Founders Guide to the Secondary Stock Sale
Such a transaction is called a Secondary stock sale and has become an increasingly popular mechanism for rewarding the founders who achieved significant growth in their business. The motivation for doing the Secondary stock sale is simple â€“ the founders want to take some chips off the table. When to do the Secondary SaleThe Secondary Sale typically happens at Series B and later. Secondary Stock Sale MechanismThe Secondary stock sale usually takes place simultaneously with the Primary Stock Sale. Offering the Secondary Sale opportunity to employees and early investorsSometimes the Secondary Sale opportunity is extended beyond founders to employees and early investors.