Does this sound familiar?
You’ve worked for years to vest your stock, but the IPO is delayed. A dream job comes along but you can’t afford to exercise.
In many cases employees must exercise their stock options within 90 days of leaving the company (for Incentive StockOptions (ISOs) this is a mandatory deadline). This puts people in a tough spot when deciding to make a career change, retire, or if they get laid off. Many employees won’t be able to afford to lock up the large sum of money required to exercise their options especially since the average time it takes a startup to exit is 9 years. On top of that there may be hefty taxes associated with the exercise, especially if the company has grown substantially during their tenure. Even if an employee has the money to exercise, the question remains “Should I exercise my options?”, “Do I have confidence that this company will exit?”, "Is this the best use of my hard-earned savings?". Knowing that the shares may become worthless makes this a stressful decision, and the 90-day deadline doesn’t make it any easier.
ESO Fund can offer you the cash necessary to cover the exercise as well as any associated taxes (whether Alternative Minimum Tax (AMT) or Non-Qualified Stock Option (NSO) withholding tax). We can even throw in additional liquidity to help you fund life events such as putting the kids through college, paying medical bills, or purchasing your dream home.
Whether your options expire this week or next year, we've got you covered. Our process is simple and efficient, so we can get back to you with a decision and fund your exercise in as little as 24 hours.
Don’t let your options expire worthless or stress out by tying up your cash for years. The ESO Fund allows you to retain the upside of your equity while keep your cash free for other needs.