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Startup Funding Espresso – Allowing Employees To Sell Stock on the Secondary Market
Allowing employees to sell stock on the secondary market Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Startups that take a long time to reach an exit should consider allowing employees to sell stock on the secondary market. While many startups launch an exit in the five to seven-year range, many more are still running well past this timeframe. Founders compensated employees with stock options. Employees signed up for the startup with the expectation that it will find an exit. Employees selling their stock in the early…
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