It is also a very topical one: "The greatest source of liquidity now is going to be continuation funds," VC Roger Ehrenberg predicted in a recent episode of the 20VC podcast. Continuation funds, which are common in private equity [PE] but rare in venture capital, are a secondary investment vehicle that allows them to “reset the clock” for several years on some assets in old funds by selling them to a new vehicle that they also control. This helps a VC fund’s backers, known as “limited partners,” to roll over their investment or exit.
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Roger Ehrenberg is a legend of the venture industry as the Founder of IA Ventures, among the most successful seed-stage venture firms of this generation,…