Startup Employee Stock Sales Set to Surge With IPOs Uncertain

Last year, startup employees and early investors sold billions of their shares to other investors in private transactions—more than the amount raised by tech public offerings. With the public markets choppy, keeping initial public offerings at a minimum, that dynamic is expected to repeat this year.

Defense startup Anduril, which arranged for investors to buy around $100 million in shares from employees at the beginning of this year, plans to hold another such sale after it finishes a funding round at a $30.5 billion valuation, including the investment, according to a person with direct knowledge of the matter. Glean has also discussed including an employee share sale in a round that’s valuing the enterprise search startup at $7 billion.