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How Does Pre-IPO Selling Work?

EquityZen
August 29, 2024
1 min read

In this article

    Pre-IPO selling allows shareholders, such as employees or early investors, to sell their shares before the company goes public. This may be an attractive option for those who want to access liquidity without waiting for the IPO process to unfold.

    Whether you are a shareholder looking to liquidate some of your holdings or someone interested in understanding how the private market operates, this video covers the essential steps involved and key considerations. In this video, Phil Haslett, Co-Founder of EquityZen, provides an overview of the pre-IPO selling process for shareholders.

     

    Key Points Covered: 

    • Differences between stock options and restricted stock units 
    • How share pricing is determined 
    • Relevant rules and regulations to be aware of
    • Working with a secondary market platform like EquityZen

    Interested in learning more about how pre-IPO selling works? Explore these blog posts:

    Selling Pre-IPO: What Shareholders + Private Companies Need to Know to Navigate the Market
    Shareholder's Playbook: What to Know About Selling Your Shares
    What Equity Compensation Means for Startup Employees

    Learn more about the EquityZen Shareholder process here: https://equityzen.com/shareholder/ 

     

    Screenshot 2024-02-20 at 2.39.43 PM

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    Disclaimer: Not all pre-IPO companies will go public or be acquired, and not all IPOs or acquisitions are or will become successful investments. There are inherent risks in pre-IPO investments, including the risk of loss of the entire investment, illiquidity, and fluctuations in value and returns. Investors must be able to afford the loss of their entire investment.

     

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