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How do investors cash out? Do they sell to new round investors?
by solenoid0937 5mo ago
How do investors cash out? Do they sell to new round investors?
- bix6 5mo agoCorrect. There is also a secondary market.
- barbarr 5mo agoGoing off the other reply, I wonder if a highly-active secondary market means that companies can raise series [A-Z]+ rounds effectively forever, where each "round" just refers to a giant purchase of shares under strict company supervision. Is this the new game for startups?
- DenisM 5mo agoIf investor pool becomes too loose the company becomes de facto public, subject to all SEC-enforced regulations. The judgment is subjective though, so pushing the boundaries could be a calculated risk.