Stock in venture backed private companies is generally illiquid.

The Importance of Option Liquidity | OptionsANIMAL

In other words, there is a limited market for the stock since it is not freely transferable or publicly traded. Owners of common stock in private companies such as founders, employees, consultants, and others who wanted to obtain cash for their stock have traditionally either had to wait for a company liquidity event for example, a sale or IPO of the company or sell employee stock options on the secondary market.

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The problem with waiting for a liquidity event is that for many private companies, there will never be a liquidity event because the company will fail. ESO can significantly mitigate these stock options liquidity by providing financing against the value of the stock. No payments are due unless and until there is a liquidity event involving the company that issued the shares, such as a sale or IPO.

At that time, the owner of the stock and ESO share work from home jobs in goodyear az upside of the liquidity event and ESO is repaid. An advance from ESO to provide liquidity on your existing stock allows owners of common stock in private companies to obtain immediate funds while retaining significant upside with minimal risk.

Monetize Your Private Company Stock Options.

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The ESO Fund does not provide legal, financial, or tax advice.