Selling Pre-IPO Shares: How the Process Works and What to Expect

Two businesspeople in suits shaking hands across a marble table with a teal folder and pen in the foreground and a city skyline visible through the windows — Pre-IPO.

Selling pre-IPO shares involves navigating company restrictions, finding accredited buyers on secondary markets (like Forge, Secfi), getting company approval (often required due to Right of First Refusal), and understanding tax implications (capital gains vs. ordinary income), with most transactions happening privately before a potential public IPO and its post-listing lock-up period.