Startups Expand Share Sales to Staff

Private companies are increasingly using tender offers to let employees sell company stock, a trend driven by longer periods before an exit. NewView and Carta have formed a partnership to streamline this process for venture-backed firms.

The collaboration combines NewView’s expertise in structuring secondary deals with Carta’s equity management platform. Ravi Viswanathan, founder and managing partner of NewView, stated the goal is to help startups launch and run liquidity programs more smoothly. He described the approach as a win-win-win for employees, companies, and investors.

A tender offer allows staff and early investors to sell a portion of their shares at a set price to an approved buyer. Recent data from NewView Capital and Carta indicates that tender offers among Series C and later-stage startups have tripled over the past three years. Viswanathan noted that these transactions are no longer limited to the largest private firms.

Hightouch, a marketing customization startup, served as a recent example. NewView led a tender offer for the company last year at a $1.3 billion valuation. The firm was seven years old at the time of the transaction.

Despite the growth, the practice is not yet widespread. Research showed that only 44 tender offers were executed in the first half of 2026. Viswanathan argued that these offers serve as strong retention tools and morale boosters for employees.

He observed that the standard recruiting pitch has changed. A decade ago, reaching unicorn status was sufficient to attract talent, but the increased number of billion-dollar companies has diluted the label. Viswanathan said a tender offer allows a company to promise employees liquidity during their tenure.

Recent participants in tender offers include Decagon, an AI customer support startup; Wayve, a self-driving technology developer; and ElevenLabs, an AI voice generator. ElevenLabs conducted two such offerings in under a year. Viswanathan said companies are staying private for 12 to 15 years and that liquidity is necessary to prevent talent from moving to public firms.