When Carousell received a US$500 million capital injection from South Korea’s Naver Corporation last year, its early investors and employees were able to cash out in a secondary sale, with some pretty sizable returns.

For many people, the notion of a secondary sale may be an unfamiliar one. Secondaries are a fairly new phenomenon in Southeast Asia, but they’re an important part of the startup ecosystem. And while most tend to associate secondaries with late-stage companies, knowing what they are and how they work is pretty important for early-stage founders as well.

In this episode of Tech in Asia Explains, Golden Gate Ventures partner Michael Lints and Fundnel chief financial officer and co-founder Khai Lin Sng help break down everything you need to know about secondary markets.

Tech in Asia Explains is a Tech in Asia Originals series that dives into everything that budding entrepreneurs need to know about starting up a business, getting insights from leading personalities from within the industry.