Explore / Your own money / Founder secondaries

Founder secondaries · checked 11 November 2026

Selling a small slice of your shares in a secondary is normal once the company is doing well; boards are often comfortable with 5 to 15 percent.

A secondary needs a willing buyer, usually an investor in a round, and board and often investor consent, so it tends to become realistic from a strong Series B. The proceeds are capital gains, long term on unlisted shares held more than 24 months and then taxed at 12.5%. Since 1 April 2026 a buyback is taxed as capital gains in your hands too, so compare the two before you choose.

Every question on it 14 answers

  1. Should I sell some of my equity in a secondary? Wealth
  2. How much of my stake is reasonable to sell in a secondary? Wealth
  3. How does a founder secondary actually happen, mechanically? Wealth
  4. Will selling in a secondary upset my investors? Wealth
  5. How is the money I get from a secondary taxed in India? Wealth
  6. What's the difference between a secondary and the company doing a buyback? Wealth
  7. At what stage of the company can I even do a secondary? Wealth
  8. I just took money off the table in a secondary. What should I actually do with it? Wealth
  9. Do my co-founders and I have to sell the same amount in a secondary? Wealth
  10. Should I sell in a secondary now or wait for an IPO or acquisition? Wealth
  11. What tax will I pay when I sell shares in a secondary or at exit? Wealth
  12. Is the tax different when I sell founder shares versus shares I got from ESOPs? Wealth
  13. How am I taxed if the company buys back my shares instead of an outside buyer? Wealth
  14. After April 2026, is a buyback or a secondary sale better for me as a founder? Wealth

The readingMost used across these answers

The terms

Secondary SaleLiquidity EventBuyback TaxESOP Buyback

eChai Partner Brands The partnership →