Question 1

Who are the users of the LBXpro platform?

Accepted Answer

LBXpro serves accredited individual investors, institutional investors, employee shareholders, and private companies seeking data, liquidity, or trading capabilities in the private market.

Question 2

What makes private-market investing difficult?

Accepted Answer

Private companies lack public price feeds, standardized disclosures, and liquid orderbooks. Investors face opaque pricing, large round sizes, and inconsistent information. The platform solves this with providing secondary metrics, company fundamentals data, and support of the brokerage workflow.

Question 3

What data is available?

Accepted Answer

The platform offers a range of data points, synthesized biweekly, including the LBXpro price, activity scorings, and the bid/ask share within the listed volume, as well as secondary market spreads. Additionally, we supply funding history, which covers publicly announced secondary deals and tender offers, and, for select companies, data on revenue, revenue growth, and profitability. It is important to note that LBXpro prices are provided as indications and do not constitute authoritative or complete valuations.

Question 4

What information is NOT available due to privacy restrictions?

Accepted Answer

The platform does not publish individual seller identity, confidential company materials, or any non-public information unless authorized by the issuer.

Question 5

What is required to join the trading?

Accepted Answer

You can start browsing after providing your work email address and your company name. Furthermore, you will need to provide identity verification, accreditation verification, eligibility/accreditation checks and risk acknowledgements, agreement to platform terms and risk disclosures.

Question 6

Does the platform charge fees?

Accepted Answer

Yes. Transaction fees apply on executed trades. Fees vary by service and structure.

Question 7

What is a direct secondary sale?

Accepted Answer

A transaction where an existing shareholder — typically an employee, founder, angel investor, or early fund — sells their private company shares directly to a buyer.
Almost always, issuer consent is required, sometimes right of first refusal (ROFR), and often, transfer restriction checks.

Question 8

What is a tender offer?

Accepted Answer

A structured, company-approved liquidity event where employees and existing shareholders can sell shares within a defined price range and window.
The company and lead investor(s) set the price, sometimes validated with secondary market data.

Question 9

What is an investor-led SPV secondary?

Accepted Answer

A Special Purpose Vehicle is a legal entity, usually an LLC, set up to pool capital from multiple investors into a single investment. Instead of a startup adding dozens of individuals to its cap table, the SPV appears as one line item, with a lead manager overseeing the vehicle.
SPVs are popular because they:
- Allow smaller investors to participate in late-stage or oversubscribed rounds
- Simplify administration for the company (one shareholder instead of many)
- Provide flexible exposure to pre-IPO names without committing to a traditional venture fund

Question 10

What is an LP secondary?

Accepted Answer

An investor sells their interest in a VC fund to another investor, subject to the fund’s governing documents, including applicable consent, transfer restrictions, and ongoing obligations.

Question 11

What is a GP-led secondary?

Accepted Answer

A VC fund transfers its selected strongest assets into a new “continuation vehicle,” allowing:
- LPs to cash out at a set price
- New investors to roll forward and support a longer holding period

Question 12

What is a Stop Transfer?

Accepted Answer

A stop transfer is a restriction the issuing company places in its stock ledger or transfer agent system to block any share transfer unless the company reviews and approves it. It prevents unauthorized sales, gifts, pledges, or transfers of private company shares.
Companies impose stop transfer restrictions to maintain control over their cap table and protect sensitive information. 
Stop transfers ensure that:
- No transaction occurs without company consent
- Transfer restrictions in shareholder agreements are enforced
- Unapproved buyers cannot enter the cap table
- Securities laws, company policies, and internal compliance rules are followed

Nearly every late-stage private company does. It’s a standard governance tool in venture-backed firms.

Question 13

Can secondary trades happen if stop transfer is in place?

Accepted Answer

Yes — but only with explicit issuer approval. Without approval, the transfer agent will not update the cap table, making the transaction invalid.

Question 14

What is the workflow for a secondary sale when stop transfer is active?

Accepted Answer

- Buyer and seller agree on price and terms
- The broker submits a transfer request package to the company
- The company reviews the transaction

The company either approves the transfer, instructing the transfer agent to lift the stop transfer for that specific transaction, or rejects or conditions the transfer

When approved, the transfer agent updates ownership records and issues a new stock certificate or ledger entry.

A stop transfer review usually takes anywhere from 2 days to 4+ weeks.

Question 15

Why is investing in private-company secondaries considered high-risk?

Accepted Answer

Private markets lack real-time pricing, consistent disclosures, and guaranteed liquidity. Investors rely on limited information, issuer approvals, and non-standardized transactions — all of which introduce execution, pricing, and timing risks.

Question 16

What is a pricing risk? How accurate are secondary prices?

Accepted Answer

Prices reflect buyer/seller sentiment — not a formal valuation. Markets can be stale, thin, or distorted by single transactions.

Question 17

What is a liquidity risk? Can I sell my position quickly if needed?

Accepted Answer

Private shares can be semi-liquid or illiquid, and reselling may take weeks or months — or may not be possible at all.
Volume fluctuates with market cycles, company events, and buyer interest. Liquidity may disappear suddenly.

Question 18

Do secondary investors receive the same information as public-market investors?

Accepted Answer

No. Private companies are not required to disclose revenue, profitability, growth metrics, audited financials, risk factors, or material events
The investment decision of a secondary investor may rely on partial or outdated data.

Question 19

Are secondary regulations uniform globally?

Accepted Answer

No. Rules vary by jurisdiction. Cross-border transactions introduce additional regulatory complexity, which may affect transaction timing, structure, or completion.

Question 20

Are tax outcomes predictable?

Accepted Answer

No. Tax treatment is highly act-specific and depends on: holding period, residency, corporate actions, regulatory changes, whether any tax incentives or exemptions are available under applicable law (e.g., QSBS in the U.S.), whether the company qualifies for specific incentives (e.g., QSBS in the US).
Investors should consult tax advisors before transacting.

Any questions?We got you.

Leo

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