Threefold surge in private stock sales

The number of tender offers at late-stage private companies has tripled over the last three years. This sharp increase reflects a growing demand for liquidity among employees who have been waiting for years to cash in on their stock. The shift is driven by the reality that many high-profile startups are no longer rushing to the public markets. Instead, they are staying private for extended periods. This change has left many workers with paper wealth they cannot easily access. A new partnership seeks to address this gap by making the process of selling shares more straightforward for both companies and their staff.

The collaboration brings together NewView and Carta. NewView has a history of structuring secondary deals. Carta provides the underlying equity management platform used by many startups. By combining these capabilities, the two firms aim to streamline the creation of liquidity programs. Ravi Viswanathan, the founder and managing partner of NewView, framed the initiative as a way to help startup leaders manage these transactions with less friction. He noted that the goal is to make it simpler for CEOs to consider offering tenders to their teams. He described the potential outcome as a win-win-win scenario for employees, the company, and investors.

A tender offer is a specific type of transaction. It allows employees and sometimes early investors to sell a portion of their shares at a fixed price. The buyer must be approved by the company. This mechanism is becoming a common tool for late-stage firms. As the timeline for an initial public offering or acquisition stretches out, these companies are turning to tenders more frequently. The data supports this trend. A recent study by NewView Capital and Carta projects that the use of tender offers among Series C and later startups has grown significantly. The practice is no longer reserved for the most valuable private firms.

Viswanathan pointed out that tender offers are not limited to giants like OpenAI, Databricks, or Anduril. He cited Hightouch as an example of a company using this approach. Hightouch is a marketing customization startup. Last year, NewView led a tender offer for the company. At the time, Hightouch was seven years old and had a valuation of $1.3 billion. NewView pursues secondary transactions in addition to its traditional venture investing activities. This example illustrates how mid-sized, late-stage companies are increasingly using tenders to provide liquidity to their workforce.

Despite the growth, the practice is not yet standard for all private companies. The same research found that only 44 tender offers were executed in the first half of 2026. This number represents a small share of eligible startups. Viswanathan hopes to expand this group of participants. He argues that tenders serve as effective retention tools. They also act as morale boosters for employees who have been waiting a long time for an exit. The ability to sell some shares can help keep talented workers engaged and committed to the company's long-term goals.

The traditional recruiting pitch has also evolved. A decade ago, promising a path to unicorn status was often enough to attract top talent. Today, the sheer number of billion-dollar companies means that label carries less weight. Viswanathan suggested that a tender offer changes the narrative. It provides a concrete promise of liquidity during the employee's tenure. He described a tender as an opportunity for a company to tell its staff that they will receive financial benefits while working there. This direct approach to compensation may be becoming more important as the gap between private and public sector benefits narrows.

Several recent companies have held tender offers. Decagon, an AI customer support startup, is one example. Wayve, a developer of self-driving technology, has also participated. ElevenLabs, an AI voice generator, conducted two such offerings in less than a year. These examples show that the trend spans different sectors and stages of development. The common thread is the desire to provide employees with a way to access value from their equity holdings without waiting for a full exit event. This flexibility is becoming a key factor in how these companies manage their talent and capital structure.

Viswanathan believes the trend of companies staying private for longer is unlikely to reverse. He noted that many firms are now remaining private for 12 to 15 years. He stated that this pattern is not changing. To prevent a talent drain from high-quality venture-backed companies to their public counterparts, he argued that liquidity must be available to employees. The new partnership between NewView and Carta is one step toward making that liquidity more accessible. As the private market continues to mature, the tools available to employees and founders will likely continue to evolve to meet these needs.