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 people 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 hefty taxes involved. 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?”. 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 like putting the kids through college, medical bills, or purchasing your dream home.
Even if your options expire this week, we’ve got you covered. Our process is simple and efficient, so we can get back to you with a decision as quickly as necessary.
Here’s how our process works:
1. Intro Call
• Introduce yourself and your situation, and feel free to ask as many questions about ESO as you would like.
2. Get a personalized offer
• We will conduct due diligence and get back to you with our decision.
• Once we extend an offer and the terms are accepted, we run a simple credit check and then we can close. If you are local to the Bay Area, join us in our wonderful San Mateo office. If not, no worries! We can close remotely via Zoom or Google Hangouts.
It’s that easy.
Don’t let your options expire worthlessly or stress out by tying up your cash for years. The ESO Fund allows you to capture upside and keep your cash free for other needs.