• Drip of the Week: Why we are viewing Databricks as an Evergreen asset

    Welcome to the Drip of the Week – your quick hit on companies we like, what’s changing across the Unicorn economy, and how those shifts impact employees and founders of the companies shaping our future. Spotlight: Databricks Databricks just raised a significant round at a ~$134B valuation, reinforcing its position as one of the most…

  • Drip of the Week: xAI’s Unusual RSU Structure and the Hidden Tax Trap Employees Miss

    Welcome to the Drip of the Week – your quick hit on companies we like, what’s changing across the Unicorn economy, and how those changes impact employees and founders of the companies that are shaping our future. Spotlight: xAI xAI’s restricted stock unit (RSU) plan is an unusually employee-friendly program, likely designed to attract and…

  • Unlocking Employee Equity: Three Ways Companies Can Make Their Equity Terms More Friendly

    At many companies, particularly in the tech world, equity compensation is a crucial element in attracting and retaining top talent. However, the way that companies structure the terms of their equity plans can impact how valuable the grants are for recipients. As companies compete for the best workers, adopting employee-friendly terms can help them maximize…

  • What to Consider When Using a Loan to Access Liquidity from Pre-IPO Shares

    As pre-IPO shares become more recognized as valuable assets, there are several offerings now available in the market for individuals to get access to early liquidity. We don’t provide loans at Liquid Stock, but we’ve observed this solution potentially reemerging as an option for private company equity-holders in the marketplace as the void left by…

  • Exploring Equity Grants: Delving into OpenAI’s Profit Participation Units (PPUs) and Beyond

    Recently, there has been a surge of interest surrounding OpenAI’s viral employee compensation packages. These packages notably incorporate equity grants known as profit participation units (PPUs), and are sparking widespread curiosity across Silicon Valley. If you’re interested in learning more about PPUs and other types of equity grants more commonly seen at private companies in…

  • How to Think About Changes to Your Company’s 409A Valuation

    In a recent blog, we dove into what exactly a Rule 701 disclosure is, and how it can help startup employees evaluate the value of their company’s shares. Similar to a Rule 701 disclosure, a 409A valuation can offer insightful information on your company and the broader market. We often speak with employees who want…

  • Demystifying Liquidity: Is A Private Stock Liquidity Solution Worth Exploring?

    In today’s economic climate, more private company employees may turn to liquidity providers to help generate cash and maximize their net worth. And as a leading liquidity provider, we frequently receive questions from these employees about how private stock liquidity and option-exercise transactions work and why you may want to work with a liquidity provider.…

  • Ready to Exercise your Options for the New Year? Three Potential Roadblocks to Avoid

    So, are you finally ready to exercise your options, become a shareholder and start the 12-month long-term capital gains holding period? If so, that’s something to be excited about! It’s a relatively straightforward process, but there can be pitfalls along the way. Here are three things to watch out for to keep your journey to…

  • Planning Your Departure from a Private Company? Here are Three Tips to Ease Your Transition

    In periods of prolonged economic volatility, many companies will have to consider cutting costs – in some cases, this could result in downsizing. In a recent PwC survey of more than 700 executives across a range of industries, half of the respondents surveyed “said that they’re reducing headcount or plan to.” Leaving a company is…

  • The Importance of Private Company Liquidity Programs in Uncertain Times

    Over the past several years, private company liquidity programs have grown increasingly more common, especially among venture-backed startups. Employees at startups will often forgo a higher salary in place of stock options or some other form of equity compensation. However, stock options or company shares alone do not help employees achieve life-long financial goals, like…