September 12, 2020
Image: Nate Steiner / Ervins Strauhmanis / Protocol
Hello and welcome to Pipeline. It's been mildly apocalyptic in San Francisco, so it feels like a long four-day week. Still, a lot's happened. This week: A VC "Burn Book," Silicon Valley's new stock exchange and a new way to cash out early employees.
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In a "One more thing …" style announcement during the keynote of AngelList Venture's annual Confidential conference, its CEO, Avlok Kohli, teased the company's newest product: a way for shareholders to cash out of startups early (with a company's permission).
These kinds of secondary transactions are becoming more popular in Silicon Valley as startups stay private longer.
Kohli saw an opportunity to help make the process easier. Not every company can afford to build its own stock exchange, after all, and many, big or small, want to avoid the legal fees and complexity of having to figure it out on their own.
But the real winner here may be employees, not the startups. While Transfers certainly reduces headaches for companies, employees might now have a far easier time convincing their employers to let them cash out early.
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