Status
Public (IPO)
Public companies have completed an Initial Public Offering (IPO), direct listing, or SPAC merger to list their shares on a public stock exchange. For angel investors, this is often the most lucrative exit path, providing full liquidity and the ability to sell shares on the open market. However, lock-up periods typically prevent immediate selling for 90-180 days post-IPO.
Criteria
- Shares listed on a public stock exchange (NYSE, NASDAQ, etc.)
- Completed IPO, direct listing, or SPAC merger
- Subject to SEC reporting requirements
- Shares are freely tradeable (after lock-up)
Implications for Investors
- Full liquidity available after lock-up period
- Real-time market pricing
- Subject to public market volatility
- Ongoing tax planning for share sales
Market Distribution
Value Distribution
- $100M-$500M1
Frequently Asked Questions
What happens to my angel shares when a company goes public?
Your preferred shares typically convert to common stock at the IPO. You'll be subject to a lock-up period (usually 90-180 days) before you can sell. Your shares will be held in a brokerage account.
How much do angel investors typically make on an IPO?
Returns vary enormously. Early angel investors in companies like Uber, Airbnb, or Coinbase saw 1,000x+ returns. More typical IPO returns for angel investors range from 10-100x depending on entry price and IPO price.
Should I sell immediately after the lock-up expires?
This depends on your conviction in the company's public market trajectory, your portfolio concentration, and tax considerations. Many investors sell a portion to de-risk while holding the rest for potential appreciation.
