Frequently Asked Questions

We provide liquidity solutions for private company equity holders that can optimize taxes, reduce risk, and help maximize your net worth. If you need money for personal use or to exercise your options, we may be able to help.

As pioneers in the space, Liquid Stock is unmatched in terms of experience with unlocking private company equity. Our team has 50+ combined years of venture capital, private equity and legal experience, providing us with the tools to simplify complex transactions. Our team has backed the employees and shareholders of the world’s best companies including SpaceX, xAI, Anthropic, OpenAI, Stripe, Databricks, Uber, and many others.

Maybe! We understand there is no one-size fits all. The right solution should be based on your individual circumstances. Our transactions are based on transparency, honesty, mutual understanding, and a proven history of fair dealing.

Liquid Stock is an investment firm, not a broker, marketplace, or business development group. We control our capital and assume the risks for our investments. Our firm has over $300 million in assets under management and is backed by leading institutional investors. We receive a management fee, also known as compensation, from our investors and also participate in the success of our transactions.

We offer solutions for personal liquidity, option exercise, secondary sales and public exchanges. Our personal liquidity and option exercise solutions are not loans as we assume both equity and duration risks, risks that we don’t believe private company shareholders typically should take. Since we assume these risks, it means that you may also receive tax benefits from our transaction. In some cases, we will also buy your shares if you are interested in selling. Our public exchange solution is powered by one of our partners who will either buy your shares or structure tax efficient exchanges. For either sales or exchanges we don’t charge you brokers or other fees as we aim to be the most efficient partner for all of your liquidity needs.

We offer solutions for personal liquidity, option exercise, secondary sales and public exchanges. Our personal liquidity and option exercise solutions are not loans as we assume both equity and duration risks, risks that we don’t believe private company shareholders typically should take. Since we assume these risks, it means that you may also receive tax benefits from our transaction. In some cases, we will also buy your shares if you are interested in selling. Our public exchange solution is powered by one of our partners who will either buy your shares or structure tax efficient exchanges. For either sales or exchanges we don’t charge you brokers or other fees as we aim to be the most efficient partner for all of your liquidity needs.

We provide liquidity to shareholders using only their shares as collateral, while they maintain ownership and potential upside. This can be helpful for situations where you are unable to sell or are concerned about selling too early.

The Liquid Stock transaction allows equity holders to maximize the value of their equity – either via saving on taxes in an option exercise, or getting liquidity in lieu of selling shares and losing out on the potential future upside. Our cost of capital needs to be evaluated in light of these end goals. Unless there are extenuating circumstances, a transaction may not be worthwhile if the cost of capital consumes most of your expected benefit.

Our reputation has been built on providing a liquidity solution that allows company option holders and shareholders to benefit from the future upside of their equity. Overall, transactions involve what is called counterparty risk – this is when one party in the transaction does not live up to the terms of the agreement. Unlike a sale, where both parties agree to a price, effect a share transfer, and have no further obligation to one another. A Liquid Stock transaction can be open for years and both parties are relying upon the other to manage the transaction according to their agreement. Therefore, it’s important to choose an experienced partner, like us, who has a history of honesty and fair dealing. With the Liquid Stock solution, unless there is an event of default, we only look to the value of your shares as collateral, and if the value ends up being less than would otherwise be due on settlement, we assume the loss. This is a risk that must be priced into our transactions and part of the reason we receive a percentage of the value of your shares at settlement.

To proceed with our solutions, we’ll need to review evidence of your share or option ownership, as well as any associated documents. For most companies that are not already held by our fund, we may need access to detailed financial and operating information on your company.

It depends on the level of transaction complexity and access to information. At Liquid Stock we pride ourselves on efficiency and generally can complete your transaction in weeks, not months. Because there is no middleman, our transactions tend to be fast and reliable, so you don’t need to wait to access your equity.

Our solutions are consequential financial events for most people. It is very important for you to have an attorney representing your interests and a CPA to help you assess how a transaction impacts your specific tax situation.

Liquid Stock’s transaction structure is designed to be tax efficient and can be advantageous in certain scenarios. It is best to check with your CPA to understand the potential tax benefits.

We believe that it’s vital for you to have a close and direct relationship with Liquid Stock. You will remain in direct contact with our team from the start to finish of our transaction.

In the private market space understanding a firm’s capital source is the key to understanding the transaction. Many companies claim to have capital but are essentially brokers to capital providers which cause additional layers of fees and complexity of execution. At the end of the day you want to know who you are dealing with and how they operate.

Liquid Stock only receives payment at a future company liquidity event. You may settle your transaction by using cash from selling your shares, transferring shares to Liquid Stock, or borrowing against your newly tradable shares to settle our agreement.

As an investment firm, we hold our deals from the beginning until settlement and must ensure that companies meet our investment criteria. In general, we are looking for “best of breed” late-stage private companies to complete our portfolio.

We assume equity risk in our personal liquidity and option exercise transactions. So if the value of your equity goes to zero and you haven’t defaulted under your agreement, then you pay us zero. This is why it is so important for us to work with the employees and shareholders of the world’s best private companies.

Our public exchange solution is powered by one of our partners who will either buy your shares or structure tax efficient exchanges. For either sales or exchanges we don’t charge you brokers or other fees as we aim to be the most efficient partner for all of your liquidity needs.