#17 - Get Cash Without Selling Startup Equity
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Selling your startup equity used to be the only option for startup employees to get cash prior to IPO. But as the number of unicorns has ballooned and startups stay private for longer, a new option has emerged.
Startup employees can finance their options.
An ecosystem of lenders stands ready to lend employees money to exercise their options, take ownership of their equity, and pay the associated taxes. No money is owed until the startup goes public or is acquired.
We discuss the tax treatment of options, the tradeoffs of financing, selling, or waiting, and the growing number of lenders employees can engage.
Shoutouts to EquityBee, ESO Fund, Liquid Stock, Quid, Secfi, and Section Capital for helping employees keep their equity!
Check out this week's letter for the full story. Follow @FatTailThoughts on Twitter and your co-hosts @KleeBeard and @StevenDickens3 for more content.
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