Should I sell some shares in a secondary just to build a safety net for my family?
The short answer
For many founders this is the single most sensible move, if the chance comes. A secondary lets you sell some existing shares, usually during or after a strong round, and turn a slice of illiquid equity into money your family can actually use. You do not have to sell much. Enough to build an emergency fund and cover a year or two of basics can remove a lot of quiet stress and let you keep taking real risks in the business. Sell too much and you signal wavering conviction and give up upside, so it is a balance. Note that in India a secondary is a sale of shares and typically triggers capital gains tax, and the rates and holding-period rules change, so confirm the current treatment with a CA before you sign. Carta's secondary explainer and Freefincal's goal-based approach help you size it. This is general education, not advice.
A curated summary to orient you, not advice. The resources below are the real value.
Go deeper, your way
3 hand-picked resources, 2 India-specific, 1 link-checked. Pick how you want to dig in.
📄 Article
✓ Link checkedIndiaFreeIntermediate
Why we picked it
The India reference on short vs long term capital gains, holding periods, and rates for equity, funds, and property, so you know the tax before you sell.
Why we picked it
A calm explainer of what a secondary actually is, who has to approve it, and how the price gets set, before you raise it with your board.
Why we picked it
A no-nonsense, ad-light India personal-finance site: plain math and free calculators for emergency funds, goals, and asset allocation, with no product to sell you.
