EquityBee

Get the funding you need to exercise your stock options

#3 Product of the DayFebruary 11, 2020
EquityBee enables startup employees own their equity by providing capital to exercise their stock options. They become shareholders and benefit from the value they’ve created while working at the company, in return for a share in their potential future gains.
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26 Reviews5.0/5
Hi Startup Builders,   We know that when you leave the startup you worked for, you have an important, possibly life-changing, decision to make regarding exercising your stock options before they expire.  At this point, you have a limited amount of time to exercise your options, while potentially risking a significant amount of money. We don't want you to give up your hard-earned equity due to the hidden burdens of your ESOP such as, exercise cost and subsequent tax payments.  Our mission is to allow you and all startup builders to participate in the success of the company that you helped build, by providing you with a funding solution to own your equity without the out of pocket expenses.   How? When you decide to exercise your stock options, sign up on EquityBee’s private and secure platform and upload the relevant documents. Once verified and approved, the opportunity to fund the exercise cost of those stock options is offered anonymously to the entire EquityBee's Investor Community.  At this point, the Investor Community competes for the opportunity to participate in the funding. Once investors commit, EquityBee will wire the capital needed to exercise the options and cover potential taxes. Once the options are exercised, you officially become a shareholder. Upon a liquidation event, you and the investor who participated in the funding will share in the gains.
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@orenbarzilai given how many folks can't afford to exercise their stock despite working at companies for years this is clever, could you tell us more about how the investor that fronts the capital and the employee split the funds? And how does tax liability work? Thanks!
Thanks @abadesi Our solution cover the entire exercise cost, including strike and taxes. Upon a successful exit event the employee pays back the investment amount and a percentage of the proceeds. That percentage determined based on the demand of our Investor Community, for the specific company and the specific strike price.
Hi @orenbarzilai! I really loved the idea and it definitely fills a huge gap that exist in this industry! Really looking forward to it's application, branding is dope! Also, would love to feature it on my Instagram handle and business Podcast, which will expose it to masses here in India. Looking forward to your reply! Congratulations!
@porush_puri thanks! glad you like it.
@orenbarzilai how does this work if you (EquityBee) goes out of business? Liquidation events are normally years out, what happens if you're no longer around?
I wish this existed a few years ago when I left a job and couldn't afford exercising my options :( Ended up just letting go of them, as at the time the company didn't seem to have much future. Just to learn that a few years later the company was buying back stock from past employees.
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@arikfr We've witnessed and heard so many stories like yours among our friends and colleges and this is what gave us the inspiration to start the company. It's also such a great driving force inside our company, to help startup builders own what they've worked so hard to create.
@arikfr exactly! I wish it would have been around ....10 years ago. I would have been rich today!
Great product! This is really something a lot of people need. Good luck!
Thank you @reemsherman, we think so too :)
Exercising can be incredibly expensive. If only employees didn't need to buy equity in the first place. 🤔
Oh hey @rrhoover :) Indeed, It's so expensive that oftentimes employees just forgo on the opportunity to own the equity they helped create or stay in a company they wish to leave. A situation which is, unfortunately, known to many...
@rrhoover did you have any kind of non-standard setup with employee options @ PH? E.g. extending the 90-day exercise clause to something like 15 years? Seems like the current system is locking employees into staying at the company, even if they don't really want to be there.
I will recommend this tool to our Bizzabo employees ! They worked hard to earn the options and funding should be a roadblock to get them.
@katzboaz We're humbled to have a great company like Bizzabo support us, and would love to help.