Can I sell my shares as part of a funding round?

Often yes, and it's frequently the best-timed window. An incoming investor can buy your existing shares rather than only new ones — it gives them exposure without creating dilutive new shares and gets you paid. It usually happens at a discount to the new-money valuation, since the cash goes to you rather than into the company.

Do I have to sell my private shares at a discount?

Almost always. A private, minority, all-cash sale of common shares trades below the headline valuation — the discount compensates for illiquidity, the lack of preferred-share protections, and the buyer's information risk. It's normal; the size depends on the company's stage, demand and how much you're selling.

Selling startup shares

Who buys private startup shares — and how to actually sell yours

Q: Who buys private startup shares?

There are four main buyers: the company itself (via a buyback or tender), existing shareholders or investors (often through a right of first refusal), the investor in an upcoming funding round (who can buy your existing shares instead of new ones), or a private individual investor seeking access to the company, usually reached through an introduction. Work through them roughly in that order.

The first question every seller asks is "who would even buy these?" There are really only four kinds of buyer. Knowing which one fits your situation is half the battle.

Written & maintained by the PrivateTechShares team · Published September 2026 · Reviewed September 2026

Part of our guide to finding a buyer for private shares.

If you hold shares in a private startup and want to turn some into cash, the honest starting point is that there's no public market and no queue of buyers. But there are, reliably, four places a buyer comes from. Work through them in order.

1. The company itself (a buyback or tender)

Some companies buy shares back, or periodically run a tender that lets holders sell a slice. It's the cleanest route when it exists — but it needs the company to have spare cash, and most small European startups don't. Worth asking; don't count on it.

2. Existing shareholders and investors

Often your first real stop. Your shareholder agreement probably gives the company or existing investors a right of first refusal (ROFR) anyway, so you'll likely have to offer them the shares first. Some will buy to consolidate their position or avoid being diluted later. You can even propose flexible terms — for example, a purchase paid in instalments with interest, rather than all cash up front.

3. The investor in your next funding round

This is the underrated one. When a company is raising, an incoming investor can buy your existing shares instead of (or alongside) new ones — it gets them exposure without creating new, dilutive shares, and it gets you paid. Selling around a funding round is often the best-timed window there is, because someone is already setting a fresh price on the company.

It's also leverage. If you're leaving, tell the founders early that you intend to sell. They generally won't want a departing shareholder setting a low price on their shares right before a raise — which is often enough to get a buyback or an introduction to the incoming investor moving.

4. A private individual investor

When the company can't buy, the insiders pass, and there's no round imminent, the remaining buyer is a private investor who wants access to the company. Many good private companies never open a round to individuals, so a secondary is one of the few ways in — which is exactly why the right buyer is often glad to hear from you. The hard part is finding them — which is why understanding how the market works, and getting your valuation and paperwork ready, is what makes the difference.

Expect a discount — and be honest

Whichever buyer you find, a private, minority, all-cash sale happens at a discount to the headline valuation — commonly a meaningful one, and steeper when the company is early or struggling. That's normal (more in what discount is fair). And sell honestly: if there are material problems, a buyer is entitled to know. A clean, transparent sale is the one that actually closes — and the one that doesn't come back to bite you.

Thinking about selling?

It's worth understanding what you hold, what it might be worth and how a private transfer works before you act. Start with the free equity starter kit, or go deeper with the equity toolkit.

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Prefer to read up first? The Equity Toolkit (€39) walks through clearing restrictions and running the sale, step by step.

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