SILICON VALLEY'S BEST KEPT SECRET: FOUNDER LIQUIDITY

Summary from the TLDR newsletter

Founder liquidity is the practice where founders sell a portion of their shares during a funding round. It allows founders to reduce risk and secure personal financial stability while continuing to build the company with a fresh influx of venture capital. The practice is often kept secret because it undermines the narrative of the founder who is 'all-in'. It might change how startups are perceived and valued if it were widely known that founders could de-risk their financial position while their employees remained all-in.