How Employees at AI Startups Can Cash Out Equity Before an Exit

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Employees at well-funded AI startups often hold meaningful equity stakes, but those shares remain illiquid until a public offering or acquisition. Secondary markets (platforms that buy and sell private company shares) have emerged as a way for founders and employees to access some liquidity years before a traditional exit.

This guide, updated September 2026, walks through the mechanics of selling equity early, the major platforms facilitating secondary transactions, and the key rules you need to know.

Understanding Secondary Liquidity Platforms for Private Equity

Secondary markets enable employees to sell shares to institutional investors, other employees, or funds specializing in private equity. The largest platforms differ in pricing models, minimum investment requirements, and which transaction types they facilitate.

Secondary share sales are increasingly common in venture-backed AI companies. According to PitchBook data, global secondary volume hit a record $226 billion in 2025, up 41% from 2024, establishing secondary markets as essential infrastructure for private equity.

Glean's private market liquidity shows that for employees at well-funded AI companies like Glean, which has raised $765 million across six rounds to a $7.2 billion valuation, secondary liquidity represents a direct path to cash without waiting for an IPO or acquisition.

The process involves navigating tender offers, accredited investor verification, company transfer restrictions, and tax implications, each of which varies across platforms:

Platforms Facilitating Secondary Transactions

These include:

EquityZen

EquityZen pioneered the secondary private equity marketplace, processing over $20 billion in transaction volume since inception. The platform operates both as a marketplace and an advisor, helping employees understand their equity value and offering financing options for tax liability. After recent reductions in fees to attract clients, EquityZen charges 2% to 3% in transaction fees for most trades.

Key mechanics:

• Pricing/fees: 2% to 3% transaction fees, while optional financing is available to cover taxes.
• Accredited investor verification: Requires accredited status for all buyers.
• Tender offers: Facilitates both direct secondary sales and company tender rounds.
• 409A valuations: Uses the most recent equity round and market comparables that are updated quarterly.
• ROFR and transfer restrictions: Works with companies to navigate existing restrictions; sometimes negotiates waivers.
• Lock-up periods: Standard vesting mechanics apply. There are no secondary-market-specific lock-ups.
• Employee vs. investor: Seller-focused but offers secondary purchase options for employees interested in buying peer shares.
• Fund participation: Large institutional funds and hedge funds are primary buyers.
• Regulatory: SEC Rule 506(c) compliant; comprehensive accreditation documentation required
• Glean-specific: EquityZen has facilitated multiple Glean employee transactions.

Pros: 

• Largest buyer network
• Optional tax financing reduces cash friction
• Transparent pricing methodology
• Strong institutional relationships

Cons: 

• 2% to 3% fees are competitive but not the lowest
• Company consent and ROFR can delay or block sales
• Buyer pool is less diverse than some competitors

Hiive

Hiive operates a dedicated secondary marketplace focused on providing employees with transparent pricing and direct access to their company's liquidity thesis. The platform connects Glean employees and others with institutional buyers and funds seeking exposure to private equity in growth-stage companies. Hiive has reported handling over $780 million in annual transaction volume as of mid-2026, with transaction fees typically ranging from 1.5% to 3% depending on deal structure.

Key mechanics:

• Pricing/fees: 1.5% to 3% transaction fee (spreads vary by company liquidity and deal size).
• Accredited investor verification: Standard SEC 506(c) compliance for institutional buyers.
• Tender offers: Hiive facilitates both employee-to-investor direct sales and company-organized tender offers.
• 409A valuations: Relies on independent third-party valuations; the pricing reflects recent funding rounds.
• ROFR and transfer restrictions: Company retains the standard right of first refusal. Escrow is common for six to 12 months.
• Lock-up periods: No lock-ups for secondary sales (seller's existing vesting schedules apply).
• Employee vs. investor: Seller-focused; designed for employees looking to partially liquify existing holdings.
• Fund participation: Institutional funds, family offices, and SPVs participate as buyers.
• Regulatory: Full Reg D 506(c) compliance and accredited buyer verification required.
• Glean-specific: Hiive has published a detailed analysis on Glean's funding trajectory, valuation growth from Series D to Series F, and estimated employee equity values.

Pros: 

• Transparent pricing aligned with company fundamentals
• Institutional-grade compliance
• Strong track record with AI startups

Cons: 

• 1.5% to 3% fees add up on large transactions
• Minimum investment thresholds for institutional buyers can limit smaller sales.
• The company ROFR may block transactions

Nasdaq Private Market

Nasdaq Private Market (formerly part of Nasdaq's broader private securities offering) serves companies managing equity programs and secondaries. The platform has grown to $233 billion in annual transaction volume in 2025, with pricing that reflects institutional market demand and company fundamentals.

Key mechanics:

• Pricing/fees: 1% to 2.5% transaction fees (lower end for large institutional trades).
• Accredited investor verification: Institutional-grade accreditation and suitability checks.
• Tender offers: Full-featured tender offer management; primary marketplace function.
• 409A valuations: Independent valuations, integrate company-specific metrics and market data.
• ROFR and transfer restrictions: Platform works directly with company counsel to manage restrictions.
• Lock-up periods: No secondary-specific lock-ups while employee vesting is enforced at transaction time.
• Employee vs. investor: Dual-sided marketplace; employees can buy and sell.
• Fund participation: Tier-one institutional investors and funds; less retail/family-office participation than competitors.
• Regulatory: Full Reg D and accreditation compliance.
• Glean-specific: Limited public transaction data. It appears less active in recent Glean secondary rounds compared to EquityZen and Hiive.

