Liquidity is an essential component to long-term company building. Often times, shareholders face liquidity needs unrelated to a company’s opportunity and/or exit timeline. By offering partial interim liquidity to shareholders, companies can better retain and attract the best employees and proactively align their shareholder base for long-term success.
Harvest Growth Capital focuses on completing these liquidity transactions with minimal distraction and involvement from the company itself and handles all information in strict confidence. Our experience allows us to move through the transaction process quickly – from company evaluation to legal documents and final deal consummation.
- providing access to our extensive network of relationships that often help facilitate customer introductions and strategic discussions;
- providing capital to support growth initiatives and acquisitions;
- identifying acquisition targets and complementary market opportunities;
- helping with sales and marketing;
- recruiting executives, employees, and board members;
- preparing for an IPO with counsel from our public markets advisory board; and
- providing long-term support in the public market
Today, the average time to liquidity for venture-backed companies is well over 10+ years. A lot can change for both employees and venture/angel investors in 10+ years. Companies are now realizing that secondary liquidity transactions can be a powerful tool which ultimately improves employee recruitment, retention, and motivation and helps institutional investors stay aligned for an eventual successful exit.
- Access cash to exercise and pay taxes on stock options
- Lock-in long-term capital gains treatment
- Optimize tax or estate planning objectives
- Lock-in gains to help raise capital for a new fund
- Mark-up fair market value for entire position
- Liquidate position due to an extended hold period or a fund’s end-of-life