A private sale is a fundraising round that occurs after the seed round but before the public sale or TGE. Tokens are sold to institutional investors, VCs, and strategic partners at a price higher than the seed round but still at a discount to the expected public listing price.
Private sale investors typically receive shorter vesting schedules than seed investors, reflecting their lower risk profile. A typical private sale might include a 3-6 month cliff with 12-24 months of linear vesting.
The gap between private sale price and current market price determines the profit incentive for these investors to sell. Large discounts create stronger selling pressure at unlock, making private sale unlock dates important events to track.