Creating a New Future in Venture Capital with Aman Verjee of Practical Venture Capital

<p>Realized returns on investments for venture capital funds used to happen within three to seven years. Now, the biggest companies are extending funds to 15+ years—and investors are getting impatient. This could dampen venture capital as an asset class, but not if Aman Verjee can help it. </p><p><br></p><p>On this episode of <em>The Modern CFO</em>, Aman discusses how Practical Venture Capital is creating a secondary market from VC funds, how faster liquidity will keep VC relevant, and how his experiences at PayPal, eBay, and 500 Startups resonate with modern CFOs.</p><p><br></p><p><strong>Show Links</strong></p><ul> <li>Check out <a href="https://practicalvc.com/">Practical Venture Capital</a> </li> <li>Follow Practical Venture Capital on <a href="https://www.linkedin.com/company/practicalvc/">LinkedIn</a> or <a href="https://twitter.com/practicalvc">Twitter</a> </li> <li>Connect with Aman Verjee on <a href="https://www.linkedin.com/in/aman-verjee/">LinkedIn</a> or <a href="https://twitter.com/averjee">Twitter</a> </li> <li>Connect with Andrew Seski on <a href="https://www.linkedin.com/in/andrew-seski-819b2581/">LinkedIn</a> </li> </ul><p><strong>Key Takeaways</strong></p><p><br></p><p><strong>02:59 - A new application to a new asset class</strong></p><p>Practical Venture Capital (PVC) focuses on venture capital secondary, buying LP and GP interests in early-stage venture funds, and direct secondary in breakout portfolio companies.</p><em>“It's not a new idea, but it's a new application to a new asset class. I think in venture, there wasn't a need for secondary markets, even up to 2005, 2008, 2010. I was at PayPal early. I joined in 2001. That company went public in four years, from founding all the way to the IPO. Yahoo, Amazon, and eBay were all four- to five-year exits. So, there was not a terribly long time to get your money back. The biggest IPOs, now, in the venture community are: Airbnb, which took 15 years and counting to get their liquidity. Palantir was 17 years and counting. All the biggest