Today, we’re launching our analysis of data from more than $3B worth of tender offers.
Tender offers are a critical liquidity tool for startup employees—in many cases, their only opportunity to sell shares at all—but the way they work today is broken:
Pricing pegged to the company’s last round: 83% of all transactions are priced at or under the price of the last round of funding
Low participation: Only 37% of shareholders sell any of their shares into tender offers
Employees are last to liquidity: 75% of all employee transactions take place once their company’s post-money valuation has exceeded $160M
Tender offers promise to help employees of private high-growth companies de-risk and diversify, but chronic underpricing means that selling into a tender frequently means leaving large sums of money on the table.
Check out the report to see our full analysis of the data and let us know what you think.