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ArticleWill Investors Let Me "Cash Out" on a Future Funding Round?

Will Investors Let Me "Cash Out" on a Future Funding Round?

It was recently reported that the co-Founder of WeWork Adam Neumann took over $700 million off the table from investors long before the company had gone public.

How do these Founders go about getting cash out of their startups long before the startups ever cash out themselves?

Why would investors let me take money off the table?

Investors will often dangle the option of providing some Founder liquidity only when the deal they are trying to get into feels incredibly competitive.

This happens only rarely, and only amongst investors who are open to providing some Founder liquidity (some are very against it!).

Generally speaking, it only helps the investor by allowing them to get into the deal but provides very little upside to the company a...


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