What liquidity options does a founder have early on?


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Is there any hope for a founder to sell shares between series seed and series A? After two years of getting a business off the ground with co-founders, I could use cash for family reasons. I have read about EquityZen, but wondered what stage startups they usually deal with. What other possibilities might I have? Thanks.

Equity Founders Stock Options Liquidity

asked Feb 21 '14 at 06:28
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User30169
1 point

1 Answer


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It's possible to get liquidity that early on but it's tough. Here are the reasons investors would decide against it:

  • The money goes to the founder instead of the business for growth.
  • Fairness to other founders or early employees.
  • Setting a precedent for the price of the common stock. This would impact the price at which future options are granted.

If you haven't already, exhausting other options to deal with any personal financial issue might be a better approach.

A possible option to explore might be a loan from the company itself at a low or no interest rate.

answered Feb 21 '14 at 07:16
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Patricia Wright
638 points

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Equity Founders Stock Options Liquidity