The full journey: getting access, investing, holding, selling early, and what happens at exit
Private market investing has traditionally meant waiting. You invest, then hold for seven to ten years with no way out before the company exits. Legion is built around a different model: the same access to private companies, with a built-in path to liquidity along the way.
This article walks through the whole journey in five stages: getting access, investing in a deal, holding your position, selling early, and exit.
1. Getting access
Legion is invite-based. You join through an invitation from an existing member or by applying directly. Once you're in, setup takes minutes:
Identity verification. Completed through Persona with a government-issued ID. It usually takes a few minutes.
Accreditation. You self-certify your accredited investor status.
Your investing entity. Invest as yourself, or through a company or other entity.
From there you'll see the deals available to your groups.
2. Investing in a deal
Every deal on Legion has a deal room with the terms, documents, minimum, and timeline. Everything you need to evaluate the deal is there.
When you're ready:
Apply to the deal from its page.
Sign electronically. Subscription documents are generated and signed in the flow.
Fund your commitment by bank wire or USDC.
Your deposit goes to a dedicated account created just for your subscription. It is not a shared pool, and it is never held by Legion. Because the account is unique to your investment, your payment is matched automatically the moment it arrives.
3. Holding your position
Your investment is held through a dedicated investment vehicle, an SPV, created for that specific deal. You own an interest in the SPV, and the SPV owns the shares. This is the standard structure across private markets.
While you hold:
Your position appears in your portfolio on the platform.
The SPV is professionally administered, and you receive a K-1 tax form each year (typically by March 15, sometimes extended to September 15).
All your signed documents stay available in your account.
4. Selling early on the secondary market
In traditional private investing, your capital is locked until the company exits. Legion is building a secondary market so that selling your position to another qualified investor becomes a real option.
Here is how it will work when it goes live:
Post your position: the deal, the amount, and your asking price (or leave it open to offers).
Receive offers from qualified buyers and negotiate directly.
GP approval. Every sale needs sign-off from the deal's General Partner. This keeps ownership among vetted investors and keeps the SPV compliant.
Settlement. Once approved, the transfer completes and can settle the same day.
A few things to know up front:
Holding period. US securities rules (Rule 144) generally require holding your position for at least one year before selling.
Finding a buyer isn't guaranteed. This is a negotiated market, not a stock exchange. Demand depends on the deal.
Pricing is negotiated. You and the buyer agree on the price. There is no guaranteed price.
Secondary trading is coming to the platform. We'll announce when it goes live. For full details, see How to sell your position on the secondary market.
5. Exit
When the company behind your deal has a liquidity event, such as an IPO or an acquisition, the proceeds flow back through the SPV and are distributed according to the deal's documents. Your invested capital is returned first, and profits are then split between investors and the GP as set out in the terms you signed. You'll receive your distribution and a final K-1, and the SPV winds down.
Need more help?
For questions about your account or a specific deal, our chat assistant Emily can help. Find the chat bubble in the bottom-right of any page on uselegion.com.
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