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Investor Connect Podcast

Investor Connect is for investors interested in learning more about investing in startup and growth stage companies. Experienced investors share their experiences and advice with those who are considering an investment into startups and growth companies. It includes a podcast series of interviews with investors to inform others about the process of funding startups as well as a resource list and a discussion board.  

Topics include sourcing, analyzing, and researching companies. Other topics include valuations, terms Sheets, board of directors, board of advisors, due diligence, syndicates, venture capital, angels, angel networks, family offices, crowdfunding, exits, and more.

Investor Connect is a community program. We welcome your suggestions for speakers and topics which you can send to us through the Contact page. No registration is required to use the resources.  Discussion boards are available to post and answer questions about startups and growth company investing through which registration is required.

Investor Connect is a program under the Texas Open Angel Network which is a 501(c3) non-profit dedicated to the education around startup funding.

Disclaimer: Hall T. Martin is the Director of Investor Connect which is dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Jun 29, 2023

How Do Secondary Sales Work?

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Secondary sales typically occur with later-stage startups.

Investors who want shares in a company will buy the shares from founders, employees, or other investors.

The price is typically at a discount to the last priced round such as 15 to 30%.

The seller must find a buyer for the stock.

This could be existing investors in the company who want a larger position or new investors.

Oftentimes investors who could not get into the investment round will buy shares through the secondary market.

The company itself may know of potential buyers of the stock.

There are websites that match investors to sellers of the stock.

There are venture funds that focus on buying secondary shares as well.

Investors use SPV or special purpose vehicles to structure the purchase. 

The purchased stock has a lock-up period and cannot be sold for a period of time.

Those who sell the stock will need to take taxes into account.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.


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Music courtesy of Bensound.