Overview
Industry Ventures was founded in 2000 by Hans Swildens and is headquartered in San Francisco. The firm manages approximately $6 billion in assets across venture capital fund-of-funds, LP secondary, and direct secondary strategies.
Industry Ventures pioneered the concept of combining venture fund-of-funds investing with direct secondary purchases of private company equity. The firm’s direct secondary strategy involves buying shares in venture-backed companies from employees, early investors, and founders who seek liquidity before a public offering or acquisition. This approach gives Industry Ventures access to high-quality venture-backed companies at negotiated prices, often at meaningful discounts to the latest primary funding round.
The firm’s LP secondary strategy acquires limited partnership interests in established venture capital funds, providing investors with exposure to mature venture portfolios at potential discounts to net asset value. Combined with primary fund commitments, these three strategies provide a comprehensive platform for accessing venture capital returns through different risk-return profiles.
How to Approach
GPs interact with Industry Ventures in multiple contexts. As a fund-of-funds investor, the firm evaluates primary venture fund commitments and can become a long-term LP in a GP’s fund program. As a secondary buyer, Industry Ventures may acquire LP positions in a GP’s existing funds from sellers seeking liquidity.
For GPs whose portfolio companies have shareholders seeking pre-IPO liquidity, Industry Ventures’ direct secondary platform can be a valuable partner. The firm’s direct secondary transactions are structured to align with GP interests and typically require GP consent. Venture GPs at all stages should be aware of Industry Ventures as a multi-faceted participant in the venture capital ecosystem.
Frequently Asked Questions
What makes Industry Ventures unique in the venture capital market?
Industry Ventures is one of the few firms that combines venture capital fund-of-funds investing with both LP secondary purchases and direct secondary purchases of private company equity. The direct secondary strategy involves buying shares in venture-backed companies from employees, founders, and early investors before an IPO or acquisition. This multi-strategy approach provides diversified access to venture returns.
What is Industry Ventures' direct secondary strategy?
Industry Ventures' direct secondary strategy involves purchasing equity in venture-backed private companies from existing shareholders including employees, early-stage investors, and founders. These transactions provide liquidity to sellers while giving Industry Ventures access to high-growth companies at valuations that may be more attractive than the latest primary funding round. The firm has been active in direct secondaries since the early 2000s.
Does Industry Ventures invest in primary venture funds?
Yes. Industry Ventures invests in primary venture capital fund commitments as part of its fund-of-funds program. The firm maintains relationships with established and emerging venture managers and makes primary commitments alongside its secondary strategies. This combination allows the firm to build diversified venture portfolios with multiple entry points.
