Like many startups, private startup OpenSea doesn’t allow employees or investors to sell their shares without board approval. Yet in an obscure corner of the startup investing world, OpenSea’s shares can be sold at a deep discount, as can shares of many blue-chip companies in the crypto space.
Nick Fusco, founder and CEO of ApeVue, a data provider focused on pre-IPO companies, explained: "Even if a private company restricts trading in its shares, it is still possible for investors to buy and sell indirect interests in the company's shares by trading the ownership interest of the SPV (special purpose vehicle), which in turn owns the shares of the private company." As of March 5, OpenSea's shares were trading at a 51% discount on Birel, a secondary market platform for startup stocks. A person who asked not to be named said that 95% of OpenSea shares in the secondary market are in the form of SPVs, with each batch of shares attached to its own entity. But they believe this will undermine liquidity and hinder transactions.
Another investor, a fintech company founder and angel investor, said investors prefer to buy shares directly because SPVs require additional fees and give less control. (The Block)