Latest / The Startup Exit Podcast with Fexingo: IPOs, Acquisitions, and Founder Liquidity Events
How Founders Use Pre-IPO Stock Lending to Avoid Selling
Episode 71 of The Startup Exit Podcast. Lucas and Luna explore how founders are turning to pre-IPO stock lending as an alternative to selling shares for liquidity. They focus on the case of a late-stage fintech startup where the founder borrowed $200 million against shares at a 20 percent haircut, using a two-year term loan with a LIBOR-plus-400 structure. The conversation examines the mechanics, risks, and motivations, including how this approach preserves voting control and avoids taxable events. They also touch on how the recent market environment, with the NASDAQ down 5.8 percent over the…
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