https://www.flywheelcapital.io/blog daily 0.75 2026-03-04 https://www.flywheelcapital.io/blog/the-winning-liquidity-strategy-for-pre-ipo-technology monthly 0.5 2026-03-04 https://images.squarespace-cdn.com/content/v1/66b0abe9cdad7c19b4ff8a20/57a5321b-fa59-410c-9b5f-5cbb61d7905f/610963b8-8482-4ba7-82f8-0bddbd7e3587_759x507.jpg Blog - The Winning Liquidity Strategy For Pre-IPO Technology - Over the past decade, private markets have undergone a structural change in how and when liquidity is realized. To repeat a well-trodden statement; companies, once expected to reach an IPO or strategic sale within a predictable timeframe, are now remaining private for significantly longer. This is not simply the result of one weak IPO year or a temporary macro shock. It reflects a higher bar for public market readiness, more selective acquirers, and a broader reassessment of risk across capital markets. Public market access has become episodic. IPO windows open briefly, primarily reward a narrow set of companies with scale and profitability, and then close again. Technology M&A remains active but is increasingly targeted, with buyers prioritizing specific assets or capabilities, rather than broad growth-stage acquisitions. The result is a growing population of strong private companies that continue to execute well but face extended and uncertain timelines to liquidity. https://images.squarespace-cdn.com/content/v1/66b0abe9cdad7c19b4ff8a20/8f47e171-693a-47d3-b026-254db26915b8/Picture2.png Blog - The Winning Liquidity Strategy For Pre-IPO Technology - This is not merely a theoretical problem, but a practical one. Equity compensation that once represented a near-term participation in value creation now often stretches over a decade or more. Over time, option exercise costs and tax liabilities can accrue well before any exit, turning what was designed as an incentive into a source of financial friction. Such delay and friction can lead to focus and motivation can be diluted, leading to less efficient companies and eventually talent leakage. https://images.squarespace-cdn.com/content/v1/66b0abe9cdad7c19b4ff8a20/096ca454-68f9-4154-8ff6-54aa3803668b/Picture3.png Blog - The Winning Liquidity Strategy For Pre-IPO Technology In the absence of a near-term IPO or acquisition, founders and senior executives typically explore a limited set of liquidity options. Each can provide partial relief, but each also carries meaningful trade-offs that boards must consider carefully. One option is a direct secondary sale of shares. While this can provide immediate liquidity, it is often executed at a material discount to the most recent valuation, particularly in less liquid market conditions or where common shares, options or other awards are involved. Such sales can also create challenging optics with boards and investors, raising questions around confidence and alignment. From a governance perspective, uncontrolled secondary transactions risk introducing new shareholders without a clear long-term alignment to the company’s strategy. https://www.flywheelcapital.io/blog/introducing-flywheel-capital monthly 0.5 2024-10-30 https://www.flywheelcapital.io/home daily 1.0 2025-06-17 https://images.squarespace-cdn.com/content/v1/66b0abe9cdad7c19b4ff8a20/045d392c-7d30-4a21-bd4f-2e5be7c7013b/0f2df155-148c-49fc-89f9-01ce6166e63b.png https://www.flywheelcapital.io/contact daily 0.75 2025-06-17 https://images.squarespace-cdn.com/content/v1/66b0abe9cdad7c19b4ff8a20/1726406054442-KHM9ECXMCRSYS1H5CNHM/unsplash-image-uHOab_3HUKY.jpg https://www.flywheelcapital.io/about daily 0.75 2025-06-17 https://images.squarespace-cdn.com/content/v1/66b0abe9cdad7c19b4ff8a20/1726224657974-ZPJIPLMQSFGOQFG314P5/unsplash-image-GV4bEOwcMQY.jpg https://www.flywheelcapital.io/careers daily 0.75 2025-06-17 https://images.squarespace-cdn.com/content/v1/66b0abe9cdad7c19b4ff8a20/312d53f3-f694-4362-a307-1c8e42497a74/ferris-wheel-amusement-park-with-place-for-text-picjumbo-com.jpg