Liquidity

Harvest Growth Capital provides liquidity for founders, executives, employees, angel investors, venture capital firms, and other equity shareholders in private companies.

Secondary Liquidity

Liquidity is an essential component to long-term company building. Often times, shareholders face liquidity needs unrelated to a company’s opportunity and/or exit timeline. By offering partial interim liquidity to shareholders, companies can better retain and attract the best employees and proactively align their shareholder base for long-term success.

Harvest Growth Capital focuses on completing these liquidity transactions with minimal distraction and involvement from the company itself and handles all information in strict confidence. Our experience allows us to move through the transaction process quickly – from company evaluation to legal documents and final deal consummation.

Once Harvest Growth Capital becomes a shareholder, we actively support our portfolio companies by:

providing access to our extensive network of relationships that often help facilitate customer introductions and strategic discussions;
providing capital to support growth initiatives and acquisitions;
identifying acquisition targets and complementary market opportunities;
helping with sales and marketing;
recruiting executives, employees, and board members;
preparing for an IPO with counsel from our public markets advisory board; and
providing long-term support in the public market

Liquidity Rationale

Today, the average time to liquidity for venture-backed companies is well over 10+ years. A lot can change for both employees and venture/angel investors in 10+ years. Companies are now realizing that secondary liquidity transactions can be a powerful tool which ultimately improves employee recruitment, retention, and motivation and helps institutional investors stay aligned for an eventual successful exit.

Employee Liquidity Rationale

Personal Needs

Access cash for life needs – marriage, birth of a child, divorce, new job, home purchase, or children’s education

Diversification

Unlock value today by diversifying gains and personal portfolios while continuing to share in future upside that is created.

Taxes

Access cash to exercise and pay taxes on stock options
Lock-in long-term capital gains treatment
Optimize tax or estate planning objectives

IPO

Achieve partial liquidity prior to an IPO and lock-up period

Investor Liquidity Rationale

Fund Dynamics

Lock-in gains to help raise capital for a new fund
Mark-up fair market value for entire position
Liquidate position due to an extended hold period or a fund’s end-of-life

Reallocate Capital

Reallocate capital to earlier stage investments

Diversification

Unlock value today by diversifying gains and rebalancing a fund’s portfolio while continuing to share in future upside that is created

IPO

Achieve partial liquidity prior to an IPO and lock-up period

Company Support Rationale

Employee Retention

Keep other technology companies from poaching your best employees

Employee Recruitment

Utilize partial interim liquidity programs as an employee benefit to help recruit, incentivize, and motivate new hires

Delay Exit

Partial interim liquidity encourages the patience needed to drive the company to an even larger long-term exit without any artificial or misaligned liquidity pressures

Broaden Investor Network

Broaden your investor base with sophisticated shareholders who care about helping the business and capitalize on these benefits for “free” (without having to give up a board seat or being diluted)