Secondary Sale
The sale of existing shares (e.g. by founders or early investors) rather than new shares issued by the company.
In a secondary, existing shareholders sell their shares to a buyer, providing liquidity without raising money for the company. Founders sometimes take partial secondaries at later rounds to de-risk personally, subject to investor agreement.
Examples
A founder sells a small secondary stake at Series B. — An early angel exits via a secondary to a new investor.
How it relates to The Startup Foundry
Understanding liquidity options helps founders plan their long-term journey, which starts with becoming investable through the Foundry.