Secondary-market buyer urges founders to control liquidity sales and SPVs

A secondary-market buyer said founders should retain decision-making power over secondary transactions and guide buyers toward appropriate sellers. The buyer described unsolicited outreach to employees as poor practice and said founder relationships can help identify who is suited to receive liquidity, including holders who may already have achieved a strong seed-stage return.

Smaller funds that cannot exercise pro rata rights may use SPVs, the buyer said, but these structures can become unwieldy as companies grow, with multiple layers and broader syndication. Founders should decide when to limit or stop SPV participation, manage it firmly, understand the beneficial owners, and keep information flows under control.