Has Your Company Filed an S-1?
Spark is a new liquidity solution from Liquid Stock, built in partnership with institutional capital. Designed for employees and shareholders once a company has publicly filed its S-1, Spark offers a significantly favorable solution relative to those available pre-S-1.
Why Spark?
Lower Cost of Capital
Liquid Stock can offer the lowest cost of capital for stakeholders in companies that have publicly filed its S-1. This means better terms than you’ve historically seen in our structure.
Advance Rate
Retain Your Upside
Accessing liquidity against equity owned today can be a favorable alternative to participating in a pre-IPO tender. It lets you access tax-advantaged capital today without parting ways with your equity’s upside tomorrow.
Tax Efficiency
Exercising your options pre-IPO converts your tax status from ordinary to capital gains, and long-term capital gains if you hold for over a year. The savings here versus converting your shares in a cashless exercise can be material.
Alignment Without Cap Table Impact
Leveraging our structure means employees are buying in and not selling at the most important time. This drives company alignment without impacting the cap table.
Trusted by employees of top blue-chip technology companies
Options Exercise
Unexercised stock options leading into an IPO can translate into millions of dollars in uncaptured wealth.
Lock in favorable tax treatment by converting from ordinary income to capital gains
Avoid a cashless exercise at liquidity, where your option spread is taxed at the highest ordinary-income rates
Maximize your net worth by leveraging our structure to offset capital gains in your shares
Unlock the capital to buy your first home, pay down student loans, or whatever else you’re looking for
Access liquidity today without participating in a tender which means parting ways with the potential future upside of your shares
Use the liquidity proceeds to diversify your net worth and find peace of mind during a potentially volatile lock-up period
Liquidity On Owned Shares
Accessing liquidity against equity owned today can provide the capital for life’s needs.
How This Works
Eligibility
Employees or shareholders of private companies that have publicly filed an S-1
Advance
Liquid Stock can advance up to 50% of the value of your shares, using a tax-efficient structure
Outcome
Efficient liquidity, preserved ownership, and alignment with long-term company success
Why We Created Spark
Option Exercise Calculator
Learn More About Spark
Built on years of collaboration between Liquid Stock and Institutional Capital, Spark fits seamlessly into the path from private to public.
FAQs
When Exactly is a Company Considered "Post-S-1"
As soon as the company’s registration statement (S‑1) is publicly filed with the SEC. Spark is designed specifically for that period through pricing, roadshow, and IPO.
How Does Spark's Pricing Compare to Pre-S-1 Solutions?
Because Spark is purpose‑built for post‑S‑1 and supported by permanent capital, it generally offers a significantly lower cost of capital than pre‑S‑1 financing options.
Will Spark Affect Our Cap Table?
No. Spark provides liquidity without requiring a secondary sale or other actions that directly impact the cap table.
Can Employees Use Spark To Exercise Stock Options?
Yes. Many employees use Spark to exercise options and potentially convert future gains from ordinary income into capital gains, subject to their personal tax situation.
What Advance Rates Are Typical?
Up to 50% of share value, subject to underwriting and company‑specific factors.
What Happens After the IPO and Lock-Up?
Terms are defined in definitive documentation. Generally, transactions contemplate public listing and lock‑up periods; repayments typically occur from future liquidity events.
Trusted by employees of top blue-chip technology companies