Skip to content
Subscriber Only

As Bubble Deflates, Startup Investors Are Trying to Cash Out

  • Company founders try to limit share sales by insiders
  • A cottage industry has emerged to faciliate such transactions
Employees work at a start up office.

Employees work at a start up office.

Photographer: alvarez/Getty Images/Vetta

Paul Martino has an unusual strategy for a venture capitalist: He cashes out early, offloading as much as much as 30 percent of his stakes in startups for the right price.

The founder of Bullpen Capital, who booked a gain of more than 5,000 percent on one of his original investments, acknowledges that tech investors have typically held off selling until a startup went public or was bought by a rival.