Institutional secondaries — fund stakes, founder blocks, early-investor exits — run on different physics than the browse-and-bid retail layer. The economics of size explain most of the differences.
Information is the first negotiation
A block seller’s largest risk isn’t price — it’s leakage. Word that a major early holder is selling moves the reference price before the trade exists, and colors every counterparty’s bid. Institutional processes therefore start with controlled disclosure: NDAs, staged data access, a curated buyer list rather than an open ask. The retail market’s virtue — visibility — is the block market’s hazard, which is why the two layers are structured differently on purpose (our Institutional page shows this platform’s version).
Price discovery at size
Blocks rarely clear at the marginal price of small lots. Direction depends on the situation: a large stake can command a premium (control-adjacent influence, scarce access to an oversubscribed name) or require a discount (the buyer pool that can write the check is small, and absorbing the position concentrates their risk). Reference prices (indicative, as always) anchor the conversation; the block’s specifics — class, rights, consent posture, seller urgency — finish it.
Execution mechanics
The workflow resembles a small M&A process more than a trade: indication of interest, exclusivity or a quiet auction, confirmatory diligence against primary records, negotiated purchase agreement, company consent and ROFR clearance — which at block scale can invite the company itself or insiders to take the trade — and settlement in stages if the size demands it, each tranche delivery-versus-payment. Weeks are normal; discretion throughout is the deliverable clients actually pay for.
Why structure still wins at size
Institutions can afford bespoke process, but the failure modes — leakage, verification gaps, settlement risk — are the same ones retail faces, at more zeros. Rails that provide verified counterparties, consent-integrated workflow, and custody settlement scale down the drama without scaling down the discretion. Size changes the choreography, not the principles.
Educational only. InvestNow is a demonstration platform. This page is general information, not investment, legal, or tax advice, and not an offer or solicitation of any security. Private-market investments are speculative, illiquid, and can lose their entire value. Consult a qualified professional about your circumstances.