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Startups & Venture Capital

Secondary Sale

Also called: secondaries, employee liquidity, tender offer for employees

A secondary sale lets existing shareholders — founders, early employees, early investors — sell shares to new investors without the company raising money. It's how liquidity now reaches people at private companies that stay private for a decade. Companies control it tightly through transfer restrictions, because an uncontrolled secondary market sets a price the company didn't agree to.

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