NewView and Carta Target Employee Stock Liquidity Crisis

Startup employees are increasingly stuck holding equity that offers no immediate cash value. As private companies remain off the public market for extended periods, staff members paid in stock face a growing gap between their compensation and their ability to access that wealth. To address this tension, NewView and Carta have joined forces to simplify the process for companies allowing staff to sell a portion of their shares before a public listing or acquisition.

The core of this effort relies on tender offers. In these transactions, employees and some early investors can sell part of their holdings at a fixed price to a vetted buyer. Late-stage startups are increasingly adopting this method as the wait for an exit stretches on. The collaboration merges NewView's experience in structuring secondary deals with Carta's equity management platform. Ravi Viswanathan, founder and managing partner of NewView, described the initiative as a smoother path for startups to launch liquidity programs. He stated, "The hope is that this partnership will make it easier for CEOs and companies to think about tenders." Viswanathan encouraged founders to view early liquidity as a "win-win-win" for employees, companies, and investors.

Data from a recent study by NewView Capital and Carta indicates this practice is expanding rapidly. Over the past three years, tender offers among Series C and later-stage startups are projected to have grown threefold. Viswanathan noted that these offerings are no longer limited to the most valuable private firms. He cited examples such as OpenAI, Databricks, and Anduril, but emphasized that the trend is broadening. As a specific case, he pointed to Hightouch, a marketing customization startup. Last year, NewView led a tender for the seven-year-old company at a $1.3 billion valuation.

Despite this growth, the practice remains far from universal. The same research found that only 44 tender offers were executed in the first half of 2026. This represents a small share of eligible startups. Viswanathan aims to widen that group, arguing that tenders serve as strong retention tools and morale boosters for teams. He observed that the standard recruiting pitch has lost some of its force. A decade ago, reaching unicorn status was enough to attract talent. Today, the sheer number of billion-dollar companies means the label carries less weight. Viswanathan said a tender "is an opportunity to say you will also get liquidity in your journey with us."

Recent companies to hold tender offers include Decagon, an AI customer support startup. Wayve, which develops self-driving technology, has also participated. ElevenLabs, an AI voice generator, carried out two such offerings in under a year. These examples highlight the variety of sectors now utilizing secondary markets to provide employee liquidity.

Viswanathan does not expect the long private timelines to reverse soon. He stated, "The companies are staying private for 12 to 15 years. That's not changing." To prevent a talent drain from high-quality venture-backed companies to their public counterparts, he added, "we need to make sure that there is liquidity for the employees." The partnership positions itself as a structural solution to this enduring challenge.

The move reflects a broader shift in how startup leaders think about compensation and retention. By integrating NewView's deal structuring with Carta's platform, the companies hope to remove friction from the tender offer process. This could make it more routine for mid-stage and late-stage firms to offer liquidity events. For working families and employees relying on equity for long-term financial health, these changes could mean a more predictable path to cashing out.

The next steps involve rolling out the integrated tools to participating companies. As more startups adopt tender offers, the market for secondary shares may become more active. This development could influence how founders recruit and retain top talent in an increasingly competitive landscape. The partnership signals a clear intent to make employee share sales easier and more accessible for startups.