Startups are remaining private for longer periods, leaving employees—who often receive stock as part of their compensation—with limited opportunities for early liquidity. In response, an increasing number of late-stage startups are offering tender offers, which allow employees and early investors to sell a portion of their shares at a predetermined price to approved investors.
Partnership Overview
To streamline the tender process, NewView has partnered with Carta. This collaboration merges NewView’s expertise in secondary deal structuring with Carta’s equity platform. Ravi Viswanathan, founder and managing partner of NewView, emphasizes that this partnership aims to facilitate the launch and management of liquidity programs for startups.
““The hope is that this partnership will make it easier for CEOs and companies to think about tenders,” Viswanathan stated. He advocates for early liquidity as a “win-win-win” for employees, companies, and investors.
Growing Trend in Tender Offers
A recent study from NewView Capital and Carta indicates that the number of tender offers is expected to triple over the next three years for Series C and later-stage startups. Notably, the startups opting for tender offers are not limited to the most valuable private companies like OpenAI, Databricks, or Anduril. For example, last year, NewView led a tender for HighTouch at a $1.3 billion valuation when the marketing customization startup was just seven years old.
