Venture capital funding has started to flow again in at least one area: secondary schools

The secondary venture capital market has been on the same roller coaster ride as the broader venture capital market over the past few years, but it looks set to break loose in 2023.

Like venture capital as a whole, the secondary market was hot in 2021 with a bunch of new players - sound familiar? — entered the space as crossover investors and traditional VCs rushed to buy secondary stakes in order to land attractive deals they couldn't access on primary shares. As the market turned in 2022, secondary deals calmed down to the same volume as their venture capital counterparts amid uneven valuations and expectations.

But while it's uncertain whether the venture capital market has bottomed out (some investors think so, while others fear the worst is yet to come), deals secondaries are coming off. Data shows that trading started to pick up again in the second half of 2022, and many investors think 2023 could turn out to be a great year.