Types of Buyers of Secondary Shares

There are several types of buyers for secondary shares.

Each has its own motivation for doing so.

Here’s a list to consider:

Employees often want more shares of a startup that is doing well.

They may also want to sell their shares to pay for expenses such as college tuition for a family member.

When an employee leaves the company will oftentimes let the employee sell their shares.

Venture capital funds will sell secondary shares to provide liquidity to their limited partners.

For companies that are not on track for an exit soon, some venture capital funds sell their shares to wind down the fund.

Companies that are maturing often need cash to retain employees or replace an investor that wants to exit the investment.

They also can sell company shares to raise new capital for growth objectives.

There are several types of buyers each with their own incentive to sell their shares on the secondary market.

 

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.

---

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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 info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Copyright (c) 2024, Hall Martin and investorconnect.org. All rights reserved.

Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.