Good morning, it’s Crypto Editor Jeff Roberts pinch-hitting for Allie. Over the course of my career, I’ve written many stories along the lines of “Buzzy new startup raises $50 million.” Imagine my surprise then when I learned that, in recent years, those splashy headline numbers are not always what they seem. In a growing number of deals, it turns out, a chunk of the money raised doesn’t go to the startup, but instead into the pockets of the founder.
Founders are getting huge paydays before their startups are close to an exit—and that’s fine with many VCs | Fortune
Venture firms don’t like to talk about early stage secondary sales but the practice is common in bull markets.
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