<ul><li>The media often confuses true capital raises with secondary sales, leading to a distortion of the amount of new funding startups receive.</li><li>Secondary sales happen when existing shareholders sell their shares, creating liquidity, but no new money is injected into the business.</li><li>Misrepresenting secondary sales as fundraising can mislead stakeholders and cause confusion within the startup ecosystem.</li><li>Founders should be clear in their communication, understand the optics, and use secondary sales strategically.</li></ul>

Startups 101: Understanding secondary share sales – why not all fundraising is created equal

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