How can you raise billion dollars, but have $43,000 in your bank account?

At this point, Adam Neumann’s company WeWork had raised billions of dollars.

But, Adam had not yet had a liquidity event.

A liquidity event is when you can sell your shares in a company for cash.

Typically, most founders don’t sell until they go public on the stock market (IPO).

But in recent times that’s changed.

For example, the guy who sold the stock on secondary.

Meaning, he privately sold his own shares to someone.

2 years later their valuation went to $10.
So, founders have a choice to make.

Do you wait it out for the small chance that within a decade your company goes public and you sell your shares then?

Or do you sell a bit when your company is still growing, buy yourself that car or house and keep the rest for later?

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