Pros: 

• Institutional credibility
• Efficient pricing
• Lower fees on large trades
• Integrated tender offer management

Cons: 

• Lower visibility on smaller transactions
• Less active in some growth-stage verticals
• Primarily institutional-focused buyer base

CartaX (Carta Liquidity)

Carta operates CartaX as a dedicated secondary marketplace within its broader cap table and equity management platform. The platform has a valuation of $5.59 Billion. 

Key mechanics:

• Pricing/fees: 2% to 3.5% transaction fees. There are additional software integration fees for companies.
• Accredited investor verification: Full accreditation verification. It supports Reg D 506(c) offerings.
• Tender offers: Strong tender offer features that are integrated with the Carta cap table for seamless execution.
• 409A valuations: Carta's platform integrates valuation data and supports both independent and company-managed assessments.
• ROFR and transfer restrictions: Platform enforces company-level restrictions and works with counsel on waiver negotiations.
• Lock-up periods: Integrates vesting and lock-up mechanics, which are enforced at transaction finalization.
• Employee vs. investor: Seller-focused; limited buyer functionality for employees.
• Fund participation: Emerging institutional buyer base; strong family-office and SP participation.
• Regulatory: Reg D 506(c) compliant, full accreditation and documentation capabilities.
• Glean-specific: Carta powers Glean's equity management. Some employee transactions likely flow through CartaX, though with limited public disclosure.

Pros: 

• Deep cap table integration reduces admin friction
• Growing institutional buyer network
• Seamless for companies already on Carta

Cons: 

• 2% to 3.5% fees among the highest in the category
• Platform lock-in if the company uses Carta
• Smaller buyer base than EquityZen or Nasdaq Private Market

Zanbato

Zanbato focuses on secondary transactions for mid-market and growth-stage companies, with emphasis on employee transactions and direct secondary sales. The platform positions itself as a simpler, more transparent alternative. Transaction fees are typically 1.5% to 2%, making it one of the lowest-cost providers.

Key mechanics:

• Pricing/fees: 1.5% to 2% transaction fees.
• Accredited investor verification: Full SEC accreditation verification. It supports both 506(c) and alternative structures.
• Tender offers: Lighter-weight tender offer tooling that is best for smaller companies or rounds under $50 million.
• 409A valuations: Uses market data and recent funding rounds, while independent valuation reconciliation is also available.
• ROFR and transfer restrictions: Enforces but provides clear guidance and negotiates waivers when possible.
• Lock-up periods: Standard vesting mechanics that are enforced at the sale finalization.
• Employee vs. investor: Employee-focused; buyer base includes retail accredited investors, family offices, and smaller funds.
• Fund participation: Emerging fund participation; primarily retail and semi-professional buyers.
• Regulatory: Reg D 506(c) and 506(b) support with flexible offering structures.
• Glean-specific: Limited public data on Glean transactions. However, the platform likely has handled some employee sales given its market position.

Pros: 

• Lowest fees (1.5% to 2%)
• Transparent pricing
• Employee-friendly interface
• Good for smaller transactions

Cons: 

• A smaller buyer network limits price discovery on large rounds
• Less institutional credibility than Nasdaq or EquityZen
• Newer platform with shorter track record

Comparison Table

Frequently Asked Questions

Can I sell my Glean shares if the company hasn't permitted me?

Most secondary platforms require company consent due to standard transfer restrictions and right of first refusal (ROFR) clauses in equity agreements. However, many companies, including well-funded AI startups, actively support secondary liquidity to improve employee retention and satisfaction. If your company hasn't established a formal secondary program, platforms like EquityZen and Hiive can help negotiate consent and ROFR waivers. You'll need to review your grant agreement for specific restrictions and discuss options with your company's legal or people team.

What does a 409A valuation mean, and how does it affect the price I can sell for?

A 409A valuation is an independent appraisal of your private company's share price for tax purposes. Buyers on secondary platforms price offers based on 409A valuations and market demand. If your company's 409A is significantly below recent funding round valuations, your secondary sale price may be capped at the 409A level for tax treatment purposes. Secondary platforms can help you understand how this applies; some buyers will pay multiples above 409A in volatile markets, but tax liability may increase accordingly.

Do I have to be accredited to sell my shares?

Employees typically don't need accreditation to sell their own shares. Accreditation is generally required of the buyer. Secondary platforms verify that institutional buyers and funds meet accreditation standards (usually $200k+ annual income or $1 million+ net worth). Individual buyers may also need accreditation depending on the offering structure (Reg D 506(c) vs. 506(b)). Your employee status and existing equity grant insulate you from accreditation rules when selling; the platform enforces accreditation on the buyer side.

Endnote

Secondary liquidity no longer requires personal connections or luck. It's available as a structured, regulated service designed to serve regular investors. Whether you're looking to diversify after years of illiquid wealth, fund personal goals, or reduce concentration risk ahead of a potential exit, secondary platforms have made it straightforward to explore options.