Latest / The Startup Exit Podcast with Fexingo: IPOs, Acquisitions, and Founder Liquidity Events
How Founders Use Phantom Stock for Pre-IPO Liquidity
In this episode of The Startup Exit Podcast, Lucas and Luna explore the creative use of phantom stock to provide pre-IPO liquidity for employees without diluting equity. They break down how Databricks recently used a phantom stock tender offer to let employees cash out before its anticipated IPO, following a record $188 billion valuation. Lucas explains the mechanics—phantom stock pays out based on company value growth, avoiding actual share issuance—and compares it to traditional secondaries. Luna notes that companies like Palantir and Airbnb have used similar structures. The hosts also…
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