Selling pre-IPO shares, is it worth?
Not working at LinkedIn anymore, I’m at a unicorn who is likely at least 5 years out from IPO. No signs of acquisition, but things are going well. Is it worth selling pre-IPO shares? Not very well versed on secondary transactions. I’ve had a few people approach me
If they are sellable, most aren’t, you won’t make much money after the middlemen take their cut.
I think you need to be very high up to be eligible to sell shares as apart of an event. Usually it would be during a fundraising round there might be an opportunity to sell some if you’re important enough.
Most private companies also have various restrictions on transfer making it virtually impossible to do a secondary transaction that is not approved by the company itself. The usual jargon is a sale can only take place when it’s a company derived liquidity event. And re the folks who have approached you, they most likely want to take a chunk via liquidation preference, plus a hefty percentage when there is a sale/IPO.
How rich would it make you
Idk they didn’t share any numbers