Off-the-Table: Pre-Exit Founder Liquidity in Venture-Backed Startups

By Alon Y. Kapen on April 6, 2026

Posted in exit, exit strategy; resale exemption; 4(a)(1-1/2), liquidity, QSBS, Qualified Small Business Stock, resale exemption, ROFR, venture backed company

For founders and executives at venture-backed startups, equity is often the centerpiece of compensation – and the primary driver of long-term wealth. But unlike cash compensation, that equity is typically illiquid for years. Outside of an IPO or a sale of the company, opportunities to turn shares into cash are limited, tightly controlled and often…

New Investor Exit Strategy Buried in Highway Bill

By Alon Y. Kapen on January 18, 2016

Posted in 4(a)(1-1/2), Capital Markets Reform, equity, exit strategy, exit strategy; resale exemption; 4(a)(1-1/2), FAST Act

Buried in the recently enacted Highway Bill, officially the Fixing America’s Surface Transportation Act or FAST Act, is a new exemption for the resale of securities. The new resale exemption appears in the form of a new Section 4(a)(7) of the Securities Act of 1933 and essentially codifies the so-called 4(a)(1-1/2) exemption. New…