SeedBlink Blog

If you're curious about startup investing, you'll probably hear a lot about "primary" and "secondary" markets. They’re two sides of the same coin but serve very different purposes. Understanding how they work makes investing feel less like a leap of faith and more like a well-thought-out move.

At SeedBlink, we started in 2020 by connecting everyday investors with promising startups raising funds in the primary market. In 2023, we introduced a dedicated secondary market—a bulletin board—so our investors could trade shares in companies they had already backed. And in 2024, we took it a step further with a full-scale Secondaries platform, opening the door to investing in European rising stars and big pre-IPO companies.

So, what exactly is the difference between primaries and secondaries? Let’s break it down.

Primaries vs. Secondaries: What’s the difference?

The primary market is where it all begins. Startups raise money by selling new shares to investors, using that cash to grow their business—whether that’s building a product, hiring a team, or expanding to new markets. Think of it as planting seeds.

The secondary market, on the other hand, is where existing shareholders—like employees, early investors, or even venture capitalists—sell their shares to others. No new money goes into the company itself, but these transactions allow investors to cash out and new investors to get in. It’s like the farmer selling crops at the market.

Here’s a simple comparison to make it clearer:

When you invest in the primary market, you’re buying into a company’s future. That’s exciting but also risky—your money is tied up until there’s an exit, like an IPO or acquisition, which could take years.

The secondary market flips the script. It’s a flexibility matter: early investors or employees can sell some of their shares, new investors can join the party, and the company doesn’t get diluted. It’s a win-win that keeps the startup ecosystem healthy and growing.

Who’s involved in Secondaries?

• Founders and employees: when working at a startup for years, holding onto stock options might be worth a lot someday. Secondary sales let employees turn some of that "paper wealth" into actual money.
• Early investors: Angels and venture funds often sell shares to free up cash for new opportunities or rebalance their portfolios.
• New investors: For those who missed the early rounds, secondaries are a chance to invest in startups with real traction and less guesswork.

SeedBlink’s role in both markets

At SeedBlink, we’ve seen how these two markets complement each other. Our primary market platform helped fund hundreds of European startups since 2020. By 2023, many of these companies were scaling up, and investors were eager to trade shares. The bulletin board made that possible. This year, with our dedicated Secondaries platform, we’ve broadened the scope to include established European stars and big pre-IPO companies.

Together, they create a dynamic ecosystem that benefits everyone: startups get funded, investors get choices, and innovation thrives. Whether you’re just starting or looking to expand your portfolio, understanding how these markets work will help you invest smarter. Next up, we’ll dive into why secondary deals are often a win-win for everyone involved.

Curious to learn more? Keep an eye out for the next article in this series.

See active Secondaries opportunities.