EquityBee

EquityBee

Startups

The EquityBee Investor Community gets a share in potential future gains of leading private startup companies by providing startup builders the capital they need to exercise their stock options.

Investment risk

High

Min investment

$10,000

Target return

Varied

Fees

0%

Overview

The EquityBee Investor Community gets a share in potential future gains of leading private startup companies by providing startup builders the capital they need to exercise their stock options. Investors in the EquityBee Community compete for the opportunity to participate in funding these options. Upon an exit event, the startup employee and the investors who funded the options will share the gains.

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Why Invest

  • Invest in startups beyond their seed stage
  • Discounted prices based on valuations set in the past
  • Invest in companies that have raised money from top VCs and angel investors and are not looking to raise money from the crowd, or companies that aren’t even raising at all

How you make money

You make money through when an action event occurs, such as the company getting acquired or the company going public. You do not have control of when that happens, but you are provided discounted investments due to the shares being employee held. Since employees are asking for exercise cost funding for options that have already vested and since options take at least one year to vest, the investment is made a price that was set in the past (typically 1-5 years before the investment is made). If the company is growing, that means your entry point may be lower than the current price. Employee stock options are options for common shares, which are priced at a significant discount vs. preferred shares external investors typically buy.

How EquityBee makes money

Investors pay a 5% upfront fee of the price of your investment plus 5% carry on any profits they made in excess of their original investment amount.

Is it Safe?

EquityBee executes SOFAs (Simple Options Financing Agreements), which contain substantial risk and may result in the complete loss of capital to the investor. The SOFAs are speculative, illiquid, as they are not publicly traded and there is no secondary market. Securities offered through North Capital Private Securities Corporation, member FINRA/SIPC.

Things to know

  • You make money onValue
  • Fees0%
  • Payout frequencyAsset sold
  • Term of investment60+ months
  • LiquidityHard
  • Open toAccredited Only

Company

  • Country availabilityUS only
  • Assets under managementUnknown
  • Established2017
  • Mobile Application No

Investment Return Calculator

Calculate your estimated return to reach your investment goals.

$
%
years
$
Frequency
Monthly

Invested

$16,000

Projected fees

$0

Projected return

$6,296.39

Value after fees

$22,296.39

Any references to past performance, regarding financial markets or otherwise, do not indicate or guarantee future results.

Forward-looking statements, including without limitations investment outcomes and projections, are hypothetical and educational in nature. The results of any hypothetical projections can and may differ from actual investment results had the strategies been deployed in actual securities accounts.

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