Silicon Valley sees a shift as startup employees cash out shares early, selling stock before IPOs amid AI boom and valuation spikes

AI Gold Rush Fuels Surge In Pre-IPO Stock Sales By Employees

Silicon Valley Sees Shift in Startup Culture

A major cultural shift is unfolding in Silicon Valley as employees at fast-growing AI and tech startups increasingly sell company stock before those companies go public.

Traditional Attitudes Shift Amid AI Boom and Valuation Spikes

Traditionally, workers held onto their equity until a company’s IPO (initial public offering) or acquisition, seeing early selling as a lack of belief in their employer’s long-term success.

Private valuations for AI-focused companies are soaring, leading to a shift in attitudes towards early selling.
Tender offers, structured opportunities for employees to sell private shares, are becoming more common.
Employees can convert "on-paper" wealth into real funds to finance major life events.

Notion and Other Startups Lead the Way

In January, Notion’s $270 million tender offer saw demand from participants exceed the amount available, especially from former employees.

Notion is not alone, with other startups like Stripe, OpenAI, Anthropic, Databricks, and SpaceX offering similar opportunities.
Carta, a financial services platform for startups, reported a roughly 60% increase in tender offers in 2025 compared with the prior year.

Impact on Employee Retention and Incentives

Advocates say these liquidity events help companies retain talent in a competitive market and satisfy investor appetite for exposure to high-valued private tech firms.

Critics, however, warn that early share sales could weaken long-term employee commitment and dilute incentives tied to waiting for an IPO.

Executives and founders stress that giving employees pathways to liquidity reflects a changing employment and compensation environment.

Long-Term Sustainability of Elevated Pay and Equity Practices

Some compensation analysts believe that elevated pay and equity practices at AI startups may not be sustainable indefinitely.

A "gold rush" mentality in early share selling could moderate over time, as companies face challenges in retaining talent and satisfying investor expectations.