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Goldman Sachs is set to purchase Industry Ventures in a deal valued at as much as $965 million, as alternative venture capital exits experience significant growth

Goldman Sachs is set to purchase Industry Ventures in a deal valued at as much as $965 million, as alternative venture capital exits experience significant growth

Bitget-RWA2025/10/13 23:00
By:Bitget-RWA

Goldman Sachs has reached an agreement to purchase Industry Ventures, a San Francisco-based investment company with a 25-year history and $7 billion in managed assets, according to a report from CNBC on Monday. This acquisition highlights the increasing significance of secondary markets and buyouts as traditional venture capital exits remain slow.

The investment bank will pay $665 million in a combination of cash and equity, with an additional $300 million possible depending on the firm’s performance through 2030, as stated in a release from Goldman. The transaction is anticipated to be finalized in the first quarter of next year, and all 45 employees of Industry Ventures are expected to join Goldman Sachs.

We have contacted Swildens to request further details.

This purchase comes at a time when venture capital funds are increasingly seeking alternative exit strategies due to a prolonged slowdown in IPO activity. Earlier this year on TechCrunch’s StrictlyVC Download podcast, Industry Ventures founder and CEO Hans Swildens mentioned that technology buyout funds now represent 25% of all liquidity within the venture capital landscape—“a significant portion of liquidity,” he remarked.

Swildens noted that venture capital managers are having to change their strategies. “Simply meeting companies, adding them to your fund, and waiting for an IPO or strategic M&A exit is unlikely to be effective anymore,” he said during the podcast. “[VCs] must begin developing alternative ways to achieve liquidity.”

Back in April, he pointed out that at least five prominent venture funds had brought on full-time staff specifically to focus on creating non-traditional exits, such as secondary sales, continuation vehicles, and buyouts. “All the well-known funds are hiring and considering new liquidity structures,” Swildens added.

Goldman is pursuing this acquisition to strengthen its $540 billion alternative investments platform, which the bank sees as a major driver of future growth.

“Industry Ventures’ strong relationships and expertise in venture capital enhance our current investment businesses and broaden client access to some of the world’s fastest-growing companies and industries,” said Goldman CEO David Solomon in a statement. “By merging Goldman Sachs’ global capabilities with Industry Ventures’ venture capital knowledge, we are in a unique position to address the increasingly complex requirements of entrepreneurs, private tech firms, limited partners, and venture fund managers,” the statement added.

Industry Ventures reports that it has completed over 1,000 investments, holds interests in more than 700 venture capital firms, and maintains an internal rate of return of 18%.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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