Especially in early-stage, high-growth tech companies, employees’ net worth is often concentrated in company stock. However, their liquidity needs aren’t always on the same timeline as that of the company. Employees may want to access this paper-wealth to purchase homes or prepare for life events like the birth of a child.

Secondary Share Sales are an excellent way of rewarding the hard work and loyalty of long standing employees with vested shares before a formal exit. Left unaddressed, employee liquidity issues can impact morale and retention, and reduce control through grey-market brokered transactions.