DEFINITION of 'Liquidity Event'
https:// www.investopedia.com/terms/l/liquidity_event.asp
A liquidity event is an event that allows founders and early investors in a company to cash out some or all of their ownership shares. The liquidity event is considered an exit strategy for an illiquid investment - that is, for equity that has little or no market to trade on. Founders of a firm, naturally, drive toward a liquidity event and its investors along the way - venture capital firms, angel investors or private equity firms - hope for or expect one within a reasonable amount of time after initially making an investment.