The COVID-19 crisis has frozen a $6.4 billion market where venture fund investors could sell their partnership interests. That freeze could drive cash-strapped investors to another option — walking away from their funding commitments to VCs

· When a venture capital firm raises a new fund, the money committed by outside investors might seem to be set in stone for a period as long as 10 years.
· But those fund investors, called limited partners, can actually trade away their partnership stakes through private transactions.
· In recent years, a $6.4 billion...