Working at a Start-up: The invisible second set of golden handcuffs often overlooked.?

We are all quite familiar with the term "golden handcuffs," particularly concerning stock option grants and vesting. However, there exists another, less conspicuous form of restraint affecting employees of unicorn companies.

Vesting schedules are not a novel concept, and at their core, they are rather uncomplicated. As part of an employee's compensation package, they accrue shares in the company where they are employed. To incentivize employee retention, these shares vest incrementally at predetermined intervals, typically spanning 2 to 7 years. If an employee accumulates several grants over multiple years, it becomes evident how they might feel somewhat bound to their employment due to these figurative golden handcuffs.

This system operates smoothly for employees of publicly traded companies who can readily value and sell their vested options based on prevailing market prices. However, for employees of unicorn companies pre-IPO, an additional obstacle presents itself: illiquidity. This constitutes the less visible pair of handcuffs. Employees of companies yet to go public must patiently await their employer's decision to undergo an initial public offering (IPO), be acquired, or arrange a company-sponsored liquidity event.

In lieu of indefinite waiting, employees of venture-backed firms are compelled to explore innovative avenues for selling their employee shares. This might involve private transactions, selling shares back to their employer, or engaging in a series of other opaque and cumbersome methods. At V2 Markets, we are dedicated to facilitating equitable pricing for employee shares in a straightforward and transparent manner - check it out.?