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Start-Up Aims to Circumvent Rules on Private Stock Sales

January 31, 2014

​Fenwick corporate partner Sam Angus was quoted by The New York Times on secondary market exchanges, which enable employee-shareholders in privately-held companies to sell their future stock gains in exchange for immediate liquidity.

“As an adviser to many tech start-ups, I’m seeing more of these types of offerings – which aim to get around the restriction on stock transfers which private companies have increasingly put in place,” Angus said.

Fenwick's Fourth Quarter 2013 Venture Capital Survey found strong growth in the secondary market spurred by the limited liquidity options available for many venture-backed companies over the past decade, and the decision of many of the companies that had liquidity options available to delay such events.

The full article is available through the New York Times website.