Is it common or agreeable to sell FF shares in a seed round?

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JASON LEMKIN

Selling any “secondary” shares, via FF shares or any structure, at a valuation < $100m is pretty much a Red Flag for venture investors, either in the current round or down the road.

If an ex-employee sells cheap, that’s fine, even good sometimes.

But if the CEO sells even one share at < a $100m valuation … usually … I’m out.

She should think the shares are way to cheap to sell before then.

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Published on September 7, 2016
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