How Much Does Equitybee Take

Tired of high fees and hidden costs when exercising stock options? Learn about Equitybee's low fees for employees and accredited investors.

Fees are one of the first things to consider when you want to buy stock options or invest in pre-IPO companies. Luckily, Equitybee is one of the platforms that charge low fees, for both employees and investors.

Over 2,000 startup employees have used Equitybee to become shareholders. It has also helped investors and employees make money when companies have been sold or gone public.

In this article, you will learn more about Equitybee's fees and how to start investing with them.

Equitybee Costs for Investors

Fees charged by Equitybee:^[1]

• 5% Upfront platform fee
  Equitybee charges a 5% upfront platform fee on all investments. This fee is deducted from the amount of money that the investor invests.

• 5% Carry fee
  Equitybee also charges a 5% carry fee on all successful liquidity events. This means that if the startup is acquired or goes public, the investor will owe Equitybee 5% of the profits from the sale.

Invest in High-Growth Startups

Equitybee gives accredited investors access to high-growth, VC-backed startups. By funding employee stock options, accredited investors can gain investment exposure to private companies at past valuations. In exchange for funding the options, you will receive a percentage of future proceeds from any successful liquidity events. Subject to availability. Investments involve risk; Equitybee Securities, member FINRA

Click Here to Get Access

Equitybee Costs for Employees

Equitybee only requires a 5% commission fee if you make a profit from your shares. No profit, no fee.^[1]

Other fees may be paid between you and the investor, depending on the terms of the offer you receive. Some of the other fees include:

• An interest rate of 1% or more on the amount borrowed from the investor
  
• A portion of the eventual proceeds from the sale of your shares

Get Cash From Your Stock Options Now

• Get funding to exercise your options & own your shares without paying out of pocket.
• Secure a cash incentive now, instead of waiting for an exit.
• Earn additional profits upon a successful exit event.

Click Here to Get Funding

Now, let's look at other factors to consider, such as how it works, the risks, and other alternatives. We'll start with investors, then employees.

What are the risks of Equitybee?

Here are some of Equitybee's risks for Employees:

• Funding is not guaranteed
  Investors will decide how much money to give you based on their interest in your company.

• High fees from investors
  Investors gain a significant portion of the profits.

Here are some of Equitybee's risks for Investors:

• You do not own the shares
  When you invest in Equitybee, you are not buying the shares directly. Instead, you are investing in a contract with the employee.

• No reimbursement of investment if the company closes or goes bankrupt
  If the company goes bankrupt, you will not get your money back.

• The employee may breach your contract
  There is a chance that the employee may not repay you or give you your share of the profits.

How Does Equitybee work for Investors?

Equitybee is a platform that connects employees with investors who are willing to fund their stock options. In return, employees must repay the investors with a predetermined percentage of the stock value, plus interest, after a successful liquidity event. This amount is specified in the Private Financing Contract (PFC).^[2]

Equitybee creates a special purpose vehicle (Fund) for each investment to hold the PFC as the underlying security. Investors purchase a membership interest in the Fund to gain access to the investment.

How to Open an Equitybee Account

Start investing with Equitybee through these simple steps:

1. Create an account
   
2. Select Investment Opportunites with the help of your Investor Relations Manager
   
3. Sign the funding agreement
   
4. Wire your investment to the paying agent
   
5. Sign the contract

Invest in High-Growth Startups

• Access Hundreds of Startups at Past Valuations
• Diversify Your Portfolio with High Growth Startups
• Invest in a Previously Inaccessible Asset Class

Subject to availability. Investments involve risk; Equitybee Securities, member FINRA

Click Here to Get Access

How Equitybee Works for Employees

Equitybee is a platform that helps employees exercise their stock options and get cash without selling their shares.

This is done by connecting employees to accredited investors who are willing to give them money to exercise their options. In return, the employees give the investors a share of their future profits from the shares.

Here are some important points to remember:

• Employees can choose to buy all of their stock options or just some of them.
  
• Investors will decide how much money to give to each employee based on their interest in the company.
  
• Employees must repay the investors with interest and give them a share of the profits when the company successfully exits.

How to Open an Equitybee Account for Employees

Here's a quick guide to using Equitybee to exercise your options:

1. Create an account
   
2. Submit your funding request
   
3. Sign the contract

Get Cash From Your Stock Options Now

• Get funding to exercise your options & own your shares without paying out of pocket.
• Secure a cash incentive now, instead of waiting for an exit.
• Earn additional profits upon a successful exit event.

Click Here to Get Funding

Once you receive funding, you must prove that you have exercised your options. You will also be required to provide updates on any relevant information about your shares, such as IPOs, acquisitions, or other exits at your company.

Is Equitybee a good idea?

Whether Equitybee is a good deal for investors and employees depends on your personal situation and how much risk you're comfortable with.

If you're an employee, Equitybee can be a good way to exercise your stock options even if you don't have the cash upfront. But you'll need to share some of the future profits with the investors who funded you.

If you're an investor, Equitybee is a risky investment. You don't own the shares you fund, and there's no guarantee that the company will go public. You could lose all of your money. But if you're willing to take on the risk, Equitybee can be a good opportunity to invest in a company before it goes public.

If you still aren't sure if Equitybee will suit your needs, you can also check out alternatives like EquityZen and MicroVentures.

Equitybee Alternatives

Equitybee is one of several platforms that offer funding for stock options. Other popular platforms include:

1. EquityZen
   EquityZen is a platform that connects accredited investors with people who want to sell their shares in private companies. Its platform fee is 3% to 5% of the investment amount and the carry fee is 10% to 15% of the profits. The minimum investment is $10,000. ^[4]

2. MicroVentures
   MicroVentures Marketplace is an equity crowdfunding platform that helps private companies raise capital from accredited and non-accredited investors. It charges 0.50% of the investment amount per year for the platform fee, and the carry fee is 10% of the profits. You can check other fees in their website.^[5]

   It also requires a $10,000 minimum investment for secondary, late-stage companies.

   MicroVentures Marketplace is also a registered broker-dealer, so you can be confident that your investments are safe and secure.

Bottom Line

Equitybee charges a 5% platform fee and a 5% carry fee on any profits made from the investment. These fees are lower than those charged by some other platforms, making Equitybee a more affordable option for employees and investors.

However, the best platform for you will depend on your individual needs and circumstances. It is important to do your own research and consult with a financial advisor to get personalized advice.

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