Glossary — exit
Secondary sale
A secondary sale is the sale of existing shares (from founders, employees, or early investors) to a new buyer — distinct from a primary fundraise where new shares are issued.
How it works
Secondaries let founders and employees take chips off the table before an exit. They're common at Series C+ where founders may have $0 in liquid wealth despite owning paper shares worth millions. Tender offers are structured secondaries where the company organizes a buyer (usually a growth fund) to buy from any willing seller at a set price.