Venture Firms Hang the ‘For Sale’ Sign on Portfolios

Some of the most active startup investors have been hanging a “for sale” sign on their portfolios at a time when venture investors are finding it increasingly difficult to raise new venture funds.

Insight Partners has considered selling a stake valued at $400 million in Left Lane Capital, a consumer-focused venture capital firm founded by a former Insight principal, according to a person with direct knowledge of the matter. Insight made more than 200 startup investments in 2021 alone, and raised a $20 billion war chest to back more startups last year.

Insight joins Tiger Global Management, Chamath Palihapitiya’s Social Capital and other VC firms looking to sell some of their stakes in startups or the VC funds that back them. And, in a change from years past, even the VC funds that specialize in the youngest companies are trying to sell some of their investments. For many funds, increased pressure from limited partners to return cash is driving these sales. Some funds are also using the cash to increase their ownership of existing investments.