Thirteen years ago, Forerunner Ventures began carving a unique path in the consumer startup landscape, backing breakthrough brands such as Warby Parker, Bonobos, and Glossier. Notably, none of these companies has conducted a traditional initial public offering. Warby Parker opted to go public through a special purpose acquisition vehicle, Bonobos was acquired by Walmart, and Glossier remains privately held along with many other prominent consumer brands in Forerunner’s portfolio.
But Forerunner founder Kirsten Green doesn’t see this pattern as indicative of failure. Instead, it reflects an evolving reality in venture capital, where alternatives to traditional IPOs—such as acquisitions, SPAC mergers, and delayed private exits—are increasingly the norm. While Forerunner’s earlier bets, like Chime and Ōura, now boast valuations exceeding $5 billion, their paths toward public markets differ significantly. Chime recently filed confidentially for an IPO, while Ōura’s leadership consistently affirms they have no immediate plans for a market debut, despite robust growth.
Speaking recently at a StrictlyVC event, Green expressed no concern about potential delays or shifts in traditional exit strategies. Responding to questions about Ōura CEO Tom Hale’s decision to prolong private ownership, Green emphasized her confidence in the company’s potential, describing it as “off-the-charts phenomenal.” She explained the firm has not even entertained serious discussions around selling, focusing instead on sustained growth.
Green acknowledged the shift away from traditional IPO pathways, underscoring how venture investors have adapted by actively participating in secondary markets to manage liquidity and extend their investment horizons. “We’re engaged in the secondary market, buying and selling,” she stated, describing this adaptation as both strategic and practical. “The venture model typically operates on decade-long cycles, but now, to achieve a successful IPO, companies often need to command valuations in the tens of billions. That takes more time.”
Traditionally, venture firms counted on quick exits—typically through IPOs or acquisitions—to deliver investor returns. Now, increased reliance on secondary transactions doesn’t just reflect market conditions shaped by inflated private valuations and selective IPO markets; it also introduces improved price discovery and broader participation. Green referenced Chime specifically—a high-profile case where valuations have swung dramatically from $25 billion in 2021 to as low as approximately $6 billion in secondary market transactions last year, before recently rebounding to around $11 billion.
While direct funding rounds reflect private negotiations between companies and small groups of investors, Green suggested secondary markets provide more accurate valuations by allowing broader participation. “In the secondary market, more players contribute to price discovery,” she explained. “By the time a company eventually transitions to the public markets, all market participants collectively determine the company’s value.”
Notably, Forerunner’s approach—investing early in emerging consumer brands—affords considerably more flexibility and insulation from temporary valuation variances. “We try to get involved early,” Green noted, highlighting a strategic model centered around spotting significant shifts in consumer behavior and aligning with emerging businesses poised to benefit from those changes.
This approach has historically served Forerunner well—first with direct-to-consumer success stories like Bonobos and Glossier, then with subscription-focused propositions like The Farmer’s Dog, which now reportedly generates roughly $1 billion annually while being profit-positive. Today, the firm continues to seek opportunities at the intersection of cultural shifts and innovation, according to Green.
Ultimately, Green contends that today’s venture model has matured to accommodate longer paths to liquidity. With fewer immediate exits and extended timelines for exits or liquidity events becoming commonplace, investors—including Forerunner—are increasingly comfortable managing value through secondary market involvement. For Green and others embracing this new landscape, the evolving timeline is far from a drawback—it’s an opportunity to build more enduring, impactful enterprises.
