Departing a startup as an executive presents numerous challenging decisions. Among them is the choice between exercising vested Incentive Stock Options (ISOs) within 90 days of departure or opting for an extension of the exercise period, which entails converting your options to non-qualified stock options (NSOs). With a little foresight, you can properly evaluate your…

In the current market climate, where IPOs are uncertain and valuations are a challenge, there could be an uptick in venture-backed companies getting acquired. While an acquisition can be a positive outcome, it can pay to be prepared.  Here are a few key points to keep in mind if you anticipate that your company may…

The M&A landscape of 2023 has proven challenging to date. Despite clocking in at $1.3 trillion year-to-date, global M&A remains 38% lower than the same period in 2022. Federal Reserve tightening, a mismatch between buyer and seller expectations, and a vigilant FTC appear to have led companies to navigate these uncertain waters with heightened caution.…

Stripe has been one of the most anticipated prospective IPOs in recent years, but when IPO activity slowed in 2022, the likelihood of Stripe going public in the near future decreased. This created new challenges for the company, which had granted equity that might expire before the IPO window reopened. Stripe reacted by raising a…

Many startup employees are unfamiliar with Rule 701 of the Securities Act. But if you’re a private company employee holding equity compensation, it should be on your radar. Rule 701 can help you obtain information to better understand your equity awards and inform your decisions, like whether to exercise your stock options. Private companies are…

Most startup teams are well-versed in equity compensation, namely stock options that vest over time.  Stock options are a great tool to allow smaller or younger companies to compete for talent against larger, more mature, and deep-pocketed competitors. Is there a way, however, to take equity compensation a step further? At Liquid Stock, we believe…

There are a number of reasons someone at a private company would consider exercising their options early. Most of them fall into the tax optimization (long-term capital gains) or career freedom (portability) categories. There are, however, some other lesser-known reasons to consider exercising your stock options. Before pursuing any of these routes, we strongly recommend…

October is National Financial Planning Month, and many of us are beginning to look ahead at our plans for 2023. Robert Pitti, Liquid Stock Founding Partner, shares a few insights to help you plan to achieve financial freedom in the year ahead. In today’s current economic climate, it’s vital to reassess your financial assets and…

At Liquid Stock, we offer a unique transaction solution, structured as “non-recourse,” other than under specific events of default1. You might be wondering, what exactly does this mean, why is it important, and how can it be helpful to someone considering different liquidity offerings? The main point to consider is what you may be putting…

In today’s market, people are looking for new ways to hedge their investments against inflation. In reality, markets can always take a turn – for better or worse – and it can be difficult to plan ahead for volatility. On the other hand, market volatility can present new circumstances that may be the impetus for…