Startup Funding Espresso Benefits of a Secondary Sale
Benefits of a Secondary Sale Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. A secondary sale brings several benefits to the stakeholders in a startup. Companies stay private much longer than before.\xa0\xa0 Those in the company need access to capital.\xa0 For founders, a secondary sale provides some liquidity in the near term giving them the opportunity to continue growing their business for a larger exit. For employees, a secondary sale provides access to liquidity reducing job hopping to find a larger salary elsewhere. For the early stage investors, the secondary sale provides returns before subsequent larger rounds of funding dilute them. Institutional investors can use the secondary sale to buy into the business bringing additional expertise as well as cleaning up the cap table of smaller investors. This makes the business more attractive to the eventual buyers of the business. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .