Startup equity & liquidity
Secondaries and taking chips off the table
Turning some paper equity into money you can live on, without signalling you have lost faith.
Should I sell some of my equity in a secondary?
It is reasonable, and increasingly normal, for a founder to sell a small slice of equity in a secondary once the company is doing well. The case fo...
How much of my stake is reasonable to sell in a secondary?
There is no fixed rule, but the amount most boards are comfortable with is small: often something like 5 to 15 percent of a founder's holding, or j...
How does a founder secondary actually happen, mechanically?
A secondary is you selling existing shares to a buyer, rather than the company issuing new ones, so the moving parts are the buyer, the price, and ...
Will selling in a secondary upset my investors?
A small, well-explained sale usually will not; a large or secretive one can. Investors back founders partly for their all-in commitment, so the wor...
eChai Partner Brands
