Variable prepaid forward

Also called: VPF, prepaid variable forward

In one line

A structure that pays you cash now against shares you'll deliver later, with the final number of shares varying by price.

In plain English

A VPF advances you money today in exchange for delivering a variable number of shares at a future date, letting large holders get liquidity and hedge while deferring an outright sale.

If you were explaining it to a 5-year-old

A buyer pays you coins now; later you hand over some toys — how many depends on what they're worth then.

Why it matters when you sell

VPFs are a way large holders raise cash against locked shares, but they're complex and best entered with advice.

Put it to use

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Sources

Primary references for this term: US SEC / Investor.gov, IRS (US tax). Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.

Variable prepaid forward

Related terms

Put it to use