Tender Offers Triple as Startups Stay Private Longer

Tender offers among late-stage private startups have expanded by threefold over the past three years, according to new data from NewView Capital and Carta. This surge in secondary market activity reflects a broader shift in the venture capital landscape, where companies are increasingly remaining private for extended periods. The growth signals a maturing infrastructure for employee liquidity, allowing staff to realize value in their equity without waiting for a traditional exit event.

To capitalize on this trend, NewView and Carta have formed a strategic alliance. The collaboration integrates NewView’s expertise in structuring secondary transactions with Carta’s comprehensive equity management platform. The goal is to lower the operational burden on private firms seeking to offer liquidity to their workforce. By simplifying the administrative process, the partnership intends to make these financial programs more accessible to a wider range of companies.

Ravi Viswanathan, founder and managing partner of NewView, framed the initiative as a way to smooth the launch and execution of liquidity programs. He noted that the partnership is designed to help chief executive officers and their boards approach these deals with greater confidence. Viswanathan described early liquidity as a mutually beneficial arrangement for employees, investors, and the company itself, emphasizing the strategic value of keeping key talent engaged.

The data indicates that tender offers are no longer exclusive to the most prominent private firms. While high-profile names like OpenAI, Databricks, and Anduril have long utilized these mechanisms, the practice is now spreading to a broader cohort of companies. For instance, NewView recently led a tender offer for Hightouch, a marketing customization startup. That transaction was conducted at a $1.3 billion valuation when the company was seven years old, demonstrating that mid-sized ventures can also facilitate meaningful liquidity events.

Despite the growth, tender offers remain a niche feature in the startup ecosystem. Research shows that only 44 such transactions were executed in the first half of 2026, a modest number relative to the total pool of eligible companies. Viswanathan views this as an opportunity to expand participation. He argues that these offers serve as potent retention tools and morale boosters, particularly as the traditional allure of reaching unicorn status diminishes in a crowded market.

Recent examples of this trend include Decagon, an AI customer support firm, and Wayve, a developer of self-driving technology. ElevenLabs, an AI voice generator, has also held two separate tender offers in less than a year. These cases illustrate a growing acceptance of secondary markets as a standard component of corporate finance for private companies.

Looking ahead, Viswanathan expects the timeline for public listings to remain extended. He noted that companies are now staying private for 12 to 15 years, a duration he believes is unlikely to change soon. To prevent a drain of talent from venture-backed firms to public market competitors, he stressed the need for consistent liquidity options. This approach ensures that employees can share in the value creation of the businesses they help build, even before a final exit.