Introducing Stonks Secondaries

Exclusive Access to Unicorns

Invest in late-stage opportunities only available to institutions and family offices.

*Disclaimer: The opportunities listed above are not live and valuations may vary. We are actively sourcing allocations and will be in touch with users that declare their interest as opportunities become available. Submitted interest is non-binding

Secondaries On Stonks

A letter from Adam Hardej, Head of Private Markets

Dear Investor,

We’re excited to formally introduce secondaries[1] to the Stonks platform. Secondaries — as opposed to primaries[2] — refer to the buying and selling of pre-existing investor commitments or employee equity. This is a big step for the Stonks community.

Through secondary transactions, we are now able to allow investors to allocate their capital into names like SpaceX, Stripe, and Discord. Until now, investing in mature private companies has only been possible for large investors deeply ingrained in the venture community; it’s our mission to make these important companies more accessible than ever before.

Secondaries are not new. In fact, secondary transactions have always been a valuable part of the venture ecosystem. Every day over $100M of equity from late-stage venture backed companies privately changes hands between buyers and sellers in the secondary market. These transactions are done behind closed doors in large tranches with investment minimums that range from $1M to upwards of $10M.

Here at Stonks - we aim to improve the secondaries experience for investors in two key ways:

  1. Lower minimums.
  2. More transparency.

We will achieve this through software and media. Historically, the minimum check size for secondary transactions has been high due to the legal logistics of bringing a large number of small investors into a deal. Through partners like Sydecar and our own development team we’re now able to streamline this process in a way that makes it possible to onboard a large number of investors efficiently. Our hope is to onboard new investors via these private market transactions through engaging presentations and clear communication that go against the standards set by legacy players. We aim to answer questions like:

  • Where are these deals happening?
  • Who’s selling?
  • Why are they selling?

As mentioned, these transactions are typically done privately. Given our streaming platform and reach, Stonks has a unique opportunity to showcase these deals out in the open.

Thank you for reading this far and following along our journey to democratize venture capital! We welcome your comments and questions — feel free to reply to this email with any suggestions for improvement.

On the other side of all of this - we’re also excited to work with sellers to make the liquidity process 10X easier. But, that’s a letter or another time.

If you have any comments, ideas, or questions - please never hesitate to reach out.

Adam Hardej, Head of Private Markets

[1] An example of a secondary transaction would be when someone “re-sells” the stock that they previously purchased (or earned) in a primary transaction. Every additional sale after the initial sale (or distribution) of an equity is considered a secondary transaction. When an investor sells their stake in a startup to another investor - that’s a secondary transaction. When an early employee sells equity they earned as a part of their compensation package to an investor - that’s a secondary transaction.

[2] An example of a primary transaction would be the purchase of stock directly from the startup. When you invest into an early-stage startup on Stonks - it’s a primary transaction. If you invested in Stonks when we did our own Seed round on Stonks - that was a primary transaction. When a venture capitalist writes a large check to lead a Series B round of financing - that’s a primary transaction.