With founders being so selective with direct investors on the cap table, secondary markets offer investors an alternative route to participate in such investments by purchasing someone else’s existing stake. Secondary markets also often lead to quicker liquidity. For Web3 companies, it usually takes around 2-7 years from (pre)seed to liquidity, while for companies in more traditional sectors, it can take over 10 years. Investing in a project on the secondary market can save you years of waiting. A third major benefit of secondary markets for buyers is that secondary investments tend to carry lower default risks. Similar to late-stage funds, despite potentially receiving a lower ROI due to higher company valuations, the risk of failure for companies at later stages is much lower than your typical startup. This makes investing in secondary markets very appealing for investors looking for a balance between risk and reward.