Liquidity event

A liquidity event is an acquisition, merger, initial public offering or other event that allows founders and early investors in a company to cash out some or all of their ownership shares. The liquidity event is considered an exit strategy for an illiquid investment – that is, for equity that has little or no market to trade on. Founders of a firm, naturally, push toward a liquidity event and the investors along the way – venture capital firms, angel investors or private equity firms – hope for or expect one within a reasonable amount of time after initially making an investment. The most common liquidity events are initial public offerings (IPOs) and direct acquisitions by other companies or private equity firms—Read more at Investopedia. Chen, James. “Liquidity Event.” 7 June 2019