Carta and NewView Simplify Employee Stock Sales for Startups

In the modern tech ecosystem, startups are remaining private for significantly longer periods. This trend often creates challenges for employees whose compensation packages are heavily weighted in company stock. As companies delay their initial public offerings for years, staff members are left with few opportunities to convert their equity into cash. To address this issue, financial platform Carta and investment firm NewView Capital have announced a strategic partnership.

Liquidity as a Talent Retention Tool

The primary goal of this collaboration is to streamline the process of "tender offers." This mechanism allows employees and early investors to sell a portion of their shares at a predetermined price. According to NewView founder Ravi Viswanathan, this approach is a three-way win, benefiting employees, the company, and investors alike.

Over the past three years, the number of such transactions in Series C and later-stage startups has tripled. It is notable that this practice is no longer reserved for giants like OpenAI or Databricks. For instance, last year, NewView led a share buyback for HighTouch when the company was valued at $1.3 billion.

Why This Matters for Startups

Despite the growing popularity of tender offers, only 44 such deals were completed in the first half of 2026. Viswanathan believes this number should be much higher, as companies often remain in the private sector for 12 to 15 years. Under these conditions, a lack of liquidity for employees leads to talent attrition toward public companies, where share liquidation is far simpler.

"Ten years ago, it was enough for a company to have 'unicorn' status to attract talent. Today, when there are so many billion-dollar companies, that status is no longer a sufficient motivator," says Viswanathan. He emphasizes that the ability to sell shares is a promise from the company to its employees that they will be able to reap the rewards of their hard work in a timely manner.

What Lies Ahead

Currently, companies such as Decagon, Wayve, and ElevenLabs are already actively using these mechanisms. ElevenLabs has conducted share buyback processes twice in the last year alone. The joint platform from Carta and NewView aims to simplify this process as much as possible, allowing startup leadership to plan liquidity programs with greater confidence.

For the Georgian startup ecosystem, which is increasingly focused on international markets and attracting global investors, this trend serves as an important signal. As Georgian startups reach advanced stages of development, utilizing such financial tools will help them retain highly qualified personnel and reduce competition with global tech giants.