The Better Way to Achieve Liquidity

Start with these Steps:

Explore

Compare the benefits of financing vs. selling your shares.
See What to Consider

Request Proposal

Receive an offer from Liquid Stock.
How Liquid’s Contract Works

Review & Accept

Ask your trusted advisors about tax and legal implications

Liquid Funds

Receive funds from Liquid Stock.

What to Consider

Share Sales

Maintain Upside

Liquid Stock provides you with cash and allows you to benefit from future share appreciation. You maintain your upside.

Lose Upside

Although sales give you cash today for diversification of equity exposure, sales limit upside.

Very Tax Efficient

  1. Non-taxable liquidity up front.
  2. Cost of capital treated as a capital loss to offset future gains.
  3. Shareholder able to hit holding period for long-term capital gains treatment or QSBS.

Least Tax Efficient

  1. A sale is a taxable event.
  2. Required to sell ~1.3x+ in order to net back to tax and liquidity requirements.
  3. Sales within 1-year for long-term capital gains or within 5-years for qualified small business stock (QSBS) are undesirable.

Company-Friendly

Liquid Stock is fully independent, institutionally-backed, and complies with company agreements. Your best interest is always top of mind.

Grey Zones

Solutions that ignore company agreements do not have your best interest in mind.

How Liquid Stock Works

  • Financing

    Liquid advances you money using your shares as collateral.

  • Interim Period

    Investment Return accrues annually, no cash owed until the contract is settled.

  • Repayment Date

    Company IPOs or sells. You repay Liquid the Advance Amount, Investment Return, and Stock Fee.

  • After Repayment

    You keep the remaining shares or sell them for cash. You realize a tax benefit from Liquid Stock’s contract.

What You Need to Know

Advance Amount

Total dollar amount that Liquid Stock provides you.

Investment Return

Functions much like a non-cash interest rate. The investment return accrues to the balance of the advance amount and compounds annually.

Stock Fee

A fixed percentage of the shares to be transferred to Liquid Stock on the Repayment Date.

Repayment Date

All contracts with Liquid Stock are settled at liquidity event, IPO or M&A transaction. There is no fixed term, you can settle at any time prior to IPO.

Non-Recourse

The only assets pledged in a Liquid Stock contract are your shares.

Get Cash Lower Taxes Minimize Risk

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