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Exit Can Wait: Secondaries Are Tech’s New Alternative

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High-quality companies are stuck without exits, the IPO market remains sluggish, and capital is looking for a way out – creating a new opportunity for investors.

The global technology market, including Israel’s tech ecosystem, is in a paradoxical phase. On one hand, more companies are delivering strong performance – increasing their valuations, improving efficiency, and even reaching profitability. On the other hand, just as these companies are more mature than ever, they are struggling to generate liquidity. The reason lies in timing. The IPO market has yet to fully recover, while mergers and acquisitions continue to take place only selectively. The result is a new “valley of death” for growth-stage companies – they are no longer early-stage startups, yet they are unable to reach the next milestone of an IPO or acquisition.

This is not the same crisis we saw in 2021. Back then, many companies traded at inflated valuations without solid business fundamentals. Today,........

© The Times of Israel (Blogs)