How Does Pre-IPO Selling Work?

Shareholders

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

Interested in browsing the private company investment opportunities available on EquityZen's marketplace?

Sign Up

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.

 

Related Posts

The Pros and Cons of Selling Pre-IPO Stock

The Pros and Cons of Selling Pre-IPO Stock Understanding the secondary markets to buy and sell private market stock may...

10 Facts for 10 Years of Funds

A Decade of Democratizing Access to Private Market Investments Ten years ago, EquityZen pioneered Private Equity-style...

A Primer on EquityZen’s Multi-Company Funds

Investing in the private markets can be tricky, especially when it comes to researching private companies and gaining...