10Ladder to Liquidity: The Secondary Market

There has been a transformational culture shift in the Silicon Valley that is now spreading across the globe. In the past, if a founder or even an early investor sold any stock before the IPO or definitive M&A liquidity event, the market considered that a negative signal. If Bill Gates is selling any of his stock in Microsoft, then he must know something we don’t and MSFT is overvalued. Everyone sell in a panic! But maybe Bill Gates just wants to buy a boat or donate some cash to charity. Secondary transactions are here to stay. This is another part of the game everyone should understand. A secondary market has emerged for entrepreneurs and investors to sell some or all of their equity in advance ...

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