Are you a shareholder of private securities and want to sell them? Whether you are an employee, or have bought the shares as an investor – we can help you sell them. Here’s the simple process in a diagram.
We have investor networks – liquidity is not a problem for us.
Pre IPO Swap has a combination of individual investors, institutional investors, family offices, private equity firms, and other investor networks to tap into.
Companies we have worked with in the past include Uber, SpaceX, AirBnB, Lyft, ZocDoc, Palantir, Hyperloop, and others.
If you represent an employee pension plan we can discuss wholesale situations.CONTACT US
Other types of shareholders we work with
If you are a company that wants to negotiate a sale on behalf of your employees or your principles, contact us. Through our network of law firms and investment banks we can find the right solution to take on new capital partners for your firm or facilitate a complete exit if that’s what you want. $100 Million valuation minimum (based on a P/E of 10).
Founders represent the most unique class of shareholders as they not only control the majority of the float but also are typically decision makers or at least they were originally, so their opinion counts!
Early investors can be Venture Capital firms and sometimes individuals who want an exit.
Employees can be offered stock options as part of a payment plan. Some startups and mid stage companies may limit the salaries, and compensate for that limit with stock options.
Not surprisingly, family offices are big Pre IPO investors and startup investors. Family Office are typically active in their investment management and may seek a partial exit to cover taxes or to get liquidity for something else.
Hedge Funds often take positions along side VCs, and typically have a shorter term view than other types of investors (but not always).
Bulk transactions such as sale of shares from benefit plans, corporate buybacks, and other private transactions can be facilitated.
Employee Pension Plans
The Pre IPO Swap team comes from a diverse Wall St. background including but not limited to private equity, venture capital, securities trading and litigation, quantitative fund management, algorithm development, and financial firm operations. We have developed the art of Pre IPO down to a science – there is no more smooth and transparent process.
Current and departing employees are often given stock options in lieu of additional compensation. Some startups may even be capped at the amount they can pay employees, so stock options are all startups have to get top talent. This is widely known – but what is not so widely known is that many of those stock options expire worthless! The contracts are structured as a use it or lose it option which means there is no risk in the employee exercising them. Of course, there are also complicated tax issues involved as these are options and not purchases of securities, subjecting many to the AMT (Alternative Minimum Tax).
Pre IPO Swap takes care of this for you – providing you with the cash you need to fund your lifestyle. In the most likely scenario we would match you with an individual investor OR a fund that buys such assets. We have a diverse global investor network including places like Hong Kong, Tel Aviv, Moscow, Boca Raton, London, New York, and the Bahamas. As we are not a financial institution there is no overhead thus providing the best possible terms to both parties.
We work with Angel, Seed, and other early round investors who may have waited a few years to see their investment come to fruition and want to take some profits off the table. Typically this represents only a portion of the overall holding as the asset performs well.
We are able to monetize Pari Passu rights immediately, which many previous investors have.
Pari Passu Rights
Pari Passu rights are when an investor is given the first right to invest in subsequent rounds. We are able to monetize this immediately in a number of ways – please check if you have these rights they may be valuable and no risk to monetize them to the holder.CONTACT US