pre-ipo stock compensations -lyft, airbnb, uber
Hi, I never worked for a pre-ipo company (neither my close friends) .. can someone explain how their stock compensations work? is there a way to sell ur pre-ipo equity or have to wait till its IPO (plus 6 or 12 months window)? I am mainly interested in companies like Lyft, Airbnb, Uber but any general info will be appreciated. Thanks :)
If you're looking for quick cash this isn't the game. Assume that you'll cash out in 10 years - plenty of people are cash poor and sitting on effectively million dollar pensions.
isn't there a clause or something in the Uber stock that says if the company isn't public within a certain number of years then your RSUs are void?
Yes. 10 years
ya not a good option for quick cash .. but i wish there shd be a way to cash out those equity in needs
You're not alone :)
Most employees at these companies receive RSUs which can't trade hands until after an IPO and during a trading window (while still employed). Liquidity events do exist for earlier employees that received stock options (ISOs). These events give shareholders the opportunity to sell their shares to an investor seeking to increase their stake in the company.
http://www.wsj.com/briefly/BL-263B-4091
thanks SVCEng