Secondary transactions are no longer the exclusive domain of investors. They have become a strategic tool for employees, executives and companies seeking to retain talent, refresh the cap table and manage risk without waiting for an exit. Moran Chamsi, Managing Partner at Amplefields Investments, reviews one of this year’s defining trends.
The high-tech sector is undergoing a profound transformation. Alongside a shift in workplace models, the way employees, managers and investors plan their financial futures is also evolving. A leading driver of this change is the secondary market—early sales of shares in private companies—which in the past year has become one of the industry’s most significant and widely discussed phenomena. What was once seen as unusual, even rebellious, is now a mainstream mechanism for organizational stability, talent retention and sustainable financial balance.
Traditionally, liquidity for private company shares was possible only through an exit, IPO, or acquisition. But as exits stretched beyond a decade, interim solutions became necessary. Startups aspiring to become global tech giants must retain top talent even in periods without liquidity events. Secondary deals allow employees to hedge risk, realize partial gains and remain engaged—not out of blind faith, but from a position of economic stability and trust.
Market turbulence has reinforced this need. Waves of layoffs in 2022–2023, followed by another round in 2025 amid accelerated AI adoption, created ongoing uncertainty. According to the Israel Innovation Authority’s State of High-Tech 2025 report, the sector employed about 403,000 people in the first half of the year, with annual employment growth dropping below 2% since 2023, compared to over 5% for most of the previous decade. Many employees faced stagnant salaries, reduced incentives and a weaker sense of belonging. In this environment, the ability to partially or fully exercise options through secondary sales sends a strong message to employees: we see you, even without an exit on the horizon.
At the same time, more companies recognize the need to refresh their cap tables. Early investors, sometimes on the books for more than a decade, seek liquidity to make room for new opportunities. Secondary transactions enable targeted adjustments without a formal fundraising round. Companies can choose buyers—often specialized secondary funds with deep expertise—striking a balance between rewarding early backers and bringing in the right strategic partners.
2025 is also marked by higher workforce mobility. Employees changing jobs often face a narrow 3–6 month window to exercise accumulated options. This creates a surge in short-term secondary activity, requiring companies to prepare in advance and understand the tools available to manage it effectively.
Moran ChamsiPhoto: Merav Ben LoulouGlobally, the secondary market is expanding rapidly. According to Jefferies, worldwide secondary deals reached a record $162 billion in 2024—a 45% increase from 2023—and are expected to grow further through 2025. In venture capital specifically, PitchBook reports that secondary transactions in U.S. private tech companies alone totaled about $60 billion in the first quarter of 2025. These figures show that secondary deals are no longer peripheral but central to high-tech investment activity.
This reflects a broader maturation of the market. Secondary transactions are no longer taboo but an integral part of sound financial management for growth companies. With greater transparency, more legal and technological tools and increased readiness from companies themselves, secondary liquidity is becoming the new norm.
Ultimately, a secondary deal is more than a financial opportunity. It reflects a new reality where employees seek security, investors demand flexibility and companies must balance long-term growth with prudent present-day management. In this context, private liquidity is not a weakness but a sign of strength—evidence of a company that understands the needs of all its stakeholders.
- Moran Chemsi is a managing partner at Amplefields Investments