What Startups Need to Know Re: Secondary Markets & Compensation

Thelander recently published the results from the Private Company Year-End Merit Increase, Option Pool & Bonus Report (available through a subscription to the Thelander Platform) – which featured new data on secondary markets given their prominence in today’s global private capital market. Here’s what startups need to know re: secondary markets and compensation.

The results? 92% of private companies surveyed haven’t engaged in any secondary market transactions.

Out of the 8% who have engaged in these transactions:

• 42.9% operate on an “as needed” basis
• 28.6% do it “continuously”
• 14.3% allow it “annually”
• 14.3% allow it “one-time”

And do the companies assist employees in financing a liquidity solution? Short answer, NO.

As companies stay private for longer and “secondaries have gained acceptance as a critical liquidity outlet” (PitchBook) for employees to monetize some of their equity, having access to data and analysis is imperative to make educated decisions for the future of your company and your liquidity.

Trial the Thelander Platform and download the year-end participant report by participating in the no-cost survey here.

Categorised in: Data Drops

This post was written by jthelander