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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – How Do Secondary Sales Work?
Description: How Do Secondary Sales Work? Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Secondary sales typically occur with later-stage startups. Investors who want shares in a company will buy the shares from founders, employees, or other investors. The price is typically at a discount to the last priced round such as 15 to 30%. The seller must find a buyer for the stock. This could be existing investors in the company who want a larger position or new investors. Oftentimes investors who could not get into the investment round will...