Preply backer Flashpoint targets $100M for second direct secondary fund
- ByStartupStory | January 23, 2026
As European and Israeli tech companies mature, a growing number of founders, employees, and early investors are looking for liquidity without forcing a full exit. That demand is driving more activity in the secondary market, and Flashpoint is doubling down on that opportunity.
The London-based investment firm has announced the first close of its second direct secondary fund, Flashpoint Direct Secondary Fund II, targeting $75 million to $100 million.
Around 20 limited partners, including international family offices and high-net-worth individuals, have committed to the fund. Many of them are returning investors from Flashpoint’s first secondary fund. This marks Flashpoint’s eighth fund overall.
Designed to provide liquidity to shareholders
The new fund is designed to provide liquidity to shareholders in later-stage tech companies founded by European and Israeli entrepreneurs. It will offer exit options for early investors, employees, and founders, while also helping companies clean up and simplify their cap tables.
Fund II builds on Flashpoint’s first direct secondary fund, launched in 2021. That earlier fund backed companies that later reached unicorn status, including Preply and Printify, as well as category leaders such as Travelier, AirHelp, K2View, and Booksy.
The direct secondary strategy is led by Michael Szalontay, co-founder and general partner at Flashpoint, who has a long track record in secondary investments. One of the firm’s best-known deals includes its investment in Chess.com.
Investors in Flashpoint’s funds include Széchenyi Funds, a Hungarian fund manager, and more than 220 major family offices and HNWIs.
The funds have made investments in 80 companies, including names such as Guesty, Chili Piper, and Office RnD. Flashpoint has completed 28 exits, including the sale of its stakes in Shazam (to Apple), Chess.com (to PokerStars founders and General Atlantic), Marketman (to PSG), and Gurushots (to Zedge), Comeet (to Boathouse Capital), Office RnD (to Blue Star Innovation Partners) etc.
Szalontay comments, “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.”
Lukas Harustiak, Partner at Flashpoint Direct Secondary, adds, “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.”
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