Secondaries
A unique offering: Buy the position of others, or sell your holdings in private VC companies – anytime and usually at a discount.
We created Brightspark Secondaries to provide you with additional flexibility:
- You can invest in VC on your own time, without the timing constraints of traditional funding rounds
- You can access unique investment opportunities, and decide the price you want to pay; and
- You have the option for liquidity before the average VC exit timeline (5 to 7 years)
Secondaries are not usually accessible in VC single-company investments, but we are broadening that in line with our mission to democratize the asset class.
Our proprietary back-office technology helps us process these transactions in a manner that is secure, seamless, and fair to all parties.
The Benefits
BUYERS
- Usually get a discount on the Fair Market Value
- Invest at any time and outside of funding rounds
- Access mature, later-stage companies
- No fees to buy, management fees are not reset
SELLERS
- Unprecedented option for early liquidity
- Flexibility to sell some or all holdings
- Rebalance your portfolio
- Lock-in a profit
- Process is seamless and secure
Add VC secondaries to your portfolio
Get access to unique primary and secondary VC opportunities on our platform
Frequently Asked Questions
Regular Brightspark VC opportunities happen when Brightspark decides to participate in a funding round of a specific company. Accredited investors can purchase units in a Limited Partnership fund that invests in that company. The fund’s target company receives the money, and issues shares to the fund – the investor becomes a Limited Partner of that fund.
Through the Brightspark secondary program, accredited investors can purchase the units of an existing Limited Partner. The seller of those units receives the money, and there are no new shares issued by the target company. The investor that buys the units becomes a Limited Partner of that fund.
No, the fact that units are for sale is not necessarily related to the performance of the fund’s target company, or its potential for a future exit.
There are many reasons why a seller may be interested in selling their units. It could be that their personal circumstances mean that they need to free up some cash. Or perhaps the valuation of the company has increased significantly enough that the investor can still make a healthy return. It is usually related to a need for liquidity by a seller.
When doing your due diligence, you will have access to the latest FMV and related documents to help you assess the value and potential of the fund’s target company. As it is the case with every VC investment, these are early-stage companies and involve high risk.
You must meet the definition of an accredited investor to participate in any Brightspark investments, including secondaries. Our team will also work with you to assess whether you are suitable for any given investment based on your financial situation and investment goals.
Most of the secondary units for sale are those of existing accredited investors in our network. Occasionally, some of the units have been warehoused by Brightspark (used to round up investment rounds, etc.)
Most of our Brightspark investments are eligible to be sold via Secondaries. Requests to sell are subject to approval by our team - you may not be able to sell if the price is not aligned with investor appetite, or if the fund's target company is going through an event (fundraise or liquidation) that could affect its price.
Investing in venture capital, including buying secondaries, involves a high degree of risk. Early-stage investing in technology companies is a risky endeavour, and many early-stage companies fail (and investments are lost). Additional risks include changing economic conditions, difficulty in valuing startup investments, absence of liquidity, and more. We encourage you to read our complete risk disclosure.
Before investing with Brightspark, you should carefully review the risk factors. In addition, you should consult your own counsel, accountant and other advisors as to legal, tax, business, financial, and related aspects of an investment with Brightspark.
You can reach out to our team at invest@brightspark.com if you have any questions.
Disclaimer: All the information contained in this page is provided to you for informational purposes only. Brightspark funds are available only to investors who qualify as accredited investors and for whom venture capital investments, which are risky investments, are suitable. Investing in venture capital funds involves significant risks. The terms of any specific investment in a Brightspark fund shall be governed by the constituent documents of such specific investment. This page is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities. The Brightspark Secondary Program does not guarantee the liquidity of such investments.