--- title: Stapled Secondary - Definition & Examples | RGM® Glossary url: https://realgrowthmatters.com/glossary/stapled-secondary/ updated: 2026-06-10 source_html: https://realgrowthmatters.com/glossary/stapled-secondary/ --- Growth Glossary — Definition SHT STAPLED-SECOND # Stapled Secondary Secondary tied to new primary commitment. A working definition from the RGM marketing glossary. Secondary tied to new primary commitment. Term : Stapled Secondary Field : Private Equity Category : Capital & Investing ## A working definition Read that twice.Treat Stapled Secondary as a capital concept with a clear scope. Two people using the term should mean the same thing. Secondary tied to new primary commitment. As a capital & investing term, Stapled Secondary means a capital concept. Settle what it covers before the planning starts. ## Where the mechanics matter Pick one definition.Stapled Secondary produces value through how it is applied. Change the inputs and the right use of it changes too. Think of Stapled Secondary as context-bound. A small shop reads it simply; an enterprise reads it with more nuance. That is normal -- Stapled Secondary is shaped by audience and channel mix. Read Stapled Secondary without care and the plan wobbles; be precise and the read holds. The working rule is plain. Agree what Stapled Secondary covers first, then act on it. Skip that order and Stapled Secondary loses its shared meaning, and two teams end up measuring two different things. Here is the short version. ## When to reach for it Worth a slow read.Stapled Secondary earns attention at three moments: setting budget, choosing a metric, comparing options. Away from those, it waits. Stapled Secondary matters at the point of a decision. In capital & investing, three moments come up again and again. Outside them, Stapled Secondary is reference material. 1. **Setting budget.** Stapled Secondary clarifies which budget line deserves more. 2. **Choosing a metric.** Stapled Secondary tells you if the read reflects real effect. 3. **Comparing options.** Stapled Secondary corrects two options that look alike but are not. ## A worked example Look at it this way.To make Stapled Secondary concrete, the case below uses a Bessemer-tracked SaaS firm and figures from public reporting plus RGM analysis. Take a Bessemer-tracked SaaS firm. During a rule-of-40 screen, the team made Stapled Secondary the deciding input, not an afterthought. They set a baseline first, agreed one definition of Stapled Secondary, and only then read the result: durable growth separated from cash-burn growth. The number matters less than the order. The numbers behind Stapled Secondary -- illustrative only, RGM analysis | Stage | What the team did | Why it mattered | | Baseline | Took a before reading on Stapled Secondary. | A fixed point of truth. | | Define | Fixed one meaning of Stapled Secondary for the test. | Two people, one meaning. | | Act | A rule-of-40 screen — one variable. | One change, a clean read. | | Result | Durable growth separated from cash-burn growth | A decision the data earned. | These Stapled Secondary numbers are illustrative -- RGM analysis. The structure travels; the specific figures do not. ## Pitfalls in practice Read that twice.The errors with Stapled Secondary are predictable: one blanket rule, no context, chasing the word, raw benchmarks. Each is avoidable. - **One blanket rule.** Applying Stapled Secondary the same way everywhere. Split it by audience, channel, and business model. - **No anchor.** Quoting Stapled Secondary without a starting point. Always pair it with a baseline. - **Chasing the word.** Optimizing Stapled Secondary for its own sake. Check it tracks a real outcome. - **Apples to oranges.** Comparing Stapled Secondary across firms raw. Adjust for pricing and cycle before you read it. ## Common questions How is Stapled Secondary defined? Secondary tied to new primary commitment. Agree the scope of Stapled Secondary before the planning starts. What makes Stapled Secondary worth knowing? Stapled Secondary earns its place when it shapes a real decision. The leverage is in correct use, not in the word itself. How do teams use Stapled Secondary? Stapled Secondary informs a decision -- most often a budget, a metric choice, or a comparison. The a Bessemer-tracked SaaS firm example above shows the pattern. What is the most common mistake with Stapled Secondary? Treating Stapled Secondary as one blanket rule and reporting it with no baseline. Both hide a soft assumption. How is Stapled Secondary defined? : Secondary tied to new primary commitment. Agree the scope of Stapled Secondary before the planning starts. What makes Stapled Secondary worth knowing? : Stapled Secondary earns its place when it shapes a real decision. The leverage is in correct use, not in the word itself. How do teams use Stapled Secondary? : Stapled Secondary informs a decision -- most often a budget, a metric choice, or a comparison. The a Bessemer-tracked SaaS firm example above shows the pattern. ### Read next ### Related terms