The length of time it takes for a company to go public contributes to the thriving and prolific secondary market. A venture capitalist might want to liquidate shares ahead of forming a new fund or making a new investment. Ex-employees may want to liquidate their shares ahead of an IPO to make a major purchase like a house or even to move to a new location.

Whatever the reason they want to sell, this is an opportunity for secondary investors to get in on the ground floor at rates they may not find once the company’s IPO takes place.