Spark
Liquidity After The S-1
Backing employees of the world's best companies
Why Spark?
Lower cost
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.
Better advance rate
Liquid Stock can offer its highest ever advance rates for stakeholders in companies that have publicly filed its S-1, in some cases up to 50%. For option, RSU or PPU holders, this means that you can exercise more of your equity, which can start your long-term holding period for capital gains treatment. For shareholders, this means that you can access more capital and begin diversifying your portfolio pre-IPO.
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.
Options Exercise
Unexercised stock options leading into an IPO can translate into millions of dollars in uncaptured wealth.
Optimize your tax outcome
Lock in favorable tax treatment by converting from ordinary income to capital gains.
Avoid costly tax triggers
Avoid a cashless exercise at liquidity, where your option spread is taxed at the highest ordinary-income rates.
Preserve more of your wealth
Maximize your net worth by leveraging our structure to offset capital gains in your shares.
Put your equity to work
Unlock the capital to buy your first home, pay down student loans, or whatever else you’re looking for.
Access liquidity today without selling early
Access liquidity today without participating in a tender which means parting ways with the potential future upside of your shares.
Diversify with confidence
Use the liquidity proceeds to diversify your net worth and find peace of mind during a potentially volatile lock-up period.
Option Exercise Calculator
What questions should you ask?
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.
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.
Backing employees of the world's best companies
