Getting started with Private Market Secondary Liquidity Engine

The Private Market Secondary Liquidity Engine manages the life of a secondary sale of private company stock: the transfer request, the company's transfer restrictions, the right of first refusal and co-sale notices, buyer eligibility, and settlement. It keeps the cap table in step with each completed transfer and records every notice, waiver and approval. The company and its counsel make the decisions; payment moves through the escrow or settlement agent you appoint, because Moraph does not hold funds or securities.

What it is for

Secondary sales of private company stock are usually run by email. A shareholder finds a buyer, the company's counsel checks the bylaws and stock agreements by hand, right of first refusal notices go out and come back as PDFs, and the cap table is updated in a spreadsheet or a separate system once someone remembers. Deadlines in the transfer agreements are tracked in calendars, buyer eligibility is checked inconsistently, and when the board or an auditor asks how a transfer was approved, the record is spread across inboxes.

• Transfer restrictions and ROFR terms are checked by hand for every request
• Notice periods and elections are tracked in email and calendars
• Buyer eligibility and holder-count limits are not checked consistently
• The cap table drifts from the transfers that actually settled

Who uses it

• General counsel and legal teams at venture-backed private companies
• Equity and stock plan administrators who keep the cap table
• CFOs who manage company liquidity programs and tender offers
• Investors and funds that hold rights of first refusal or co-sale rights
• Boards and auditors who need a record of every approved transfer

Before you start

• Your organization licenses Private Market Secondary Liquidity Engine from Moraph.
• A Moraph client account in that organization, signed in.
• Access to Private Market Secondary Liquidity Engine in Moraph Apps, given by an administrator in the Moraph Portal under People and access.
• For setup: the product administrator role.

Steps to get started

1. Sign in at app.moraph.com with your Moraph account.

2. Open Private Market Secondary Liquidity Engine from the launcher. The first time anyone opens it, its workspace is created from the default described in Workspace reference.

3. Check your role: what you can see and do depends on it. See Roles and permissions.

4. Product administrators: work through Set up Private Market Secondary Liquidity Engine before your team starts.

5. Everyone else: start with Everyday tasks.

Where to go next

• Set up Private Market Secondary Liquidity Engine
• Everyday tasks
• Connect your systems
• Security, data and compliance
• Troubleshooting and the support guide
• Product overview on moraph.com