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GLOSSARY

Liquidity event

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A liquidity event refers to a situation where an investor or company sells their ownership stake in a startup, converting their equity into cash.

What is a Liquidity Event?

A liquidity event occurs when investors or companies sell their ownership stake in a startup for cash.

Why It Matters

Liquidity events provide the opportunity for investors or founders to realize returns on their investment, enabling them to access cash.

Examples

  • Selling shares to a larger company
  • Initial Public Offering (IPO)

Related Concepts

Exit strategy, acquisition, IPO.

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