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Don't sell. If they are about to raise, then this is the perfect time to sell your shares to investors in the secondary market. If you offer your stake at any

Don't sell. If they are about to raise, then this is the perfect time to sell your shares to investors in the secondary market. If you offer your stake at any discount, they are irrational if they don't take it. Don't worry if you are bound to a non transfer-ability clause. Getting around that is always possible with a bit of lawyering. Also get someone else to handle the transaction on your behalf. You don't sound like the best negotiator. No offense intended.

tptacek 9y ago
For most practical purposes, there is no such thing as a "secondary market" for private company shares for "moderately successful" companies like these. The shares themselves will be subject to a shareholders agreement, the boilerplate for which prohibits their unauthorized sale.
- grizzles 9y ago
  The type of agreement I'm alluding to transfers the beneficial value of the shares, voting rights, dividends, acquisition proceeds, etc. It's synonymous with selling the shares, when you are prohibited from doing so. Mark Zuckerberg was on the buy side of a few of these type of deals. That's a "moderately successful" company.
- 23david 9y ago
  Hire an attorney (or several) for a couple of hours to read through your agreements. The shareholders agreement, even if 'boilerplate', may only give the company the right of first refusal on the sale of shares. Even if unauthorized sales are completely disallowed, if you find an interested buyer there are still ways to craft a legal agreement where you for all practical purposes have 'sold' the shares. But if the company isn't very successful, there may not be any investor interest, which would make the legal details pretty irrelevant. I'd recommend getting an attorney to read over your agreements, and also try and gauge investor interest by listing your shares on one of the secondary market marketplaces.
wdewind 9y ago
> Don't worry if you are bound to a non transfer-ability clause. Getting around that is always possible with a bit of lawyering. Please expand on this.
- deleted 9y ago
  [deleted]

tptacek 9y ago

For most practical purposes, there is no such thing as a "secondary market" for private company shares for "moderately successful" companies like these. The shares themselves will be subject to a shareholders agreement, the boilerplate for which prohibits their unauthorized sale.

grizzles 9y ago
The type of agreement I'm alluding to transfers the beneficial value of the shares, voting rights, dividends, acquisition proceeds, etc. It's synonymous with selling the shares, when you are prohibited from doing so. Mark Zuckerberg was on the buy side of a few of these type of deals. That's a "moderately successful" company.
23david 9y ago
Hire an attorney (or several) for a couple of hours to read through your agreements. The shareholders agreement, even if 'boilerplate', may only give the company the right of first refusal on the sale of shares. Even if unauthorized sales are completely disallowed, if you find an interested buyer there are still ways to craft a legal agreement where you for all practical purposes have 'sold' the shares. But if the company isn't very successful, there may not be any investor interest, which would make the legal details pretty irrelevant. I'd recommend getting an attorney to read over your agreements, and also try and gauge investor interest by listing your shares on one of the secondary market marketplaces.

wdewind 9y ago

> Don't worry if you are bound to a non transfer-ability clause. Getting around that is always possible with a bit of lawyering. Please expand on this.

deleted 9y ago
[deleted]