Startup Funding Espresso Preparing for a Secondary Sale Transaction
Preparing for a Secondary Sale Transaction Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing A secondary sale is important to the founders and employees of a company. It gives them the opportunity to sell their shares to gain liquidity in advance of the company\u2019s exit. Here are some key issues to consider: Founders normally receive common shares when launching the company. There are advantages for founders who have preferred shares. Founders should consider starting with preferred shares instead of common ones. Generate interest in the secondary sale to create demand. A priced fundraise often raises the interest of investors and provides a base price for the shares. Contact funds and investors interested in secondary shares during the fundraise. There are investors who regularly buy secondary shares and should be put on notice about your pending offer. Finally, position the business so it is attractive to investors. Ensure the company\u2019s metrics and market position are aligned with investor's expectations. \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 .