How to Turn Startup Equity Into Cash Before an IPO

Startup equity can become one of the most valuable parts of an employee’s compensation package, but there is a major catch: private shares are not as easy to sell as publicly traded stock. Employees may accumulate vested options or shares over several years while waiting for an IPO, acquisition, or another liquidity event.

As of August 2026, the growth of private secondary markets and structured liquidity programs has created more ways for eligible shareholders to explore selling some of their holdings before a company goes public. This guide explains the main ways startup shareholders can access liquidity before an IPO and compares five platforms that facilitate private-market transactions.

What Are the Main Ways to Sell Startup Equity Before an IPO? 

Employees typically have a few potential routes to liquidity. A company may run a tender offer that allows eligible employees to sell a portion of their vested shares. Alternatively, shareholders may explore secondary marketplaces, where buyers and sellers are matched for private-share transactions. 

The exact process depends on the company’s policies and the shareholder’s eligibility. Some transactions involve direct ownership of shares, while others use funds or special-purpose vehicles. Companies may also impose transfer restrictions or exercise a ROFR before a sale can proceed.

The SEC’s Office of the Investor Advocate reported in 2025 that approximately 12.6% of U.S. individuals qualify as accredited investors, underscoring how limited access to private-market transactions remains compared with public stocks. 

For shareholders who are permitted to sell, the next question is where to find a buyer and how the transaction works. Several private-market platforms serve different combinations of employees, investors, companies, and institutions. Here’s how the major options compare.

Kin Insurance offers a useful example of why pre-IPO liquidity can matter as startups mature. The insurance-tech company raised a $50 million Series E in September 2025 at a $2 billion pre-money valuation, nearly doubling its previous $1.1 billion valuation. Kin Insurance liquidity analysis reported $201.6 million in 2025 revenue, up 29% from 2024. The company has also been discussed as a potential IPO candidate, illustrating how employees and early investors in a rapidly growing private company may eventually face decisions about when and how to turn their equity into liquidity. 

5 Platforms to Sell Pre-IPO Shares 

These platforms include: 

1. Forge Global

Forge Global operates a private-market platform connecting accredited investors with opportunities to buy and sell shares in late-stage private companies. Forge has facilitated more than 27,000 private-market transactions across 600+ private companies and 636,000 users, according to its latest published marketplace data.

• Pricing/fees: Direct secondary transactions typically carry a 2% to 4% transaction fee. Standard direct transactions generally have a $100,000 minimum, although selected Forge funds can start at $5,000.
• Features: Forge provides access to private-company shares through its marketplace, with accredited-investor verification and both direct and fund-based opportunities. 
• Use cases: Forge can suit employees seeking liquidity, institutional buyers, VC funds pursuing secondaries, and investors looking to diversify into late-stage private companies.
• Kin case study: Kin’s shares have traded on secondary markets, and Hiive reports that Kin’s stock first began trading on its platform in June 2024. Forge could similarly provide a route for eligible investors seeking exposure to Kin before a potential IPO.
• Regulatory/process terms: Buyers generally need to meet U.S. accredited-investor requirements. Transfers can require company approval and may be subject to ROFR provisions, while sellers need to confirm their shares are transferable before a transaction proceeds.

Pros

• Established secondary-market infrastructure
• Pricing and transaction data can support due diligence
• Multiple transaction structures

Cons

• $100,000 direct-investment minimum can exclude smaller investors
• Accreditation requirements limit access

2. Hiive

Hiive is a private-stock marketplace built around price discovery and transactions in pre-IPO companies, giving shareholders a way to seek bids while allowing eligible investors to evaluate private securities.

More than $2.1 billion in transactions were completed on Hiive in 2025, according to the platform’s 2026 annual market report.

• Pricing/fees: Hiive says sellers receive fixed and transparent fees with no hidden charges, while its marketplace allows transactions as low as $25,000 in qualifying cases.
• Features: Buyers can submit bids while sellers can list shares, negotiate directly, and remain anonymous until they choose to connect. Hiive also manages documentation, settlement, and closing. Its market data includes indicative pricing and bid/ask activity.
• Use cases: The platform can be used for employee liquidity, pre-IPO diversification, fund transactions, and other secondary-market sales. Hiive also offers fund structures for investors seeking pooled exposure.
• Kin case study: Kin is a particularly relevant example. Hiive reports that Kin raised $250 million in its September 2025 Series E, bringing total capital raised to about $725.9 million. Kin reported $201.6 million in 2025 revenue, up 29% from 2024.
• Regulatory/process terms: Investors generally need to qualify as accredited investors or, for some opportunities, qualified purchasers. Transactions remain subject to transfer restrictions and required approvals, including potential ROFR procedures.

Pros

• Strong focus on price discovery
• Direct shares and fund structures
• Significant transaction volume

Cons

• Availability depends on the individual company’s shares and seller demand
• Private-market access and transaction sizes can limit smaller investors

3. EquityZen

EquityZen provides access to pre-IPO companies through single-company and multi-company investment offerings, including fund structures.

EquityZen’s standard investment minimum is $10,000, with select opportunities available from $5,000, according to its February 2026 investor guidance.

