ESO Fund currently manages $100 million of investor capital. Our founders have over 20 years of experience in venture capital, private equity, and operations at entrepreneurial companies.
We know the dilemma from firsthand experience: should you exercise your stock options, or should you let the options expire and invest in some other asset? The high failure rate of startups doesn't make the decision any easier, nor does the complexity of the Alternative Minimum Tax (AMT).
ESO Fund provides employees of select venture-backed companies with the cash needed to exercise their options. If the company goes under, ESO bears the risk and not the employee. At the same time, if the stock gains value, the employee still retains that upside.
In other words, you can have your cake and eat it too.
We know the dilemma from firsthand experience: should you exercise your stock options, or should you let the options expire and invest in some other asset? The high failure rate of startups doesn't make the decision any easier, nor does the complexity of the Alternative Minimum Tax (AMT).
ESO Fund provides employees of select venture-backed companies with the cash needed to exercise their options. If the company goes under, ESO bears the risk and not the employee. At the same time, if the stock gains value, the employee still retains that upside.
In other words, you can have your cake and eat it too.
For every private company that IPOs or gets acquired, many more are liquidated and the people who own common stock or exercised options can lose 100% of their investment.
If you partner with ESO, we'll cover the cost to exercise your options today. No payments are due unless there is a major liquidity event, such as a sale or IPO. If the stock becomes valueless, ESO takes the loss. |
The Alternative Minimum Tax (AMT) can impact you if the fair market value of your incentive stock options (ISOs) is higher than your exercise price.
Since the cost of exercising options can be quite high, a large tax bill just makes the process more burdensome and risky. ESO Fund helps you cover the potential tax bill and enables you to purchase your options. |
Does this sound familiar? You wait several years for your stock to vest and when it finally does, a delayed IPO or merger prevents you from hitting the road.
It takes seven years for the average company to IPO these days. During that time, it's tough to extract value from your frozen options. ESO Fund allows you to get your cash earlier while still retaining the potential for upside. |
Feel free to stop by and visit our offices in sunny San Mateo! 999 Baker Way Suite 400 San Mateo, CA 94404 (650) 262-6670 [email protected] |