Can I liquidate (sell) my shares?
Once a live offering has closed, you may choose how to handle your shares. Investors will be introduced to the company’s selected transfer agent, or cap table management service, who will be responsible for the transfer of your shares after the close of the offering.
We recently launched Marketplace on StartEngine, where investors can buy and sell shares from prior funding rounds on StartEngine or any other equity crowdfunding platform (yes, really).
Typically investors have to wait for an exit event like an acquisition or IPO to potentially see a return or liquidate their investment. However, we know investors would like the option to exit their investments sooner, so we launched StartEngine Marketplace.
On Marketplace, a seller can make an offer to sell shares in a startup. They can specify the number of shares they’d like to sell and the price per share. A buyer can then choose to purchase all – or some – of the shares in the offer.
If a buyer accepts a seller’s offer, the transaction will be facilitated by StartEngine’s broker-dealer via a 30 Day+ Transaction. Unlike public securities, shares in startups and privately held companies take a little more time and effort to transfer, up to 30 business days on average.
Please keep the following in mind:
- In order for a shareholder to list their shares for sale the shares must be unrestricted. Regulation CF shares are restricted for one year from the date of purchase. Regulation A+ shares are unrestricted from the date of purchase but may have other transfer restrictions.
- Shareholders who want to list their shares for sale must have an active Venture Club subscription.
- There is no guarantee that an active market for the securities will develop or be maintained. There is no guarantee that a buyer will arise for your shares.
- In some instances, the company that issued the shares may deny the transaction or may have the option to choose to buy the shares back themselves. If the transaction is not completed within 90 days, the sale will be canceled.
- There is a 3.5% fee for buyers and a 5% fee for sellers.
You can visit StartEngine Marketplace here: https://marketplace.startengine.com/
If you wish to sell shares that are not on Marketplace, you will need to identify the buyer or recipient of the shares yourself and make the arrangements. We can then provide you with the documents that are needed to update the company's cap table (if StartEngine is the transfer agent).