Hello World… Hello EquityBee

Hello World

Startups are exciting. They’re fun, disruptive and, in some cases, they create a significant amount of value. That propels economic growth, helps our communities and improves our quality of life. Startups (and other new small businesses) are the backbone of our economy. But startups are also hard. Getting involved in them as entrepreneurs or employees can carry a high degree of risk. Those who choose to participate in the journey and invest their valuable time in these early-stage companies should be rewarded properly when value is created.

The main currency that startups use to reward their employees is in the form of stock and stock options. For various reasons, which we will review in later posts, the mechanism of using this currency is broken. As employees are not getting most of the value, they were promised and worked so hard to create. Making things even worse, one could argue that this value-loss problem makes it difficult for startups to attract the best talent, therefore reducing their chances of success and hurting the value of their stock even more, adding further to the loss of value.

This is a problem. One that we’ve experienced first-hand and have witnessed for years as we’ve built early-stage companies or worked for them.

Hello EquityBee

EquityBee’s mission is to fix this problem. We’re here to give all early-stage private company employees the opportunity to unlock and realize the value they worked so hard to create. By leveraging technology and capitalizing on the fact that people are finally comfortable transacting financially online, EquityBee aims to remove friction from the compensation world, help startup companies reward employees better, and provide them with the financial tools to compete with big corps to increase their chances to succeed. We think it’s only fair and it’s the right thing to do.

We are starting from the people who are building these companies – their employees. If your options are vested and you are overwhelmed with the high cost of exercising them, if your options are about to expire and you don’t want to lose them, or if you just want to learn more about stock options and all the complexities around them, EquityBee is here to help.

 

The EquityBee Team

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EquityBee helps employees get the money they need to exercise their stock options by connecting them to investors who want to invest in their companies. We do this by executing SOFAs (Simple Options Financing Agreements). Entering into this agreement with an investor will allow him or her a percentage claim to a liquidation event, with no guarantee of such an event, and is subject to the terms of your company options agreement. Securities offered through North Capital Private Securities Corporation, member FINRA/SIPC.