Flashpoint announced it has completed a first closing for Flashpoint Direct Secondary Fund II, its second dedicated direct secondaries vehicle aimed at providing shareholder liquidity in later-stage technology companies founded by European and Israeli entrepreneurs.
The firm said 20 limited partners have committed to the fund at first close, including international family offices and high-net-worth individuals, many of whom returned from Flashpoint’s first direct secondary fund. The new vehicle is targeting $75 million to $100 million in total capital and represents Flashpoint’s eighth fund overall.
Flashpoint positioned the fund around rising liquidity demand across a maturing European-Israeli tech ecosystem, where founders, employees, and early backers are increasingly seeking ways to realize value outside traditional IPO or acquisition timelines. The firm said Fund II will be used to purchase existing shares in later-stage companies, providing exit opportunities for early investors and employees while helping portfolio companies streamline and simplify their capital structures.
The strategy builds on Flashpoint Secondary Fund I, which the firm said launched in 2021 and was anchored by the Scheinberg family office. Flashpoint said the prior fund made 10 investments, including stakes in companies such as Preply, which it said reached unicorn status in late 2025, and Printify, which it said achieved unicorn status in late 2024. The firm also cited investments in category leaders, including Travelier, AirHelp, K2View, and Booksy.
In addition to deploying capital, Flashpoint said it has developed ecosystem tools informed by its secondary-market work, including a publicly available valuation tool that provides pricing estimates for shares of growth-stage private technology companies.
Flashpoint said the direct secondary effort is led by Michael Szalontay, co-founder and general partner, whose track record includes Flashpoint’s investment in Chess.com, which the firm described as the world’s premier online chess platform. The broader thesis, Flashpoint executives said, is that secondary capital can play a strategic role beyond liquidity—supporting cap table optimization, employee incentive programs, and financing needs tied to acquisitions.
A chief executive of a Flashpoint Secondary portfolio company, Travelier, said the firm has supported multiple employee share buy-backs as part of an incentive program since its initial investment.
KEY QUOTES:
“The success of our first direct secondary fund validated our thesis that there is a massive, underserved need for liquidity in our core markets. With Fund II, we are doubling down on our strategy of partnering with top later-stage companies and their shareholders. The opportunity for disciplined secondary investing in tech is uniquely compelling today.”
Michael Szalontay, Co-founder and General Partner, Flashpoint
“Our approach to direct secondaries is rooted in building durable relationships with high-quality companies. Secondary capital can serve as a strategic tool—supporting cap table optimisation, employee incentive programs, and M&A financing. We aim to be constructive, aligned partners with management teams.”
Lukas Harustiak, Partner, Flashpoint Direct Secondary
“We have known the Flashpoint Secondary team for a number of years prior to partnering. Since their first investment, they have become a valued partner, supporting the delivery of our employee incentivisation programme through multiple employee share buy-backs.”
Noam Toister, CEO and Co-Founder, Travelier
