How do investors cash out? Do they sell to new round investors?

Going off the other reply, I wonder if a highly-active secondary market means that companies can raise series [A-Z]+ rounds effectively forever, where each "round" just refers to a giant purchase of shares under strict company supervision. Is this the new game for startups?

	▲	DenisM 2 hours ago \| parent [-]
		If investor pool becomes too loose the company becomes de facto public, subject to all SEC-enforced regulations. The judgment is subjective though, so pushing the boundaries could be a calculated risk.

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bix6 3 hours ago | parent | prev [-]

Correct. There is also a secondary market.