Liquidity Event
Noun · Startup & VC
Definitions
An event such as an IPO, acquisition, or significant secondary sale that allows shareholders to convert part of their paper ownership into cash. Liquidity events are central milestones in venture-backed company life cycles.
In plain English: A major event that lets shareholders sell and realize cash from their ownership.
Example: "Most of the team had never seen a real liquidity event before the acquisition offer arrived."