3 ms·

This is a good thing for employee-investors, right?

• zerothOffset 3y ago
  Depends if you are the founder and how tightly you want to control the price
• zhivota 3y ago
  Yes I believe so. Founders will claim your interest is aligned with theirs to keep the cap table clean, but in my experience you can't determine the true market clearing price for your owned shares without marketing them outside the current set of investors. Founders may not like it but it's kind of on the startup scene's current proclivity for keeping companies private for much longer than in the past and therefore restricting employee and investor liquidity. These services are responding to a market need. Carta may have broken their agreement with the startup but it is, in my opinion, generally a good thing to allow more price discovery for all investors.