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Those employees never got a chance to sell. They don't have annual tenders, and the investors have no opportunity to exit either. The SaaS companies that did go public in 2021 mostly struggled: their stocks traded at 30 times revenue then and trade at six times now, even after quadrupling in size.
AI natives, with their growth rates, have sucked all the oxygen and interest out of the room, and the window for these companies was missed. They are not all going away, and they are not all getting vibe coded.
Why can't employees at private companies sell?
Private shares have no public market, so selling requires a buyer and usually the company's approval. Employees typically hold stock options that must be exercised with their own money. Companies sometimes run tender offers to let employees sell. Options often expire 90 days after someone leaves the company.
How does a tender offer work?
In a tender offer, the company or an outside investor offers to buy a set number of shares from holders at a fixed price, within a set window. Employees and early investors can choose whether to sell. It gives liquidity without an IPO. Tender offers for startup employees became more common as companies stayed private longer.
How do software companies usually exit?
Exits come through an IPO, a sale to a larger company, or a private equity buyout. All three depend on the market: IPO windows open and close with investor appetite, and buyers pay prices that follow public valuations. Private equity firms such as Thoma Bravo have bought many software companies in take-private deals. Vista Equity Partners is another firm known for software buyouts.
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