EquityBee

EquityBee

Startups

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.

Highlights

0 - 1,000%

Asset Class Return1Y

#23 Rank

In Startups30d

avatars

Invest from

$10K

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.

Things to Know

  • You make money on

    Value

  • Fees

    0%

  • Min Investment

    $10,000

  • Payout frequency

    Asset sold

  • Term of investment

    60+ months

  • Target Return

    Varied

  • Liquidity

    Hard

  • Open to

    Accredited Only

  • Mobile Application

    No

Top Perks

  • 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.

  • Established

    2017

  • Country Available

    US Only

  • Assets Managed

    n/a

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