Business Pitch Dictionary by pitch.dog
Founders & startup ecosystem · Working

Founder liquidity

Also called: founder secondary

ELI5

Founders sell a small part of their ownership early.

Used in conversation

“The board capped founder liquidity to preserve alignment.”

Definition

A transaction allowing founders to sell some shares before a full company exit.

Here “Founder liquidity” means: A transaction allowing founders to sell some shares before a full company exit.

Pitch context

You will see “Founder liquidity” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches founders & startup ecosystem.

Why it matters: It helps a reader interpret founders & startup ecosystem without confusing the measure, decision, role or evidence being discussed.

Connected terms

Sources & evidence · 5

Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.