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's 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's metrics and market position are aligned with investor's expectations. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let's go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.