Article
When can I sell my shares after going public?
Legally, a founder can sell under SEC Rule 144 once the holding period has passed, in limited amounts each quarter. In practice, we advise founders not to sell for the first several years. Early on you'd be selling into little or no liquidity, and you'd be telling investors, employees and acquisition targets that you don't believe in the upside.
Joel Arberman, Meraki Partners · Reviewed October 2026. Based on 17 companies taken public since 1999: 11 by direct listing, 4 by reverse merger and 2 by IPO.
What does Rule 144 allow?
Once a company has been reporting to the SEC for at least 90 days, restricted shares can generally be sold after a six-month holding period. Founders and other affiliates are also limited to 1% of the shares outstanding in any three months, must sell in ordinary brokerage transactions, and file a Form 144 for larger sales. Shares of a company that was a shell, such as after a reverse merger, can't be resold under Rule 144 until a year after the company files its full public information.
Why shouldn't a founder sell early?
Because the market reads it as a signal. Why would investors buy, employees take shares, or a seller accept stock in an acquisition if the founder is selling? Alignment is one of the most valuable things a founder has. Stay aligned.
When does selling make sense?
When there is real liquidity and traction, usually a couple of years in and going well. Even then, sell gradually. Think about it the way you would in a private company: you probably wouldn't be selling shares for five to ten years.
What if I need cash?
Pay yourself a fair salary through the company, and at the right time look at borrowing against your shares; lending facilities exist for that. Selling stock should not be a near-term reason to go public.
What is a 10b5-1 plan?
A written plan, adopted when you have no inside information, that schedules future sales. It protects officers and directors from insider-trading claims. Officers and directors must wait a cooling-off period of at least 90 days before the first sale.
Related questions
Want to talk it through?
Tell us where you are, and we’ll set up a first conversation about whether going public belongs in your plan and what it would take. If it isn’t right for you, we’ll say so.