Employee Secondary Tenders Rise in AI Startups: Clay, Linear, ElevenLabs Follow Trend

Private AI startups are shifting secondary tender offers from founder windfalls to employee-retention tools. In May 2026, Clay, a sales automation startup, enabled most employees to sell shares at a $1.5 billion valuation, up from $3.1 billion in August. Linear, a six-year-old Atlassian rival, completed a tender at $1.25 billion after its Series C; ElevenLabs authorized a $100 million staff sale at $6.6 billion, double its prior valuation. These employee-wide tenders aim to boost morale and retention amid heightened competition and rapid revenue growth, including Clay’s ARR tripling to $100 million in one year. While beneficial for employees, the trend may prolong private stays and reduce IPOs, creating challenges for venture investors and limited partners seeking cash returns.