A Secondary Sale is a transaction where existing shareholders sell their shares to a new buyer (or back to the company) rather than the company issuing new shares, meaning the company typically does not receive primary capital. In startups, a Secondary Sale can provide liquidity for founders and employees, and Secondary Sale terms often include ROFR compliance, transfer restrictions, and sometimes company or investor approval rights.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
