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  • October 2019 (Revised January 2020)
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NewView Capital and Venture Capital Secondaries

By: Shai Bernstein, Ramana Nanda and Allison Ciechanover
  • Format:Print
  • | Language:English
  • | Pages:22
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Abstract

While still a general partner at Silicon Valley–based New Enterprise Associates (NEA), Ravi Viswanathan considered the challenges presented by evolving market dynamics in the venture capital space. Startups were staying private longer, which led to limited partners thirsty for liquidity and venture capital funds managing overloaded portfolios. Viswanathan and the senior leaders of NEA orchestrated the purchase of 31 NEA unrealized portfolio companies by the newly created $1.35 billion NewView Capital spinout that he would head. This secondary transaction provided liquidity to NEA’s limited partners and reallocated NEA partners’ time to shepherd other portfolio companies, while at the same time allowing NewView Capital to reap gains from future exits from a portfolio of diverse, high-quality growth stage technology companies. Now, as he prepares to raise Fund II, Viswanathan acknowledges that the unique circumstances that enabled the launch of Fund I would not be replicable, and he must consider alternative strategies to pursue next. Should he continue to focus on secondary transactions, focus on direct investments, or some combination of the two?

Keywords

Venture Capital; Capital Markets; Private Equity; Strategy

Citation

Bernstein, Shai, Ramana Nanda, and Allison Ciechanover. "NewView Capital and Venture Capital Secondaries." Harvard Business School Case 820-038, October 2019. (Revised January 2020.)
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About The Authors

Shai Benjamin Bernstein

Entrepreneurial Management
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Ramana Nanda

Entrepreneurial Management
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Related Work

    • October 2019 (Revised January 2020)
    • Faculty Research

    NewView Capital and Venture Capital Secondaries

    By: Shai Bernstein, Ramana Nanda and Allison Ciechanover
    • October 2020 (Revised March 2022)
    • Faculty Research

    NewView Capital and Venture Capital Secondaries

    By: Shai Bernstein
Related Work
  • NewView Capital and Venture Capital Secondaries By: Shai Bernstein, Ramana Nanda and Allison Ciechanover
  • NewView Capital and Venture Capital Secondaries By: Shai Bernstein
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