What's the Difference Between a Primary and Secondary Investment?
Primary Investment: A Primary Investment is an investment made directly into one of a company's funding round (ex: Seed Round, Series A, Series B, etc). Primary investments are typically made through incubators, angel groups, VC firms and equity crowdfunding platforms.
Secondary Investment: A Secondary Investment is an investment made into the stock of a company through a secondary source (not the company directly). If you purchase shares of a private company from an early investor or employee who owns the shares, it is a secondary investment. Secondary investments are sold on secondary markets and through private resale transactions.