What is the Private Secondary Market?
When shareholders of private, venture-backed companies such as employees, ex-employees, or early investors want to transfer ownership of their shares to another investor in exchange for liquid assets, this is done on the private secondary market. The proceeds of the sale go to the shareholder, and the new investor takes the place of the original […]
The Prolific Secondary Market (and what that means to you)
The length of time it takes for a company to go public contributes to the thriving and prolific secondary market. A venture capitalist might want to liquidate shares ahead of forming a new fund or making a new investment. Ex-employees may want to liquidate their shares ahead of an IPO to make a major purchase […]
The Cost of Secondary Market Shares
Unlike primary markets, secondary market shares are usually priced based on the latest round of funding. However, more factors can also come into play, such as supply and demand. Shares from a “hot” company might trade at a premium on primary and secondary markets. However, other factors come into play, too, including whether shares are […]
Evaluating Opportunities
There are several criteria for evaluating companies. Here at Legend Venture Partners, we ask the following questions: • What does the company do, and how do they differ from their competitors.• What is their growth rate, and how does that compare to the sector as a whole?• How does the company generate revenue?• What is […]
