Startups and Equity: A New Path to Cash Out

NewView and Carta have announced a partnership designed to help employees at private startups sell their company stock. The two firms aim to streamline the process of liquidity programs. This allows staff members to cash out a portion of their equity without waiting for an acquisition or public listing.

The core of this effort is the tender offer. In this type of transaction, employees and early investors can sell shares to an approved buyer at a fixed price. Late-stage companies are increasingly using this method. The wait for an exit event often stretches for many years. This creates a financial gap for workers who hold a significant part of their compensation in stock options.

Ravi Viswanathan, the founder and managing partner of NewView, described the collaboration as a tool for smoother liquidity. He noted that the partnership pairs NewView's deal structuring with Carta's equity platform. Viswanathan stated that the goal is to make it easier for CEOs to consider tenders. He called early liquidity a win-win-win for employees, companies, and investors.

Data from a recent study by NewView Capital and Carta indicates a growing trend. Tender offers among Series C and later-stage startups have grown threefold in the past three years. These deals are no longer limited to massive private firms like OpenAI or Databricks. For example, NewView led a tender for marketing startup Hightouch last year. That company was valued at $1.3 billion at the time.

Despite the growth, the practice is not yet standard. Only 44 tender offers were executed in the first half of 2026. This represents a small share of eligible startups. Viswanathan views tenders as strong tools for retention and morale. He argued that the simple promise of a future IPO no longer attracts talent as effectively as it did a decade ago.

Recent examples of companies using this method include Decagon, Wayve, and ElevenLabs. ElevenLabs conducted two such offerings in less than a year. Viswanathan believes the trend of staying private for 12 to 15 years will continue. He said companies need to ensure liquidity exists to prevent a drain of talent to public firms. This keeps high-quality venture-backed companies competitive in hiring.

The standard recruiting pitch has changed. The label of being a unicorn carries less weight today. There are simply too many billion-dollar companies for the title to be unique. A tender offer signals to workers that they will get liquidity during their time with the company. This provides a tangible benefit alongside long-term equity upside.