Liquidity Event

Définition

A liquidity event is any transaction converting illiquid shares into cash or tradable stock: acquisition, IPO, or a significant secondary sale.

Comment cela se présente dans le financement

SAFEs and preferences define what happens in a liquidity event; employees and founders usually wait for one to realize equity value.

Questions fréquemment posées

What triggers a SAFE in a liquidity event?

Standard SAFEs pay the greater of the investment amount or the converted value when the company is acquired before a priced round.

Can employees get liquidity before an exit?

Sometimes, via company-organized secondary sales or tender offers at later stages.

Termes associés

Exit Strategy Secondary Sale Initial Public Offering (IPO)

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