Fund Structure
Tender Offer
A structured liquidity event allowing employees and shareholders to sell shares to new investors at a fixed price — often done alongside a new primary financing round.
A tender offer is a structured secondary transaction where employees, early investors, and other shareholders can sell their existing shares to a defined buyer at a set price and on defined terms. Tender offers are often run alongside a primary financing round: new investors buy primary shares directly from the company (to fund operations) and also offer to purchase secondary shares from existing holders (providing liquidity). Famous tender offers: many unicorn companies including Facebook (before IPO), Airbnb, and Stripe have run tenders to provide employee liquidity. The company typically manages the process, setting eligibility criteria, maximum sell amounts, and share allocation. Participation is voluntary — shareholders choose whether to sell at the tender price.