The primary market refers to the initial issuance and sale of securities by a startup company to investors. It is the first time that securities, such as stocks or bonds, are offered by the company to raise capital and fund its operations.

In the primary market, startup companies issue securities directly to investors, either through private placements or public offerings. Private placements involve selling securities to a select group of investors, such as venture capitalists or angel investors. Public offerings, on the other hand, involve registering the securities with regulatory authorities and making them available for purchase by the general public through an initial public offering.

Before a  primary market offering closes, startup companies, along with their investors, determine the terms and conditions of the securities being offered, such as the price per share, the total number of shares, and any additional rights or restrictions associated with the securities. Investors participating in the primary market have the opportunity to acquire securities directly from the issuing company. By purchasing securities in the primary market, investors provide the necessary capital to support the startup's growth plans, product development, and market expansion.

The primary market plays a crucial role in the lifecycle of startup companies by enabling them to raise funds and access capital from investors. It allows startups to finance their operations and pursue their business objectives, while offering investors the potential for capital appreciation and returns on their investments.

It's important to note that after the initial issuance in the primary market, securities can be traded among investors in the secondary market, providing liquidity and allowing investors to adjust their investment portfolios based on their objectives and market conditions.