By investing in a secondary round, you'll be purchasing existing shares in a company, known as secondary shares, instead of buying new shares that the company has issued. So, the funds raised in this round will be used to buy shares from existing shareholders, rather than being funds raised by the company for use in the business.
Secondary shares have already been issued and are owned by existing investors or employees in that company. This differs from a primary share, which is a new share that is issued by the company to new or existing investors.
Shares purchased via a secondary round, will be held on behalf of investors by Crowdcube’s Nominee. You can find out more about our nominee, here.