The secondary market is where existing shareholders, such as startup employees or VCs who bought shares directly from a startup in a fundraising round, can sell some of their shares to others. Yet, buying into a VC’s SPV is not buying the startup’s stock. It’s buying shares of the SPV vehicle that controls a certain number of the startup’s shares.
The secondary market is where existing shareholders, such as startup employees or VCs who bought shares directly from a startup in a fundraising round, can sell some of their shares to others. Yet, buying into a VC’s SPV is not buying the startup’s stock. It’s buying shares of the SPV vehicle that controls a certain number of the startup’s shares.