HarbourVest executives report that software secondaries are becoming more difficult to close, a shift attributed to growing investor scrutiny. Managing director Jeff Keay noted that while some companies will strengthen through AI innovation, others face obsolescence, creating a wider performance gap in portfolios.

This divergence makes valuation and buyer alignment harder. Investors now demand clearer differentiation between AI-resilient businesses and those at risk, slowing due diligence and negotiation processes for secondary sales.

The trend signals a maturing market where fundamental business quality trumps sector-based assumptions. For sellers, this means preparing more robust data on technology moats and growth trajectories to attract competitive bids in a more selective environment.