Liquidity

Definitions

1. The ability to turn ownership, assets, or investments into cash without major friction or delay. In startup life, liquidity usually refers to whether employees and investors can actually sell or realize value from shares.

   In plain English: How easily ownership or assets can be turned into cash.

   Example: "The secondary sale created long-awaited liquidity for early employees."

Related Terms

• Burn Rate
• Compound Growth
• Cost Center
• Dead Cat Bounce
• Equity
• Escrow
• Future Valuation
• Liquidity Event
• Primary Market