Silicon Valley’s Secondary Markets Are Bigger Than Ever
Who needs an IPO? OpenAI, Stripe, Databricks and SpaceX have found a different way to get employees paid.
Patrick Collison, chief executive officer and co-founder of Stripe Inc., left, and John Collison, president and co-founder of Stripe
Photographer: David Paul Morris/BloombergSecondary transactions involving venture-backed startups are on track to hit a new high this year, as companies like OpenAI, SpaceX and Stripe Inc. organize tender offers to get employees paid, and investors look for ways to offload stakes outside of initial public offerings.
Tender offers give staffers, former employees and certain investors a way to sell their shares directly to other investors. It’s a break from past years, when major startups looking for a payday for staff would go public — the traditional route to fame and fortune in the tech world.