Insights·Market analysis

Record secondary market volume in 2025: what it means for private equity

Hiive and Forge reported record transaction volumes in Q1 2025. More liquidity is good for employees — but it also changes how you should value illiquid grants.

2025-04-02 · 6 min read
Article from 2025-04-02 — valuations have moved since

This piece references valuations and round details as they stood at the time of writing. For the current 4-method estimate, see the company pages — refreshed monthly.

Key takeaways
  • Q1 2025 secondary volume on Hiive was up 110% year-over-year.
  • Tighter secondary spreads mean illiquidity discounts on grants have shrunk from 25% to 15%.
  • Side effect: companies are more aggressive about ROFR enforcement.

Hiive disclosed in April that Q1 2025 secondary transaction volume was up 110% YoY. Forge's secondary index doubled. This is a structural change in private markets — and it has implications for how you should think about your own equity.

Why it matters

Liquidity changes valuation. The traditional 'private illiquidity discount' (the haircut for not being able to sell) was 20–35%. With deeper secondary markets, that discount is shrinking — for top unicorns, to 10–15%. Your grant is worth more on paper than it would have been three years ago, all else equal.

The pushback

Higher volume means more company involvement. ROFR exercises are up — companies are more frequently buying back shares from would-be sellers, sometimes at the listed price, sometimes blocking the transaction entirely. Read your stock plan before listing.

If your company has been quiet on secondary sales in the past 12 months, expect that to change. Either tender offers will start, or ROFR enforcement will intensify. Both are signs of an active management team paying attention to the cap table.

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