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

Photo courtesy of Pexels

If you hold equity in an AI startup and want to explore a possible sale before an exit, start with questions about your holdings and proposed transaction.

This article offers a platform overview and preparation questions. Treat the platform descriptions as starting points for inquiries, not verified current terms, rankings or permission to sell.

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.

Before you compare platforms

1. What do your grant documents and holding records show? Gather them and identify which holdings are vested or exercised.
2. Which holdings and sale routes, if any, does your company permit? Ask its legal or people team what approvals, transfer restrictions, right of first refusal (ROFR) provisions and notice timing apply to your proposed sale.
3. Can the platform provide current written details on eligibility, availability, all costs, minimums, settlement steps and contingencies for your proposed transaction? Request these details before comparing proposals.
4. Which jurisdiction applies, and what legal and tax questions arise for your holding and proposed transaction? Take your holding details and proposed terms to qualified legal and tax advisers for deal-specific advice.
5. Is the response only indicative interest, or are transaction terms confirmed in writing? Ask what remains unresolved before deciding whether to proceed.

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

Platform Comparison

Hiive

• Pricing: 1.5% to 3%
• Key Feature: Transparent liquidity thesis analysis
• Best For: AI startups; detailed valuation guidance
• Limitation: The company's ROFR may block sales

EquityZen

• Pricing: 2% to 3%
• Key Feature: Tax financing: the largest buyer network
• Best For: Large transactions; institutional confidence
• Limitation: Higher fees; strict accreditation requirements

Nasdaq Private Market

• Pricing: 1% to 2.5%
• Key Feature: Institutional-grade pricing
• Best For: Tender offers; large institutional rounds
• Limitation: Primarily institutional buyers; higher minimums

CartaX

• Pricing: 2% to 3.5%
• Key Feature: Cap table integration
• Best For: Companies already using Carta
• Limitation: Platform lock-in; higher fees

Zanbato

• Pricing: 1.5% to 2%
• Key Feature: Low-cost, transparent pricing
• Best For: Smaller transactions; retail accredited buyers
• Limitation: Smaller buyer pool; limited fund participation

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 should I ask about valuation and taxes?

Ask qualified advisers: Which valuation is cited, what is its date, and which share class does it cover? How does it relate to the proposed offer? Using your holding details and proposed transaction terms, what taxes and other costs should you estimate before deciding whether to proceed?

How do I check seller and buyer eligibility?

Ask the platform and qualified counsel about your proposed transaction: What structure is being proposed, and which jurisdiction applies? Which eligibility or accreditation checks, if any, apply to the seller and buyer, and what documents does each party need to provide?

Endnote

Return to the preparation checklist: ask about permitted routes, obtain written terms and seek deal-specific legal and tax advice before deciding whether to proceed.