Ask HN: What are some liquidity options for a founder before an exit?
My co-founder and I are discussing options for achieving some cash liquidity in exchange for our equity midway through our startup journey. We imagine we can sell some of our common stock to investors. Some questions on this:
* Can this founder equity sale only be done at a fundraise or can it be done anytime? What's the typical practice or HN's recommendation here?
* What price can we expect to get per share?
* Let's say at some point in time say after 'X' years, there is an acquisition offer and the founders are fully vested. Would liquidating our equity as part of the acquisition be more lucrative than if we decided to continue building our company and selling shares to investors for liquidity?
Sorry if a lot of this is common knowledge but I'm a complete greenhorn in this.
* Can this founder equity sale only be done at a fundraise or can it be done anytime? What's the typical practice or HN's recommendation here?
* What price can we expect to get per share?
* Let's say at some point in time say after 'X' years, there is an acquisition offer and the founders are fully vested. Would liquidating our equity as part of the acquisition be more lucrative than if we decided to continue building our company and selling shares to investors for liquidity?
Sorry if a lot of this is common knowledge but I'm a complete greenhorn in this.