Why one startup CEO lets employees cash out every year

By Axios - 2020-12-19

Description

"At a growth stage, companies need to start thinking like public companies," says Pipe CEO Harry Hurst.

Summary

Pipe, a marketplace for revenue-based lending, has started to let its employees sell some of their equity each year through company-managed secondary sales on the AngelList platform.
I actually think that at a growth stage, companies need to start thinking like public companies,” Pipe co-founder and CEO Harry Hurst tells Axios of the need to provide more employee liquidity opportunities.
At the same time, startups have been apprehensive about letting employees freely sell their stock and losing control over their cap tables.
We'll see lasting impacts on company culture, the job market, demographics and cities.

Topics

Stock (0.34)
Management (0.21)
Backend (0.08)

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