• Pricing/fees: 2.5% fee up to $1 million, falling to 2% above that; minimums vary by offering.
• Features: Offers direct-company investments and diversified funds, with accredited-investor verification and structured transaction processing.
• Use cases: Suitable for employees seeking liquidity and investors looking for individual companies or diversified pre-IPO exposure.
• Kin case study: Kin’s $725.9 million in total funding and $201.6 million in 2025 revenue make it a relevant example of the type of late-stage company investors may seek through secondary markets.
• Regulatory/process terms: Offerings generally require accredited-investor status. EquityZen says companies typically receive a 30-day ROFR period, while completed transactions commonly take 8 to 11 weeks.

Pros

• Lower stated minimums than many direct-secondary transactions
• Single-company and diversified fund options
• Clearly defined investment process

Cons

• Accreditation limits participation
• Transactions can take weeks to complete
• A company’s ROFR can prevent a deal from closing

4. Nasdaq Private Market

Nasdaq Private Market focuses heavily on structured liquidity programs, helping private companies facilitate transactions involving employees, founders, and existing shareholders.

Nasdaq Private Market has facilitated more than $50 billion in transaction value since its launch, according to company-published figures.

• Pricing/fees: Fees vary by transaction structure; the typical minimum trade size is $25,000.
• Features: Supports direct shares, NPM-managed funds, institutional transactions, and structured settlement infrastructure.
• Use cases: Best suited to institutional investors, funds, and qualified individuals seeking late-stage private-company exposure.
• Kin case study: Kin’s $250 million Series E and reported $201.6 million in 2025 revenue illustrate the type of late-stage company that can attract secondary-market interest.
• Regulatory/process terms: Transactions can require accredited-investor eligibility, company approval, ROFR clearance, and cap-table updates. 409A valuations may inform equity pricing, but do not necessarily determine secondary-market prices.

Pros

• Strong fit for company-sponsored liquidity programs
• Emphasis on governance and transaction administration
• Useful for employee tender offers

Cons

• Access depends heavily on company participation
• Liquidity is often event-based rather than continuously available

5. Carta

Carta combines private-company cap-table infrastructure with liquidity and secondary-market tools, allowing companies and shareholders to manage private equity transactions within a broader ownership ecosystem.

Carta says its platform manages equity for more than 50,000 companies, giving its liquidity tools a connection to a large existing private-company cap-table network.

• Pricing/fees: Carta does not publish one standard secondary-market fee; costs vary by company and transaction structure.
• Features: Supports tender offers, secondary transactions, cap-table management, and 409A valuations within one platform.
• Use cases: Particularly useful for employee tender offers, structured liquidity programs, and companies managing secondary transactions.
• Kin case study: A company-sponsored tender offer could give Kin employees a structured way to sell vested shares without independently finding buyers, particularly while Kin remains private.
• Regulatory/process terms: Carta integrates transactions with cap-table records and valuation workflows. Its 409A valuation helps establish fair market value for private common stock, but the figure may differ from an actual secondary-market price.

Pros

• Strong cap-table integration
• Useful for company-run liquidity programs
• Familiar infrastructure for private-company equity management

Cons

• More dependent on company participation than an open secondary marketplace
• Pricing and access can vary significantly by transaction structure

Platform	Pricing	Key Feature	Best For	Main Limitation
Forge Global	Typically 2%–4% for direct transactions	Private-market marketplace and pricing data	Accredited investors seeking direct private-company exposure	Higher direct-investment minimums
Hiive	Varies by transaction	Bid/ask marketplace and price discovery	Employees and investors seeking pre-IPO liquidity	Availability depends on eligible shares and company restrictions
EquityZen	Typically 2.5% on investments up to $1M	Single-company and diversified funds	Investors seeking structured private-market exposure	Accreditation and longer settlement periods
Nasdaq Private Market	Varies by program	Company-sponsored tender and liquidity programs	Employees and private companies	Access depends on company participation
Carta	Varies by transaction	Cap-table and liquidity infrastructure	Companies managing structured employee liquidity	Less useful without company participation

FAQs

Can I sell startup stock before the company goes public?

Yes, in some circumstances. Employees may be able to sell vested shares through a company-sponsored tender offer or an approved secondary transaction. However, company transfer restrictions, ROFR provisions, and investor eligibility requirements can prevent or limit a sale.

Do I need to be an accredited investor to buy or sell pre-IPO shares?

Many private-market investment opportunities are restricted to accredited investors under U.S. securities rules. The exact requirements depend on the transaction structure and security, so investors should verify eligibility before committing funds.

Does selling startup stock before an IPO mean I get the latest private valuation?

Not necessarily. Private shares may trade at a discount or premium to the company’s latest funding-round valuation. Buyers and sellers also need to consider the 409A valuation, preferred versus common shares, market demand, and the restrictions attached to the specific shares.

Endnote

Selling startup equity before an IPO can turn otherwise illiquid wealth into cash, but the process involves more than finding a buyer. Employees should understand their vesting status, the company’s transfer rules, potential ROFR, valuation, fees, and tax implications before accepting an offer. For eligible shareholders, secondary-market platforms and structured liquidity programs can provide alternatives to simply waiting for an IPO.