Structuring Early Liquidity for Seed Funds in Pre-IPO Secondary Sales
Seed funds often need to sell 15% of their winning positions in growth rounds to return their fund DPI early. Here is how to negotiate secondary allowances with growth leads.
Amit KasliwalCEO & Founder, Dehurdle
September 30, 20234 min read
The Secondary Liquidity Request
Recommended Spoken Script
"Our seed fund has held common stock for 6 years and we remain long-term believers in the company's IPO trajectory. As part of your $60M growth round, we request the right to sell 20% of our position ($3M) to return initial capital to our Fund I LPs, while retaining 80% of our shares through public listing."
The 2-Minute Practice Drill
2-Minute Spoken Drill
The 2-Minute Practice Drill
Practice secondary share negotiations in Dehurdle.