Secondary Sale
Definition
A secondary sale is the sale of existing shares by current holders (founders, employees, early investors) to new buyers, as opposed to a primary issuance where the company sells new shares.
How it comes up in fundraising
Later-stage rounds often include secondary components letting early holders take partial liquidity before an exit.
Frequently asked questions
When can founders sell secondary?
Typically small portions during strong later rounds, with investor consent; taking meaningful money off the table at seed reads poorly.
How are secondary shares priced?
Usually at or below the concurrent primary round price, reflecting common-versus-preferred differences and liquidity discounts.
Put this term to work
Definitions win negotiations only when you are in one. Find the investors who fund your stage and start the conversation.
Browse the investor database