http://techcrunch.com/2015/04/30/the-secret-about-rich-founders-and-ferraris/ http://techcrunch.com/2015/04/30/the-secret-about-rich-found... > David Byttow an

http://techcrunch.com/2015/04/30/the-secret-about-rich-founders-and-ferraris/ http://techcrunch.com/2015/04/30/the-secret-about-rich-found... > David Byttow and Chrys Bader-Wechseler, had previously received $3 million dollars apiece through a mechanism known as a secondary sale in their $25 million Series B fundraise last July. > Secondary sales are pretty simple to understand. When a company raises funding, that funding goes directly to the company as cash on the balance sheet, which is why it is known as primary. Secondary is when a founder or even other employees sell part of their personal shares in the company at the price of the round. That money doesn’t go to the company but into the seller’s pockets. The VC's who bought the $6M worth of stocks knew what they were signing up for.