights, and personal anecdotes, providing a comprehensive view useful for both seasoned investors and newcomers to the venture asset class.

Key Discussion Points & Insights

1. Origins of Altra Venture Partners and Market Dislocation

[00:07–02:41]

• Jamie founded Altra Venture Partners in 2023 in response to the massive dislocation in private and public markets triggered by rising interest rates.
  • “Interest rates went from near zero to five plus percent very quickly…this was hugely disruptive.” (Jamie, 00:20)
  • Public markets corrected rapidly, but late-stage venture lagged, with the bottom arriving around mid-2023.
  • Jamie spotted a window where premier private tech companies, needing little new capital, became available at deep discounts (40–80%) relative to 2021 highs.
  • Fear and capital scarcity in the market created rare opportunities for buyers willing to step in.

2. Fundraising in a Challenging Environment

[02:41–03:48]

• Launching and raising funds amid the 2023 banking crisis (SVB, Credit Suisse), Jamie raised only $6 million but credits the tough climate for building resilience.
  • “I had to do it and I just stuck with it.” (Jamie, 03:48)

3. The Structure and Strategy of Venture Secondaries

[04:33–09:14]

• Unlike traditional VC, Jamie focuses on single company/asset transactions in late-stage, concentrated positions.
  • “We have the goal of building positions in the best private tech companies in the world.” (Jamie, 04:51)
• Utilizes a variety of structures: minority stakes in primary rounds, helping fill pro rata, direct secondaries, company-led tenders, large secondary blocks in collaboration, and even equity swaps.
  • “We’ve also done like equity swaps with company executives where they actually become an LP in our funds in return for shares.” (Jamie, 08:02)
• Unique tax-efficient structures are emerging, akin to in-kind contributions to ETFs in public markets but much less established in private.

4. Information Asymmetry and Diligence in Secondaries

[09:24–11:08]

• Late-stage venture secondaries are highly opaque; information rights are limited.
  • “If we can’t get access to enough information to underwrite…we just don’t do it until we can.” (Jamie, 09:48)
  • Marketplaces often provide incorrect or incomplete valuation data; diligence is critical and sometimes the buyer is better informed than the seller.

5. Who Participates in Venture Secondaries?

[11:08–14:24]

• Regulatory distinctions prevent many VCs from participating in secondaries, leading to new players: crossover public market funds, large institutions (Franklin T. Rowe, Fidelity, Neuberger, CO2, Tiger), family offices, sovereign wealth funds, corporate strategics (Amazon, Microsoft, Nvidia).
  • “You’re seeing a lot of big public crossover funds come into the market, like really large institutions.” (Jamie, 12:13)
• The asset class appeals to both traditional tech investors and public equity investors seeking access to growth previously found in IPOs.
  • “Investors need to shift some capital from public markets into late stage private just to recapture the same type of innovation and growth profile.” (Jamie, 13:36)

6. Portfolio Construction and Power Laws

[20:53–22:24]

• Altra’s portfolio is intentionally concentrated, mirroring the power law dynamics of both public and private markets (top ~10 companies generate most returns).
  • “We are intentionally very concentrated…intentionally very concentrated in the companies that we think will continue to create that power law dynamic and create the most value.” (Jamie, 21:09)
• Echoes “buy and hold” strategies employed in top public equity portfolios.

7. Sourcing, Relationship Building, and Market Inefficiency

[22:39–26:11]

• Deal flow is highly inefficient, requiring robust networks, deep diligence on not just companies but transaction structures, counterparties, and cap table politics.
  • “So much of my job…is really just figuring out how and how to continue doing that over time.” (Jamie, 22:51)
• Building positions in stages is typical; rarely completed in a single transaction—mirrors “invest and investigate” philosophies.

8. Risk, Access, and Decision-making in Secondaries

[26:17–27:26]

• Most opportunities are passed on due to structural, counterparty, or informational risks; sleep-at-night threshold is a core filter.
  • “If I’m going to lose sleep over some risk that we took, it’s like an automatic pass for us.” (Jamie, 27:17)

9. Emergence of Continuation Vehicles & Market Evolution

[28:18–31:22]

• Continuation vehicles, popular in PE, are starting to migrate into venture for large single-asset funds as companies stay private longer (examples: SpaceX, OpenAI, Anthropic).
  • “We haven’t seen it in a big way yet…but…at some point I think this comes in…” (Jamie, 28:48)
• Market is becoming somewhat more institutionalized; however, full “scalability” is limited as private companies want to control their investor base.
  • “Just because there’s a lot of demand does not mean it’s going to become an official marketplace.” (Jamie, 32:39)

10. Why Private Companies Stay Private Longer

[33:27–34:24]

• Ample private capital removes the need to go public; control, confidentiality, and avoiding the pressures/volatility of public markets are major draws.
  • “Aside from a lot of volatility and maybe headache for some of these companies, they control who their investors are. Maybe they don’t want to deal with…the quarterly earnings reports…” (Jamie, 33:47)
• Liquidity pressures may eventually lead even these giants to IPO.

Notable Quotes & Memorable Moments

• On market disruption and opportunity:
  • “You saw public equities start to correct very quickly...the NASDAQ was down like 33% that year... late stage venture…really needs a prolonged period of fear and pain for valuations to capitulate.” (Jamie, 00:20)
• On resilience and timing:
  • “It builds resilience. I think, you know, going out and starting your new fund from scratch and kind of a new and nascent market as a first time fund manager, I think takes a little bit of resilience to begin with.” (Jamie, 03:48)
• On the structure of secondaries:
  • “We are heavily concentrated and have the goal of building positions in the best private tech companies in the world.” (Jamie, 04:51)
• On information asymmetry:
  • “The biggest issue for like a lot of smaller investors in this market is that they literally don’t know what they’re buying.” (Jamie, 10:45)
• On why companies stay private:
  • “They want to control who’s on their cap table...If they wanted to be fully liquid, they would just go public.” (Jamie, 32:39)
• On advice to her younger self:
  • “…learn how to become comfortable with failing faster…Being bad at things as, like, a learning experience, even failing...No one wants to fail slow.” (Jamie, 35:23)

Timestamps for Key Segments

• [00:07] – Origins and rationale for founding Altra Venture Partners
• [02:44] – Fundraising during crisis and building resilience
• [04:33] – Differences between portfolio and single-asset secondary strategies
• [07:13] – Overview of transaction structures and flexibility
• [09:24] – Information rights and underwriting process
• [11:19] – Who are the investors in venture secondaries?
• [13:36] – Shifting allocations from public to private markets
• [21:04] – Portfolio construction and power laws
• [22:39] – Relationship-driven sourcing and market inefficiency
• [26:59] – Using small positions to “investigate” opportunities
• [28:18] – Continuation vehicles in venture markets
• [32:13] – Institutionalization and limits to scalability in secondaries
• [33:27] – Why top private companies stay private
• [35:23] – Lessons from Jamie’s career: Embracing “failing faster”

Conclusion

This episode offers an in-depth look at the maturation of the venture secondary market and the shift in late-stage private investing dynamics. Jamie and David dissect not only the technical and regulatory aspects but also the psychological and relational factors driving success in this highly inefficient yet opportunity-rich market. The dialogue is candid yet insightful, providing practical wisdom for institutional investors, emerging managers, and family offices seeking to understand or enter the world of venture secondaries.