Millennials are harnessing the power of their pre-IPO equity

Millennials have been hit hard in their early adulthood years by not one but two financial crises — the Great Recession of 2008 and the economic downturn stemming from the COVID-19 pandemic.

These economic crises have impacted people’s progress in achieving major “life milestones” such as becoming a homeowner or contributing to college tuition, and many have been slower in reaching their financial goals than previous generations. 1

The National Bureau of Economic Research also reports that it can take 10 years to recover from a setback like a recession 2 – meaning many Millennials were likely just starting to feel financially comfortable, with major milestones in reach, when the pandemic and economic fallout hit last year.

Those in search of opportunities to bounce back are turning to equity. According to a Schwab Stock Plan Services’ survey on equity compensation, more than 81% of Millennials consider equity compensation to be important, and 79% said they were either extremely or very confident using equity compensation to reach their financial goals, compared to 65% among older generations. 3

Financial goals in reach

This understanding of the power of equity is now coupled with increasing demand for greater access to the private markets, which means equity holders (i.e. employees, shareholders and early investors) of private companies now have more opportunities to leverage their own equity to achieve financial objectives earlier – and to feed accredited investors’ appetite for private stock.

The secondary market allows equity holders to trade their shares to accredited investors for liquidity (or cash) before their company goes public. Millennials and others who might have a majority of their net worth tied to their company’s stock and/or are looking to diversify their holdings have new avenues via equity to regain financial wellness or reach new financial milestones.

Forge Markets provides a solution for employees and other shareholders looking to unlock liquidity. Those interested in selling a portion of their equity before their company goes public have a platform and a team at Forge behind them to support and guide the process.

Learn more here.



3 Entrepreneur

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