Secondary Transaction

Julien Fissette
Published on
October 20, 2023
Last edited on
May
X
min read
1
min read
Summary

Secondary Transaction

Julien Fissette
Published on
October 20, 2023
Last edited on
1
min read
May
?
min read
Dictionary Picture

Secondary Transaction

In the venture capital ecosystem, a secondary transaction involves the sale of existing shares from one investor to another, rather than the issuance of new shares. This type of transaction allows early investors or employees to liquidate their holdings and can also enable new investors to acquire a stake in a startup without diluting the ownership. However, it may require the consent of the company and could have implications on valuation and control.

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