Control Over Timing Your Liquidity

One-sentence takeaway: You choose when to sell your private shares—not your company, and not the market.

Selling private company shares isn’t always straightforward. Unlike publicly traded stocks, you can’t just click a button and sell whenever you want. Earlyasset gives you more control over the timing of your liquidity, letting you align a sale with your financial goals.

Why timing matters:

• Maximize returns: You’ve worked hard for your equity. By tracking your company’s valuation (see [[Portfolio Tracker]]) and understanding market dynamics, you can choose to sell when you believe your shares are optimally priced.
• Life events: Sometimes life throws curveballs. Whether it’s a down payment on a house, unexpected medical bills, or starting a family, having the option to access your equity when you need it can make a big difference. (See also [[Life Events Liquidity]])
• Tax planning: Taxes can significantly impact your returns. Selling at the right time can help minimize your tax burden. (See also [[Capital Gains Tax]], [[AMT]])
• Diversification: It’s generally unwise to have all your eggs in one basket, especially with higher-risk assets like private company stock. Having the flexibility to sell some shares allows you to diversify your portfolio and manage risk. (See also [[Dilution]])

How Earlyasset helps:

• Instant Offer: Get an indicative price for your shares at any time, providing a real-time snapshot of potential liquidity. (See [[Instant Offer]])
• Portfolio Tracker: Stay informed about your company’s valuation and identify potential liquidity windows. (See [[Portfolio Tracker]])
• Confidentiality: Explore your options discreetly, without signaling your intentions to the broader market or your company. (See [[Earlyasset’s Confidentiality Promise]])

It’s not always up to you:

While Earlyasset maximizes your control, certain factors may still influence your timing:

• Company restrictions: Your company might have rules about selling shares, such as Right of First Refusal (ROFR) policies or lock-up periods. (See [[Right of First Refusal]], [[Lock Up Periods]])
• Investor demand: While Earlyasset works to connect buyers and sellers, finding a suitable buyer may take time depending on market conditions. (See [[The Secondary Market]])

So here’s what we covered:

• Why controlling the timing of your liquidity matters.
• How Earlyasset empowers you to choose when to sell.
• Factors outside your control that may affect timing.

By understanding these elements, you’ll be better equipped to make informed decisions about your equity. Still have questions? We’re here to help. Contact Us