Ensuring Discrete Secondary Trades with SecondaryOS

1-sentence takeaway: SecondaryOS helps private companies manage employee equity transactions with confidentiality, giving companies control and minimizing disruption.

It’s natural to want discretion when selling private company shares. Public knowledge of secondary transactions can sometimes lead to speculation about the company’s health or valuation, especially if a large number of shares are sold at once. SecondaryOS is designed to address these concerns directly. Here’s how:

Confidentiality is Key:

• Centralized Platform: All secondary transactions are managed within the SecondaryOS platform, creating a single, confidential point of contact. This avoids a flurry of individual inquiries to the company’s legal and finance teams, which could raise eyebrows or spark rumors. Think of it as a soundproof room for these transactions.
• Aggregated Transactions: SecondaryOS can bundle multiple smaller sell orders into larger blocks, presented to buyers as a single transaction. This keeps the overall volume of trades lower and prevents the appearance of a mass exodus. It’s like carpooling for equity sales - more efficient and less noticeable.
• Trusted Investors: Earlyasset facilitates transactions with reputable investors who understand the sensitivities of the private market and are committed to discretion. These aren’t day traders looking for a quick flip; they’re long-term investors who value the company’s potential.

Control and Transparency:

• Company Oversight: While ensuring employee liquidity, the company retains control over the process. They can set parameters around who can sell, when, and how much. This prevents unwanted surprises and keeps the company in the driver’s seat.
• Automated Workflow: By automating the administrative and legal aspects of secondary sales, SecondaryOS reduces the need for constant communication and manual tracking. Everything happens behind the scenes, minimizing disruption to the company’s day-to-day operations.

Benefits for Everyone:

• Employees: Gain access to liquidity without broadcasting their personal financial decisions.
• Company: Maintains control over equity transactions and minimizes the risk of unwanted valuation signals or market speculation.
• Investors: Access attractive investment opportunities in high-growth private companies.

Learn More:

• Company Friendly Liquidity What It Means for Your Company
• The Importance of Planning for Liquidity
• Secondary Market

So here’s what we covered:

• How SecondaryOS protects the confidentiality of secondary trades.
• The benefits of aggregated transactions and working with trusted investors.
• How SecondaryOS gives companies control and transparency while enabling employee liquidity.
• The advantages of discrete secondary trading for employees, companies, and investors.