If a startup is not public, how can one sell their pre ipo stocks. I have an offer from a hardware startup that’s offering me $150k worth of stocks vesting over 4 years?
Don’t do it. It’s useless money. Get as much cash as possible from non public companies.
You can't
equityzen
The short answer is, you probably can’t sell the stock, exercise options or get an RSU payout pre-IPO. The longer answer is, you haven’t provided enough info to answer your question accurately. Pre-IPO stock plans vary widely so maybe there is a way to get paid out pre-IPO. Ask the recruiter or hiring manager to explain how the stock plan works.
Thank you all for the information. I am going to call the hiring manager to find out how the stock plan works.
You should ask your hiring manager, but selling the stock (after it’s vested, of course) usually requires board approval and/or that it happens during a secondary capital raise.
Depends on the language of the contract but some secondary buyers can sign a promissory type note and pay you up front for you later transferring the shares upon liquidity event
Yes, that sounds right. I agree with the other comments that OP just needs to get more information about this specific situation.