Companies continue to use structured and controlled liquidity as a valuable recruitment and retention tool while growing privately. Learn more about the Nasdaq Private Market platform and Private Liquidity Programs.
Liquidity Program Volume Rises 35% in First Half of 2017
The first half of 2017 was the busiest period to date for private company liquidity programs conducted on the Nasdaq Private Market platform. Companies continue to use structured and controlled liquidity as a valuable recruitment and retention tool while growing privately.
Employee-Focused Liquidity Programs
The majority of liquidity programs conducted on the NPM platform during the first half of 2017 were employee-focused. Current and former employees made up 84% of the total eligible seller pool and about 79% of the total participants. Even in transactions where a third party was the buyer or a company used proceeds from a recent fundraise to buy back stock, employees remained the focus of these programs.
Companies also continued to enforce selling restrictions on eligible participants. For current employees, companies typically limit sales to 10-25% of total vested equity. Former employees are often offered an all or nothing option for participation, as companies look to clean up their cap tables.
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