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The IPO market is fickle. Someone who joined a “near-IPO company” last year may have been reasonably expecting a liquidity event within 12 months, but now finds
by pavlov 4y ago
The IPO market is fickle. Someone who joined a “near-IPO company” last year may have been reasonably expecting a liquidity event within 12 months, but now finds the IPO indefinitely postponed and the company trying to raise additional funding in a downround that may halve the value of those illiquid shares.
Personally I’d take my chances either early, with a meaningful share of the company, or post-IPO when the amount of shares is much smaller but its value reasonably predictable.
- Gunnerhead 4y agoCompletely anecdotal, but has friends join Instacart and Stripe that are in this exact position.
- overrun11 4y agoMy understanding is that companies like these have equity that is easily liquidated privately? No direct experience though, I could be wrong.
- iancmceachern 4y ago100% agree with this approach, proven to be a good one via personal experience.