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.

Market All India Global

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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... 2 resources → How is the money I get from a secondary taxed in India? When you sell your own shares in a secondary, you are selling a capital asset, so the profit is generally taxed as capital gains, not salary. The g... 2 resources → What's the difference between a secondary and the company doing a buyback? Both let you turn paper equity into cash, but the buyer is different, and that changes a lot. In a secondary, an outside investor buys your existin... 2 resources → I just took money off the table in a secondary. What should I actually do with it? The whole point of a secondary is to de risk your personal life, so the first move is usually the boring, powerful one: shore up the basics before ... 3 resources →
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