News for hackers. Stuff that matters.

A comment on Automattic raises $300M at $3B valuation from Salesforce Ventures. Parent comment

Re:Automattic raises $300M at $3B valuation from Salesforce ... by interactivecode on Thursday September 19, 2019 @12:25PM (#21017755)
What does this secondary and primary mean?
[ Parent | on HN ]
Re:Automattic raises $300M at $3B valuation from Salesforce ... by ttul on Thursday September 19, 2019 @12:33PM (#21017843)
Primary: money from the financing that goes to the company.

Secondary: money from the financing that goes to employees, founders, or other existing shareholders.

Companies often use part of a financing to “take out” existing shareholders. Many larger financings are actually to a large extent a “secondary”.

[ Parent | on HN ]