Buying · Stage 1 of 5
Deciding Whether to Buy an Existing Stake
What buying secondary is actually trading off against a primary investment.
Buying an existing stake is a different proposition than investing in a company's current round: you're typically buying with fewer information rights, no board access, and a real information gap relative to a primary investor — usually in exchange for a discount to the last round and, in some cases, a shorter runway to a plausible exit.
Confirm you meet accreditation requirements before spending time on any specific opportunity — every established marketplace and most direct deals require it.
Checklist for this stage
- Confirm your accredited investor status — see the vocabulary page for what that means.
- Decide your target check size, and check it against typical minimums (some marketplaces start around $10K, others $25K+ or higher — see the marketplace directory).
- Think through the illiquidity honestly: this is capital you should be prepared not to access again for years, potentially longer than a primary investment in a newer company.
- Decide whether you want SPV-pooled access (lower minimums, added fees) or are targeting a check size large enough for a direct deal (see SPV vs. direct secondaries).
Common pitfalls
- Treating a secondary purchase as equivalent to a primary investment in terms of information rights and access — it usually isn't.
- Not sizing the position relative to your overall portfolio's illiquidity, on top of any existing private positions you already hold.
- Skipping the accreditation check until after you've already found a specific opportunity you like.
Frequently asked questions
Is buying secondary riskier than a primary investment?
Different, not simply riskier — less information and access, but often a later, more de-risked stage and a discount to the last round. See the guide for the full tradeoff.
What's the typical minimum check size?
It varies widely by platform and deal — some marketplaces start around $10K, others require $25K or more; see the marketplace directory for specifics.
Is this investment, tax, or legal advice?
No. This is independent educational content — every situation has specific facts that can change the right answer. Confirm anything material with a qualified advisor before acting.